Consumer complaint received 2021-04-21
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: CMG MORTGAGE, INC (CT)

On XX/XX/XXXX, in accordance with the CARES ACT, I was approved for a forbearance during my financial hardship during the pandemic. Prior to my initial 90 day forbearance period ended, I requested to extend my forbearance for an additional 90 days and was approved. 

On XX/XX/XXXX I received a letter from CMG that my forbearance period was ending at the end of the month and further action was needed. At this time, I felt comfortable with being able to afford my mortgage and resume payments. I continued to request that I exit the forbearance via the online platform, I answered " No '' to being able to pay additional payments to my mortgage. I was advised that CMG would review my application and provide me with my options. 

I received a letter at the end of XXXX, which is no longer available online, which presented me with one option, the VA Disaster Loan Modification. The proposal would result in the following : 1. My current monthly mortgage payment is {$2500.00}, the Disaster Loan Modification will increase my monthly payment to an estimated {$2600.00}. As a result, my monthly payment will increase an estimated {$81.00} dollars. 

2. My current agreed to interest rate is 2.75 %, the offered Disaster Loan Modification will increase my interest rate to 3.25 %, an increase in 0.5 %.

3. The current agreed to loan has 333 months remaining, the offered Disaster Loan Modification will increase the remaining payments to 360 months, an additional 27 months.

4. My current unpaid principal balance for my current loan is {$390000.00}, the offered Disaster Loan Modification will increase the amount of unpaid principal to {$410.00}, 477.31, an increase of {$11000.00}.

5. Upon amortization of the current mortgage, the total amount of interest paid will be {$170000.00}. Upon amortization of the Disaster Loan Modification proposed the total amount of interest paid be {$230000.00}, an increase of {$61000.00}.

6. Upon amortization of my current mortgage, without an increase in interest rate and principal the total amount of interest and principal payments would equate {$570000.00}. Upon amortization of the Disaster Loan Modification, with an increase in interest rate and principal, the total amount of interest and principal payments would equate to {$640000.00}, an increase in {$73000.00} Given the increase I reached out to CMG regarding the issue, and they advised me that I had the right to submit paperwork for a loss mitigation packet, accept the modification, or file an appeal.

After doing some research I had found that the I was there were options that did none of the above. I found that the Disaster Extend Modification was the most viable option that I was qualified for and was available to me. This modification offered by the VA is similar to a deferment and would just take my missed payments and add them to the end of the life of the loan. Additionally, I spoke to the VA who stated that it was my RIGHT to be offered this as an option.

With the information that I gathered from the VA Servicer Handbook, my VA representative, and all of the facts to support my case I filed an appeal. I verified that CMG received my paperwork and waited for a response. I received a letter on XX/XX/XXXX, stating that my appeal was denied and that they will not be changing their decision. 

The purposes for this complaint is to have this situation rectified to where I am given the option that is available to me and to let those whom are responsible for being the checks and balances, that this mortgage company and servicer are taking advantage of those in a hardship for their own financial gain. It is morally and ethically wrong for this servicer to profit off of a forbearance during a national pandemic. I have attached my appeal paperwork and will provide any other information that is needed to support my case, the paperwork that I am submitting will prove that CMG and my servicing company is CHOOSING to take advantage of my financial hardship, that I believed I was protected from.