Consumer complaint received 2024-08-21
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Changes in loan terms during the application process
Company: Mr. Cooper Group Inc. (CA)

XX/XX/XXXX Re : Loan Rate Renewal, 30-year ARM Loan I am writing to lodge a complaint against Rushmore Loan Management Services / Rushmore Servicing / Mr Cooper. 

Five years ago in XXXX, I requested a Loan Rate Renewal offer for my 30-year / 5-year-incremental-periods ARM loan from Rushmore Loan Management Services. After a long and very difficult process which included a previous complaint to the CFPB, I finally received my Loan Rate Renewal for the next 5-year period of my loan. 

Fast forward five years to today ( XX/XX/XXXX ). 
My loans current 5-year period is set to end on XX/XX/XXXX. 
On XX/XX/XXXX, I called Rushmores Customer Service and again requested a Rate Renewal offer for the NEXT 5-year period of my 30-year ARM loan.

Initially, Rushmore again claimed that I had a five-year loan that simply ended in XX/XX/XXXX with a balloon payment, the same thing they tried to claim in XXXX. They also said that there was no documentation regarding the rate renewal in XXXX that they themselves processed. ( See attached documentation and history/chronology. ) After approximately 15 calls and two emails ( emails never responded to or acknowledged ), I have finally received a Rate Renewal offer. Unfortunately, the interest rate quoted to me by Rushmore is 9.517 %, much higher than would normally be expected utilizing the typical Index + Margin rate structure. I have every reason to expect the standard rate structure, as it was the way my loan was originally written back in XXXX, and has subsequently been adjusted each five year period since, including the most recent adjustment in XXXX processed by Rushmore. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX PLEASE NOTE : I have a spotless repayment record and stellar credit rating. There is no reasonable excuse for not providing a Rate Renewal offer at standard lending rates to a borrower of my caliber. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX at the Rushmore Loan Servicing Escalation Department has been trying to help me get my loan rate renewal set up, and she explained that my new interest rate was being computed using an XXXX rate sheet this time, along with an added credit swap margin. When I asked her why the rate for this adjustment period was being treated differently than the previous two, she said that the only response she got was that the Loan Investor had communicated that if I wanted to be allowed to keep this loan product, those were the terms I would have to accept. 

I asked XXXX the name of this Loan Investor entity, and she told me it was the XXXX XXXX XXXX XXXX. This makes no sense. XXXX was the financial institution that originally wrote my mortgage loan, but they were sold to XXXX in XXXX and functionally do not exist anymore. XXXX took over my loan and processed my first loan rate adjustment in XXXX using the Index + Margin standard. Then, XXXX sold my loan to Rushmore, who, fighting every step of the way, ultimately processed my second rate adjustment in XXXX, again utilizing the Index + Margin structure. 

My question to XXXX was, who deemed that my loan should suddenly change like this? Where is the documentation for this protocol? Is it a standard or acceptable procedure for an entity who purchases an existing mortgage loan to arbitrarily decide that if the borrower is going to be allowed to keep their mortgage they will now have to just accept an exorbitant lending rate? 

She didnt have answers to these questions, and there is no one else to talk to. Although my Loan Rate Renewal is supposedly being handled by the old Loan Loss group in XXXX ( California ) under XXXX XXXX and his assistant, XXXX XXXX, neither of these employees responded to or even acknowledged my emailed communications to them ( See attached documents ). XXXX XXXX in Escalation told me that she had done everything she could possibly do, and that if I wanted additional escalation, I would have to seek outside help. 

Rushmore is basically saying, we will do as we please and we dont have to explain anything to you. If you want to keep your loan, youd better just pay up. You cant even talk to us, because we hide behind emails that go unanswered and we dont have accessible phone extensions. 

Five years on, Rushmore is again throwing up obstacles to the appropriate processing and renewal of the next 5-year period of my 30-year ARM loan. They should not be attempting to force me into either an exorbitant interest rate or push me out of my loan altogether. I like my loan and am happy with it. Rushmore chose to purchase my loan, and they are obligated to service that loan under its original terms and conditions. 

I appreciate any assistance you can provide in this matter. Again, the current 5-year period of my 30-year ARM loan is ending on XX/XX/XXXX and Rushmore has been running me around for months, so timing is now absolutely crucial. 

Thank you--