Consumer complaint received 2021-12-10
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: MONEY SOURCE, INC., THE (OK)

Loan has been Covid 19 Cares Act forbearance since XX/XX/XXXX and was current at time of entering into forbearance plan. The original Covid 19 Forbearance was scheduled to end XX/XX/XXXX. During this time, my loan was sold and transferred to a new servicer. 
In preparation to forbearance plan ending, I contacted Hud Counselor and TMS, the new mortgage servicer in XX/XX/XXXX for assistance. It is during this time I discovered that there are a lot of discrepancies as to what forbearance plan my loan was classified as, what post forbearance loss mitigation options I am receiving, and the principal balance owed on my loan. There has been conflicting correspondence that has been sent from the previous servicer and current servicer. In addition, the current servicer has been very vague on what is going on with my account and have not confirmed whether I am in a FHA Covid 19 forbearance plan or Non FHA Covid 19 forbearance plan. Also, the servicer has not provided all the post forbearance options that are available to me even though I requested this in a written notice of error letter. Instead, the servicer states there is not a single, comprehensive list of loss mitigation workout options, as the workouts for which I may qualify will vary. 
It appears that while my loan was in an approved Covid 19 Forbearance Plan foreclosure loss mitigation actions have been in progress simultaneously as if my loan was past due 60 days before entering into Covid 19 Forbearance. Therefore, I have received updates regarding my Covid 19 forbearance mortgage assistance by email and also, received non-Covid Forbearance mortgage assistance emails, default notice, and two and three month past due demand letters, copies all attached in timeline history documentation. It is my belief that the simultaneous communication was done for the following reasons : To show a history of contacting the borrower regarding delinquency as if a Covid 19 forbearance is not in place and borrower did not respond. By doing this it allows the servicer to immediately start or continue foreclosure once the Foreclosure Moratorium expires. 
To push loan into foreclosure instead of Covid 19 Home Retention Options due to the amount of equity in the home. Current market value is {$220000.00} and principal balance owed is {$130000.00} which the servicer can expect the home to sell for more than the balance due. This is beneficial to the servicers because they make back their money owed along with all the fees. Also, servicers make more money processing foreclosures than monthly fees for servicing loans. 
To avoid the federal Covid 19 Forbearance requirements and process the loss mitigation as non-Covid Forbearance Plan as this process is most monetarily beneficial to the servicer as they can add delinquent interest, other charges and fees, or require balance to be paid as lump sum at the end of loss mitigation plan ( which most borrowers would be too far behind to make a lump sum payment especially when the interest, late fees and other foreclosure charges are added ). 
To cause the borrower to have to prove they were on approved for Cares Act Covid 19 Forbearance Plan. I think that the servicer is counting on borrowers coming out of a long Covid 19 forbearance plan and not having any documentation regarding the initial Covid 19 Forbearance as there is very limited communication sent regarding Covid 19 Forbearance and numerous communications sent regarding loss mitigation efforts, which the servicer sent out FAQ sheet stating that delinquent notices must be sent due to investor guidelines but payments will not be required during the forbearance. FAQ sheet also states you only need to contact the servicer if you wish to cancel your forbearance plan or adjust the duration of the forbearance. This basically ensures that the borrower does not respond to any loss mitigation notices, see copy of FAQ sheet attached. 

Complaint Items 1. XXXX is practicing dual tracking. 
2. XXXX Servicer reported to credit bureau that my loan was in deferral program and defaulted on this deferral program when the loan was actually in an approved Covid 19 Cares Act Forbearance plan. 
3. XXXX Servicer improperly started foreclosure process including sending default notices and past due demand letters while loan was in an approved 180 day Covid 19 Cares Act Forbearance plan. 
4. XXXX Servicer reported to credit bureau that loan was 180 days or more past due when loan was in an approved 360 day Covid 19 Cares Act Forbearance plan that was current at time of forbearance began. 
5. The Money Store ( TMS ) is practicing dual tracking. 6. TMS reported to credit bureau that my loan was in deferral program effective XX/XX/XXXX, when I was actually in a requested 90 day extension to Covid 19 Forbearance that was scheduled to end XX/XX/XXXX. A deferral is a permanent post forbearance plan. 
7. TMS did not comply with 90 extension requirements by only providing 60 day extension. By doing so prematurely forcing me into a post forbearance program on XX/XX/XXXX. Servicer intentionally tried to discourage me from canceling forbearance plan on XX/XX/XXXX. 
8. TMS improperly classified loan as Special Forbearance Plan which is an unemployment forbearance which is offered after forbearance assistance under Covid 19 is complete. By doing this, an additional {$10000.00} of interest and fees was added to unpaid balance. 
9. TMS did not comply with Covid 19 Home Retention Program by not evaluating my loan for Advanced Loan Modification ( ALM ). Servicer informed me that ALM requires the borrower to submit a request. In addition, after formally requesting ALM in writing the servicer ignored request. When I requested ALM review by phone, servicer stated application review was submitted but is pending. Later called to notify me of approval of partial claim with no mention of ALM outcome. 
10. TMS notified me on XX/XX/XXXX that I was approved for partial claim that would be complete on XX/XX/XXXX and payments were to resume starting XX/XX/XXXX. When I tried to make a payment the servicer encouraged me to wait informing me that I have the whole month of XXXX to make a payment without a penalty. Servicer also stated the partial claim paperwork has been ordered and I should receive any day via XXXX. Why wasnt I sent a letter stating that a partial claim was approved and when my payments were to resume? Why was this only communicated verbally? 

I have provided written disputes sent to the servicers, a summary of events that I have experienced over the last 15 months, discrepancies and erroneous information servicers have given and reported to credit bureaus, and timeline of contact and correspondence with servicers with supporting documentation. My hope is that providing a detailed review of the process that I have experienced thus far with how my servicers have handled Covid 19 Cares Act Forbearance Plan post forbearance options, you will see exactly what servicers are doing to borrowers. When reaching out for assistance to HUD Counselors and FHA Housing Program Specialist it was difficult to explain the issues I had been experiencing. And although they were eager to help, they could only provide assistance based on what the servicers should be doing because they werent aware of what servicers are actually doing.