Consumer complaint received 2022-12-29
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC (VA)

On XX/XX/XXXX, we received a letter dated XXXX XXXX XXXX from Rushmore Loan Management Services ( " Rushmore '' ) denying our Borrower Assistant Application ( Application ) for loan modification and the reason stated was that current obligations are excessive in relation to income. 

We appealed the denial of our loan modification request because the reason for the denial is unfounded and, accordingly, the Loss Mitigation Department failed to provide any genuine or real loss mitigation options to avoid foreclosure or loss of home use, especially in lieu of available COVID-19 mitigation options. 

1. We were able pay the mortgage payment ( {$3500.00} ) and monthly expenses until Rushmore, without notice during COVID-19, increased the payment by {$1500.00} resulting in a {$5000.00} mortgage. If Rushmore had kept the payment at the previous amount, we would have been able to continue paying as before without interruption. Indeed, when we continued to pay the mortgage at {$3500.00} amount, our checks were sent back. 

2. We identified that we experienced and are currently experiencing financial hardships due, directly or indirectly, to the COVID-19 emergency. I was laid off for a year due to company COVID-19 layoffs and then took a {$63000.00} reduction in pay ( an indirect result of COVID-19 emergency ). Regardless, we found a way to pay the {$3500.00} monthly mortgage during COVID as explained in the Application. 

3. To that end, Rushmore took exception by indicating current obligations are excessive in relation to income. We disagreed and maintained that : a. Certain obligations such as student loan payments are currently on hold or frozen until XXXX and we have submitted our loans for forgiveness and/or deferment. 

b. Other obligations are not all fixed and are variable in terms of payment. Rushmore already has several months of our bank statements evidencing our ability to pay and we are submitting the XXXX and XXXX XXXX  bank statements and our pay stubs for XXXX and XXXX XXXX as well. 

Finally, Rushmore indicated that we were not approved for a loan modification Trial Period Plan. We believe that given the opportunity, we would have met the test that we can consistently make our mortgage payment with no issue i

f Rushmore made the payment at {$3500.00} or less. We were doing this prior to Rushmore increasing our mortgage payment to {$5000.00} during COVID. Several issues also arose with the denial of a loan modification : 1. Rushmore 's process required on-going additional information needed for the " package '' that spanned from XXXX through XXXX because the letters were not clear on what was required or added additional documentation. 

For example, on XX/XX/XXXX, we received a letter from Rushmore indicating that it needed two items : ( 1 ) A complete, signed, financial statement for all parties obligated on the loan ; and ( 2 ) XXXX TAX RETURNS. 

On XXXX XXXX XXXX  I called Loss Mitigation to clarify what it needed for items 1 and 2. We believed that we were sending a complete, signed financial statement for the previous submissions. However, to our surprise, Rushmore actually was seeking the fifteen ( 15 ) page Borrower Assistance Application. We mistook the Financial Information on page 7 as to what Rushmore requested. It was unclear throughout the process that the " Financial Statement '' is actually the " Borrower Assistance Application ''. 

2. On XX/XX/XXXX, we sent more documents to Rushmore because they requested more information as follows : a. Completed, signed, financial statement for all parties obligated on the loan ; b. Signed and dated hardship letter that thoroughly explains what has caused our inability to maintain current and future payments ; c. One ( 1 ) month pays stubs ; d. One ( 1 ) month bank statements on all accounts ; e. Provided the XXXX Federal Tax return, which was electronically submitted and provided validation that the IRS accepted the return ; f. A letter of authorization to obtain credit report ; and g. Proof of insurance . 

However, those documents were previously provided in the second submission on XX/XX/XXXX and Rushmore is now requesting all of them again, including three additional ones. Rushmore now want Proof of IRA Income, Pay stub from XXXX XXXX XXXX XXXX XXXX and the XXXX Tax Extension. 

In the XX/XX/XXXX submission, we already provided Proof of IRA Income for XXXX ( Form 1099-R ), the Pay stub that contained the information for the time period requested, and the XXXX IRS Tax Extension . To that end, Rushmore twi
ce required information regarding self-employment, which neither of us are. 

This constant change of requirements and adding of documents extended the time for submitting the Application from XX/XX/XXXX through XXXX XXXX XXXX