Consumer complaint received 2023-07-24 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: Mr. Cooper Group Inc.
State: FL

Complaint narrative:
In XXXX of XXXX, due to temporary unforeseen financial circumstances, my husband and I requested to enter into the Covid-19 ( CARES ACT ) forbearance with our loan servicer at that time, XXXX. We were assured by that loan servicer and the VA that a lump-sum payment would not be required to bring our loan current at the conclusion of the forbearance period. We were informed by XXXX that our options would include a partial claim mortgage, repayment plan, deferral, or loan modification. Each time we called XXXX these options were redisclosed to us, and we were told not to worry that repayment options would be available to us. We asked about any requirements to be eligible for any one of the repayment options once our forbearance ended, they disclosed no requirements. They only advised us to contact them 30 days before the end of the forbearance period for us to select our preferred option. 

In XXXX of XXXX, we were notified that our servicer had changed to Mr. Cooper. We contacted Mr. Cooper to confirm that everything we had discussed regarding repayment options with our prior servicer would be honored by them and they confirmed that they are required to do so. 

As instructed, we contacted Mr. Cooper 30 days before our forbearance period ended to discuss loss-mitigation options. We were informed that our ONLY option would be to modify the loan at a higher interest rate, but there was no guarantee that we would be eligible, or pay the entire delinquency in full. This completely contradicted every bit of communication ( both verbally and written ) that we had with both XXXX, Mr. Cooper, and the VA. In essence, we were set up for failure even though we did everything in our power to prevent this exact situation from occurring from the very beginning. In addition, forcing distressed borrowers to pay higher interest rates and subsequently higher monthly payments or lose their home to foreclosure ( my house is worth twice what we paid for it in XXXX ) to profit off of our hardship is not only PREDATORY, it's INHUMANE. 

Despite our dissatisfaction, we agreed to apply for the modification because no other option was provided to us and we did not want to risk losing our home. We provided all of the required documentation to proceed as per Mr. Cooper 's instructions. We followed up with Mr. Cooper multiple times via phone, and we were informed that a decision should be reached by XX/XX/XXXX. I logged into our online account to check status on XX/XX/XXXX, to see a note that our modification request had been rejected with no reason provided. My husband and I ( in panic mode ) contacted Mr. Cooper many times to try and find out why we were denied, and we were provided several different answers each time we called. None of which made any sense. 

Then on XX/XX/XXXX, after begging for assistance for several days, we were told that the reason why was due to " excessive obligations in relation to income, '' which is completely inaccurate. The Mr. Cooper Agent who informed us of this information also noted that a denial letter had never been generated in their system nor provided to us to inform us of their decision or our right to appeal that decision which is a requirement per Federal Law. A letter magically was generated in their system the following day ( XX/XX/XXXX ), a week after the decision was made. 

I submitted an appeal letter via email on XX/XX/XXXX via email explaining that the underwriter miscalculated our income and our monthly expenses and provided proof of this. It's simple math, {$4000.00} ( monthly household expenses ) divided by {$9700.00} ( monthly income ) equals a debt to income percentage of about XXXX  % which is acceptable per VA underwriting guidelines ( XXXX XXXX ). In that letter I also explained that we are able to resume making our monthly payments, but can not afford to make a lump sum payment of XXXX XXXXXXXX to bring our loan current ( which we were assured would NOT be the case ). This their denial was UNJUSTIFIED! 

As of today, Mr. Cooper is still reviewing our appeal and requesting documentation. I was informed today, after following up to confirm that they received the information they requested, that they will report negatively to the credit bureau XX/XX/XXXX. Also, that due to a " projected '' shortage in our escrow account ( which makes no sense ) that our monthly payment without the modification went up {$300.00} ( WHAT?!!! ). 

Mr. Cooper is preying on distressed VA borrowers to profit on a family 's hardship. They are doing every thing in their power to foreclose on our home or into paying them more, which is the epitome of predatory lending. Although they denied our modification in error, they will report negatively to the credit bureau which will prevent our family from relocating or borrowing to mitigate this issue if necessary. 

Mr. Cooper has no problem forcing an honest hard-working family into foreclosure and into homelessness with their dishonesty, incompetency, predatory, and inhumane practices to reap a profit. It is disgusting what they are doing to us, and I'm sure many others who accepted the CARES ACT forbearance. A program which was designed to provide borrowers with relief, but is now being used as a weapon.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation