Consumer complaint received 2021-04-01
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: CMG MORTGAGE, INC (TX)

To Whom It May Concern : We are writing this complaint out of shear frustration after dealing with an already stressful year in 2020 being adversely impacted by the coronavirus financially, CMG Financial has been haphazard in their handling of our mortgage as the servicer. Specifically, I would like to highlight their inability to share information with accuracy and communicating in an expeditious and factual manner that enables the mortgagee to make informed decisions. Please see the timeline of events below : XX/XX/XXXX Contacted CMG to enroll in the COVID-19 Mortgage Forbearance Program due to significantly reduced income as a result of the pandemic. Over the phone we were advised that we could enroll without any paperwork over the phone for a period of 12 months with the option to put the years payments on the back of the loan with a partial claim. 

XXXX XXXX With this assurance we were able to breathe a bit and checked back in to confirm if there was anything needed of us in preparation with the year ending in Q3/Q4. It was our plan to avoid any surprises and plan ahead since this was unchartered territory. A representative advised us that we would automatically be eligible for the partial claim option as it is on the Servicer to comply with FHA in what is offered to the mortgagee. 

XX/XX/XXXX XXXX auto and homeowners insurance from XXXX to XXXX, due to better rates. Provided XXXX with mailing address for CMG in order to facilitate payment of annual homeowners premium. 

XX/XX/XXXX Called CMG to confirm expiration of existing forbearance and was advised we needed to complete the loan modification to be considered for the partial claim and nothing else was available to extend the forbearance even with the new pending legislation under the new Biden Administration. Therefore we proceeded accordingly with completing the loan modification package. 

XX/XX/XXXX Learned from a third party, XXXX XXXX XXXX that our homeowners policy expired on Friday, XX/XX/XXXX due to none payment of the policy premium. We immediately contacted CMG and XXXX for clarity. XXXX indicated they sent correspondence to CMG in XXXX and throughout Q1 XXXX to avoid a lapse and never received any response back. CMG indicated they never received any information at the XXXX XXXX address which is what was provided in XX/XX/XXXX to the mortgagee. At this time, the CMG representative provided me with an email address to send the new homeowners policy ( as though it would be easy to get new insurance given the lapse and having a recent claim on file ). It was extremely troubling having learned we were without homeowners insurance following the extreme freeze which had recently occurred in the XXXX area. 

There were subsequent calls to CMG to share our disdain and disappointment for placing us in this position. XXXX with CMG, ID # XXXX handled the bulk of the call, took notes and called back to advise us there was nothing to be done to recover the expired homeowners policy with XXXX. 

Our quest began to shop for homeowners insurance, now with two negatives : Lapsed coverage, Potential increased/higher premium, and Current/recent homeowners claim In desperation we were only able to obtain a policy which nearly doubled our annual premium with our last insurer from {$1600.00} to {$3300.00} with XXXX XXXX. There were several nos before we got this latest coverage. In fear this policy would also lapse from non-payment by CMG, I made sure to email XXXX as advised from my last call with a CMG representative on XX/XX/XXXX. Confirmation was received on XX/XX/XXXX via email that the new policy information had been received and would be processed. 

As a follow-up measure, I contacted CMG once more on XX/XX/XXXX to see what the status was on processing the new policy premium with XXXX Insurance. Upon calling, I was advised to submit the bill for the new policy to a third-party website as a surefire way that payment would be prompt. I was puzzled since I was under the impression the email and confirmation would be sufficient. As advised, I uploaded the documentation as requested to this new site. It is the inconsistencies with information that is shared with mortgagees that contributes to the continued frustration with CMG.

On a separate issue surrounding the COVID-19 Mortgage Forbearance Program, we called on XX/XX/XXXX and was advised at this time that CMG was now offering the option to extend our existing forbearance an additional 6-months which would total the allowed 18-months and expire on XX/XX/XXXX at which time the first mortgage payment would be due. The CMG representative indicated this option only opened up as of XX/XX/XXXX. Since our financial situation hadnt yet improved we requested for the CMG representative to proceed with this setup over the phone and to disregard the loan modification process which was recently initiated. 

On XX/XX/XXXX we inquired on another issue regarding the handling of the shortage on the account but continued to be routed to the loss mitigation group. While in this maze of calls, we inquired about the status of the 6-month extension for the existing forbearance. At this time, we learned that in fact the additional 6-months hadnt been added as confirmed earlier that month. In fact, the CMG representative indicated that the 6-month forbearance could not be added until the loan modification was cleared/removed from the account. We were under the impression that these things had been addressed in their systems internally. Following a lengthy phone call and extended wait times, we were assured that all had been updated as the other CMG representative was not correct in how the forbearance was entered on XX/XX/XXXX. 

On the morning of XX/XX/XXXX in the 9 oclock hour we contacted CMG once again to gain more clarity as to what exactly was taking place with our mortgage account. After speaking with XXXX XXXX for over an hour in a half, we further learned the following : Mortgagees are not allowed a term of an additional 6-months forbearance, only 3 months ; Again it appears the additional extended forbearance was still not placed correctly on the mortgage account ; It was no guarantee that we would be eligible for the partial claim since their records showed we were 13 months outstanding and it was up to underwriting to review ; and We needed to check back on XX/XX/XXXX to be sure the disaster template was updated on the mortgage account by loss mitigation to the COVID-19 Mortgage Forbearance Program With an anxious feeling we had been given the run around with CMG and the level of incompetence with the many representatives and inconsistencies with the information provided, we requested to have a supervisor call us. As of the writing of this complaint the supposed request which is standard 24-48 hours timeframe to hear back from a supervisor has yet to happen.

Our next steps for reprisal and accuracy of the information provided to us as FHA mortgagees prompted a call to FHA. On the two occasions we called, XXXX XXXX and XX/XX/XXXX, FHA advised us differently than what CMG advised. Attached are the concerns which were raised and the information from FHA. We have no other choice at this point but to seek help in ensuring our home is secure and sound as our primary residence following the end of the COVID-19 Forbearance Mortgage Program.