Consumer complaint received 2026-07-15 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: BROKER SOLUTIONS, INC.
State: DE

Complaint narrative:
I am submitting this complaint regarding New American Fundings handling of my FHA short-term hardship request. I previously submitted a hardship application requesting short-term mortgage assistance. On the application, I selected the option indicating that my hardship was short-term, lasting XXXX months. New American Funding issued a denial letter dated XX/XX/year>, denying my request. After I submitted a Notice of Error, New American Funding responded in a letter dated XX/XX/year>. In that response, the company acknowledged that a system error caused denial letters to be generated without the appropriate reason boxes being checked. New American Funding then stated that my request was denied because I had not made at least four contractual mortgage payments, citing the FHA eligibility requirement associated with a XXXXermanent Home Retention Option. My concern is that my hardship application requested short-term assistance, not a Permanent Home Retention Option. The HUD FHA Single Family Housing Policy Handbook 4000.1 contains separate eligibility requirements for Forbearance. Under the section titled Forbearance Eligibility, HUD states that a mortgagee may offer an initial Forbearance when : the borrower attests that they have an unresolved financial hardship ; the first legal action to initiate foreclosure has not been completed ; and the Forbearance period will not result in an accrued arrearage exceeding 12 months of delinquent principal, interest, taxes, and insurance. HUDs Forbearance standard further states that an initial Forbearance may be provided for a period of one to three months and that additional one-to-three-month Forbearance periods may be offered when eligibility continues to be met. The maximum Forbearance period per default episode is 12 months, provided the arrearage does not exceed 12 months of delinquent PITI. The HUD Handbook also states that during the month in which a Forbearance Agreement expires, the mortgagee must determine whether the borrower qualifies for : an additional Forbearance period ; a Repayment Plan ; or a permanent Loss Mitigation Option. This HUD language demonstrates that Forbearance and Permanent Loss Mitigation Options are separate FHA loss mitigation options with separate eligibility requirements. The HUD Forbearance eligibility provisions I reviewed do not state that a borrower must first have made four contractual mortgage payments to qualify for an initial Forbearance. However, New American Funding later relied on the four-contractual-payment requirement associated with a Permanent Home Retention Option when explaining the denial of my short-term hardship request. I respectfully request that the CFPB investigate whether New American Funding evaluated my short-term FHA hardship request under the correct HUD/FHA eligibility standards . Specifically, I request that the CFPB determine : Whether my short-term hardship request was evaluated under the HUD FHA Handbook provisions governing Forbearance. Whether New American Funding improperly applied the four-contractual-payment requirement associated with a Permanent Home Retention Option to my short-term Forbearance request. Whether the denial reflected in the XX/XX/year> letter complied with the applicable HUD FHA Forbearance eligibility and servicing requirements. Whether the system error acknowledged by New American Funding affected only the denial-letter checkboxes or also affected the actual evaluation and decision-making process. Requested Resolution I respectfully request that New American Funding : Conduct a complete and independent re-evaluation of my short-term hardship request under the applicable HUD FHA Handbook 4000.1 Forbearance provisions. Identify in writing the exact HUD/FHA Handbook section it relied upon when evaluating and denying my short-term request. Explain why the four-contractual-payment requirement for a Permanent Home Retention Option was used in connection with a short-term hardship or Forbearance request. Correct any servicing errors, inaccurate records, denial coding, or internal notes resulting from the application of the wrong FHA eligibility standard. Provide copies of the servicing notes, loss mitigation review notes, underwriting notes, system records, and internal decision records related to the short-term hardship request and the XX/XX/year> denial letter. If the wrong FHA standard was applied, reconsider the request under the proper HUD FHA Forbearance requirements and provide all available corrective relief. Review me for all FHA home-retention and short-term loss mitigation options for which I may currently qualify, with the goal of helping me retain my primary residence. I am attaching the following supporting documents : My hardship application showing the selection for a short-term hardship lasting XXXX months. The New American Funding denial letter dated XX/XX/year>. New American Fundings XX/XX/year> Notice of Error response. Relevant pages from the HUD FHA Single Family Housing Policy Handbook 4000.1, including the Forbearance eligibility, standards, agreement, expiration, and failure provisions. Thank you for reviewing and investigating this matter.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation