Consumer complaint received 2024-07-03
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Paying off the loan
Company: CMG MORTGAGE, INC (MO)

On XX/XX/XXXX we entered our FHA mortgage into XXXX XXXX, at that time per their partial claims paperwork our principal balance was {$200000.00}. The loan was under the covid forbearance for XXXX year ending on XX/XX/XXXX. We sold our hose in XX/XX/XXXX but did not close until XXXX XXXX XXXX. I requested a pay off statement from CMG and the statement they sent that was good thru XX/XX/XXXX and showed {$210000.00} due to close. The brake down for that dollar amount shows as this, ( statement copy attached ) Interest paid to : XXXX Present Principal XXXX ( requested how this gained {$5300.00}, didn't get ) Interest to XXXX {$6100.00} ( also requested the gain, didn't get ) Escrow Overdraft {$5400.00} ( requested the gain, didn't get ) Earned MIP Premium {$270.00} ( again, requested but did not get ) All the above gains equal {$17000.00} and the partial claim amount was {$17000.00} I have been calling CMG since XX/XX/XXXX when I received a letter from HUD stating that I owe HUD that partial claim amount. 
The check sent to CMG by the Lawyer office that did the closing was for {$210000.00} ( copy attached ) My calls since XX/XX/XXXX have not produced anything other than a runaround from department to department, some of the agents at CMG say I've paid and this is just a simple accounting error, and others after higher management looked into it say " the notes say you didnt pay it in the pay off and still owe to HUD '' The HUD agent I've talked to says he can see where the numbers look and show that the claim amount look to be paid, but he needs proof that HUD was paid by CMG .

I have been asking for a detailed accounting of what and where the extra money paid at closing came from and where it went. It was within a few dollars of the claim amount. Hud has forwarded this on to the Treasury Dept. and they are now garnishing my wages, I filed for hearing based on I don't feel I owe the dept and that a garnishment would put me in a financial hardship. I have not heard on the hearing, but the garnishment is active and will start next week. 
The last direction that was given by CMG was I needed to write a letter requesting the information and send it to " The office the President '' at XXXX XXXX XXXX XXXX, NJ. XXXX On XX/XX/XXXX I was advised to XXXX XXXX XXXX dept and leave a message for the requested info, I did call XXXX as directed, left a very detailed message, but never heard anything back. This was the same thing as the letter to the XXXX XXXX XXXX XXXX, as they told me. 

on XX/XX/XXXX I was told that CMG did in fact send payment ( check ) to HUD in the amount of {$17000.00} dated XXXX. I asked why it took a full year to send the check and they could not answer. Keep in mind we sold and closed on XXXX 
I was told over the next several calls with CMG that they didn't understand why HUD was after me, they sent the check. I asked repeatedly to get a copy of said check so I could forward to HUD and clear this up, but they could not get me a copy, said loan was closed and no paperwork was available, with that I asked If the check was just written XXXX and a half months ago, how could they not recall a copy of it. They needed to check into that and open a case to check. 
On XX/XX/XXXX I called back for update, after being transferred 8 times to different departments ( claim they could not help ) I was able to talk to a supervisor in escalations and found out that the check was written XXXX and it certainly looked as though I paid the partial claim to CMG, they would open a case and follow up with me. " It was a simple accounting error on their part. '' A few days later I was able to find out from CMG that the date of check was in fact XX/XX/XXXX but, it was not CMG sending out payment, it was HUD check sent to them for the timeframe it was under covid forbearance. Problem was, the loan was paid off on XX/XX/XXXX. 
As of today I have not yet received the requested closing details broke down to include the extra $ XXXX, and or any allocation of the check for {$17000.00} HUD sent them. 
All in all with my payoff ( not including payments made prior to Covid forbearance, just in closing for the sale ), CMG received {$230000.00} on a loan with a unpaid principal balance the day it went into covid forbearance of {$200000.00}. While under forbearance all was to stop and no late fees or interest would accrue.

I have reached out several times to the lawyers office that handled to title and closing, they responded once and sent me the copies of the check and closing paperwork, but when I requested to get help from the Lawyer the lawyer would not call back, aid says he's busy. 

In late XX/XX/XXXX I received paperwork stamp dated XX/XX/XXXX from CMG showing " PAID IN FULL '' with the correct FHA case # listed on header. ( attached ) How can 7 months later CMG send official PAID IN FULL and list the official FHA case number ( matches all paperwork form HUD since they have been trying to collect from me.

Also the closing lawyer was able to do title search and give clear title for this property. 
The property now has a lean against it and I have my wages garnished with amount due now over {$25000.00} to the Treasury Department. 
This is also already impacted my XXXX XXXX with a " notice '' of debit to HUD and the Treasury Dept. There is XXXX different lines showing and dropping my credit almost XXXX points already.