Consumer complaint received 2019-09-16
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (WI)

Nationstar/Mr. Cooper breached contract by modifying terms/payment schedule of a VA backed mortgage with NO legal authorization to do so resulting in legal monetary damages and violations of Wisconsin State Statutes, the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. 

A mortgage I have had since XXXX was sold to Mr. Cooper / Nationstar. In XXXX of XXXX I was late ( inside the grace period ) on a payment. At that time Mr. Cooper started a " trial modification '' of my mortgage, altering the terms and payment schedule. Mr. Cooper did this with NO legal authorization or permission by me to modify the loan. As a result of their unauthorized change to the loan terms and payment schedule they improperly applied the payments I continued to make. 

On XX/XX/XXXX Mr. Cooper reported to all 3 major credit reporting agencies ( Equifax, Experian and Transunion ) that I was more than 60 days past due on a payment. This is as a direct result of their changing my loan terms and not informing me. They since deny that they changed the loan, but are unable to explain why the payment schedule was altered ( resulting in the appearance of missing a payment ). It is clear to me that they understand they illegally applied the terms of a " trial modification '' even though they had no authorization ( written or other ) from me to do so. 

I officially disputed Mr. Cooper 's report to the credit bureaus with Mr. Cooper via registered mail on XXXX XX/XX/XXXX. Since that time they contacted us via phone ( XXXX XX/XX/XXXX ) and informed us that they " modified the loan because the Veteran 's Administration told them to '' and that it was in our best interest " to avoid foreclosure ''. Both of those statements are untruthful and Mr. Cooper must have been aware they were untrue at the time they made them. The VA does not have any authority to modify my loan agreement as our mortgage is a legal contract between myself and Mr. Cooper. Also, a single late payment ( even if it had been outside the grace period ) would not place my mortgage in default according to WI statutes ( SS 425.103 ).  Therefore Mr. Coopers threat of foreclosure is a violation of WI statutes and the FDCPA. 

Because my loan is not and never was in default, Mr. Cooper 's assertion that the loan modification was in my " best interest to avoid foreclosure '' was a threat they are not legally allowed to make. This is a violation specifically of 15 USC 1692e 807. " False or misleading representations ( 4 ) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action. '' In addition, they explicitly admitted that they DID modify the loan even though they claimed the VA told them to. 

I am seeking to refinance my home partially to lower my interest rate and partially to avoid further business with Mr. Cooper. The presence of these incorrect reports by Mr. Cooper on my credit record effect my ability to refinance and the terms of that refinance. Thus, I am likely to incur legal damages ( in the form of a higher interest rate, or months of continued payments to Mr. Cooper if I am unable to refinance ). I will continue to accrue damages until these reports are removed from my credit record.