Consumer complaint received 2019-07-29
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Mr. Cooper Group Inc. (FL)

XXXX XXXX XXXX XXXX XXXX, TX XXXX OUR INFO ONLINE www.mrcooper.com XXXX XXXX Division of Consumer Finance XXXX XXXX XXXX XXXX XXXX, FL XXXX XX/XX/XXXX ACCOUNT INFO LOAN NUMBER : XXXX CFPB Case Number : XXXX CASE NUMBER : XXXX and XXXX REFERENCE : XXXX   PROPERTY ADDRESS : XXXX XXXX XXXX XXXX XXXX, FL XXXX MORTGAGORS : XXXX XXXX XXXX XXXX Dear XXXX XXXX : Thank you for reaching out to us. We are looking forward to helping you.

We received your correspondence on XX/XX/XXXX, as well as duplicate correspondence from Mrs. XXXX XXXX submitted to us through the Consumer Financial Protection Bureau ( CFPB ) Portal on XX/XX/XXXX We have put together this reply with information that we hope will alleviate Mrs. XXXX  concerns. We looked into the concerns she expressed and after an investigation, were sharing with you what we found.

We are sorry to hear of Mr. XXXX recent illness as well as the accident suffered by Mrs. XXXX sister. On XX/XX/XXXX, we spoke with Mrs. XXXX  regarding the above-referenced loan as the loan was past due for the XX/XX/XXXX monthly mortgage payment. Mrs. XXXX indicated that she had been approved for the Hardest Hit Fund ( HHF ) Program and therefore, made a promise to submit the reinstatement amount of {$21000.00} to reinstate the account. It is important to note that the HHF Agreement very specifically states that the state agreed to send in 12 monthly mortgage installments or {$24000.00}, whichever comes first. The first of the 12 installments was received by Mr. Cooper on XX/XX/XXXX ; the last installment was received on XX/XX/XXXX. The state remitted funds totaling {$18000.00} on XX/XX/XXXX, which was not the full reinstatement amount as Mrs. XXXX stated it would be. Subsequently, we received installments each month in XX/XX/XXXX ; however, the Mr. Cooper is a brand name for Nationstar Mortgage LLC. Nationstar Mortgage LLC is doing business as Nationstar Mortgage LLC d/b/a Mr. Cooper. Mr. Cooper is a registered service mark of Nationstar Mortgage LLC. All rights reserved.

Please be advised this communication is sent for informational purposes only and is not intended as an attempt to collect, assess, or recover a claim against, or demand payment from, any individual protected by the U.S. Bankruptcy Code. If this account has been discharged in a bankruptcy proceeding, be advised this communication is for informational purposes only and not an attempt to collect a debt against you ; however, the servicer/lender reserves the right to exercise the legal rights only against the property securing the loan obligation, including the right to foreclose its lien under appropriate circumstances. Nothing in this communication shall be construed as an attempt to collect against the borrower personally or an attempt to revive personal liability.

If you are a successor in interest ( received the property from a relative through death, devise, or divorce, and you are not a borrower on the loan ) that has not assumed, or otherwise become obligated on the debt, this communication is for informational purposes only and is not an attempt to collect a debt from you personally.

account remained 30 days delinquent as the loan was never completely brought current initially. The monthly installments totaled {$22000.00} which is less than {$24000.00} ; we have confirmed that all the funds have been applied to the loan correctly as follows : Hardest Hit Funds ( HHF ) Installment Due Date Total HHF Received Installment Received Date Installment Funds Applied To XX/XX/XXXX {$18000.00} XX/XX/XXXX Reinstatement Amount XX/XX/XXXX {$1600.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1600.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1600.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1600.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1600.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1000.00} XX/XX/XXXX Held In Suspense XX/XX/XXXX {$1900.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1900.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1900.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1900.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1900.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1900.00} XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX {$1900.00} XX/XX/XXXX XX/XX/XXXX Furthermore, Mrs. XXXX expressed concern regarding unapplied funds on the account ; please note, there were previous unapplied funds in the amount of {$1400.00} which were being held in suspense ( unapplied funds account ) as the funds did not represent enough to complete a full monthly installment. These funds were disbursed to Mrs. XXXX  attention on XX/XX/XXXX. Currently, there is a suspense balance of {$340.00} on the account.

As indicated in the enclosed correspondence dated XX/XX/XXXX, we thoroughly reviewed the account and the previous responses that were sent to Mrs. XXXX attention and found that we provided her with erroneous information in our correspondence dated XX/XX/XXXX ( enclosed ). We incorrectly informed Mrs. XXXX that the State of Florida disbursed {$31000.00}. The correct amount that was disbursed to us on Mrs. XXXX behalf from the State of Florida was a total of {$40000.00}. We have since apologized to Mrs. XXXX for this incorrect information in our correspondence dated XX/XX/XXXX, and confirmed that the correct funds and correct amounts have all been applied to her loan correctly.

Mrs. XXXX expressed concern regarding the interest rate. She believes that the interest rate should be at 4.000 %. Please note, we have reviewed the loan further and found that the above-referenced loan has been previously modified under the Home Affordable Modification Program ( HAMP ) in XX/XX/XXXX, which permanently amended the Original Note. As per the HAMP payment schedule, the interest rate was scheduled to adjust to 4.000 % effective XX/XX/XXXX. However, due to the loan being on a Temporary Loan Modification at the time that this interest rate change was supposed to take place, the change did not take effect until the temporary modification expired. Please be advised, 4.875 % is the interest rate cap per the HAMP Modification Agreement ( enclosed ). Additionally, per page 2 section 2 of the Temporary Modification Agreement, the Principal and Interest ( P & I ) that Mr. and Mrs. XXXX  will pay after the Rate Reduction Period may change in accordance with the terms of the original Note or terms of an active modification to the original Note. We have enclosed a copy of the Temporary Modification Agreement for your review.

Please note, the loan was most recently reviewed for a Flex Modification on XX/XX/XXXX. On XX/XX/XXXX, the loan was denied for the Flex Loan Modification due to insufficient monthly installment reduction. This means we were unable to reduce the P & I installment by even one dollar. Please note, the requirement for this loan modification is that we reduce the monthly P & I installment, even if it is only by a dollar. Unfortunately, we were unable to accomplish this. We understand that Mrs. XXXX  would like for us to explore alternative ways to reduce the monthly mortgage payment such as extending the terms of the loan ; however, we do not set the modification guidelines and must follow the guidelines that are set forth by the investor of the loan. We have enclosed a copy of the Loss Mitigation Evaluation Notice dated XX/XX/XXXX for your review. Please note, if Mr. and Mrs. XXXX  wish to retain the property, they may reinstate the loan as we were unable to approve the loan for the Flex Modification. Due to the Chapter XXXX  Bankruptcy on the loan, please have Mrs. XXXX  contact our Bankruptcy Department at the telephone number listed below to obtain a current Reinstatement Quote. If Mr. and Mrs. XXXX are unable to reinstate the loan, they may also consider non-retention options such as a short sale or deed in lieu. Please find a description of the non-retention options below : Short Sale this option permits the borrowers to sell the home for less than the balance remaining on the mortgage loan. Depending upon applicable law and investor requirements, a borrower may or may not be required to pay funds to reduce the difference between the amount owed and the approved purchase price.

Deed-In-Lieu this option permits the borrowers to voluntarily transfer the property to the owner of the mortgage to satisfy the debt. Depending upon applicable law and investor requirements, the borrower may be required to pay funds to reduce the difference between the amount owed on the loan and value of the property being transferred.

During our investigation, we were able to identify the error on XX/XX/XXXX. The error discovered was the amount provided to Mrs. XXXX  of {$31000.00}, which we stated was the amount disbursed by the state of Florida in our correspondence dated XX/XX/XXXX. We have since provided Mrs. XXXX  with the correct amount disbursed by the state of Florida. Further, we sincerely apologize for any inconvenience and frustration this may have caused. We hope this letter is helpful in resolving the complaint.

Hardest Hit Funds Agreement HAMP Modification Agreement Temporary Modification Agreement Correspondence dated XX/XX/XXXX and five ( 5 ) Enclosures Correspondence dated XX/XX/XXXX and four ( 4 ) Enclosures Loss Mitigation Evaluation Notice dated XX/XX/XXXX If Mrs. XXXX should have any questions, she can reach the Single Point of Contact ( SPOC ) at : Single Point of Contact ( SPOC ) XXXX XXXX Phone Number : XXXX For general questions, please have Mrs. XXXX reach out to our Bankruptcy Department at XXXX. Our hours of operation are Monday through Friday from 8 a.m. to 5 p.m ( CT ). Visit us on the web at www.mrcooper.com for more information.

I hope this information is helpful and addresses your concerns. If you have any specific questions about the information I have provided, please contact me directly, using the information below.

Sincerely, XXXX XXXX Mr. Cooper Customer Relations Specialist XXXX XXXX XXXX XXXX, TX XXXX Phone : XXXX Fax : XXXX E-mail : XXXX   Enclosures 15 By E-mail XXXX and CFPB Portal cc : XXXX XXXX and XXXX XXXX XXXX Are you experiencing a financial hardship? Our local non-profit partners can help with financial counseling and other services. Please visit these websites for assistance : Hud.gov XXXX