Consumer complaint received 2024-01-30
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: CARRINGTON MORTGAGE SERVICES, LLC (NJ)

To Whom It May Concern, Im submitting a complaint in hopes of assistance with my mortgage servicer Carrington Mortgage. The CFPB found Carrington Mortgage had engaged in deceptive conduct and fined Carrington in XX/XX/XXXX : Under the Consumer Financial Protection Act, the CFPB has the authority to take action against institutions violating consumer financial protection laws, including engaging in unfair, deceptive, or abusive acts or practices. The CFPBs investigation found that Carrington violated the Acts prohibition on deceptive conduct, as well as certain provisions of the Fair Credit Reporting Act and its implementing regulation, Regulation V. 
We contacted Carrington Mortgage in XX/XX/XXXX ( can't recall exact date ), just XXXX months after CFPB took action for these same violations to discuss the Covid-19 Homeowner relief options. The first employee I talked to said the Covid 19 options were not available and said we could try applying for the Homeowner 's assistance, and even if homeowners received a forbearance they would have to pay the entire amount after the forbearance ended. After researching, I found that we would be eligible. I contacted another employee of Carrington Mortgage on XX/XX/XXXX who reiterated what the first employee said, that we would have to apply for homeowners assistance, I asked if we would be able to defer payments to the end of the loan if we had qualified for the forbearance, the employee said we would have to pay the total balance at the end of the forbearance. The employee immediately placed me on hold and a short while later the call unsurprisingly disconnected on Carrington 's end. 

I contacted a HUD counselor at XXXX XXXX for assistance. who advised that we ARE eligible for the COVID-19 Forbearance and that it had been extended. The HUD counselor and I then made a call on three way to Carrington Mortgage on XX/XX/XXXX, the HUD counselor led the call, advising Carrington they were calling on a recorded line, I permitted Carrington to speak with the HUD counselor. Carrington immediately said that yes we ARE eligible for the Covid 19 Forbearance and that all we needed to do was tell them we would like to be placed on the Covid 19 Forbearance and that we could defer payment to the end of the loan. The employee from Carrington also said that if we wanted to apply for homeowners assistance a SEPARATE program, that was a more in-depth application. We opted to go with the Covid 19 forbearance. This entire call was with the HUD counselor and recorded as mentioned above. 

We received notice in XX/XX/XXXX that Covid forbearance was ending on XX/XX/XXXX. We were interested in applying for the partial claim to defer payments to the end of the loan and see if there was a possibility of short term forbearance, a few months, to resume payment. I was told to go to Carrington and apply for the mortgage Covid relief options. The applying consisted of going to Carrington website, to a page that listed all of the available options that Carrington offers and had one button that said, Apply for Mortgage Relief Options. Once I clicked the button it said My request has been submitted and theyll get back to us with a response. A consumer is not provided an option of what to apply for, that was the extent of applying, clicking a button. 
I emailed a Carrington employee by the name of XXXX XXXX, Carrington XX/XX/XXXX and asked if there was something I needed to do because I was confused by the application for loss mitigation options simply being a click of a button. In my email I asked if we needed to do anything else because we were interested in seeing if we could also do the forbearance : Hello, Thanks for emailing I was inquiring on the possibility of an extension on the Forbearance or the Special Circumstance Forbearance ( I think thats what its called? ). Is there anything we need to do as far as that goes? 
To which XXXX XXXX responded Not as of right now, underwriting is working on it right now, I will follow up with you reg update. 
We received documents in XXXX that said we were approved for FHA Stand Alone Partial Claim, but nothing about the Forbearance request. We contacted Carrington a few times via phone asking about the possibility of a forbearance just for 2-3 months and then resume monthly payments, along with Stand Alone partial claim. I was told the Covid-19 Forbearance is gone, I said Im aware it's over, Im asking if it's possible to get a short-term Forbearance and the Partial Claim. Again reviewing the FHA site offers Forbearances, NOT the Covid 19 forbearance. I asked about the Special Circumstance forbearance, I was told we had to be completely unemployed. I inquired if because we were both self-employed if we could qualify short term. The employee acted confused and kept saying the COVID-19 Forbearance was over. I again tried calling and talking with Carrington with the HUD counselor again, even though I am on the third-party permission list was told my husband XXXX XXXX had to call to permit the HUD counselor to speak with Carrington. Unfortunately with phone tag and my work hours I havent been able to connect with them since then. 

We delayed signing the paperwork because we were trying to again see if we qualified for a short-term forbearance as well. Since we were unable to discuss if a forbearance was an option, we opted to just sign the FHA Stand Alone Partial Claim notarized as required, which we sent back with Carrington XXXX label on XX/XX/XXXX. Coincidentally, I received a call from a Carrington employee while I was on my way to XXXX to send the paperwork at XXXX XXXX  Eastern time. I told the employee I was on the way to send the paperwork, the employee says Oh youre making a payment, I replied I was sending the paperwork back. The employee acts as if she has no idea what Im talking about and that I have a payment due as of XX/XX/XXXX and an escrow shortage. She repeatedly tells me the papers are void, I again relayed to her Im sending the papers, she tells me I have to apply for homeowners assistance again and tries to direct me to the homeowners assistance portal. I explained to her we didnt submit a homeowners assistance application, we had the Covid 19 forbearance before and were sending off the Stand Alone Partial Claim paperwork we were already approved for. 
I sent the paperwork that was signed and notarized anyways on XX/XX/XXXX. 
We received two documents from Carrington mortgage on XX/XX/XXXX, Home Liquidation Assistance notice and a Cancellation notification. 
On XX/XX/XXXX I received a phone call from Carrington mortgage saying we have to settle the matter of {$35000.00}. I told her we sent the paperwork back, she said Carrington didnt have it, the application was closed on XX/XX/XXXX since the paperwork wasnt received in timer, and Id have to call the home retention department at XXXX. She kept cutting me off and saying wed have to apply again, I said we were already approved and the applying was the click of a button on Carringtons website. The employee kept saying we didnt pass XXXX, I asked her numerous times what passed XXXX meant, she wouldnt answer, I then asked do you know what passed XXXX  means? She said no. I told her I would be calling back with the HUD Counselor today, XX/XX/XXXX Im filing a complaint and requesting assistance with getting this situation handled and my paperwork approved. Thank you for reading!