Consumer complaint received 2021-11-08
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: PARAMOUNT RESIDENTIAL MORTGAGE GROUP (NJ)

Servicer : XXXX PRMG / XXXX My complaint begins with the inconsistent information provided to me during multiple phone calls starting in XXXX of 2021. 

I would regularly be told one thing by servicer and then the next day be told the opposite. 


I received a letter dated XX/XX/2021 stating I was approved for a FHA COVID-19 Combo Partial Claim and Loan Modification. 

For the months of XXXX and XXXX I had attempted to be reviewed for this program. I was told everything from the program did not exist to I could not be reviewed for program while I was on a COVID Payment Forbearance. But magically, it did exist and I was eligible for it. 


The XX/XX/2021 offer listed {$8300.00} as Escrow Advance and/or XXXX up. 

I immediately submitted a request for information and notice of error asking how that dollar amount was determined. The servicer, realized that they were disbursing the wrong dollar amount for tax. Which triggered 3 escrow analysis on XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX. On each of the escrow analysis they use fictional amount as the amount in escrow at the time of review, to compare to the target balance ( required balance ) in order to determine shortage on escrow account. On the escrow statements they fail to explain why they are using fictional amounts as amount in escrow at time of review. 

I also have received two additional letters stating I was approved for FHA COVID-19 Combo Partial Claim and Loan Modification.

I am now in receipt of Loan Modification Agreement made on XX/XX/2021. I believe this agreement is not in compliance with ML XXXX. If I accept this agreement my payment will only be reduced by 4 %. The offer they made seems to be for the COVID-19 Combo Partial Claim and Loan Modification in accordance with ML XXXX. The issue is ML-XXXX was effective on XX/XX/2021. I believe they have failed to evaluate me for Recovery Modification in accordance with ML XXXX. Also the Loan Modification Agreement has an interest of 3.25 %. I believe the interest rate is also not consistent with ML XXXX. I believe the interest rate that I should be offered is 3 %. 

The modification agreement dated XX/XX/2021 doesnt list amounts for escrow. It also fails to give me dollar amounts capitalized for escrow advances, shortages and interest arrears. Because of my previous experiences I must insist on copies of their calculations for escrow advances, shortages and interest arrears. 

On XX/XX/2021 we called servicer at approximately XXXX. We asked servicer if servicer had implemented Mortgagee Letter XXXX, 2021. The representative advised he did not know what that was. I asked how was the interest rate determined. The representative conceded he did not know how the rate is determined. 

We advised him that they had failed to review borrower for modification in accordance with ML XXXX and that the interest rate proposed terms were wrong. 

The representative then sent an internal communication to supervisor letting them know that I wanted to know why they did not comply with ML XXXX. His supervisor advised him to email underwriting. Representative openly admitted after being corrected a half a dozen times that he did not know how the programs works. He stated he sent the underwriter an email documenting our concerns. 


The reason we are submitting this official complaint is to get a response before the first payment date on XX/XX/2021. 

We ask that servicer immediately review for modification in accordance with ML-XXXX 2021. 

We ask also ask that they provide a detail breakdown of how interest arrears, advances and shortage were calculated.