Consumer complaint received 2025-03-04 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: Mr. Cooper Group Inc.
State: AZ

Complaint narrative:
This is the letter that I wrote to Rushmore Servicing, I am writing to formally appeal the recent decision regarding my mortgage loan modification f or XXXX XXXX XXXX. I apprecia te the opportunity to work with your team in seeking a manageable mortgage solution, but I am deeply concerned with the outcome of my modif ica tion review, as well as the actions being taken toward f oreclosure while my modif ica tion is under review. 
I had originally been on a payment plan of {$740.00} f or XXXX, XXXX, and XXXX. Due to holiday expenses, I missed my XXXX payment by two days. However, I promptly reached out to your off ice to request a review of a new plan, demonstr a ting my commitment to maintaining my mortgage payments. After the review, I was off ered a new plan with a payment of $ XXXX signif icant and unaff ordable increase from my previous payments. My regular payment is approxima tely {$1600.00}, and I was seeking an ad justment tha t would allow me to meet my f inancial obliga tions while keeping my home.

I explained to the representa tive tha t I was no longer in f inancial hardship and tha t I was capable of making a payment similar to the trial amount of {$740.00}, plus insur ance and other necessary costs. However, the new payment structure is nearly three times the amount of my prior plan, making it impossible f or me to comply. Additionally, I was inf ormed tha t my interest r a te has increased to 7.50 %, signif icantly higher than my current r a te of 3.625 %. This dr ama tic increase is not only unjust but also misaligned with the economic clima te, where housing markets are struggling due to high r a tes and infla ted home prices.

Furthermore, I was not asked any income-rela ted questions during the review process, which r aised concerns about the accur acy and f airness of the decision. My past due amount is {$16000.00}, and I am actively trying to rectify my situa tion in good f aith. Given these circumstances, I respectfully request tha t my loan modif ica tion be reconsidered with a f air and manageable payment plan. 
Compliance with HUD s Loss Mitiga tion W a terf all Guidelines As a servicer of FHA-insured mortgages, Rushmore Loan Management Services must comply with HUD s loss mitiga tion guidelines, including the structured Loss Mitiga tion approach, which ensures borrowers are provided the appropria te solutions to avoid f oreclosure. According to HUD s la test policies : W a terf all Loan servicers must explore all available retention options bef ore proceeding with f oreclosure, particularly f or borrowers actively seeking loan modif ica tions. 
Borrowers should not f ace f oreclosure proceedings while their loan modif ica tion is under review. Initia ting an a ttorney sale da te while a modif ica tion is in process contr adicts FHA s policies.

The FHA W a terf all approach off ers structured relief solutions, such as reduced interest r a tes, extended loan terms, and partial claims, which should have been considered bef ore off ering a modif ica tion plan tha t is f inancially unsustainable.

Given these f eder al guidelines, I urge Rushmore to pause any f oreclosure proceedings and ensure my loan modif ica tion request is reviewed in full compliance with HUD s upda ted loss mitiga tion requirements. The purpose of these guidelines is to help borrowers stay in their homes, not to acceler a te f oreclosures despite active loss mitiga tion eff orts.

Request f or Immedia te Action I respectfully request the f ollowing : 1. 2. Immedia te reconsider a tion of my loan modif ica tion request to ensure a reasonable and aff ordable repayment plan.

T empor ary suspension of any f oreclosure activities, including the a ttorney sale da te in XXXX, while my modif ica tion is under active review. 
3. Applica tion of FHA s loss mitiga tion wa terf all options, including an interest r a te reduction and term extension, to ensure compliance with HUD policies. 
I am fully committed to keeping my home and continuing my mortgage payments under a sustainable plan. I apprecia te your immedia te a ttention to this ma tter and look f orward to your response. Please contact me as soon as possible to discuss the next steps.

besides that Ive also found the Federal Housing Administration ( FHA ) has extended its COVID-19 Recovery Options to assist homeowners with FHA-insured mortgages who are experiencing financial hardships. These temporary relief measures are available through XX/XX/year>.

Company response to consumer: Closed with explanation