Consumer complaint received 2023-01-26
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (CT)

Hello, Im lodging the formal complaint with the caveat that this has also been forwarded to their escalation team, and at the time of writing half of my proceeds have been issued ( per customer service, they have not hit my account yet ), so at the time of your review it may be resolved, but Im hoping this information is supplied to the FTC in the event any of what happened below is actionable on a broader/regulatory scale so other consumers dont experience the same hardships. I apologize for the length, but I think its all necessary to understand the experience : Company : Mr. Cooper Issue : Non-payment / delayed payment of insurance and mortgage payoff proceeds in excess of 3 months. 

- Ahead of my house selling in XXXX, I submitted an insurance check for XXXX to Mr. Cooper, along with uploading the copies of my divorce decree and quit claim ( to remove the co-borrower from the proceeds checks ). I was told this information had been received I also mentioned that my mailing address had changed ( XXXXXXXX XXXX ) and was told by the insurance claims department that the address had been updated ( from XXXXXXXX XXXX the address of the collateral property ). 

- My next call is in response to a voicemail saying that a proceeds check had been issued to me for a portion of the XXXX and was returned undeliverable I call and learn the check was sent to my old house ( XXXXXXXX XXXX XXXX  ) and that it was issued to both mortgage holders thats when Im told the Quit Claim / Divorce Decree were not received and I need to submit them again, but because my house sold had sold by this point I cant use the upload service and I can only fax them ( I ask specifically about email, I am told it can not be emailed ). Per my visit to XXXX, it would cost {$45.00} to do so, but lo and behold, I was able to upload them anyway. I upload them - I believe I called to follow up after 2-3 weeks ( approx. 1st week of XXXX ) either on my own or in response to another undeliverable message about the proceeds check. The rep I spoke with told me my money had been issued to my new lender and that the money is gone 25 minutes on hold later the rep indicates that the insurance claim is closed because of the sale and has transitioned to servicing they will issue checks for the full insurance amount in addition to any amount owed for the remainder of the escrow balance, etc. I ask if my quit claim deed / div decree was reviewed Im told it was reviewed and approved on XX/XX/XXXX. I ask what address servicing has and if they can see the divorce decree/quit claim deed he says XXXX need to ask servicing. I get transferred to servicing who indicate they still have the wrong address ( XXXXXXXX XXXX ). I provide the new address. They ( servicing ) tell me they see the quit claim/divorce decree and the checks will be issued by XX/XX/XXXX. 

- XX/XX/XXXX or XXXX I receive 2 checks in the mail, dated XX/XX/XXXX made out to myself and the co-borrower ( meaning they just stuffed the previously undeliverable checks in a new envelop to the correct address ). I call and get yet another representative who says the Quit Claim / Divorce decree are here, shes going to reissue as 3 separate checks. She sits on the phone with me, she confirms the details as she processes each check. She tells me theres no way to expedite any of it, despite the long process and frequent missteps. She tells me it will take 3-5 business days - XX/XX/XXXX, I call again to learn ( after a massive, lengthy hold ) that the checks were not issued because I never submitted my Quit Claim / Divorce Decree! No one bothered to notify me of the issue. So at this point I request an escalation and I get assisted by XXXX in escalations ( who is lovely, and arguably the only positive part of this experience ) XXXX is able to locate my Quit Claim / Divorce Decree and goes as far as attaching it to each request so it doesnt get denied again. She also takes a further step of allowing me to submit a cancelled check to the help email address so the funds can be wire-transferred instead ( so there was a way of expediting after all ). 

- Today XX/XX/XXXX, I follow up with XXXX as the funds have not hit my account to learn that one check was approved yesterday but the other was denied because they were apparently handled by two separate individuals. Now the remainder of the funds sit in limbo awaiting the attention of someone who can issue them.

This raises a few concerns : 1 ) Mr. Cooper has held my funds for an unreasonable length of time, as all information needed by me was provided in early XX/XX/XXXX, without paying interest on these funds or reasonably escalating for remediation. 
2 ) Representatives of Mr. Cooper have applied their rules and procedures in an inconsistent way a. They denied me access options ( sending documents via email or cancelled checks via email to allow wiring vs. physical checks ) b. Two wire requests ( the checks were split XXXX and another for XXXX to include the remainder of the insurance claim and the payoff refund ), submitted identically and on the same day were handled by two separate representatives and resulted in two separate outcomes if this happened to me, then inevitably its happened to other consumers, which constitutes disparate treatment.

c. Multiple representatives have told me vastly different things ( documents not received when they had been, your money is gone and sent to a lender, your mailing address has been updated when it hadnt, you cant use our upload feature because youre no longer an active customer when it was accessible ) similar to point B, these examples demonstrate a massive, systemic issue with the knowledge level of their employees, resulting in inconsistent and disparate treatment.

Again, I provide all of this to you in the hopes that at the time of your review this will all be resolved, but Im absolutely shocked and taken aback, as a person who works for another major financial lender, that this kind of treatment could be allowed by such a large and reputable lender.

Thank you for taking the time to review this.