Consumer complaint received 2022-12-09
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: Mr. Cooper Group Inc. (AL)

I bought my home in XX/XX/XXXX. Shortly after purchasing my home, I was approved for Pandemic relief. When the relief ended XX/XX/XXXX and it was time to begin paying my mortgage again, I had to sign an agreement to pay the expenses collected during the pandemic relief ( {$11000.00} ) to HUD which would place a lien on my mortgage. I had to resubmit the documents more than once due to the XXXX writing the wrong date. During the time of waiting for new documents and sending them back to Mr. Cooper, I was trying to make a payment on my account online with my linked bank account and I was unable to do so. I called Mr. Cooper and spoke to a representative who informed me that I would not be able to submit the payment on the account until the paperwork was received. I was unaware that it would be held against me that I could not make a payment at that time due to the lock on my account. Once the company received the paperwork and I tried to submit a payment, the payment was unsuccessful. I contacted Mr. Cooper again and the representative took a payment over the phone which I found out later was reversed. When I contacted Mr. Cooper to question why the payments continued to be reversed with adequate funds in my bank account, I was told that my bank may have a block on the account due to the first payment being unsuccessful because it was common. I spoke to the assistant vice president where I bank and he informed me that there were no " blocks '' on my account and the funds were available for payment. He also informed me that when a payment is unsuccessful a mortgage company typically tries to process the payment again and the company did not do so. He stated there there was no reason for the company reporting poorly of me to the credit bureau when there were clearly issues with the payments beyond my control. I made Mr. Cooper aware of this and never got the issue resolved. My credit report still reflects poorly because of this. However, my mortgage is paid off. The mortgage was paid off in XX/XX/XXXX when I sold the home through a real estate agent with an attorney closing the mortgage. Prior to closing, I requested a payoff statement per my attorneys request. Mr. Cooper sent the payoff statement with the amount I owed to them ( XXXX ) + the amount I owed HUD ( {$11000.00} ) combined. My attorney and myself questioned Mr Cooper several times as to why I would pay the amount owed to HUD to them and they told us that it was their policy to receive mortgage # XXXX & XXXX funds and Mr Cooper is responsible for dispersing the funds to HUD ( XXXX ) My attorney stated he had never seen a mortgage in the past like my payoff. He requested the amount be listed in seperate amounts so he could disperse the funds owed to HUD directly to HUD per HUD 's request and Mr Cooper declined stating that if the full amount ( XXXX ) was not received then the loan would not be successfully closed ( paid in full ) and I would continue collecting fees etc. My attorney did as Mr Cooper requested after speaking to an agent with Mr Cooper ( authorization was given for the attorney to discuss the loan on my behalf ) and also holding {$11000.00} in an escrow account for me in case Mr Cooper did not pay the HUD expenses. A document was prepared and signed for agreement on withholding of my funds per attorneys request until the XXXX was satisfied. On XX/XX/XXXX the mortgage reflected " paid ''. On XX/XX/XXXX HUD '' lender paid expenses '' reflected on my account statement paid. On XX/XX/XXXX, I received the release of mortgage document after requesting the document from Mr. Cooper which only showed Mortgage # XXXX ( Mr Cooper ) paid in full ( XXXX ). XX/XX/XXXX, I received a call from my attorneys office asking if I had heard from Mr Cooper because the buyer of my home could not finish title paperwork until the XXXX was resolved. I contacted XXXX XXXX XXXX  to be told that the XXXX was not satisfied and that I needed to contact HUD to request a payment paid letter so the XXXX could be released. When I contacted HUD, HUD informed me that they had not received funds and were unsure why. HUD encouraged me to request a tracking number for the funds Mr Cooper claimed to send. I called Mr Cooper and spoke to XXXX XX/XX/XXXX and she could not provide me with a tracking number for the funds. XXXX was " unsure what was going on '' and " would escalate the issue ''. She told me that I would hear back from her the following Monday XXXX. She also gave me her direct extension so I could contact her with any questions. On XXXX I had not heard anything so I tried to call XXXX and left her a voicemail. Another agent contacted me stating that XXXX had a family emergency and she would not be able to tell me much information about the case because XXXX was the only one with access to that since she was the one to escalate the case. I was told XXXX would contact me by XXXX. My attorney also contacted Mr Cooper to find out what was going on the same day and he was told that by the morning of XXXX, the issue would be resolved. On XXXX after no update, I called Mr Cooper and spoke to an agent who pushed my call to the " escalation team '' named XXXX who also was unsure why the funds had not been sent to HUD and stated she would escalate the case to someone in a higher position than herself and said I would hear something in " about 2 business days ''. After reporting the update to my attorney, he requested that I file a complaint. I have also been in contact with a loan officer for advise.