Consumer complaint received 2022-09-24
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Mr. Cooper Group Inc. (WA)

My husband and I have been dealing with this nightmare since XX/XX/XXXX. We want our current mortgage company Nationstar/XXXX  d/b/a Mr. Cooper to abide by and implement XXXX Veterans Affairs Partial Claim that our former mortgage company XXXX XXXX  said we were approved for XXXX XX/XX/XXXX ; remove the derogatory dings on our credit reports, and compensate us for the damages they have caused. The following is a synopsis : On XXXX XX/XX/XXXX : Received a letter from XXXX  XXXX  stating we had been approved for the XXXX Refund Modification. The letter stated we told XXXX XXXX  that we could not resume payments, which was not true. We told XXXX XXXX  from the very beginning that we were ready to resume payments. A copy can be provided. XXXX XXXX Loss Mitigation said they would resubmit the paperwork. 
On XXXX XX/XX/XXXX : Received a letter from Freedom Mortgage that we had been approved for XXXX Affairs Partial Claim. XXXX XXXX  said they would work on the paperwork that had to be notarized. A copy can be provided. 
I called XXXX XXXX, and the representative stated the signing would be scheduled. I asked the XXXX XXXX  representative if I needed to get a Power of Attorney from my husband, who is active-duty military since he would not be present for the signing. I told the representative that my husband had been reassigned to Washington state and my daughter and I was remaining in XXXX Affairs until her high school graduation, she was in her senior year. The representative said XXXX XXXX  would send my husband a copy of the papers in WA and the notary would notarize the documents for him in WA. 
XXXX XX/XX/XXXX : A notary witnessed me sign and he notarized the Veterans Affairs Partial Claim paperwork. The Notary, XXXX XXXX with XXXX XXXX, called XXXX Mortgage while he was at the house because he thought My husband was going to be at the signing. No one from XXXX XXXX  answered the phone. I signed the paperwork and XXXX said he would XXXX  the documents to XXXX XXXX. A copy can be provided. 
I kept calling XXXX XXXX  and each representative said they would send the papers to my husband, and it never happened. 
One day I called XXXX XXXX, and the representative told me that XXXX XXXX  sold our loan to Mr. Cooper, and I would have to talk to them about getting the paperwork corrected. The XXXX XXXX  representative stated nothing would change with the modification because it was already approved. 
I was given the phone number of Mr. Cooper. I kept calling Mr. Cooper for months and was being told my file could not be found so they had not received it from XXXX XXXX. 
At XXXX point, I was told I was calling the wrong company and number. I was told to call XXXX, which was the mortgage company doing business as Mr. Copper. I was given the correct number and called. 
I called Mr. CooperXXXX several times trying to resolve the matter and start making mortgage payments. Finally, one day I was told that Mr. CopperXXXX finally received the paperwork. After reviewing the paperwork with me on the phone, the representative said the paperwork was wrong and the representative put in a request to her back office to correct it. 
After going back and forth with Mr. CooperXXXX, XXXX was told to start making payments in XX/XX/XXXX. As XXXX was ending, I called and asked about making a payment. I was told I could not make a payment because my payment had to be made before XXXX XX/XX/XXXX. I never received anything from Mr. CooperXXXX stating anything about the payment. 
Mr. CooperXXXX sent us a demand letter and sent a delinquent payment notification ( 180 days ) to the credit bureaus. XXXX  XXXX XXXX closed my credit card because of the derogatory reporting. A negative post to our credit hurts My husbands security clearance and therefore his career and our lively hood. 
In XXXX, I discovered a letter in my Cooper portal that was never sent to us. The letter was dated XXXX XX/XX/XXXX and stated Cooper was withdrawing the permanent loan modification we were approved for because they did not receive the loan documents properly executed. The documents were never properly executed because XXXX Mortgage and Cooper failed to send my husband the documents. Additionally, Cooper bought the loan from XXXX XXXX  with only my signature. I will state again, the XXXX XXXX  documents stated they sold the loan to Cooper in XX/XX/XXXX ; however, XXXX XXXX  had me sign and notarized the docs in XX/XX/XXXX. 
During the week of XXXX XX/XX/XXXX, Mr. Cooper/XXXX stated Veterans Affairs disapproved the post-forbearance plan because the home is a rental. I have copies of the original forbearance application and approval showing we applied for the CARES Act COVID-19 Forbearance indicating the property was a rental. Additionally, when we were exiting forbearance last year, I spoke with a Veterans Affairs representative and spoke with XXXX Mortgage representatives and was told by both parties that Veterans Affairs would treat ALL Veterans Affairs loans exiting forbearance at special consideration made for the CARES Act forbearance. This would allow workout plans without the need to submit paperwork and rentals would not be treated differently if the forbearance occurred under the CARES Act. 
XXXX XX/XX/XXXX : I was told my husband and I would have to apply for a standard loan modification and there is no guarantee it will be approved, and Mr. Cooper/XXXX was going to hit our credit 180 days late once again. Before being forced to deal with Cooper, we had credit scores in the high XXXX and over XXXX. XXXX and I have suffered a XXXX drop in our credit rating, which caused banks to close our credit card accounts due to negative credit reporting, XXXX XXXX clearance with the XXXX XXXX being jeopardized, and we are unable to move because our credit scores are now subpar. We were forced to apply for a traditional loan modification or face foreclosure, even though Mr. Cooper would not allow us to make payments. I opine that Cooper dinged our credit to justify the need for the traditional modification. We were told to pay everything owed ( $ XXXX ) or they could not accept payment. We now have a higher interest rate and loan payment. 
On or about XXXX and XX/XX/XXXX, Cooper reported another XXXX days late payment to our credit report. 
Due to the hardship, the eviction moratorium caused us financially, we applied for the COVID-19 Forbearance for six of our properties. All properties went through the same post-forbearance process with no issues at all. Of course, they were with other banks/mortgage companies. Dealing with Mr. Cooper is the first occurrence where they did not allow us the post- forbearance workout under COVID-19 CARES Act Forbearance program. They refused to accept the approved modification we were approved for through XXXX XXXX, even though we were told they could not change the loan. Then when we were told our only options were to apply for a traditional modification or foreclosure then they gave us an unbelievable hassle when we submitted our financial paperwork. 
We have all the paperwork from the point we applied for the forbearance and received two approvals, Cooper declining to honor the approval to the contradicting letters from Cooper about the modification process. 
XXXX and I are seeking relief and financial compensation due to this outrage. I believe we have been racially targeted and discriminated against by Mr. Cooper, there is no other plausible explanation for this treachery. They must be held accountable! It was as if they were trying to request so much and find a reason to deny our modification. 
My belief Coopers actions were discriminatory is based on the following occurrences : i. Cooper had ALL documentation showing this loan was a COVID-19 Forbearance and was approved for a Post forbearance workout but canceling the approved modification. Even though they never sent us the paperwork and they bought the loan from XXXX Mortgage knowing there was only one signature. XXXX Mortgage told me Cooper would have to manage the matter of getting the other signature. We were told by XXXX Mortgage that Cooper had to honor the approved modification. 
ii. Intentionally dinging our credit bringing our credit from the high XXXX and XXXX to XXXX, which would justify a traditional modification and justify the more costly loan. Studies have shown mortgage companies have been found to place certain XXXX customers into more costly loans based on their race. 
iii. Providing us with conflicting letters about the modification ( we have copies ). 
iv. The following are a few examples of the way Cooper handled the information they needed us to provide to show proof of our financial standing to get a modification : a. While applying for the traditional modification we uploaded XXXX files many with XXXX pages or more per file. Cooper kept asking for more information even though I had already uploaded the information. There were times I took the same information and placed it in a different format and the documents were accepted by whoever was managing our account. I had to call my single point of contact, who at the time was XXXX XXXX, several times to get clarification on what was needed because I would call and send what the Cooper representative asked me to provide and it would be accepted initially, and then later I would check the portal and I was being asked for the same information I uploaded prior. After going through this several times, I called XXXX and she provided me with a list of what I needed to provide. I provided the information and again it was accepted, and then later, I believe it was the following day, the same information was being requested. It got to a point where I had to send XXXX the information and asked her, please give the documents to loss mitigation because they keep rejecting them from me. Once XXXX provided the information it was accepted. 
b. I was asked to provide two pay stubs for monthly payments. I provided XXXX military leave and earning statement ( LES ) which clearly showed XXXX XXXX. The representative said I needed two for the month. I explained he only got paid once a month, which is why the pay period block had XXXX. I had to write a letter explaining that is what the paid time meant and submit the letter with his LES again. Incidents like that happened several times. 
c. I submitted bank statements that indicated the exact amount we received for rent for our rental properties. We were then asked to clarify the rental deposits shown. I attached the lease agreements ; the owners distribution statements from the property managers and the bank statements for each rental property and provided a letter explaining it all with a graph on the letter breaking down the income and expenses for the months requested and uploaded on file with all the information for each property. It was accepted and then the next day I was asked to provide an income statement for each property, which is what the graph on the letter of explanation was. I took the graph, modified it to indicate each property, and uploaded one for each property. Once again it was accepted and then denied, and they asked for the same thing. I then contacted XXXX via email, to which I have a copy, and I was not asked for the information again. 
ADDITIONAL INFORMATION : All the Veteran Affairs circulars state Veteran Affairs is going to work with veterans coming out of the CARES Act Forbearance. I have looked at the Veteran Affairs Post-Forbearance Circulars : XXXX, Dated XXXX XX/XX/XXXX XXXX Veterans Assistance Partial Claim Payment Program XXXX XXXX, Dated XXXX XX/XX/XXXX XXXX Deferment is a COVID-19 Home Retention Program Option.