Consumer complaint received 2022-03-04
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: LoanCare, LLC (CA)

We are filing a complaint about Loancare, our newest mortgage loan servicer, for violating CARES Act guidelines, and running two failed underwriting processes ( one inconclusive, delaying access to lower interest rates ) resulting in a loan repayment offer, rather than loan modification we are entitled to under the guidelines. 

Background : Our mortgage loan is Federally-Backed and was sold by XXXX to XXXX XXXX  XXXX who in turn sold it to a mortgage loan servicer that is also a collection agency ( Loancare ). That last sale was during our COVID-19 forbearance relief application period. 

Contrary to published CFPB guidance on COVID-19 Relief Programs XXXX Loancare : 1. Violated the regulatory guidelines by requiring detailed proof of hardship to process our forbearance application 2. Delayed processing our forbearance application ( turning 1 application into XXXX ) upto 24 months- denying us access to lower interest rates widely available during XXXX 3. Conducted a failed underwriting process for our 2nd application, with hard credit inquiry ( XXXX ) and no resulting associated loan modification offer 4. After a 2nd underwriting process also violating the guidelines above - did not offer any of the recommended loan deferral, partial claim or modification options as per CARES Act guidelines 5. Only offered a repayment plan including 11.5 % higher monthly payments, knowing full well from our detailed proof of hardship disclosure ( including XXXX & XXXX IRS tax returns ) that we could not afford such an increase in payments 6. Misstated the repayment plan as a " modified mortgage '' plan 7. Dismissed our detailed proof of unemployment provided As per the CARES Act, we are requesting the minimum 25 % reduction in payments we qualify for under the COVID-19 Advance Loan Modification Program ( COVID-19 ALM ). 


Detailed Timeline with full paper & email trail available on demand : ========= XX/XX/XXXX Federally-Backed Mortgage Loan ( from XXXX ) and Deed closed as California Single-Family XXXX XXXX XXXX Uniform Instrument with XXXX XX/XX/XXXX The loan is sold to XXXX XXXX XXXX XXXX XXXX XXXX  - a company we cant find anymore. XXXX is still managing the loan XX/XX/XXXX XXXX informs us of loan sale to XXXX XXXX, with loan transferred over XX/XX/XXXX XXXX offers COVID forbearance relief to customers, and we apply using their XXXX XXXX XXXX form XXXX XX/XX/XXXX Updated to XXXX Streamlined COVID19 Mortgage Assistance Application XX/XX/XXXX My requests for forbearance extensions are received and approved XX/XX/XXXX Last requests for forbearance extensions are received by XXXX XX/XX/XXXX XXXX informs us theyve sold the loan to Loancare ( Mortgage Servicer + Collection Agency ) XX/XX/XXXX I reapply for forbearance with Loancare Summer XXXX From XXXX to XXXX, we provide more financial documents as requested. We spend many hours on the phone with their call center where they finally inform me our forbearance is about to go to underwriting for new loan options XX/XX/XXXX Loancare runs a Hard Pull of our Credit Score XX/XX/XXXX Loancare extends forbearance via letter to XX/XX/XXXX XX/XX/XXXX Loancare sends a letter from our assigned Mortgage Resolution Advocate to discuss the current status of our account. They are impossible to reach via phone, Email or Fax XX/XX/XXXX Loancare Email informs me documents are still missing for our latest forbearance application??/??/?? 
Something falls through the cracks here, because no new mortgage loan offer or forbearance exit letter is sent - as expected via the underwriting Hard Credit Pull XX/XX/XXXX Instead of a proposed new loan, we receive a letter from Loancare about reapplying ( yet again ) for forbearance XXXX I reapply and provide updated documents as requested via several back and forth Emails XX/XX/XXXX Loancare sends a letter saying they are unable to approve our application because of Failure to supply required documentation in a timely manner XX/XX/XXXX Loancare call center agent advises me to re-apply yet again for loss mitigation assistance in order to maintain forbearance protection. She informs me that our loan as sold by XXXX is not registered with Loancare as eligible for Federally-Backed XXXX XXXX XXXX COVID Advance Loan Modification Options XX/XX/XXXX I reapply and provide updated documents as requested via several back and forth Emails XX/XX/XXXX Loancare sends another letter from a newly assigned Mortgage Resolution Advocate to discuss the current status of our account. 
Once again - They are impossible to reach via phone, Email or Fax XX/XX/XXXX Loancare sends a letter confirming our latest application is complete XX/XX/XXXX Loancare runs a Hard Pull of our Credit Score - again XX/XX/XXXX Loancare finally sends a letter with revised loan offer Mortgage Modification Program that requires 11.5 % higher monthly payments vs the Federally-Backed XXXX XXXX XXXX COVID Advance Loan Modification Options requiring a minimum 25 % reduction in mortgage payments XX/XX/XXXX New 11.5 % higher monthly loan payment due XX/XX/XXXX Deadline to appeal Loancare decision - in writing