Consumer complaint received 2025-12-03 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Changes in loan terms during the application process
Company: LAKEVIEW LOAN SERVICING, LLC
State: WA

Complaint narrative:
In XXXX of XXXX I sent an email to LakeView Loancare Servicing inc. requesting to become the successor of interest due to my husbands passing and move forward with the assumption process. I included all of required documents such as a certified copy of his death certificate, loan account information, quit claim deed, executor documents, etc., I continued to send this information to their dedicated email address as no phone number was available for the assumption department while also continued making calls in to the customer service department to check on the status. No attempts to communicate with me were made but my husband 's name was removed from the mortgage as the main borrower and his co-borrower listed instead even though a quit claim deed was signed by the co-borrower and the co-borrower was not listed on the main loan and only the down payment assistance portion of the loan. I was told that a case worker would be assigned to my case and never received any communication from said case worker from either Lakeview or Loancare. 

After monthly phone calls and emails with different departments, hiring a lawyer and leveraging the XXXX 's lawyer as well as keeping payments current, I was not given an opportunity to move forward with the assumption process until XX/XX/XXXX. I was still not assigned a case manager but instead routed to a different department with multiple call center representatives who could only take and relay messages. At this time I was told that the assumption would not be able to move forward until the down payment assistance loan was paid in full which would cost {$6600.00}. I authorized the payment with clear documentation stating that these funds were to be held an only applied to the down payment assistance program following the assumption of the loan.

In August 2025 I was denied for the assumption after they processed it as my attempt to take over a debt incurred by the co-borrower and not an assumption due to the death of the main borrower. They refused to send any documentation listing it as such and instead stated the denial was due to a high debt to income ratio. 

In XX/XX/XXXX I contacted XXXX to release the {$6600.00} that were supposed to be held for the down payment assistance program to have the funds applied fully only to find that they applied {$4400.00} to the principal and took the remaining {$2200.00} in unaccounted for fees. I requested an itemized listing of how these funds were applied as there was no record available to me and was told a case XXXX would be assigned to my request. Since then I have not received any information regarding who my case has been assigned to nor an itemized receipt showing how my funds were allocated. They also have not given a reason as to why the funds were released and applied incorrectly without my consent. I requested the funds to be correctly applied to either the down payment assistance program as originally intended or to be applied directly to the principal if that was not an available option only for the same process to be repeated again except with the addition of another {$1500.00} payment reallocated incorrectly. This is not the first time I have noted unnecessary or unlawful fees taken from funds applied to my mortgage.

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