Consumer complaint received 2024-10-22
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Mr. Cooper Group Inc. (MA)

Request for CFPBs Active Involvement : Before forwarding this complaint to Mr. Cooper, I respectfully ask that the CFPB thoroughly review the issues outlined in my attachment, particularly in light of the following potential violations : Violations of the Bankruptcy Discharge Injunction under 11 U.S.C. 524 Violations of the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692e Violations of federal mortgage servicing regulations, including misapplication of payments Violations of the Real Estate Settlement Procedures Act ( RESPA ) for improper handling of Qualified Written Requests ( QWRs ) I believe that a thorough investigation into these matters is crucial, as Mr. Coopers actions have caused significant harm, both financially and emotionally. I am not simply asking the CFPB to act as a messengerI am requesting that the Bureau fully investigate these violations and take appropriate regulatory action to hold Mr. Cooper accountable for any wrongdoing. 

Description of What Happened : Since filing for XXXX XXXX  bankruptcy in XX/XX/XXXX and receiving a discharge in XX/XX/XXXX, I have experienced ongoing misconduct by Mr. Cooper, including attempts to collect discharged debts, misapplication of payments, and the addition of improper fees. Despite the legal protections of my bankruptcy discharge, Mr. Cooper has violated consumer protection laws and mortgage servicing regulations. 

I realize that this is a substantial amount of information, but that is because I have been dealing with this ongoing situation for over ten years, and despite my efforts, there has been no resolution in sight. Mr. Coopers actions have caused significant harm, deeply impacting both my financial well-being and my personal life. This long-standing issue highlights the need for thorough investigation and resolution, and I trust that the CFPBs involvement can finally help bring an end to this matter.

Key Issues : Collection of Discharged Debts : Mr. Cooper continues to attempt to collect on debts that were discharged in my bankruptcy, violating the Bankruptcy Discharge Injunction under 11 U.S.C. 524.

Misapplication of Payments : Post-discharge payments have been improperly applied to pre-petition arrears, and significant amounts have been held in suspense accounts rather than being applied to my mortgage balance. 

Invalid Proof of Claim ( POC ) : Mr. Cooper filed a new Proof of Claim in XXXX that includes debts previously discharged in bankruptcy, despite a clear discharge order stating no further claims were allowed. 

Foreclosure After Loan Modification : I had applied for a loan modification in XXXX. They approved it in XXXX. Approving the modification four years later after several denials, to have it recorded in the Registry of Deeds and then failing to honor it shows a lack of good faith and demonstrates deceptive practices. Their actions forced me to file bankruptcy to save my home. 

Excessive and Unexplained Fees : Numerous questionable and significant fees, including legal and inspection fees, have been added to my account without adequate explanation or justification. For example : From XX/XX/XXXX - XX/XX/XXXX, there are forty-nine ( XXXX ) separate inspection fees of {$15.00}?, a City Regulation Fee of {$3000.00} on XX/XX/XXXX, a " Restricted Loan Maintenance Fee '' of {$10000.00} on XX/XX/XXXX, etc. 

Failure to Address QWRs : Mr. Cooper has repeatedly failed to provide timely, clear and complete responses to my Qualified Written Requests ( QWRs ), violating RESPA. 

These issues are outlined in further detail in the attached document, which includes specific dates, amounts, and actions taken. I ask that this be included as part of my formal complaint. 

Additional Legal Considerations : While some of these events may appear to fall outside the statute of limitations, I believe I still have legal grounds under the discovery rule and continuing violation doctrine. Mr. Coopers actions have had ongoing consequences, and I continue to experience the effects of their misconduct before, during, and after my bankruptcy. This continued harm supports the extension of any applicable limitations periods and justifies a full investigation. 

What I Expect from the CFPB : I am filing this complaint because I believe the CFPB has the ability to fully investigate all of these issues and hold Mr. Cooper accountable for any violations found. I expect the CFPB to : Investigate the specific violations of bankruptcy law, federal consumer protection laws, and mortgage servicing regulations outlined in this complaint. 

Take appropriate regulatory action where Mr. Cooper has been found guilty of violations, ensuring they are held accountable for their misconduct. 

Ensure that all affected issues are resolved, including the reallocation of misapplied payments, removal of improper fees, and correction of my mortgage balance. 

This isnt just about my caseits about exposing and addressing broader systemic predatory practices that could be affecting other consumers as well. Your involvement is critical not only in resolving my situation but also in preventing similar violations from continuing to harm others. 

NOTE : I was unable to upload important set of records because the folder was larger than XXXX. I tried to reduce it from XXXX but I was only able to get it down to XXXX. This folder is all of their Payment transactions from XXXX to XXXX and the evidence that documents many of their payment mishandlings and questionable fees. I am committed to assisting the CFPB in its investigation and as soon as you request it, I provide any additional information or documentation that I was unable to attach and that may assist you in your review.