Consumer complaint received 2025-08-29 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: IL

Complaint narrative:
Friday, XX/XX/XXXX Formal Complaint Violation of FHA Forbearance Rights by Carrington Mortgage To Whom It May Concern, As a borrower with an FHA-insured mortgage currently facing a verifiable medical hardship ( a XXXX XXXX XXXX sustained in XX/XX/XXXX ), I am submitting this formal complaint against Carrington Mortgage Services for egregious and deliberate violations of U.S. Department of Housing and Urban Development ( HUD ) guidelines, FHA servicing rules, and consumer protection laws. Carrington Mortgage has willfully and repeatedly denied my lawful request for a forbearance based on hardship. Instead, they falsely claimed that FHA forbearance only applies to borrowers experiencing employment-related hardship. The date of occurrence happened on Thursday, XX/XX/XXXX and XX/XX/XXXX when I spoke with XXXX, in escalations on the XXXX and XXXX and XXXX on the XXXX. 

This is categorically false and directly contradicts HUDs own guidance, which allows forbearance based on any verifiable hardship including medically documented XXXX. Under HUD Mortgagee Letter XXXX, Section III, FHA explicitly states : The Mortgagee must offer the Forbearance Option to any Borrower that experiences a verifiable hardship... The Borrowers attestation to a financial hardship is sufficient.

Carrington misrepresented my request by improperly categorizing it as mortgage assistance, and attempted to force me into an underwriting process under a so-called streamline review. This maneuver directly undermines the intent of FHA forbearance and constitutes obstruction and misclassification of my rights under federal mortgage servicing law. Additionally, Carringtons representatives asked unlawful questions such as : Is there anyone else in your home who can assist in making the mortgage payments?

This question is not only irrelevant under HUD loss mitigation policy, but may constitute a violation of the Equal Credit Opportunity Act and the Fair Housing Act, particularly when used to deny loss mitigation to a borrower with a documented XXXX. 

When I refused to answer that illegal question and instead insisted on a review consistent with HUD rules, Carrington summarily canceled my application leaving me without relief, at risk of default, and with worsening medical symptoms triggered by the stress of the interaction. Carrington Mortgages actions violate : - HUD Mortgagee Letter XXXX - HUD Handbook 4000.1, III.A.2.k - The Fair Housing Act ( 42 U.S.C. 3601 ) - The Equal Credit Opportunity Act ( 15 U.S.C. 1691 ) - The Dodd-Frank Act prohibition on unfair, deceptive, and abusive acts or practices ( UDAAP ) I am demanding immediate enforcement action and intervention. No borrower should be denied legally mandated FHA relief or subjected to discriminatory treatment due to a XXXX. 

I am currently current on my FHA mortgage, but Carrington Mortgage Services is refusing to grant me a verbal forbearance based on documented medical hardship, as required by HUD Mortgagee Letter 2023-15.

They are insisting on misclassifying my request as mortgage assistance and subjecting it to an underwriting process, which is not required under HUD rules. FHA allows forbearance based solely on borrower attestation of hardship, and I have clearly provided that.

Carringtons refusal is forcing me into delinquency and may cause avoidable credit damage, despite the fact that I am eligible and timely in my request. This is a deliberate obstruction of an FHA-mandated relief option and violates federal servicing rules.

I urgently request CFPB intervention to prevent negative credit impact, enforce HUD compliance, and stop Carrington from requiring underwriting for a forbearance that should be granted immediately by law.

I am still current, but will become late solely because Carrington is refusing to grant me a forbearance that HUD requires them to approve. 

Respectfully, XXXX XXXX XXXX XXXX XXXX ) XXXX XXXX XXXX XXXX. 
XXXX XXXX

Company response to consumer: Closed with explanation