Consumer complaint received 2026-04-23 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: LoanCare, LLC
State: SC

Complaint narrative:
I am submitting this complaint regarding improper handling of my FHA-insured mortgage and repeated, inaccurate denials of my loan modification applications by my servicer, LoanCare , LLC, servicing on behalf of XXXX XXXX XXXX . Loan History and Occupancy I purchased and moved into my home in XX/XX/XXXX under an FHA-backed mortgage. While the loan may have initially been structured with different occupancy intent, the property became my primary residence in late XXXX after my plans to purchase another home fell through. I refinanced the loan in XX/XX/XXXX into another FHA-insured mortgage and formally established the property as my homestead. Hardship and Forbearance I remained current until I experienced involuntary unemployment, which resulted in missed payments beginning in XX/XX/XXXX. I was placed on a forbearance plan that remained active through XX/XX/XXXX. Servicing Transfer Issues My loan was transferred to LoanCare in XX/XX/XXXX. Upon receipt of the welcome letter, I immediately contacted the servicer and was advised that my documents and account information were still transferring and that I did not need to take action before the forbearance expiration. I also requested access to the borrower portal, which was not provided in a useful manner. I was unable to make payments via the portal. These servicing transfer delays directly interfered with my ability to : Resume payments promptly after forbearance, Submit a complete and timely loss mitigation application, Receive accurate and consistent guidance. Re-employment and Ability to Pay I resumed employment with my previous employer in XX/XX/XXXX and now have stable, verifiable income sufficient to support a modified mortgage payment. Improper Denials and FHA Guideline Concerns Since XX/XX/XXXX, I have submitted multiple loan modification applications, all of which have been denied based on the claim that I have not made at least three payments on my FHA loan. This determination is inaccurate and appears inconsistent with FHA servicing requirements. I have maintained continuous FHA-insured financing on this property since XX/XX/XXXX, including after my XX/XX/XXXX refinance. My pre-hardship payment history demonstrates my ability and willingness to pay. My hardship was temporary and has been fully resolved. Under FHA loss mitigation requirements outlined in HUD Handbook 4000.1, servicers are required to : Evaluate borrowers for all available home retention options using accurate loan history and hardship documentation, Consider borrowers impacted by forbearance and servicing transfers without penalizing them for circumstances outside their control, Exercise reasonable diligence in obtaining documents and facilitating loss mitigation ( including timely borrower access and communication ), Avoid improper denial based on misapplied eligibility criteria. Additionally, under Regulation X ( 12 CFR 1024.41 ), servicers must : Conduct a reasonable and complete evaluation of loss mitigation applications, Provide accurate reasons for denial, Avoid dual tracking or procedural barriers that prevent meaningful review. The repeated denial based on an alleged lack of three FHA payments appears to be : A misapplication of FHA eligibility criteria, and/or A failure to properly account for my loan continuity and servicing history. The denial letter I received dated XX/XX/XXXX fails to provide a specific reason for the denial of my loan modification application, as required under Regulation X ( 12 CFR 1024.41 ( d ) ). The letter states only that I do not qualify for a foreclosure alternative without identifying any specific eligibility criteria or deficiencies. Additionally, I was verbally informed by representatives that my application was denied due to not making three FHA payments ; however, this reason is not disclosed in the written denial notice. This inconsistency raises concerns regarding the accuracy and integrity of the evaluation process. Furthermore, the denial does not reflect consideration of my resolved hardship, my re-employment as of XX/XX/XXXX, or the documented delays and barriers caused by the servicing transfer. These omissions indicate that my application may not have received a complete and compliant evaluation under applicable FHA servicing guidelines and federal regulations. Complaint Issues Inaccurate and unsupported denial of FHA loan modification applications. Failure to properly evaluate loan history across refinance and servicing transfer. Servicing transfer errors that impeded my ability to resume payments and apply for assistance. Failure to provide timely system access and clear guidance. Potential non-compliance with HUD FHA servicing guidelines and Regulation X loss mitigation requirements.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation