Consumer complaint received 2020-12-30
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Community Loan Servicing, LLC (formerly known as Bayview Loan Servicing, LLC) (IL)

Community Loan Servicing, LLC ( FKA : Bayview Loan Servicing , LLC ) Attention : XXXX department/Customer Support XXXX XXXX XXXX XXXXXXXX XXXX, XXXXXXXX XXXX XXXX XXXX, FL XXXX XXXX : Loan No. : XXXX ( XXXX XXXX XXXX XXXX ) Property Address : XXXX XXXX XXXX XXXX, XXXX XXXX, IL XXXX This complaint is being made through the Consumer Financial Protection Bureau ( cfpb ) as a follow up to our original cfpb complaint filed on XX/XX/XXXX, which was directed to our previous mortgage lender, XXXX XXXX XXXX XXXXs. Our mortgage was sold by XXXX XXXXXXXX to our current mortgage company/lender, XXXX and their servicer, XXXX XXXX XXXX, XXXX, formerly known as Bayview Loan Servicing , LLC. 

XXXX XXXX responded to our complaint regarding the Home Affordable Modification Program ( HAMP ) Principal Reduction Amount on XX/XX/XXXX informing us that they only have limited documentation of our previous loan account that has been purged from their systems due to the time that has passed ( see attached cfpb PDF ). They indicated that the servicing of our loan was transferred to Community Loan, along with the entire loan file in XXXX, XXXX. XXXX XXXX also forwarded separately their response letter of XX/XX/XXXX including some attached documentation at the time our HAMP account was initiated. In their letter, they suggested we redirect our HAMP inquiry to the current servicer, Community Loan ( see attached PDF letter/documents ). 

Community Loan is aware of our HAMP complaint as we had previously been directed by XXXX XXXXXXXX on XX/XX/XXXX to seek answers from Community Loan. We then notified Community Loan on XX/XX/XXXX by letter including the previous correspondence from XXXX XXXX. Under their previous name, Bayview responded by letter dated XX/XX/XXXX stating they were unable to locate in the records forwarded from XXXX XXXX that HAMP letter you purportedly received. The XXXX response letter adds that if you are able to provide additional documentation XXXX can investigate the matter further. 

We had asked them to not only locate a copy of the original letter, but to check other areas within our HAMP file that would refer to the principal reduction alternative, such as payments made to XXXX XXXX and/or Community Loan under the PRA during the years XXXX, XXXX, and XXXX. We received no answers regarding possible Investor Payments that the federal government, under the HAMP PRA, would have provided XXXX XXXX and/or Community Loan. 

Both XXXX XXXX and Community Loan have been asked on numerous occasions to locate a copy of the HAMP PRA letter dated XX/XX/XXXX along with any documentation related to the PRA and principal reduction amount of {$100000.00}. We have asked both companies to review our complete HAMP file to locate any additional information/documentation to verify our claim that a Principal Reduction Amount should have been effected on the HAMP portion of our account. 

We believe that the PRA amount of {$100000.00} should have been reduced to zero by one third each year during the years of XXXX, XXXX and XXXX. These two companies would have received additional compensation from the federal government under the PRA of the Home Affordable Modification Program. We have previously asked both companies to locate the federal government payments ledger showing they would have received additional separate payments under the HAMP PRA in the above three consecutive years. Both loan companies did not address this HAMP PRA question. 

Also, we think there should be more information and documentation in our HAMP file based on the IRS Publication titled, Principal Reduction Alternative Under the Home Affordable Modification Program. After receiving the XXXX XXXX  PRA letter of XX/XX/XXXX, we reviewed information on the IRS website on XX/XX/XXXX and printed a copy of the IRS PRA Publication. 

Attached is a PDF copy of the IRS Publication of PRA Under the HAMP dated XX/XX/XXXX. A PRA portion of this publication reads as follows : ( For mortgage loans that are owned or guaranteed by XXXX XXXX or XXXX XXXX, eligible homeowners may be offered modifications under related programs also called HAMP. Because these related programs do not contain the principal reduction provision that these FAQs address, these FAQs use the term HAMP to refer only to the program for mortgage loans that are not owned or guaranteed by XXXX XXXX or XXXX XXXX. XXXX Since the last quarter of XXXX, if a mortgage loan is being considered for a HAMP modification and if the ratio of the amount owed to the value of the home is greater than XXXX percent, then the servicer must consider whether a Principal Reduction Alternative ( PRA ) principal reduction should be effected as one part of the HAMP modification. See the Principal Reduction Alternative ( PRA ) page on the MakingHomeAffordable.gov website. 

For HAMP modifications that include a PRA principal reduction, the unpaid principal balance of the modified loan is divided into an interest-bearing principal amount and a non-interest-bearing PRA Forbearance Amount. If the homeowner then achieves a payment history that is sufficiently timely over a three-year period, the entire XXXX XXXX XXXX is eventually reduced to zero. 

In connection with every HAMP modification of a loan that is not owned or guaranteed by XXXX XXXX or XXXX XXXX, to encourage participation in HAMP, the government provides incentives to the investor ( that is, the holder of the loan ), to the homeowner, and to the servicer. If a HAMP modification of such a mortgage loan includes a PRA principal reduction, the government makes additional incentive payments over three years to the investor. ( These additional incentives are called PRA investor incentive payments. ) The size of the PRA investor incentive payments depends not only on the amount of principal reduced but also on the loan-to-value ratio and the loans payment history before the HAMP modification. The PRA investor incentive payments range from 6 % to 21 % of the principal amount reduced. 


We were approved for the HAMP modification in XXXX, XXXX and the Principle Reduction Alternative program of HAMP was enacted around XXXX, XXXX, which is 10 months after our loan modification began. It appears that we would have qualified for the PRA based on the criteria required under the HAMP approval process that occurred in XXXX, XXXX. 

The IRS PRA Publication appears to indicate there should be some documentation regarding an evaluation performed by Citizens One of the Principal Reduction Amount under HAMP. As stated in the IRS PRA Publication, the servicer must consider whether a Principal Reduction Alternative ( PRA ) should be effected as one part of the HAMP modification. There was another part of the HAMP program concerning Pay-for-Performance, in which received received the timely credits towards our principle in the first 5 years of the HAMP. 
We believe that not only should there be a copy of the XX/XX/XXXX XXXX letter from XXXX XXXX in our loan file, there should also be documentation regarding the federal government required evaluation of the PRA. Also, there should be some type of payment ledger indicating that XXXX XXXX and/or Community Loan received Investor payments under the PRA during the years XXXX, XXXX and XXXX. 

We are very concerned with these two loan companies and their lack of cooperation in providing us with proper answers and information in this HAMP matter. We are requesting that the CPFB review Community Loan 's documentation of our complete HAMP/PRA file in this matter to inform us what mistakes have been made by XXXX XXXX and/or Community Loan. We would also ask that CPFB review whatever documentation concerning our HAMP file under the Principal Reduction Amount information that may be located in the U.S. Treasury Department records.

Thank you for your attention and cooperation in this matter. 


Copies of Attachments : XXXX XXXXXXXX Response under cpfb Complaint # XXXX of XXXX HAMP Inquiry Letter to Bayview dated XXXX Response Letter from Bayview dated XXXX IRS Publication PRA Under the HAMP Program date XXXX