Consumer complaint received 2015-10-01
Product: Mortgage — Other mortgage
Issue: Loan modification,collection,foreclosure — 
Company: CARRINGTON MORTGAGE SERVICES, LLC (IL)

More complete record attached. 
The servicer has not been following the CFPB guidelines designed to allow borrowers to complete a modification packet. The CFPB was enacted to " promote fairness and transparency for mortgages, credit cards, and other consumer financial products and services. The CFPB will set and enforce clear, consistent rules that allow banks and other consumer financial services providers to compete on a level playing field. '' Federal Register. The spirit of the CFPB encourages borrowers to submit modification packets for review and imposes regulations on the servicer that prevent them from arbitrarily denying packets to move the foreclosure process forward quickly. The CFPB requires transparency and cooperation to aid borrowers. 

Beginning XX/XX/XXXX I have been attempting to receive a modification on my current mortgage. I want to be able to keep my home. I submitted a packet, through my attorneys, to the bank for review. My loan is serviced by Carrington Mortgage. On XX/XX/XXXX the servicer sent a Certificate of Readiness indicating my packet was incomplete. The servicer indicated my packet could not be deemed complete for review until evidence was shown that a XXXX lien on the property had been resolved. Through my attorneys I inquired as to what regulation and lien the servicer was referencing. After waiting several weeks my attorneys inquired on the status of my packet XX/XX/XXXX. We were told my submission could still not be reviewed at that time because of a XXXX lien on my property. Regulation 12 CFR 1024.41 ( b ) ( 2 ) ( B ) requires a servicer to inform a borrower within 5 days if a packet is complete or incomplete. The servicer did not certify the packet incomplete or complete within 5 days. There are no liens on my property that supersede my mortgage. My loan is USDA insured and the USDA guidelines do not prevent a modification from being reviewed because of a XXXX lien ( XXXX ). Even if there was a XXXX lien on my home the USDA guidelines would not prevent my packet from being reviewed and a modification offered. My attorney 's informed the bank of the USDA regulation. 

The servicer is bound by HAMP regulations laid out in the HAMP servicer guidebook. Rule 9.3.1 states it is the servicer 's responsibility to " ensure that the modified mortgage loan retains its XXXX lien position and is fully enforceable. '' If the lien was an issue the servicer should have been working with me to make sure the modification was given XXXX lien priority. It is the servicer 's duty to get the necessary approvals to ensure the modification retains XXXX lien priority. The XXXX lien on my property should not have affected the servicer 's ability to ensure the modification had first priority. 

The bank attempted to enter a default judgment against me despite not following any of the CFPB rules. A judicial order was given requiring the bank to allow me to submit a new packet for review. I assumed the packet would be reviewed in good faith. Complying with the court 's order I submitted a new packet on XX/XX/XXXX. I was advised by my attorney 's a waterfall analysis showed I qualified for a modification. With the other issues cleared I thought I would be granted a modification. After waiting a full month a decision was handed down by the bank on XX/XX/XXXX. I was denied a modification, no explanation was given and I was not reviewed for other options. 12 C.F.R. 1024.41 ( c ) ( 1 ) ( i ) requires a borrower be reviewed for all loss mitigation options. My attorney 's informed the bank of this requirements but there has been no movement. I filed a timely notice of appeal/error letter informing Carrington mortgage I should have been reviewed for all loss mitigation options. Furthermore in the letter is stated my intention to appeal the banks decision.