Consumer complaint received 2021-07-14
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Mr. Cooper Group Inc. (PA)

LOAN # XXXXXXXXXX My complaint is explained below and sent via email to XXXX on XX/XX/XXXX and I have been trying to get a loan modification approved since XX/XX/XXXX due to the pandemic. I believe Mr. Cooper to be fraudulent in the handling of my loan modification. They are supposed to be the mortgage experts, not me, but things do not add up as explained below. They used the wrong LTV and they shortened the term of my loan by 15 months stating that the payment could not be reduced and therefore I do not qualify for a loan modification. Shortening my loan term increases the payment when one adds in the forbearance amount! I never shortened the term of my loan and it is illegal for Mr. Cooper to do so. 
Furthermore, today I finally received the investor information that I have been requesting since XX/XX/XXXX. I have been told by Mr. Cooper associates many times that my loan is with a private investor and that I didn't meet their guidelines, yet I received the investor information and find out XXXX XXXX  XXXX, NA is the investor. I don't think that BOA is a private investor but I do not know. The investor information letter also states that I must go through Mr. Cooper because they service the loan for XXXX. Furthermore, I want to know what the exact guidelines are because I have read that XXXX has either lowered the rate and extended the term or has allowed the forbearance amount to be added to the end of the loan term, none of which Mr. Cooper has been willing to do. 

BELOW LETTER IS WHAT WAS SENT TO MR. COOPER XX/XX/XXXX Dear XXXX XXXX, In regards to your response dated XX/XX/XXXX, the following terms were utilized during your review that resulted in a denial of a loan modification due to the pandemic : Current P & I Payment : {$1300.00} Property Value : {$710000.00} Proposed post modification Unpaid Principal Balance ( UPB ) is : {$280000.00} Forbearance Amount : {$0.00} Proposed Interest Bearing UPB : XXXX Proposed post modification interest rate : 4 % Amortization duration : 337 months ( This is false and Mr. Cooper shortened the term of my loan by 15 months. Current term is 352 months. See below and attached document. 
Proposed post modification P & I payment : {$1300.00} You also stated verbatim " To be eligible for this program, the proposed modified monthly P & I installment must be equal to or less than the current P & I installment of {$1300.00}. Because the LTV is less than 80 %, the account is not eligible for rate reduction or principal forbearance per program guidelines. Loan to Value ( LTV ) : $ XXXX {$710000.00} = 39.4 %. The denial is confirmed and will remain unchanged ''. 

My response to you in XX/XX/XXXX email to same address stated that you are incorrect with regards to the LTV. Mr. Cooper did not calculate the Combined Loan to Value Ratio ( CLTV ) and the CLTV is over 80 % and is 90.6 %. 

Mr. Cooper Balance : {$280000.00} XXXX XXXX 2nd Mortgage : {$360000.00} Total Debt : {$640000.00} CLTV : {$640000.00} / {$710000.00} = 90.6 % The amortization duration used to calculate the payment was shortened by Mr. Cooper by 15 months. Attached to this email is the XXXX paperwork as proof. As of XX/XX/XXXX my loan had XXXX payments left according to the HAMP modification paperwork. My loan term as of XX/XX/XXXX is 352 months, NOT 337 months. Why would Mr. Cooper shorten my loan term by 15 months? Mr. Cooper nor the investor has the right to shorten my loan term and the only way a modification would work when adding in forbearance is if either the interest rate is lowered or the loan term is extended ( not shortened ). Obviously, the proposed payment would be higher than my existing payment when the loan term is shortened and the rate has not been adjusted. Is this complete incompetence or down right fraud to misrepresent the facts? 

XX/XX/XXXX - XXXX payments left per XXXXe HAMP paperwork XX/XX/XXXX - XXXX payments left - XXXX payments XX/XX/XXXX to XX/XX/XXXX XX/XX/XXXX - XXXX payments left - XXXX payments XX/XX/XXXX to XX/XX/XXXX XX/XX/XXXX - XXXX payments left - XXXX payments XXXX, XXXX, XX/XX/XXXX prior to forbearance plan XX/XX/XXXX XX/XX/XXXX - XXXX payments left - made 6 payments of 50 % each of mortgage payment that were applied to XXXX, XXXX, XXXX, XXXX payments. 

I have yet to receive any options other than denial of modification, a short sale or deed in lieu. A refinance is not an option as I am on XXXX since XX/XX/XXXX and will not qualify with my income. I did however, supply the income of my significant other whom has been living at said property with me for 10+ years who supplements the mortgage payment and is willing to continue to do so. Mr. Cooper has had all the documents that were requested in order to submit for a loan modification since XX/XX/XXXX, however, your letter states that income is not considered as it has no impact on the proposed terms or decisions yet the terms and conditions are false. 

To lower my monthly payment through a loan modification, either the interest rate needs to be lowered or the term needs to be extended when adding in the additional forbearance amount. It is that simple! A modification is a farce if the rate and term remain unchanged. If you refuse to adjust the rate or the term, then it is fraudulent to state that I dont meet the guidelines because the guidelines must not exist. If they exist then I want to see a copy of the investor guidelines. We are willing to work with you and are open to options or solutions which may include a down payment in order to make the ratios work but you must be willing to adjust either the interest rate or extend the mortgage term. 

I have also requested from you the investor contact information including address and telephone number in my email to you on XX/XX/XXXX. You failed to give me that information and on XX/XX/XXXX, I was informed by Mr. Cooper that I had to send an email, which I did do on XX/XX/XXXX, but I have yet to receive the information on the investor. 

Per your email XX/XX/XXXX, you have stated that I should contact my loan officer XXXX XXXX at XXXX. When I called the number you provided there is no extension for XXXX XXXX so how do you suggest I contact him? On XX/XX/XXXX, I spoke to XXXX reiterating everything and she put a message into XXXX XXXX. On XX/XX/XXXX, I called and spoke to XXXX, and XXXX XXXX wherein I had to explain everything over and over again. On XX/XX/XXXX, XXXX XXXX called me and then said he'd call me back Monday at XXXX but I never received a call. On XX/XX/XXXX, I called and spoke to XXXX XXXX in Arizona at the escalation department because XXXX XXXX is not available. XXXX XXXX told me that they only have about an hour a day to return phone calls so how can someone speak to anyone. XXXX XXXX told me that my loan is currently being reviewed. I informed her that Mr. Cooper shortened the term of my loan and why the proposed payment didnt work and she said there is nothing she can do and I can not speak to anyone higher than her. She didn't even document in the system for someone to review. Therefore, all of the above has led to me writing my 4th email appeal to XXXX. 

I am certain, I am not the only one having a difficult time getting their loan modified with the XXXX I've listed above. How many other homeowners are being denied modifications? Thousands? Therefore, I am demanding an answer and for this to be resolved and corrected. 

I am submitting this complaint to the XXXX  of which I will attach the entire copy of this email as verification and proof. I will also file a complaint with the CFPB with this additional information regarding shortening my loan term. Futhermore, Mr. Cooper just settled a class action lawsuit in XX/XX/XXXX for fraudulent activity and I'm not opposed to contacting the lawyer to start another.