Consumer complaint received 2020-10-26
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Mr. Cooper Group Inc. (MA)

In XXXX of XXXX, my husband and I entered a Covid 19 forbearance plan with our FHA mortgage. This was due to XXXX, MA being shut down and my husband going on unemployment for some time due to the pandemic. Husband then regained employment with his former employer and we contacted Mr. Cooper to end our forbearance plan with them and restart making monthly mortgage payments in XX/XX/XXXX. Our first call to Mr. Cooper to restart payments was XX/XX/XXXX, XXXX we were told that we would receive documentation that would need to be completed in order to begin making our payments. We were told that until we received these documents and returned them to Mr. Cooper, so that our loan modification could be approved, we were not able to make payments. We also were not able to make payments online. Our online account stated that our account was not eligible to make payments at this time. 



During the next few months we were told numerous times when we contacted Mr. Cooper, that we were not able to nor would we be responsible for any missed payments until the documentation was returned to Mr. Cooper and our loan modification was approved. We were told not to worry ; our missed payments would be added onto the end of our loan as a second lien. We received a letter from FHA stating that we were approved to have all payments added on to the end of our mortgage because we had a Federally backed loan. Still we continued to contact Mr. Cooper as we did not receive any documentation. We contacted them by phone on the following dates XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX. We finally received documentation and Mr. Cooper sent a notary to our home for us to complete and sign paperwork on XX/XX/XXXX. This was two months after our first phone call to resume payments. We also asked on one of these calls if we were able to make an escrow deposit as our escrow account was in negative and I knew that we had upcoming homeowners insurance renewal coming up in XXXX and town taxes. We were told we should not make payments until our documents were processed as it might mess up calculations. I then called again on XX/XX/XXXX to find out the status of the documentation and asked when we would be able to resume payments and was told probably by XX/XX/XXXX. All these phone calls to Mr. Cooper to find out the status of our loan modification, we were assured that ALL missed mortgage payments were going to be added to the end of our loan. 



XXXX XXXX I logged on to Mr. Cooper.com to see that our loan modification had been rejected. Still we had not been contacted by Mr. Cooper to inform us of this. I called again and XX/XX/XXXX, I was told that for our loan modification to be processed we would have to make a payment of {$4700.00}. I was confused and asked why we would have to make this payment if we were told that all missed payments were going to be added on to our second lien. I was told that our loan modification had been approved in XXXX and we were to resume payments as of XX/XX/XXXX. I was told that because we had not made the payments for the month of XXXX and month of XXXX that we were required to make those payments in full or else our loan modification would be rejected. I explained to the customer service representative the information that we had been getting from Mr. Cooper for the past two months had been incorrect and we were told that we could not make payments until our paperwork was received and processed. I was then asked if I could make the payment in full and if we were interested in keeping our home. At which time I became extremely uncomfortable and asked to speak to a manager. I was told there was not a manager available and they would call me. 



I did not receive a call from a manager and called again on XX/XX/XXXX. I explained the situation and was told that these were the terms of our modification. I was told that the payment of {$4700.00} would have to be paid if we wanted our paperwork to be processed. We decided to make the payment for {$4700.00} and clear out our bank account for fear of losing our home to foreclosure. 



On XX/XX/XXXX I noticed that the amount taken out over the phone by Mr. Cooper was incorrect and I called again. I explained the situation and made an additional payment for {$360.00} to make up for the miscalculation made by Mr. Cooper. I explained the situation to the customer service representative and explained how I still hadnt heard back from the manager. I was finally told by XXXX at ext. XXXX, that the information the customer service representatives had been giving me and my husband throughout the two-month period that we waited for the documents to arrive was incorrect. I was told that we should have been contacted by our loan specialist listed on our account XXXX XXXX throughout this process. She should have explained the specific payment information as well as the terms of the forbearance. She should have contacted us to discuss the payment of {$4700.00} as well as our loan modification being approved back in XXXX and then rejected due to nonpayment. 



A few times I asked the customer service representatives if I could request a copy of the notes taken by each of the customer service representatives for each of the calls that we made to Mr. Cooper. I also asked how to go about getting a hold of the recorded conversations where the customer service representatives repeatedly gave us false information. I was told that neither of these things were possible. I again asked that a manager call me to discuss. 



On XX/XX/XXXX I called and requested that our case be processed so that we could resume making regular monthly payments. My husband also called the same day. We were told that our case was being expedited and that it should be processed by XX/XX/XXXX. That date has come and gone. I called again today XX/XX/XXXX and was told that it is still not processed. 



Since our first call to Mr. Cooper our escrow has been going more and more into the negative. 



Town Tax XX/XX/XXXX XXXX XXXX {$1200.00} FHA Mortgage Insurance XX/XX/XXXX FHA {$250.00} FHA Mortgage XXXX XX/XX/XXXX FHA {$250.00} FHA Mortgage Insurance XX/XX/XXXX FHA {$250.00} Hazard Insurance XX/XX/XXXX {$1600.00} Town Tax XX/XX/XXXX XXXX XXXX {$1200.00} In all our escrow account is now in a negative - ( {$4300.00} ) which we were told will be added to our mortgage payments over a 12-month period. Because of the delay and misinformation given to us by Mr. Cooper our mortgage payments will now be approximately {$350.00} more than they were prior to the forbearance plan. We still do not have our loan modification processed and are not able to set up autopay or plan for a monthly mortgage amount. We still have not heard from a manager. 



After looking into the CARES Act and Federal Laws, I have found that FHA and other government backed loans are not required nor can the mortgage companies require us to make a lump sum payment. The amount of financial stress that Mr. Cooper has now put on my family and will continue to put on my family for months to come because of their lack of communication, lack of information or completely misguided information that was given to us has been difficult to bear. Not to mention that we are not even close to being done with this pandemic as a country. I have yet to have anyone at Mr. Cooper take responsibility for giving us inaccurate information and have been told that I misunderstood what the multiple customer service representatives stated. There is a difference between misunderstanding information given to you and given inaccurate information. 



I feel as if our rights have been violated. I feel that Mr. Cooper did not abide by Federal Laws given the Covid 19 CARES act and the law protecting federally backed mortgage loans. I also believe Mr. Cooper was in violation of the Massachusetts Consumer Protection Act for unfair and deceptive business practices.