Consumer complaint received 2022-04-03
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (CA)

Mr Cooper has used manipulative accounting practices from the inception of my mortgage in XXXX, being transferred from Aurora Loan Servicing to Nation Star , now currently Mr. Cooper -all 3 are the same company. The deceptive accounting stem from reversing payments made multiple times within the same day to create fees on my mortgage account. The fees range from $ 2.00-75.00. The fees have no good reason. I have called in the past ( XX/XX/XXXX ) to discuss the fees and it was determined that the fees were imposed without a cause, later I received a statement that {$410.00} was refunded to me, however I never seen the refund post, credit, added back to my mortgage. 

1-Lender forced placed insurance, never received {$1600.00} refund back from Mr.Cooper XXXX XXXX My mortgage was due for XXXX, XXXX, and XX/XX/XXXX. I made contact with Mr. Cooper by way of email on the company website, advising of my intent to submit a payment before the end of the month. I did not receive a reply, and decided to place a phone call to Mr Cooper to discuss my payment options ( XX/XX/XXXX ). The representative I spoke with advised the total amount due {$4600.00}. I explained to the representative that {$1500.00} was available and I would call back in before the end of the month/year to make the other 2 payments. XX/XX/XXXX, Mr. Cooper submitted 3 payment which processed on XX/XX/XXXX, two times in the amount of {$1500.00}, which caused my checking account to incur overdraft fees as the amount in my account was not sufficient. This transaction caused return item fees with my bank ( {$57.00} fees ) and Mr. Cooper ( {$58.00} fees ). Mr. Cooper. XX/XX/XXXX, I withdrew the money from my account and made the payment via XXXX XXXX ( {$1500.00} ). 
Mr. Cooper suggest that XXXX XXXX is secure and a guaranteed way payment is received the same day. However, my mortgage ledger shows Mr. Cooper reversing the payment made on XX/XX/XXXX. 
This payment reversal should not be allowed, that would mean that XXXX XXXX did not process the transaction and I have proof stating it was completed. 
Payment reversals are an ongoing trend practiced by the accounting department at Mr. Cooper, in an attempt to create fees. 
I have written several XXXX that have gone unresolved. Mr Cooper has violated several mortgage servicing rules. For example Untimely escrow payments. Mr Cooper has not paid my insurance and taxes on time for the past 2 years. 
Failing to apply my payments to my mortgage. I have {$4400.00} that Mr. Cooper has taken from me and assigned as Unapplied Funds or Suspense Funds Account. From XXXX to XXXX, additional principal payments I made, have not been accredited to my account. I have attached proof. 
Mr Cooper has completely mismanaged my escrow account and I have written letters pleading to have may escrow account closed due to the way they mis mange and forget to make payments only to later later charge me for the same service that they have already issued a payment for. I have attached my original mortgage document, " Waiver of Escrow ''. 

Mr Cooper has not issued a refund for the money taken to purchase insurance for my home when a policy was already purchased and in place. 


2-Mismanagement of Escrow account, shortage- {$5000.00} Mr. Cooper violated servicing rules by making the purchase for the Lender Forced Placed Insurance Policy and owe me {$1600.00}. The {$1600.00} taken to purchase the policy was a mortgage payment for XX/XX/XXXX. 
( XX/XX/XXXX ) to XXXX to cover the cost of the policy for XXXX calendar year. I emailed, faxed, and mailed my policy to Mr. Cooper and they refused to acknowledge it for 3 months from XXXX XXXX. Mr. Cooper stated that the {$1600.00} that was taken from Escrow to cover the cost was refunded, however my escrow account does not reflect a refund. In fact, I decided to pay my hazard insurance myself in full moving forward. XX/XX/XXXX, I wrote my then provider and Mr , Cooper advising of the decision to switch to another provider and that I would send the policy to Mr. Cooper at the end of the year, & current policy. My current provider responded to my letter and mailed a check to me that was sent from Mr. Cooper ( {$2200.00} ). Mr. Cooper began to send letters stating that lender forced placed insurance would be purchased if a policy is not purchased. I did purchase a policy on time and paid it in full and I did not incur any loss or gaps in coverage. Mr. Cooper decided to send the new provider payment from escrow for the policy. In my letter ( attached ) that I mailed to Mr. Coopers escrow department in XX/XX/XXXX, I stated that the policy was paid in full. 
By XX/XX/XXXX, I have 2 refund checks mailed to me from the 2 insurance providers that Mr. Cooper paid out of escrow. My escrow account is negative {$5500.00} at this point from the disbursements made to both of the insurance companies. 

3-Failing to apply monthly payment ( s ) according to Original Note 4-Unexplained fees charged on my statements 5-Failed to make property tax payment greater than 3 years past due before payment was made 6-Modification from XXXX, should be null and void due to the fraudulent accounting activity 7-Principal & Interest have not been calculated according to the terms of the Note, resulting in an incorrect principal balance 8-During the pandemic ( XXXX ) payments I made were not applied to reduce the principal balance XX/XX/XXXX, my Covid-19 forbearance is up and I received a statement from Mr. Cooper stating that the amount I owe is over {$26000.00}. 
Mr. Cooper also sent me a notice stating that the application I submitted was approved, however I had not applied for anything or submitted any application. 
I decided to take the modified payment flex plan that was offered to me beginning onXX/XX/XXXXXX/XX/XXXX. My second payment was not accepted because their website was not accepting payments due to a technical error. My payment for XXXX processed XX/XX/XXXX, and the payment modification was halted. 
I called and explained to a representative the issue and she advised me that she would reapply for another modification and to NOT make a payment until XX/XX/XXXX, if approved. 
I received notice in XX/XX/XXXX, that the payment plan was approved and to resume payments XX/XX/XXXX. 
I called XX/XX/XXXX, to discuss my options and stressed that I did not want to take the modification if I had other options. 
I was not given any other option. I had no clue as to the new terns that I was agreeing to if I made the first payment. 
I called Mr. Cooper on XX/XX/XXXX at XXXX pm to discuss my options and was met with a pre recording stating that the company was closed and to call back during normal business hours XXXX {$26000.00}, is the amount due, however it is not true because my payments were not credited or applied to reduce the principal balance. 
10-According to my Note, my monthly payments XX/XX/XXXX {$1100.00} for 60 months ( Interest only ) XX/XX/XXXX {$880.00} for 60 months ( Interest only ) XX/XX/XXXX {$1500.00} for 240 months ( Principal ) Mr. Cooper has not applied my payments according to terms of my Promissory Note. Mr. Cooper has failed to comply with several terms and conditions that are stated on the Interest Only Addendum to Adjustable Rate Promissory Note. For example it states, 3. PAYMENTS ( A ) Time and Place of Payments I will pay interest by making payments every month for the first 120 payment ( s ) ( the Interest-Only Period ) in the amount sufficient to pay interest as it accuses. I will pay principal and interest by making payments every month thereafter for the next 240 payment ( s ) in an amount sufficient to fully amortize the outstanding principal balance of the Note at the end of the Interest-Only Period over the remaining term of the Note in equal monthly payments. 
( B ) Amount of My Initial Monthly Payments Each of my initial monthly payments will be in the amount of U.S. {$1100.00}. This payment amount is based on the original principal balance of the Note. This payment amount may change. 
According to my Note, it states that I have 10 years of interest only payments beginning in XXXX, ending in XXXX. XXXX, according to the Note, enters into principal payments at {$1500.00}. It is the responsibility of the Note Holder to accurately calculate my payments to pay in full the interest. My current principal balance should roughly be $ and should be recalculated or audited to ensure oversight into accuracy if their accounting practices. 
Mr. Cooper has violated my, borrowers substantive rights to be free from unlawful debt collection, and therefore, violated my borrowers rights to be able to make informed decisions regarding my finances, caused me to be charged overdraft fees, and caused me and my friend to have limited purchase power while double charging our checking accounts through way of an ACH transaction.