Consumer complaint received 2025-11-10 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: LoanCare, LLC
State: CA

Complaint narrative:
I am submitting this complaint regarding my XXXX mortgage serviced by LoanCare and owned by XXXX XXXX XXXX XXXX This is a new complaint, not a duplicate, and it documents ongoing violations, including : Manual removal of my FHA case number Misclassification of my reaffirmation as a conventional loan Contradictory servicing behavior Withholding written confirmation These actions violate FHA servicing guidelines and materially harm my ability to manage my account and protect my housing stability. 

I submitted my initial forbearance request on XX/XX/XXXX, and was approved for the period of XX/XX/XXXX through XX/XX/XXXX. On XX/XX/XXXX, I submitted a reaffirmation of hardship to extend my forbearance, which was well within the 90-day window allowed under HUD Handbook 4000.1. 

On XX/XX/XXXX, I spoke with XXXX LoanCare representatives. At approximately XXXX AM, I spoke with XXXX to ask when I would receive written confirmation of my forbearance extension. She stated it would arrive via XXXX XXXX XXXX by tomorrow. I also asked why my FHA case number continues to be removed from my account I noticed it was missing again in early XXXX but she acted as though she did not understand what I was referring to ( see attached screenshots for reference ). This evasiveness is concerning, especially given that removing the FHA case number misclassifies my loan as conventional and strips it of its FHA protections and oversight. 

System Behavior and Manual Overrides I only recently noticed that my FHA case number was missing from the MI page. While I can not confirm exactly when it was removed or whether the change was intentional, the timing and dashboard behavior suggest manual intervention : On XX/XX/XXXX, my MI page showed no FHA case number ( see attached XXXX XXXX ). My dashboard reflected no processed updates the forbearance appeared unprocessed, and my account showed a past due balance with blocked payment access. At this time, the dashboard displayed a forbearance starting XX/XX/XXXX with a balance of {$6500.00}, matching the protected months yet the system treated it as outstanding, with no indication that the reaffirmation had been processed. 

On XX/XX/XXXX at XXXX PM, the FHA case number reappeared. Immediately after, my dashboard updated to show : o The reaffirmation forbearance as processed o Paid status o {$0.00} owed o Confirmation that the reaffirmation had been accepted On XX/XX/XXXX, at XXXX PM, I spoke with XXXX, who confirmed the approval of my extension and advised me to give it a little time for the document to populate. On XX/XX/XXXX, at XXXX AM, I spoke with XXXX, who also confirmed the plan was approved ( see attached XXXX XXXX ). During both calls, I explained that the agreement was not posted in the Document Center as instructed. I followed their guidance on where to locate the document, but it remains inaccessible. 

On XX/XX/XXXX, I noticed the FHA case number was removed again ( see attached XXXX XXXX ). This coincided with a threat from LoanCare stating that if I did not pay for XXXX and XXXX by XX/XX/XXXX, I could lose my home. This threat was issued in their XX/XX/XXXX missed payment letter, even though those months were part of my approved forbearance a fact they confirmed in their XX/XX/XXXX letter, which was provided to me through the CFPB complaint portal. 

Based on this observation, the presence or absence of the FHA case number appears to control how my loan is serviced. When it is removed, the system behaves as if the loan is not XXXX forbearance is not processed, and protections are not applied. As a result, the loan may have been misclassified as conventional, bypassing HUD protections and triggering delinquency notices. 

I am also requesting that LoanCare immediately cease manual overrides or removals of my FHA case number, as this practice is prohibited under FHA servicing guidelines. The FHA case number is essential for applying protections, and its removal directly enables misclassification and servicing violations. 

At approximately XXXX AM, I spoke with XXXX, who verbally confirmed that my XX/XX/XXXX reaffirmation was a continuation of my existing forbearance. However, the system layout still reflects it as a new application with underwriting triggered a process not required under FHA guidelines. See attachments. 

The reason I continue to raise this issue is because my reaffirmation was submitted within the XXXX window and should have been processed as a continuation. FHA guidelines do not require underwriting for reaffirmations. Yet LoanCare applied underwriting and labeled it as a new application, which confirms misclassification and enabled adverse servicing actions. 

I received delinquency notices despite XXXX and XXXX being protected months under my initial forbearance. This confirms that LoanCares system erased my original approval and treated protected months as delinquent, in direct violation of FHA servicing guidelines. 

My credit file was also marked with X for Unknown during protected months. 

Additionally, each time XXXX contact LoanCare, representatives ask whether I am able to make payments for the months of XXXX through XXXX despite seeing that Ive been approved for an extension. This repeated question confirms that those protected months are being treated as delinquent in their system, and that my original forbearance period has been erased. 

Although XXXX XXXX XXXX was generated after the XX/XX/XXXX processing, I have not received written confirmation of the extension. My online account screen does not reflect the original protected months. Instead, it shows a new forbearance period from XX/XX/XXXX through XX/XX/XXXX, with a Paid status and {$0.00} owed further confirming that my reaffirmation was misclassified and my original protections were erased. 

LoanCare also continues to ask how I intend to repay missed payments, implying that a lump-sum repayment is required. As my loan is XXXX, I am entitled to be evaluated for HUDs loss mitigation options, including a Partial Claim, Payment Supplement, or Loan Modification. FHA policy explicitly prohibits requiring lump-sum repayment after forbearance. 

These actions violate FHA servicing guidelines and Regulation XXXX I am requesting immediate restoration of my FHA case number and original forbearance history, correction of all delinquency notices and credit file entries tied to protected months, and written confirmation of my reaffirmation. I also request audit logs showing how my reaffirmation was processed and why underwriting was applied. 

Thank you for your attention to this matter.

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