Consumer complaint received 2024-01-10
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: Mr. Cooper Group Inc. (FL)

Complaint against Mr. Cooper for their ineffective communication and incorrect handling of a VA loan assumption. 

I was the owner/seller of a single family home in MD purchased using Veteran Affairs ( VA ) XXXX. Buyer was also using his VA privileges to secure loan and was bringing additional capital to the purchase, such that it was possible for him to ASSUME my VA loan remaining balance and loan rates, and pay the difference between loan balance and sale price. Both the buyer and seller did communicate regularly, as well as using our respective real estate agents for effective communication between these vested parties. XXXX XXXX advertised XXXX months for this loan assumption process, which proved to be longer than XXXX other competitors that I queried for their timeline. Regardless, that is the current mortgage provider. BOTH the seller and the buyer regularly reached out to Mr. Cooper after initial package of paperwork was submitted ( XXXX ) for status updates and if any additional paperwork was needed. As the seller, Mr. Cooper never reached out to me proactively with status or information, only after my requests for updates and often my requests were never answered. Mr. Cooper would frequently reach out to me although to try and garner business for my next mortgage, which became annoying and only stopped after taking a firm stance with their marketing representative to stop calling me and Mr. Cooper should focus on the loan assumption. When they did talk to the buyer, they would also try to get him to just take out a new loan at a much higher interest rate than the one he was assuming. A general customer service agent XXXX was the only responsive agent that at least returned my calls, but the information she would pass was generic without any dates or real status on progress, just middleman generalities/lip service of " it's in work ''. Around the 2 month point I did reach out to the VA to make sure there wasn't an issue on their end, but learned they had timely provided the necessary confirmation to Mr. Cooper that both buyer and seller were qualified and had VA benefits to use for this assumption. Mr. Cooper did assign a mortgage professional to the buyer, and she did reach out to the buyer XXXX times ( that I know of ) for paperwork along the way, but never provided them status updates and also repeatedly asked for paperwork that had previously been provided. I did try on multiple occasions to communicate with the buyer 's assigned mortgage professional, but she never answered her phone nor returned my voicemail or emails. Mr. Cooper regularly told me as well a mortgage professional would not be assigned to me as the seller, which was annoying. At the 4 month point, both the buyer and I increased our frequency of communication reaching out to Mr. Cooper, but both received the same minimal effort of response with no real status updates. At the 6 month point, we further increased our frequency of communication and would ask to speak directly with their escalations department. Shortly after those escalations were made, a closing date was provided to both the buyer and the seller via the assigned Title/Settlement company ( XXXX XXXX ), and not to us from Mr. Cooper. It was surprising how there had been little to no communication during the entire 6 months, but shortly after that and with our increased pressure did we rapidly get to a closing date. Both buyer and seller have done numerous house sales/transfers while we served in the military, and we were surprised that the actual closing date provided by the XXXX XXXX XXXX XXXX only after our increased pressure and within 10 days, but yet it somehow wasn't known anytime beforehand not with a lead time such that someone from Mr. Cooper could have shared with us??? On Thursday XXXX, both the buyer and seller signed closing documents and the XXXX XXXX promptly returned them to Mr. Cooper while also providing the deed transfer to the XXXX XXXX courthouse. Since then, the buyer has been unable to establish an online portal for the property with Mr. Cooper or get them to talk to him as for all intents and purposes, they believe the house still belongs to me and should never have went to closing. But, the XXXX company didn't pick that closing date nor create the closing forms, those were provided by Mr. Cooper to the XXXX company, so if they were not ready, then that is on them. A XXXX mortgage payment is now due, but I/seller/former owner am not paying it, and Mr. Cooper is not providing XXXX buyer a path to pay it because they are clearly not aware house has sold/closed. After closing day, I received my settlement check on the following Mon XXXX and then canceled my homeowner 's insurance, back dating the effective date to closing date of XXXX. The buyer did establish homeowner 's insurance for the house and provided it to Mr. Cooper in advance of closing, but yet they reported to me that there is currently no insurance on the house by anyone ( not correct ). Buyer is consulting with a lawyer. If no mortgage payment received at Mr. Cooper by XXXX, then per them, my credit will be negatively affected. In general, the complaint is that Mr. Cooper is unresponsive, slow, and since closing, should not be a qualified mortgage provider for VA loans since they can't handle the process. Although communication from them was terrible throughout, they were more receptive to the buyer leading up to " closing '', and now that it has passed, they are only receptive to me since they still believe I am the owner and are not helping the buyer who is in fact the homeowner.