Consumer complaint received 2021-03-10
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (WA)

I purchased my residence in Fall of XXXX through the XXXX  XXXX XXXX and my loan was packaged and sold to Mr. Cooper immediately following. Mr. Cooper 's parent company serviced my previous mortgage without issue. Mr. Cooper 's capacity for servicing my mortgage have been the opposite. 

Beginning on XX/XX/XXXX I paid a partial payment of {$1800.00} towards my next month 's loan amount. It was misrouted by Mr.Cooper to additional principal. It took multiple phone calls to have this corrected, with the funds reapplied to a partial payment, but instead of being applied to the total amount, they were held in unapplied funds. 

On XX/XX/XXXX I had to call multiple times to address additional principal payments which had not been correctly applied and have them backdated to the correct date with the additional interest that had accrued to be removed. This was done and {$88.00} of interest was credited back. 

On XX/XX/XXXX I paid {$1600.00} towards additional principal and Mr. Cooper misrouted it to a partial payment. It took multiple phone calls to have this fixed. 

On XX/XX/XXXX I paid {$1900.00} towards a partial payment of my mortgage and Mr. Cooper completed the transaction correctly and then reversed the transaction and misrouted it to additional principal. After multiple phone calls they fixed this back, only to immediately 'un fix ' it Six changes were made to my account without permission as they transferred the money back and forth, reversing charges and incorrectly applying them. 

On XX/XX/XXXX I paid {$1900.00} towards a partial payment of my mortgage. Mr. Cooper incorrectly routed it to additional principal. It took multiple phone calls to resolve this. Five changes were made to my account without my permission again as they transferred the money back and forth.

Mr. Cooper 's website provides four options for payments : 1. Full Payment 2. Principal-Only Payment 3. Escrow Deposit 4. Partial Payment I have spoken to numerous escalation representatives, as well as the Executive Resolutions Team Manager, and their AVP of Escalations. The explanations I have received vary each time : 1. It is user error, you are selecting the wrong payment method ( Incorrect ).

2. We set up your hierarchy wrong. ( Hierarchy is the back end book keeping ). We accidently set you at a ( Pay 6 months in advance before anything goes to additional principal / Pay 2 months in advance before anything goes to additional principal / Pay the total for the month and then anything else goes to additional principal ) 3. The person before me set your hierarchy wrong. I'll fix it. 
4. The person before me did not correctly set your hierarchy, I'll absolutely fix it.

5. Our system gets confused by partial payments, you should only pay the full amount.

6. You should give us access to your bank account and we'll go ahead and take money out twice a month for you. 

Now why does this matter? Had I not been staring at my account constantly, checking every payment, I would have been late in making no less than three monthly payments in a six month period. Even though I was paying additional amounts towards my mortgage and paying early, I was logging back in to find that the amount due was not reducing, or the payment was not being correctly allocated. Worse, after making a payment and verifying, it would be changed multiple times without my permission.

Had I been delinquent in these payments, my security clearance would be subject to review. My job, with the US Army requires a TS clearance and I would lose my role and position. 

I have exhausted all available resources both internally and externally with Mr. Cooper, and with with nearly 20 instances of banking malfeasance on their part, I spend upwards of 3-5 hours on the phone every two weeks fixing their issues.

Moreover, while I am not being 'punished ' for early payments, my money is sitting in unapplied funds, not paying off the loan amount. While this may be Mr. Cooper 's policy, my loan was agreed through the XXXX XXXXXXXX XXXX, and they have not had any issues with this prior, so even when I make payments, they are not properly reducing my total amount.