Consumer complaint received 2020-03-28
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (CO)

Dear CFPB Agent : Although I am not currently behind in mortgage payments for my investment property in Colorado, I have recently had to borrow money ( {$1600.00} so far ) to cover my mortgage payments on this FHA-backed Fourplex apartment building. I have had to do so because I have lost one of my four tenants due to their COVID-19-related job loss. The remaining tenants have ceased making mortgage payments, citing the Colorado Governor 's ( Mr. XXXX XXXX ) decision to communicate to the public that landlords should not evict non-paying tenants. Although this declaration is not legally binding, my remaining tenants have taken it as law and refuse payment. Two of them have experienced income loss due to the COVID-19 pandemic, while the other has simply refused to pay rent. My total carrying cost for the building including utilities is approximately XXXX XXXX/month. I am unable to borrow additional cash to cover this monthly expense due to other financial obligations that can not me modified. 

I have reviewed FHA guidelines for loan servicing companies working on behalf of my loan 's guarantors during the COVID-19 pandemic and I have documented that my company, Nationstar Mortgage D/B/A " Mr. Cooper '' ( hereafter, " loan servicer '' ), has an obligation to provide me with an option of loan forbearance for at least three months ( 90 days ). In fact, the loan servicer advertises this option on their website at https : //www.mrcooper.com/blog/2020/03/20/coronavirus/. The loan servicer writes on this page, " If you are experiencing a financial crisis due to the pandemic, you have the option to temporarily pause your mortgage payments '' and " If you are unable to make your payment by XX/XX/XXXX due to the pandemic, were here to help. '' My complaint involves inability or refusal on the part of the loan servicer to provide me with this option. 

The loan servicer offers no online application option for me to request a forbearance in a timely fashion, so that I might allow my tenants to continue to remain housed without paying rent. I have called their Customer Service phone number shown on their website ( XXXX ) on six occasions during their posted business hours. Dates of my calls range from Monday, XX/XX/XXXX through Saturday, XXXX XXXX, 2020. After calling the above number on the first five occasions from XX/XX/XXXX through XXXX, the loan servicer informed me via automated voice message that the company is experiencing high call volume, and advised me in the voice message to " try again later '' - before the loan servicer disconnected the call on their end. Again, this happened five times. 

To give you an example of the loan servicer 's extreme inability or refusal to provide me with a forbearance option : on Saturday, XX/XX/XXXX I placed my sixth call to the loan servicer at approximately XXXX XXXX  CT, which is within the loan servicer 's advertised business hours ( XXXX XXXX  - XXXX XXXX  CT, as advertised here : https : //www.mrcooper.com/contact_us ). This time, the loan servicer did not automatically disconnect my call. Rather, I was placed on hold for 1 hour and 45 minutes, before I was connected to a Customer Service Representative ( hereafter, " Representative '' ). The Representative ( XXXX, ID number XXXX ) asked me the reason for my call and I stated that I am experiencing financial hardship related to COVID-19 and I am requesting a forbearance as soon as possible. The Representative noted she would have to transfer me to another division handling requests for forbearance. I asked what the wait time would be, but she stated she could not provide me with that information. I thanked her and was transferred at approximately XXXX XXXX  CT. I waited again on hold until approximately XXXX XXXX  CT ( a wait of 4 hour and 50 minutes ), while the loan servicer 's automated voice message stated at intervals of every 30 seconds throughout this wait time, " We appreciate you holding and we'll be with you as soon as possible. '' When my call finally went through to the loan servicer at XXXX XXXX  CT, I spoke with XXXX ( ID XXXX ; hereafter, " Representative 2 '' ) who again asked the reason for my call. I stated again that as a landlord I am experiencing financial distress due to my three existing tenants ' inability or unwillingness to pay rent, related to their loss of work hours due to the COVID-19 pandemic. I also noted the vacancy ( my fourth tenant ) which is also related to the COVID-19, as the tenant left his apartment ( with {$1500.00} in damages ) due to loss of income. I stated to the Representative 2 that I am requesting forbearance, and requested permission from the Representative 2 to record the call, which she granted, and at that point I initiated a voice recording of our conversation. I stated that I am documenting the difficulties that landlords and others are experiencing in utilizing the forbearance option provided by FHA, and verified her first name and ID number. I asked if there is any way I may contact her directly, so that I do not have to wait on hold for more than four and a half hours, if I need to follow up with her. She stated I could call the same Customer Service number I had called to reach her ( XXXX ) and enter her ID number which also serves as her extension number. I stated I did not believe the automated voice answering system allowed me to contact her directly, and that I did not have the ability to wait on hold for four and a half hours each time I needed to follow up with her or her colleagues regarding my request for a forbearance. She provided no other option for reaching her, again advising I should call the Customer Service number. 

The Representative 2 stated that my loan has been " coded '' for forbearance, and she read me some required language. That language included her statement that I would not be assessed late fees nor would my non-payment be reported to the credit agencies. She stated that she would mail me an application as required by FHA, to arrive via mail in 5-10 business days. 

I asked if I am immediately protected from late fees and credit reporting as of her " coding '' my loan, or if that benefit would not be provided by the loan servicer until I wait 5-10 business days, complete the paperwork, return it to the loan servicer, and be approved for the forbearance. She said she did not know the answer to my question, but said she would find out. The Representative 2 volunteered that the application for a forbearance is available on the Mr. Cooper website, to which I replied I did not believe that to be the case, as I had searched the website repeatedly for that option. I asked if she could point me to that option on the Mr. Cooper website as I would much prefer to apply electronically so that I would not have to wait for the mailed application. She stated she " had seen that option '' on the website and said she would look at the website to direct me to the online application. I waited quietly for about two more minutes, taking great care to maintain my phone battery ( it was plugged in ) and to not touch the phone, until the Representative 2 disconnected the call on her end. I immediately called the Customer Service number again, but found no option to connect directly to the Representative 2 in the automated phone directory. 

At this time, I do not know whether I am to receive the benefit of no late fees or no credit reporting immediately or only upon approval of my forbearance request. This is essential information that I must have now to make further decisions relating to my property. I do not know if I will receive the application via mail. The Representative 2 did not verify my mailing address, nor ask me for my phone number in the event we were to be disconnected, at any time during our call. As I can not pay my XXXX mortgage payment, I am left wondering whether I need to dedicate another Saturday to calling the loan servicer and waiting on hold for possibly another four or five hours. This long period of time I need to dedicate to request and initiate the forbearance is not something I can continue doing, as I have an apartment to rehab ( out of pocket ) and very little extra time for such long wait times. 

I believe FHA has nationally provided the forbearance option to resolve exactly this kind of situation : to offer relief to landlords to help us delay foreclosure on tenants in FHA-backed apartments during this extremely difficult time. At this time, I have cancelled my autopay to the loan servicer and will not be paying my mortgage in XXXX, so that I have funds available for rehab of the units ( assuming I am not allowed to take advantage of the forbearance option due to barriers such as I am describing in this complaint ), and to pay an attorney to assist me in evicting three families at the same time, in the event they continue to be unwilling or unable to pay rent. 

I will continue contacting the loan servicer on a daily basis through the end of XXXX and into XXXX as my time allows, although I have no confidence they will initiate the forbearance process for me and relieve me of late fees and negative credit reporting in XXXX. From my perspective, the loan servicer and its President and CEO XXXX XXXX, have failed me, my tenants, and the FHA.