Consumer complaint received 2018-02-11
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC (CA)

Please promptly establish a new single point of contact ( SPOC ) for my account, your SPOC XXXX XXXX lied to us, she is constantly making promises she does not end up keeping. On XX/XX/XXXX XXXX told my prepresentative ( XXXX ) she will email her manager to approve the late fee and will call XXXX back same day before she leave but she never did. This happen over and over, again and again on XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX XXXX said that she will email both payoff and reinstatement from 2 to 5 business day, on XX/XX/XXXX XXXX again said that she will email XXXX the reinstatement and payoff minus all late charge half hour from XXXX ET that day but she never did. On XX/XX/XXXX she request the proof of funds for payoff. this is a ridiculous request because I try to get the loan modification or i have to sale my property and I do not have proof of fund to show them to get the Payoff Statement. I am at work all the time to make money to save my house, I have agents help to submit loan modification and negotiation with Rushmore, I do not have time to talk to Rushmore and XXXX continued request to talk to me, regardless of my circumstances. 
Your SPOC XXXX XXXX did not do what he required to do. I need a new SPOC from now. 
Can I request XXXX XXXX XXXX in XXXX, Texas will be my SPOC? 
Sincerely, XXXX XXXX XXXX FYI Managing Single Points of Contact Claims The old saying, As California goes, so goes the nation, has never been truer than in the loan servicing industry. In particular, the Single Point of Contact ( SPOC ) statute sets the standard for customer service in the loss mitigation arena that should be used as the benchmark through the country. This is even truer because case law interpreting the Homeowner Bill of Rights is tipping in the borrowers favor. Given the current environment, loan servicers, whether in California or not, would be best served by taking a conservative approach to pinning down issues of SPOC compliance. 
In its basic form, the SPOC rules, codified under Civil Code 2923.7, mandate that servicers promptly assign a SPOC to the borrowers and explore alternatives to foreclosure with them, if requested. This seems like a mutually beneficial arrangement because borrowers want to exhaust all options to keep their homes, and servicers wish to have the loan performing again. However, it is often a challenge for both parties because of timelines and documentation requirements. 
The legislature enacted section 2923.7 to ensure more transparency in the loss mitigation process and to ensure all loss mitigation efforts were explored before a foreclosure occurred. The legislature also sought to address a common homeowner complaint about being handed off to multiple asset managers, who did not know the loan, which caused the homeowners to duplicate their efforts. At the same time, those borrowers felt there was the threat of a foreclosure looming and no assurance that the servicer would be able to stop the foreclosure while the borrower attempted to submit the required documentation. 
When is a SPOC Necessary?

Section 2923.7 ( a ) states : Upon request from a borrower who requests a foreclosure prevention alternative, the mortgage servicer shall promptly establish a single point of contact and provide to the borrower one or more direct means of communication with the single point of contact. 
Different courts have different views on when this section becomes operable. One court stated that a lender need only assign a SPOC when a borrower requests one be assigned. XXXX v. XXXX XXXX XXXX, XXXX ( XXXX, XXXX XXXX ) XX/XX/XXXX US Dist XXXX XXXX. Another court came to the opposite conclusion and held that the SPOC must be assigned if the borrower seeks a foreclosure prevention alternative. XXXX v. XX/XX/XXXX XXXX XXXX., XXXX. ( XXXX, XXXX XXXX ) XX/XX/XXXX US Dist XXXX XXXX. 
Though there are two opinions, the best option to remain compliant is to assign the SPOC when a borrower requests an alternative to foreclosure. That position is consistent with the plain reading of the statute and would be consistent with the purpose of the statute to offer options to the borrower about which he or she may not know. 
What is the SPOC Required to Do? 
The statute enumerates the SPOCs responsibilities. The SPOC must be able to : Communicate the loan assistance application process and explain the timelines under which both parties will operate ; Coordinate the receipt of all necessary documents and notify the borrower of any required documents necessary to complete the application ; Access the borrowers status with regard to the foreclosure prevention alternative ; Ensure the borrower is considered for all foreclosure prevention alternatives offered by the servicer ; and Communicate with those who have the authority to stop foreclosure proceedings. Civil Code 2923.7 ( b ). 
The fundamental purpose of the SPOC is to be an entry point to the servicers loss mitigation network, which often contains a distressed asset component, a foreclosure component, and an underwriting component. The SPOC is meant to be the one person that can lead the borrower through this network and ensure the borrower is considered for all options for relief. 
In addition to the foregoing, the legislature has required a higher level of supervisory oversight. The statute expressly states that the SPOC must refer the borrower to his or her supervisor, if any, upon request. In other words, the SPOC may not be the last point of contact.