Consumer complaint received 2015-11-27
Product: Mortgage — Home equity loan or line of credit
Issue: Settlement process and costs — 
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC (TX)

My complaint is against : ( XXXX ) XXXX whose principal office is located at XXXX, XXXX, XXXX, Minnesota XXXX ; and ( XXXX ) Rushmore Loan Management Services, LLC whose principal office is located at XXXX XXXX XXXX XXXX, XXXX, XXXX XXXX, CA XXXX. 

On XX/XX/XXXX, I purchased a a residential home at XXXX XXXX XXXX XXXX, XXXX, Texas ( " Residence '' ) and signed a " Home Equity Adjustable Rate Note '' with XXXX XXXX Mortgage Corporation ( " XXXX XXXX '' ) to fund the sale. XXXX should have placed us in a conventional loan but put us in a home equity loan to illegally get higher fees. Additionally, XXXX refused to provide an accounting after we discovered its fraud. I made several inquiries about the accounting irregularities on this account but never received the full accounting from XXXX, which filed for bankruptcy protection on XX/XX/XXXX. 

After filing bankruptcy, XXXX XXXX sold my note to XXXX XXXX, which also failed to provide any accounting whatsoever, and it declared bankruptcy in late XX/XX/XXXX. After XXXX XXXX filed for bankruptcy protection, I received several letters from different lender/servicers claiming to be the successors-in-interest to XXXX XXXX, including XXXX XXXX, XXXX, XXXX XXXX XXXX, XXXX, XXXX Bank XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX , XXXX, and XXXX XXXX XXXX, XXXX. 

At this point, I was unsure which lender was the legal successor-in-interest and demanded that these companies provide me with ( XXXX ) an adequate RESPA accounting ; and ( XXXX ) proof that it was the legal successor-in-interest to the Note. No company provided either the accounting or proof of legal succession, so I had no idea who to pay. When investigating the legal succession, I discovered that my note was run through the MERS transfer transaction system and that my note was illegal assigned between XXXX XXXX and XXXX XXXX. 

I filed suit against the alleged legal successor to XXXX XXXX XXXX, XXXX, called " XXXX, not in its individual capacity, but solely as trustee for XXXX XXXX, XXXX XXXX '' ( " XXXX XXXX '' ) and settled this case for {$300000.00} even though it provided no proof that it was the legal successor to XXXX XXXX and/or any of the alleged predecessors in title, nor any accounting. 

I attempted to fund the settlement agreement by refinancing the home but discovered banking underwriters would not refinance the note despite my excellent credit, good income, and good equity in the home. The reason the underwriters would not refinance the note was because XXXX originated the note as an illegal home equity loan, rather than a conventional loan. The underwriters explained that since I did not own the home, the home equity loan was illegal and therefore potentially void. As such, a successor home equity loan would also be potentially void as well. Thus, no underwriter would refinance the loan. 

Despite not being able to refinance the note, I was able to raise the money in cash and placed the full amount in escrow to fund the settlement. I gave XXXX XXXX proof of funds, but it refused to take my money and instead foreclosed on the property which was worth about {$650000.00} - {$700000.00}. I was forced to move out of my home and now seeking assistance from the CFBP to recover the home. 

I am filing this separate complaint against the servicer, Rushmore Loan Management Services, LLC ( and XXXX XXXX ) since they signed and breached the settlement agreement.