Consumer complaint received 2020-04-09
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: South Carolina State Housing Finance and Development Authority (SC)

I XXXX XXXX, AM FORMALLY FILING A COMPLAINT ON WEDNESDAY, XX/XX/2020, AGAINST MY MORTGAGE LOAN SERVICER : SOUTH CAROLINA STATE HOUSING FINANCE & DEVELOPMENT AUTHORITY ( SC HOUSING ) XXXX XXXX  XXXX XXXX, XXXX, SC XXXX ; MORTGAGE SERVICING DIRECTORY ( XXXX ) XXXX ; COMPLIANCE MONITORING DEPARTMENT ( XXXX ) XXXX ; COVID-19 CONTACT : COVID19HELP@SCHOUSING.COM ; EXECUTIVE DIRECTOR,  XXXX XXXX. 

ON XX/XX/2020 CONGRESS PASSED THE CARES ACT BILL, THE LANDMARK BILL A DIRECT RESPONSE TO THE NATIONAL COVID-19 PANDEMIC. WITHIN THE NEW LEGISLATION THERE ARE PROVISIONS OUTLINING THE PROTECTIONS THAT BORROWERS WITH FEDERALLY BACKED MORTGAGES ARE ALLOWED UNDER THE NEW FORBEARANCE DIRECTIVE. ACCORDING TO THE BILL, ( SEC. 4022. FORECLOSURE MORATORIUM AND CONSUMER RIGHT TO REQUEST FORBEARANCE ) ( b ) Forbearance. 
( 1 ) IN GENERAL.During the covered period, a borrower with a Federally backed mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID19 emergency may request forbearance on the Federally backed mortgage loan, regardless of delinquency status, by ( A ) submitting a request to the borrowers servicer ; and ( B ) affirming that the borrower is experiencing a financial hardship during the COVID19 emergency.

( 2 ) DURATION OF FORBEARANCE.Upon a request by a borrower for forbearance under paragraph ( 1 ), such forbearance shall be granted for up to 180 days, and shall be extended for an additional period of up to 180 days at the request of the borrower, provided that, at the borrowers request, either the initial or extended period of forbearance may be shortened.

( 3 ) ACCRUAL OF INTEREST OR FEES.During a period of forbearance described in this subsection, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrowers account. 
( c ) Requirements For Servicers.

( 1 ) IN GENERAL.Upon receiving a request for forbearance from a borrower under subsection ( b ), the servicer shall with no additional documentation required other than the borrowers attestation to a financial hardship caused by the COVID19 emergency and with no fees, penalties, or interest ( beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract ) charged to the borrower in connection with the forbearance, provide the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower, provided that, the borrowers request for an extension is made during the covered period, and, at the borrowers request, either the initial or extended period of forbearance may be shortened. 

ON XX/XX/2020 XXXX HUD ISSUES NEW CARES ACT MORTGAGE PAYMENT RELIEF FOR FHA SINGLE FAMILY HOMEOWNERS ) HUD NO. 20-048 : Mortgage servicers instructed to offer deferred or reduced mortgage payments by as much as 6 months to start WASHINGTON - The U.S. Department of Housing and Urban Development today announced a tailored set of mortgage payment relief options for single family homeowners with FHA-insured mortgages who are experiencing financial hardship as a result of the COVID-19 National Emergency. Also included is an extension period for seniors with Home Equity Conversion Mortgages. Read today 's Mortgagee Letter. 
Effective immediately for borrowers with a financial hardship that makes them unable to pay their mortgage due to the COVID-19 National Emergency, mortgage servicers must extend deferred or reduced mortgage payment options - called forbearance - for up to six months, and must provide an additional six months of forbearance if requested by the borrower. This mandate implements provisions contained in the landmark Coronavirus Aid, Relief, and Economic Security Act ( CARES Act ) which President Trump signed into law on XX/XX/2020. 
" The last thing any of us wants is for Americans to lose their homes unnecessarily while we continue to fight this invisible enemy. If you're struggling, immediate help is now available. The FHA will continue to work with stakeholders to ensure that the loss mitigation options that are offered for both forward and reverse borrowers are appropriately tailored for the present situation, '' said HUD Secretary XXXX XXXX.

In addition to special COVID-19 forbearance, FHA also implemented today the COVID-19 National Emergency Partial Claim, an option to be used by servicers when the COVID-19 forbearance period ends. This partial claim will help eligible homeowners who have been granted special COVID-19 National Emergency forbearance to reinstate their loans by authorizing servicers to advance funds on behalf of homeowners. The partial claim will defer the repayment of those advances through an interest-free subordinate mortgage that the borrower does not have to pay off until their first mortgage is paid off. 
Further, FHA today instructed mortgage servicers to : Delay submitting Due and Payable requests for Home Equity Conversion Mortgages by six months, with an additional six-month delay available with HUD approval ; and Extend any flexibility they may have under the Fair Credit Reporting Act relative to negative credit reporting actions. 
" For American families impacted by the COVID-19 virus and unable to pay their FHA-insured mortgage, imminently losing their homes is now one less fear they should have. Today 's actions will ease the immediate pressures faced by many Americans who, through no fault of their own, are struggling with financial uncertainty, '' said Assistant Secretary for Housing and Federal Housing Commissioner XXXX XXXX Borrowers who are not currently impacted and able to make their monthly mortgage payments should continue doing so. However, those who are experiencing financial hardship as a result of the COVID-19 National Emergency should immediately contact their mortgage servicer - the entity to which they make their monthly mortgage payments - to discuss forbearance or other options that may be available to them. Borrowers who are not experiencing an income reduction due to COVID-19 are asked to avoid contacting their mortgage servicer about these options, as these questions will divert resources from serving those truly in need. 

XX/XX/2020, I CALLED MY MORTGAGE SERVICER, SC HOUSING AND REQUESTED FORBEARANCE DUE TO FINANCIAL HARDSHIP CAUSED BY THE COVID-19 CRISIS. A LOSS MITIGATION COUNSELOR, XXXX XXXX REFUSED TO HELP ME WITH THE SPECIAL COVID-19 FORBEARANCE THAT HUD MANDATED ADHERING TO GOVERNANCE OF THE CARES ACT. I EXPLAINED TO HIM ABOUT THIS SPECIAL FORBEARANCE AND HE ASSURED ME THAT I WA MISTAKING, HE THEN SENT ME FORMS FOR A GENERAL UNEMPLOYMENT FORBEARANCE.

SC HOUSING REFUSED TO PROVIDE ME WITH A GOOD FAITH EFFORT TO MITIGATE THE LOSS SUFFERED FROM COVID-19. THE SERVICER IS PURPOSELY MAKING THE FORBEARANCE PROCESS DIFFICULT AND DENYING ME MY RIGHT TO REQUEST FORBEARANCE.

CURRENTLY, SC HOUSING HAS AN APPLICATION ON THEIR WEBSITE XXXX XXXX XXXX  ] FOR BORROWERS TO FILL OUT TO APPLY FOR FORBEARANCE. THIS APPLICATION IS UNLAWFUL UNDER CARES ACT AND SC HOUSING WILL NOT ACCEPT THE APPLICATION IF IT IS SUBMITTED INCOMPLETE. IN ORDER TO COMPLETE THEIR APPLICATION, THEY ARE REQUIRING BORROWERS TO 1 ) SEND IN ADDITIONAL DOCUMENTATION 2 ) CERTIFY BY SIGNATURE TO STATEMENTS THAT COULD UNLAWFUL BLOCK BORROWERS ACCESS TO ANY NECESSARY FORBEARANCE EXTENSION BEYOND THE INITIAL REQUEST.

ACCORDING TO SEC. 4022. OF THE CARES ACT : ( c ) Requirements For Servicers. 
( 1 ) IN GENERAL.Upon receiving a request for forbearance from a borrower under subsection ( b ), the servicer shall with no additional documentation required other than the borrowers attestation to a financial hardship caused by the COVID19 emergency and with no fees, penalties, or interest ( beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract ) charged to the borrower in connection with the forbearance, provide the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower, provided that, the borrowers request for an extension is made during the covered period, and, at the borrowers request, either the initial or extended period of forbearance may be shortened. 

ON XX/XX/2020, I FILLED OUT SC HOUSINGS COVID-19 FORBEARANCE APPLICATION WITHOUT A SIGNATURE AND INCLUDED A SIGNED STATEMENT ATTESTING TO MY FINANCIAL HARDSHIP DUE TO COVID-19 AND SENT THE DOCUMENTS ALONG WITH THE TEXT AND SOURCE OF THE CONGRESSIONAL BILL FOR REFERENCE.

LATER THAT DAY, I RECEIVED A CALL FROM THE DIRECTOR STATING THAT THEY WOULD NOT PROCESS MY APPLICATION FOR FORBEARANCE WITHOUT SIGNING THE APPLICATION AND SENDING THEM A DRIVERS LICENSE. I THEN EXPRESSED TO THE DIRECTOR THAT THE APPLICATION WAS UNLAWFUL AND THAT I WAS NOT COMFORTABLE SIGNING IT AND THATS WHY I SENT A SEPARATE SIGNED STATEMENT. SHE SAID TO ME AGAIN THAT SHE WOULD NOT GIVE ME FORBEARANCE WITHOUT A COMPLETE APPLICATION AND THAT I HAD TO SIGN THE APPLICATION IN ORDER TO GET FORBEARANCE. 

I THEN TOLD HER THAT THE TEXT WITHIN THE CARES ACT DOES NOT ALIGN WITH THEIR APPLICATION AND THAT IF SHE IS REFUSING TO ALLOW ME FORBEARANCE AFTER IVE ATTESTED TO MY COVID-19 FINANCIAL HARDSHIP, THEN TO PLEASE SEND THE DENIAL TO ME IN WRITING SO THAT I MAY HAVE MY ATTORNEY AND ADVOCATE LOOK IN TO IT FOR ME. SHE REFUSED TO SEND ME ANYTHING IN WRITING AND SHE REPEATEDLY TOLD ME THAT THE INFORMATION IS WRITTEN ON THE WEBSITE.

I ASKED HER AGAIN TO SEND ME AN EXPLANATION FOR DENYING MY FORBEARANCE IN WRITING AND SHE REFUSED AGAIN. SHE THEN ALLOWED ME TO SPEAK WITH THE SC HOUSING ATTORNEY WHO ALSO FAILED TO OFFER ANY GOOD FAITH ATTEMPT TO HELP GET IN WRITING WHY THEY WERE NOT ACCEPTING MY WRITTEN OR VERBAL STATEMENT OF FINANCIAL HARDSHIP AND REQUIRING THAT I SEND IN ADDITIONAL DOCUMENTS AND SIGN OFF ON ADDITIONAL CERTIFICATIONS. AT THE END OF THE CONVERSATION THE ATTORNEY SAID THAT THE DIRECTOR WOULD SEND SOMETHING IN WRITING ABOUT SUBMITTING AN INCOMPLETE APPLICATION BUT WOULD NOT PROVIDE FURTHER DETAILS TO THE REFUSAL TO SERVICE MY REQUEST.