Consumer complaint received 2022-04-13
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: LAKEVIEW LOAN SERVICING, LLC (CA)

The Federal Housing Administration ( FHA ) Covid 19 Recovery Modification program options, as outlined in the XXXX Mortgagee letters XXXX that came into effect XX/XX/XXXX, were designed to create a pathway of sustained recovery for families, like ours, that were deeply impacted by and faced financial hardship due to the coronavirus pandemic. 
The Covid- 19 Recovery Modification Replaces the following : a. ) The Covid 19 Owner-Occupant Loan Modification b. ) The Covid 19 Partial Claim and Loan Modification c. ) The Covid 19 FHA-Hamp Combination Loan Modification d. ) The Covid-19 Partial Claim with Reduced Documentation Covid 19 Loss Mitigation/Covid-19 Recovery Options provide borrowers impacted by Covid-19 Loss mitigation Options. Covid-19 Recovery Options Provide borrowers impacted, directly or indirectly, by Covid-19 with Option to bring their Mortgage current and may reduce the Principal and Interest portion of their monthly mortgage payment to reduce the risk of redefault and assist in the broader Covid-19 Recovery : a. ) The Covid 19 Recovery options are not incentivized by Mortgagees b. ) The Mortgagee must review eligible Borrowers for the Covid-19 Recovery Options c. ) Eligible Borrowers may receive more than one Covid-19 Recovery Option d. ) A Trial Payment Plan ( TPP ) Is not required for a borrower to be Eligible for the Covid-19 Recovery Options Our lender Lakeview Loan ServicingXXXX XXXX  XXXX bank were required to implement the program no later than XX/XX/XXXX, however even after the required implementation date of XX/XX/XXXX Lakeview Loan Servicing and their debt collector M and T bank failed to fully implement the program and include all of the XXXX Recovery Modification options available to us after numerous requests to do so. 

When we reached out to the lenders customer service reps and managers from XXXX XXXX XXXX Banks single point of contact team regarding the updated mortgagee letter and our concerns that the guidelines were not being followed, we were told that the alternative options that were outlined in XXXX Covid 19 Recovery Modification Program to reduce our principal and interest did not exist, they were not available to us and/or they were unaware of the changes in the Updated Mortgage Letters. 

XX/XX/XXXX We inquired once again, about the California Mortgage Relief program through our state. We were told by the Single point of contact Manager 1, XXXX XXXX that he was unaware of the program. XXXX XXXX also informed us that FHA Moves very slowly and by the time FHA gets around to approving HAMP Funds, M and T Bank would have already foreclosed on our home. 

Instead of receiving the Covid 19 Recovery Modification relief as outlined in the XXXX Mortgagee letter. We received Modification documents that imposed guidelines that were not required. We were also required to Make Trial Payments while waiting 45-60 days for our Modification to be approved. When we did not comply with all of the guidelines that were required by Lakeview Loan ServicingXXXX XXXX and XXXX XXXX XXXX we were threatened multiple times with foreclosure and we were notified that are request for work out assistance had been removed. 

Three weeks after XXXX XXXX XXXX XXXX received the signed/notarized modification documents we were served with a letter of default notifying us of their intent to sell our home if the total amount which includes all late fees and other charges were not cured within 35 days of the date of the letter XX/XX/XXXX. 

Given the Hardships that we have faced and the fact that California is under a State of emergency we are deeply concerned about the unethical way we are being treated by Lakeview Loan ServicingXXXX XXXX  XXXX Bank and requesting a full investigation from your office regarding our Lenders noncompliance with FHA Covid 19 Recovery Modification guidelines.