Consumer complaint received 2017-12-27
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: NATIONSTAR MORTGAGE LLC (CA)

This complaint is directed at Mr. Cooper, formerly known as Nationstar Mortgage who is the current servicer of my mortgage loan. My specific complaint is in reference to a series of misstatements, misrepresentations and contradictions over the past 11 months that now place me in great financial distress, threaten my ability to keep my home, negatively affect my credit history and my wellbeing. 

Overview : On XXXX XXXX, XXXX I went online to the Mr. Cooper website to make my XXXX XXXX, XXXX payment. According to online statements and letters generated by Mr. Cooper since XXXX XXXX, XXXX, the amount of my mortgage payment was to be {$1600.00} and the due date was XXXX XXXX, XXXX. When I logged in to the account overview page I found that my next payment was for {$18000.00} and due XXXX XXXX, XXXX. The page also informed me Your account is not eligible for payments. Please call us After seeing this shocking information on XXXX XXXX, XXXX, I initiated two phone calls with Mr. Cooper Customer Service representatives ( XXXX XXXX and XXXX XXXX ) and have traded electronic discussion with a XXXX XXXX, a customer service person via the Consumer Affairs website. The crux of their explanation was that someone in their Hardest Hit Funds dept. ( potentially a third-party vendor ) reviewed my account on XXXX XXXX, XXXX and reversed a {$40000.00} payment they had received and processed 11 months ago, back on XXXX XXXX, XXXX that they ( Nationstar/Mr. Cooper ) used to pay ahead my monthly payments and reduce principle. 

At no time, up to today, has anyone from Mr. Cooper ever called me, nor have I received any written notification relating to this reversal these representatives described to me. If I had not logged on to their website on XXXX XXXX, I would still be unaware of this adjustment. In each of my calls, when I asked if I could speak a supervisor in their HHF department ( where the decision was made ), I was told I could not. In her last written response to me, XXXX XXXX admitted Nationstar had made an error 11 months ago when they processed the {$40000.00} payment, but offered no explanation or opportunity to speak with anyone about the decision, nor any direction regarding my account, due for a {$21.00}, XXXX payment in 10 days. 

In my complaint I will provide a detailed timeline and documentation that will demonstrate that the payment accepted and processed by Nationstar on XXXX XXXX, XXXX was correct, in fact, directed by Nationstar. I will also provide months of documentation which they now contradict with no evidence, no justification, no notice or ability to appeal. 

What I seek is the ability to have the actions of Mr. Cooper be examined for legal and compliance violations and that the {$40000.00} be reapplied as they offered to do 11 months ago. 

Full Story and timeline : In XXXX of XXXX I was offered a mortgage loan modification by Nationstar mortgage ( Exhibit 1, copy of modification agreement is provided ). This agreement called for me to make a qualifying payment of {$2800.00} to enter the modification. It called for payments of {$660.00} ( {$1000.00} with impounds ) for two years beginning  XXXX XXXX, XXXX through XXXX XXXX XXXX Exhibit 2 -copy of mortgage stmt dated XXXX XXXX, XXXX provided to confirm ). All payments were paid on time, as agreed between XXXX XXXX and XXXX XXXX. 

In XXXX XXXX, I was notified that my monthly payment would be increasing from {$1000.00} in XXXX XXXX to {$2600.00} beginning XXXX XXXX, XXXX ( Exhibit 3 - copy of monthly statement dated XXXX/XXXX/XXXX attached ). 

Concerned that this 265 % increase in payment would be problematic I contacted Nationstar for possible assistance. They offered nothing. I was able to make the higher payments due for XXXX, XXXX and XXXX ( Exhibit 4 - stmts dated XXXX/XXXX/XXXX, XXXX/XXXX/XXXX and XXXX/XXXX/XXXX documenting these payments ). 

In XXXX XXXX I contacted a California non-profit organization, Keep Your Home California ( KYHC )  and asked for their assistance. They offered a principle reduction program ( PRP ) which I was pre-qualified for. I completed their paperwork. On XXXX XXXX, XXXX I received an approval letter from KYHC ( Exhibit 5 -Notification of PRP Approval attached ), indicating they would provide {$40000.00}. **An important part of the KYHC PRP process was KYHC worked with Nationstar ( my servicer ) to determine an amount of funds that Nationstar would use to provide payment assistance. According to KYHC personnel, it was Nationstar that directed KYHC to provide the {$40000.00}. 

Among the key information in this letter were the statements Your servicer is responsible to provide you detailed information regarding how PRP benefit assistance will be applied to your loan. Additionally, the letter instructed me that my servicer would send me documents related to the principle reduction and new lower payments and that I must complete them. It added, If you have not heard from your mortgage servicer or do not receive a new monthly mortgage stmt within 30 days that reflects the application of the PRP funds, we recommend you contact your Servicer. 

I followed all instructions. I completed the KYHC Promissory Note and Deed of Trust ( Exhibit 6 - attached ) and returned to KYHC. I called KYHC to ask what payment relief I could expect, or how that would  work. I was told that is completely up to Nationstar, they will tell you how the funds can be used. 

I looked out for documents from Nationstar. None came. I continued to regularly check my Nationstar account online to see if/when the {$40000.00} PRP funds were received and applied. 

On XXXX XXXX, XXXX I checked my Nationstar account online and found a statement generated XXXX XXXX, XXXX reflecting transaction activity of {$40000.00} on XXXX/XXXX/XXXX ( Exhibit 7 - attached statement dated XXXX/XXXX/XXXX documents the XXXX XXXX, XXXX activity ) confirming receipt and processing of the KYHC funds. It also showed my next payment was due XXXX/XXXX/XXXX. 

On XXXX XXXX, XXXX I still had not received anything from Nationstar ( no documents to complete or notification of receiving the {$40000.00} ), and so I called them. I spoke to a customer service representative who confirmed receipt of the {$40000.00} and how it had been applied. I explained to her where the funds had come from and why. I asked what Nationstar could offer to provide payment relief. After an extensive hold to confer with her supervisor, the Nationstar representative informed me that Nationstar could use the funds received to pay ahead up to six monthly payments. The balance of the {$40000.00} would then be applied to the principle balance. She indicated that 6 months was the maximum amount of time Nationstar could pay ahead, however if I wanted to pay ahead for longer, I would just need to call in and request it. When I agreed to the six months pay ahead arrangement, she confirmed with me that my next due payment would be XXXX/XXXX/XXXX. She also told me no paperwork would need to be completed by me for this purpose. 

On XXXX XXXX, XXXX, Nationstar sent me a letter confirming this arrangement, stating my We are writing you to notify you that your account is currently paid ahead. As of the date of this letter, you are due for your XXXX/XXXX/XXXX payment. ( Exhibit 8 - copy of this letter is attached ). 

On XXXX XXXX, XXXX, Nationstar generated a monthly mortgage statement that indicated the next payment due was XXXX/XXXX/XXXX. In the Transaction Activity section of the statement adjustments is shown dated XXXX/XXXX/XXXX that distributed the {$40000.00} as described in the XXXX XXXX, XXXX call to Nationstar ( Exhibit 9 - a copy of this statement dated XXXX/XXXX/XXXX is attached ). 

On XXXX XXXX, XXXX I checked my account online and found that I was due for an XXXX XXXX, XXXX payment of {$1500.00}, contradicting the information given to me by Nationstar in the XXXX XXXX call, XXXX XXXX, XXXX letter and XXXX XXXX, XXXX statement. I had not received any calls or written notifications from Nationstar regarding changes or adjustments. I contacted Nationstar and on XXXX XXXX, XXXX I spoke to XXXX, a customer service representative for Nationstar and asked what had occurred. After an extensive hold, XXXX informed me that the XXXX adjustments were not executed correctly. After conferring with her supervisor, she told me they would submit a research request that would correct the error so that my account would be paid ahead for 6 months and the balance of the {$40000.00} applied to principle. 

On XXXX XXXX, XXXX, I checked my account online and found a statement generated by Nationstar dated XXXX/XXXX/XXXX confirming what I was told on XXXX. The statement indicated my next payment due date was now XXXX/XXXX/XXXX. The Transaction activity portion of the statement reveals the reversing of the {$40000.00} on XXXX/XXXX/XXXX and XXXX/XXXX/XXXX, and then the re-application of the {$40000.00} on XXXX/XXXX/XXXX paying my account ahead for 6 months ( Exhibit 10 -  statement dated XXXX/XXXX/XXXX is attached confirming these transactions ). The statement dated XXXX/XXXX/XXXX had been deleted from the Nationstar website. 

On XXXX XXXX, XXXX, I checked online and found a monthly mortgage statement dated XXXX/XXXX/XXXX. This statement confirmed my next payment due date was XXXX/XXXX/XXXX ( Exhibit 11 - statement dated XXXX/XXXX/XXXX is attached ). 

On XXXX XXXX, XXXX I checked my Nationstar account online and found I was due for a XXXX XXXX, XXXX payment of {$1500.00}, contradicting my conversation with XXXX on XXXX XXXX, and the two previous mortgage statements. I had not received any calls or written notifications from Nationstar regarding changes or adjustments. I contacted Nationstar and spoke with a customer service representative. I explained the situation and expressed concern that a pattern of contradicting information and errors was occurring with my mortgage. After a 45-minute hold, the representative told me she would research the issue and call me back within 24 hours. She never called. 

On XXXX XXXX, XXXX I called Nationstar again and spoke with another customer service representative. After a long hold conferring with her supervisor, she told me they would submit another research request to resolve the matter. 

Over the next few weeks I continued to check my account online, but did not see the adjustment. I called in several more times and was assured each time Nationstar was researching the problem and would resolve it. 

On XXXX XXXX, XXXX, Nationstar generated an online mortgage statement that indicated I was now due for two payments on XXXX XXXX, XXXX and added a late fee. The transaction activity section indicated a series of reversals totaling {$40000.00} back dated to XXXX XXXX, XXXX, which contradicted at least four previous calls and previous Nationstar mortgage statements and misrepresented account activity ( Exhibit 12 -statement dated XXXX/XXXX/XXXX attached ). The XXXX XXXX, XXXX statement was deleted from the Nationstar website. 

On XXXX XXXX, XXXX I still did not see the adjustments Id been assured of, so I called Nationstar and spoke to a customer service representative named XXXX. I expressed to him my concerns regarding all the errors and the extended amount of time to resolve my account. He explained that previous representatives had not executed the arrangement properly and assured me he would, telling me it would take 7 business days to do so. When I checked online XXXX XXXX, XXXX, the overview showed my payment due date was now XXXX XXXX, XXXX. 

On XXXX XXXX, XXXX Nationstar generated a monthly mortgage statement which reflected a payment due date of XXXX XXXX, XXXX. The payment amount now was {$1600.00}. The transaction activity section of the statement reflected reapplication of the {$40000.00} back dated to XXXX XXXX, XXXX ( Exhibit 13 - copy of XXXX/XXXX/XXXX statement attached ). 

On XXXX XXXX, XXXX Nationstar generated an online statement ( Exhibit 14 -copy of XXXX/XXXX/XXXX attached ) consistent with the XXXX XXXX. Payment of {$1600.00}, payment due date was XXXX XXXX, XXXX. 

On XXXX XXXX, XXXX a letter ( Exhibit 15 - copy of letter attached ) from Mr. Cooper ( formerly Nationstar ) writing to notify you that your ( my ) account is paid ahead, next payment due date XXXX/XXXX/XXXX. 

On XXXX XXXX, XXXX Mr. Cooper generated an online statement ( Exhibit 16 copy of XXXX/XXXX/XXXX statement attached ) indicating payment of {$1600.00}, payment due date of XXXX/XXXX/XXXX. 

On XXXX XXXX, XXXX a letter ( Exhibit 17 - copy of letter attached ) from Mr. Cooper writing to inform you ( me ) that your account is currently paid ahead, next payment due date XXXX/XXXX/XXXX. 

On XXXX XXXX, XXXX Mr. Cooper generated an online statement ( Exhibit 18 copy of XXXX/XXXX/XXXX statement attached ) indicating payment of {$1600.00}, payment due date of XXXX/XXXX/XXXX. 

By the beginning of XXXX XXXX, it finally seemed the issues with Nationstar, now Mr. Cooper had been resolved. It finally seemed that the KYHC funds had provided the relief from the {$2600.00} loan payments and that I would soon be making affordable payments from now on. Between XXXX XXXX and XXXX XXXX, XXXX, I had received two letters and four consecutive monthly statements confirming what I had been told in XXXX, despite the many missteps, my next payment due was going to be {$1600.00} and it would be due XXXX XXXX, XXXX. I received no calls or notifications from Mr. Cooper regarding any issues or adjustments to the contrary. 

Until I logged into my Mr. Cooper account on XXXX XXXX, XXXX to make the payment due XXXX XXXX, XXXX. 

On XXXX XXXX, XXXX I logged in to my Mr. Cooper account to make my XXXX XXXX, XXXX payment. As previously related, what I found was that my next due payment was XXXX/XXXX/XXXX and was {$18000.00}!! The website overview page also said Your account is not eligible to make payments. Please call us at XXXX for assistance ( Exhibit 19 copy of screen shot attached ). 

I immediately called in assuming that another error had occurred and would be resolved. Instead I spoke to someone who was quite nasty. I describe to her what had occurred over the last 11 months. After putting me on hold, she came back and told me that on XXXX XXXX, XXXX my account was reviewed by the Hardest Hit Funds department. She said that they had reversed out all the {$40000.00} funds because it violated my agreement with KYHC. I asked her where the funds were. She asked me if I had checked my account. I told her the funds were not in my account. She told me she didnt know where they were. I asked her what I was supposed to do to resolve this and she said I could do whatever I wanted. I asked to speak to a supervisor, she hung up on me. 

I then called KYHC to see if the funds had been sent back to them. I spoke with XXXX in the KYHC funding  department who looked up my file. I described to her what Id been told earlier by the Mr. Cooper representative. XXXX told me, that is not right referring to comment the Mr. Cooper representative said about our agreement. She confirmed that the original use of the {$40000.00}, to pay ahead and apply the balance to principle was not an issue and there was no justification for Mr. Cooper to reverse the funds. She told me to call Mr. Cooper and ask for a supervisor in their Hardest Hit Funds department and they should be helpful. She asked me to call her again in a few days to see if the funds were received by KYHC. 

On Monday XXXX XXXX I called Mr. Cooper again. I spoke to a customer service specialist named XXXX. She would not give me her last name but gave me her employee ID, XXXX XXXX listened to my story and put me on hold to research. She confirmed with me that somehow your account was coded for Hardest Hit Fund and after a review that department reversed out the {$40000.00} because it was not allowed on my account. I asked her if I could speak to a supervisor in the Hardest Hit Funds and she said I could not. She explained that she did not have the ability to transfer clients to that department nor did she have a phone number or email I could use to contact them. After she reviewed my account statements going back the previous six months XXXX said to me, wow, this is a mess. 

Later that day I receive a written response via the Dept of Consumer affairs website from XXXX XXXX XXXX, a customer service specialist at Mr. Cooper. I had been connected with her after filing a review of Mr. Cooper on that website. She provided the same information about what happened. She did not offer any solutions, nor was she able to tell me where the {$40000.00} went. 

On Tuesday XXXX XXXX, XXXX I contacted KYHC and spoke again to XXXX in their funding department. She confirmed that KYHC had still not received the {$40000.00} from Mr. Cooper. I relayed the information Mr. Cooper had provided and she stated, they do not know what they are doing. She went on to explain to me that Nationstar/Mr. Cooper had in fact, been consulted as part of KYHCs approval process. As XXXX put it, they told us to send the {$40000.00}. So, the issue of accepting those funds was approved by Nationstar before KYHC approved me or sent Nationstar the funds. XXXX continued, KYHC doesnt just send out {$40000.00} without confirming everything with your servicer, and that was done in your case with Nationstar. 

The last thing XXXX said to me was, you should get a lawyer. 

XXXX XXXX. I received a new online statement from Mr. Cooper. The statement dated XXXX/XXXX/XXXX indicated my payment due date was now XXXX XXXX, XXXX and my payment due was for {$21000.00} ( Exhibit 20 copy of XXXX/XXXX/XXXX statement attached ). The Transaction Activity shows a series of back dated reversals and charges. The account overview page still showed payment due date of XXXX XXXX, XXXX for {$18000.00}, contradicting this statement. 

Summary : So as of today, XXXX XXXX, XXXX I have no idea where my mortgage account stands or what I am supposed to do next to address the errors. For 11 months I have experienced consistent misrepresentations both verbal and in writing from Nationstar/Mr. Cooper. I have done everything I was instructed to do since the loan modification was put in place in XXXX. I have done everything I was told to do when approved by XXXX in XXXX. I have done everything I was told to do by Nationstar since they received the {$40000.00} inXX/XX/XXXX. I still have not received any notifications for any adjustments or issues by Mr. Cooper. The only letters and statements Ive received from them appear here as Exhibits that contradict what they are telling me now. 

I am asking that the events documented in this complaint be reviewed for compliance to relevant regulations concerning mortgage servicers. In addition to obvious incompetence over the past 11 months, I am concerned that my rights as a consumer have been violated by Mr. Cooper on multiple occasions. As their own employee has said, its a mess when referring to my mortgage account. 

I am asking that the {$40000.00} that Nationstar accepted and applied to my account 11 months ago immediately be applied to my account. 

Finally, I am requesting protection from Mr. Coopers actions in terms of my credit history ( they are not reporting payments that were made ) and my home ( in one month my mortgage statements report 3 different stories ). 

I thank you for your assistance and attention to this mess.