Consumer complaint received 2020-05-21
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Mr. Cooper Group Inc. (IL)

I purchased the home in question with an FHA loan when I was still married in XXXX of XXXX. In mid XXXX my husband and I separated and he moved out of the house and stopped contributing to anything financially. I filed for divorce and it was finalized in XXXX of XXXX and during this time I received no financial support for the home, the children, or anything else. I got behind on mortgage payments in the fall of XXXX and was directed by my lender to obtain a Quit Claim Deed or a Divorce Decree in order to proceed with a loan modification. After a battle, I finally got my ex to sign the deed and I filed it with the county. Shortly after I also finalized and received the decree stating that the home was awarded to me. I provided both of these documents to my lender and they proceeded to a loan modification. I entered a Trial Payment Plan for HAMP in XXXX of XXXX and successfully completed the payment plan in XXXX. I called my processor, Mr. Cooper Mortgage, to ask about how to proceed since no update was in the system and was told they would send a notary to my home to sign the final loan modification documents. When I asked why my ex husbands name was on the modfication I was told that they couldn't remove his name but that since I had both a divorce decree and a Quit Claim Deed, I could initial on that line and slash through it and proceed with getting the documents notarized. The documents were notarized and sent back to Mr. Cooper mid XXXX. I spoke with another representative at the end of the month and was told they have everything and they were just processing the information. XX/XX/XXXX I logged into my account to make a payment and it was still not processed so I called and was told, for the first time, I could not proceed with the modification because they were requiring the signature of my ex husband. I reached out to my attorney and he assured me those are not the guidelines of the FHA HAMP/Loan Modification handbook and sent me the documents that clearly state that all signatures are required EXCEPT in the event of a death, divorce, or waiving of liability ( Quit Claim Deed ) and I qualify for two of those exceptions. It also states that my file should include the evidentiary support to show any missing signatures on the TTP agreement which Mr. Cooper has had since fall. I should have started my loan modification in XXXX and it should have been approved and finalized and instead they have changed the requirement and refuse to acknowledge the law. The law is clear and the fact that they allowed me to go through an entire modification, complete the trial, make a post-modification payment and then tell me my ex husband has to sign is absurd. Becuase he signed away his rights to the home with the Quit Claim Deed there is no way he will sign any papers saying he is responsible financially. FHA guidelines are clear and I've done everything I'm supposed to. They considered only my financials for this modification they didn't review any information from my Ex husband and he was a co-borrower the first time. He didn't sign any agreements up until this point. I am getting nowehere and running out of time and I can't believe this is being allowed, particularly during a pandemic when people are struggling to stay afloat. Outside of filing a law suit I'm at a loss and want to report this behavior and ensure this doesn't happen to another borrower with Mr. Cooper.