Consumer complaint received 2019-02-27
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC (NJ)

Please Help!! 
I have been approved as successor in interest on a property which is my primary residence with XXXX children. I purchased this dwelling in XXXX as a single woman. Another individual 's name is currently on the mortgage note. This individual has abandoned the property in XXXX. I am solely responsible for maintenance, upkeep and paying the mortgage in a timely fashion. The mortgage on this property is serviced by Rushmore Mortgage Company. I believe they are being non compliant with new rulings by the CFPB. 

Since XX/XX/XXXX when certain new rulings came into effect, I have made a request to be substituted as obligor on the note and have a written release of liablity to the individual on the note. I have made this request countless times, in writing, and verbally and have been denied. The individual on the note has also sent written request. The last contact I had on the phone told me that Rushmore " could technically do this '' but that they " won't. '' That they don't " do assumptions or refinances. '' I have explained numerous times, that according to the CFPB rulings, this would not be considered either an assumption nor a refinance From my understanding : The CFPB notes that there can be significant consequences for a successor who is not able to become an obligor on an existing mortgage loan, and provides an example of a successor not being able to obtain a modification because he or she is not a party to the existing loan and can not enter into a modification agreement. As the CFPB observes, if the ability to repay rule applies to a successors assumption of an existing mortgage loan, such an assumption is less likely to occur. 

The CFPB interprets the ability to repay rule as incorporating the existing Regulation Z standard for transactions involving a change in obligors as set forth in section 1026.20 ( b ) and, therefore, unless a change in obligors satisfies the definition of assumption under that section the change does not trigger the ability to repay rule requirements. The CFPB then notes that an assumption for purposes of section 1026.20 ( b ) occurs when a creditor agrees in writing to accept a new consumer as a primary obligor on an existing mortgage loan, and the loan would constitute a residential mortgage transaction for that new consumer. Under Regulation Z, a residential mortgage transaction is a transaction in which a consumer finances the acquisition or initial construction of the consumers principal dwelling. 

The CFPB interprets the ability to repay rule as not applying when a creditor agrees in writing to allow a successor to become the obligor on an existing mortgage loan because there is no assumption for Regulation Z section 1026.20 ( b ) purposes. Because the successor had previously acquired title to the property, the transaction is not a residential mortgage transaction for the successor and, therefore, is not an assumption subject to the ability to repay rule. 

A letter I received from Rushmore dated XX/XX/XXXX states that : '' In order to release someone from liability, you will need to be credit approved to assume or refinance the mortgage loan. '' This is the direct opposite of the CFPB rulings which state : '' The CFPB interprets the ability to repay rule as not applying when a creditor agrees in writing to allow a successor to become the obligor on an existing mortgage loan because there is no assumption for Regulation Z section 1026.20 ( b ) purposes. " All I am asking is that Rushmore agree in writing to accept me, as successor in interest, as the primary obligor on the existing mortgage loan. and release the other individual from liability at the agreement of both parties and court orders. I am asking the CFPB to intervene on my behalf. My homestead is at stake. I have resided in this property that I had solely purchased since XXXX. My family will have no where to go if I lose this residence because Rushmore won't comply with CFPB regulations I have proven that I am able to pay this mortgage I have made every payment in a timely fashion in my name since XXXX. I have practically begged Rushmore to accommodate me and have explained how urgent the situtation is for my personal family. 
cfpb12 CFR part 1026 docket #  XXXX RIN XXXX XX/XX/XXXX 1026.43, 1026.20 ( b )