Consumer complaint received 2025-11-18 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: LoanCare, LLC
State: DE

Complaint narrative:
I am submitting this formal complaint regarding ongoing mortgageservicing misconduct by LoanCare , LLC ( LoanCare ), acting as the subservicer for XXXX XXXX XXXX XXXX XXXX ( XXXX ). Despite numerous attempts to resolve the matter directly, LoanCare refuses to acknowledge or properly credit a lawful tender of payment, mishandles my account, and continues to threaten foreclosure. 

* * Background * * In XX/XX/2025 I received a monthly mortgage statement from LoanCare instructing me to tender a Partial Prepayment or Partial Payment of principal using the statements registered security payment coupon. The statement explains that such prepayments, when made in accordance with the Note, will be applied to the principal balance unless otherwise specified. 

On XX/XX/2025, I tendered payment of {$36000.00} via registered security instrument, using the payment coupon and following the instructions in the statement, the Note, and HUD form XXXX. My written instructions requested that the payment be applied as a principal reduction to reinstate my mortgage. I mailed this payment via certified mail, and LoanCare accepted it ; however, my account has never been credited. 

Instead of applying the payment, LoanCare responded with boilerplate letters accusing me of socalled sovereign citizen arguments and refusing to honor my tender. They asserted that payments must be in the form of a cashiers check or money order, even though neither the Note nor the mortgage imposes this restriction. LoanCare has kept the payment and continues to assess late fees and interest. 

Over the past two years I have repeatedly requested payoff quotes, account histories, escrow analyses, and proof of ownership of the note. LoanCare either failed to respond or sent duplicate letters that did not address my questions. LoanCares refusal to provide requested documents violates the Real Estate Settlement Procedures Act ( RESPA ) requirements for responding to qualified written requests and notices of error. 

LoanCare continues to report the loan as delinquent and has referred the account to foreclosure counsel. Their refusal to credit my tender of payment has damaged my credit and caused significant emotional distress. 

* * Bases for complaint * * XXXX. * * Misapplication of payments and refusal to credit registered security tender. * * LoanCare accepted my registered security payment but failed to apply it to the mortgage principal. The Note allows principal prepayments at any time without penalty, and the HUD XXXX explicitly states that prepayments may be made without additional interest when tendered on the installment due date. LoanCares refusal to credit the payment violates the Note, HUD regulations, and XXXX XXXX servicing guidance. 

XXXX. * * Failure to respond to Qualified Written Requests ( QWR ) and Notices of Error. * * LoanCares generic response letters did not provide account history, payoff information, or proof of the note holder and therefore do not satisfy RESPA requirements under 12 U.S.C. 2605 ( e ) and Regulation X, 12 C.F.R. 1024.35. 

XXXX. * * Deceptive and discriminatory conduct. * * LoanCare characterized my lawful tender of payment as a XXXX XXXX tactic, which is unfair and defamatory. I am not asserting fringe legal theories ; I simply followed the instructions in the Note and LoanCares own statement. Their refusal to credit the payment and their discriminatory labeling constitute unfair practices. 

XXXX. * * Misrepresentation of payment methods and note ownership. * * LoanCare has not proven that XXXX holds the note or that LoanCare may reject my payment. They insist that only cashiers checks or money orders are acceptable, contrary to the Note which permits payment in U.S. currency or by check. Additionally, my repeated requests for proof of note ownership remain unanswered. 

* * Relief requested * * I respectfully request that the Consumer Financial Protection Bureau : Investigate LoanCares handling of my mortgage and require them to apply my {$36000.00} registered security payment to the principal balance ; Order LoanCare to cease charging interest and late fees resulting from their refusal to credit my payment and to remove any negative credit reporting caused by this issue ; Require LoanCare to provide a full and accurate accounting of the mortgage loan, including payment history, escrow analysis, and identification of the current owner of the note ; Direct LoanCare to reverse foreclosure proceedings and reinstate the loan upon application of my payment ; Take any other action deemed necessary to ensure compliance with federal law and protection of consumers. 

Enclosed with this complaint are copies of my XX/XX/2025 tender, certified mail receipts, relevant pages of the Note and HUD form XXXX, and the responses I received from LoanCare. 

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