Consumer complaint received 2024-02-14
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: 21ST MORTGAGE CORP. (FL)

We have filed a complaint against 21st Mortgage Corporation for failure to comply with the duties of assisting the borrowers when a natural disaster is declared by the President of the United States or the governor of Florida. This is based on the following : Since XX/XX/XXXX. XXXX to XX/XX/XXXX, we were in a hardship experience when COVID-19 hit our properties affecting our tenants and our capacity to pay the mortgage statements, and fees without a forbearance plan. Besides this, in XXXX our location area was hit by XXXX Hurricanes. First, On XXXX XXXX XXXX  we were hit by Hurricane Ian ( Category 4 ) which caused the flooding of XXXX of our properties and also caused serious damage to others ones, therefore our incomes decreased. After this, on XX/XX/XXXX, Hurricane Nicole ( Category 1 ) affected the repairs we could do on our own to the damage caused by Hurricane Ian. 
Consequently, we applied for mortgage assistance, a forbearance plan, or a loan modification but didn't receive an answer from 21st Mortgage Corporation as our mortgage lender. On the other hand, they proceeded to add unjustified fees to our loan, not process our payments, ignore the payments that were made following the guidelines established for XXXX XXXXXXXX by the United States Bankruptcy Code, request unnecessary information, in some cases starting foreclosures, and also not respond to our emails or phone calls when we tried to figure out what was happening. 
We haven't received any assistance or it was denied for the loan we have with 21st Mortgage Corporation. Additionally, the monthly mortgage statements show a constant increase in the amounts without any fair reason. Below is a summary of the facts : On XX/XX/XXXX, we received an email from XXXX responding to our request for Loss Mitigation, so they sent us a letter of acknowledgment of receipt from 21st Mortgage Corporation, where they requested the following documents : 1 ) Fully completed and executed Loss Mitigation Application ( this may also be completed over the phone ).

2 ) If you have a short sale offer on the property, a copy of the Listing Agreement with your Realtor ( if applicable ), a payoff of any junior liens ( if applicable ), a copy of the Purchase Agreement with the Buyer, Buyers Proof of Funds or Lender Pre-Approval for the purchase, and a copy of the HUD-1 Settlement Statement or Closing Disclosure if you have an offer. 

Consequently, we answered their reaching out to us and also attached the application form filled out. Then on XX/XX/XXXX, they requested our bankruptcy case number and we sent them our Bankruptcy case file to the email of XXXX, the same day we received an email from them asking if the primary borrower was the owner of XXXX XXXX XXXX. 

On XX/XX/XXXX we tried to get in contact with them to make sure that all of our taxes and insurance were escrowed on all loans, because we werent able to get insurance, since the homes won't pass inspections due to hurricanes. 

On XX/XX/XXXX, we sent to XXXX our Loss Mitigation Application for the property address at XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Then on the XXXX, we received a response to that email saying that our application was going to be submitted for review. On the XXXX we sent another email to them to explain that it was a mistake with the application form attached the previous day, so we proceeded to attach an updated one with the list of monthly expenses, therefore the same day they responded that they understood and they were going to pass this along to the loss mitigation department. 

On XX/XX/XXXX we sent a letter to XXXX and XXXX stating that in XXXX we were impacted by 2 hurricanes back-to-back, on XX/XX/XXXX, by hurricane Ian and on XX/XX/XXXX, by hurricane Nicole and also state that we've been calling ever since to get loan assistance and we have gotten no solution because we wanted to keep the property and being current with the loan. Additionally, we asked about the requirements we need to provide to apply and we addressed that we wanted to make sure that all of our taxes and insurance were escrowed on our loan. We explained to them that any insurance would insure the property due to the extensive number of hurricanes in the state of Florida. In addition to this, on the same date, we sent an email with the information we previously mentioned to XXXX We believe that our payment processes have been marred by irregularities, undue delays, and unfair decisions made by the Mortgage XXXX. As we can prove to you, we have always fulfilled our commitments to them in each loan and we are willing to continue doing so, despite the adverse impact of COVID-19 and Hurricane Ian on XXXX XXXX XXXX 

Although 21st Mortgage Corporation is not a licensed mortgage lender in Florida State, it is committed to compliance with the Loan Originators and Mortgage Brokers Chapter 494, Title XXXIII of the Florida Statutes ( XXXX ), and at this time we consider that they didnt obey legal obligations established for lenders under federal and state laws in case of natural disasters. According to the Consumer Financial Protection Bureau and the Florida Office of Financial Regulation, these obligations aim to protect borrowers from financial hardship caused by the disaster. 

Some of the key legal obligations of lenders during and after a natural disaster are : 1. Mortgage Forbearance : The Coronavirus Aid, Relief, and Economic Security ( CARES ) Act enacted by Congress in XX/XX/XXXX provides mortgage forbearance for federally-backed mortgages for up to 18 months due to COVID-19-related financial hardships. This forbearance applies to natural disasters as well. Lenders must provide borrowers with a forbearance period of at least 90 days for federally-backed mortgages and up to 180 days for non-federally-backed mortgages. During the forbearance period, lenders can not charge late fees, report late payments to credit bureaus, or initiate foreclosure proceedings. 

At this point, we never received at least 90 days of mortgage forbearance, otherwise, we continued receiving charges for late fees and also the increase in our mortgage statements, which made it even more difficult to cover our responsibilities.

2. Disaster Assistance : Lenders must provide borrowers with information about disaster assistance programs offered by federal, state, and local agencies. This information must be provided in writing and in a language that the borrower understands. Lenders must also provide borrowers with a list of resources that can help them recover from the disaster. 

3. Communication : Lenders must communicate clearly and frequently with borrowers about their options during and after the disaster. This communication must be in a language that the borrower understands and must include information about forbearance, disaster assistance, and any other available resources. 

About points XXXX and XXXX, it is important to state that although we receive communications from 21st Mortgage Corporation when we request mortgage assistance, they request some information but they never continue with the application process. Otherwise, multiple times we tried to get in contact with them but we always received excuses or when we received a communication from them it was a negative one with no fair motivation. 

4. Modification of Loan Terms : Lenders may modify loan terms for borrowers affected by the disaster. These modifications may include extending the loan term, reducing the interest rate, or deferring payments. Lenders must provide borrowers with written notice of any loan modifications. 

In addition to this point, we never managed the possibility of having a loan terms modification, otherwise, we saw how the interest rates increase month by month along with the late payments fees.