Consumer complaint received 2024-11-14 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Mr. Cooper Group Inc.
State: NC

Complaint narrative:
RE : Over Paid in Interest/ Mr. Cooper owes us a refund To Whom It May Concern ; Hello!

I have a habit of paying my bills in advance.

I paid my mortgage bills in advance : Bill due XX/XX/XXXX paid on XX/XX/XXXX ; Bill due XX/XX/XXXX paid on XX/XX/XXXX ; Bill due XX/XX/XXXX paid on XX/XX/XXXX ; Bill due XX/XX/XXXX. XXXX paid on XX/XX/XXXX, means interest was paid in advance. ( See Mortgage statements ). 
I didnt expect that my Mortgage Company ( XXXX XXXX XXXX ) would sell us to Mr. Cooper. In XXXX XXXX XXXX, I was informed that my new Mortgage Company is Mr. Cooper and this transfer does not affect any terms or condition of the mortgage and Nothing else about your mortgage loan will change. ( Notice attached ).

I made some searches and wasnt happy with the reviews and ratings ( one star ) of the Mr. Cooper company. Reviews like : They look *beyond* shady and of course not secure, given the recent breach that has caused a class action suit. They had a huge class action lawsuit in XXXX for their shady practices. helped with my decision to pay off our mortgage. On the day, when Mr. Cooper transferred our account, I got in one hour around XXXX scam messages on my email. 
First, I contacted my old mortgage company ( XXXX  ) and asked them what would happen to my Pre-Paid Interest ( letter attached ). They didnt reply or contact me.

Then, I contacted Mr. Cooper Company on XX/XX/XXXX ( via the webpage ) and asked to apply Pre-Paid Interest toward our principal balance and provided all evidence to support my request. Mr. Cooper mailed us a letter dated XX/XX/XXXX ( attached ), that our account is currently paid ahead, if you wish to have your extra payments applied towards your principal balance, please contact us. Regarding how you would like your funds applied. Later, I requested the payoff balance hoping that they applied overpaid interest toward the principal balance. When I got the payoff statement, the numbers were incorrect. ( letter XX/XX/XXXX, attached ). 
On XX/XX/XXXX, I contacted Mr. Copper ( via the webpage and email ) and asked to apply {$910.00} toward my principal balance with all details and explanations of where this {$910.00} came from. ( Letter XX/XX/XXXX, attached ). I just wanted to let you know that nothing was done. 
I chatted with customer service around XX/XX/XXXX. Unfortunately, I wasnt able to print this conversation and ask to apply prepaid interest toward the principal balance. All I heard every time was that it would take time until they could do it, or they would forward this information to the appropriate department. 
On XX/XX/XXXX, I spoke to XXXX XXXX from the escalation department, she told me that nobody would apply our prepaid interest to the principal balance, and in order to get our overpaid interest we have to pay our mortgage in full, after we do this they department will recalculate and will return our money back. She ordered a payoff statement and on XX/XX/XXXX, we paid our mortgage in full. 
I hoped that was a time to celebrate, but no.. 
Nobody from Mr. Cooper Company even consider paying attention to our file. Mr. Cooper bought our account with the promise that all remain the same, including the payment history.

The refund amount of {$910.00} was pre-paid interest and accumulated interest was calculated until XX/XX/XXXX. 
Mr. Cooper mailed us a check for {$1.00} ( XXXX XXXX XXXX XXXX XXXX ), I called the company several times and requested 2 times a call back from the manager. The manager never called me. I was able to talk with escalation department XXXX XXXX, but he only forwarded my case to the research department ( AGAIN ).

The research department replied me : Please note that the interest collected with the monthly payments from XX/XX/XXXX through XX/XX/XXXX, would not be applicable to the payoff, as they contributed to the amortization of the account. As indicated above, the interest credit was included in the payoff. Therefore, there is no additional overpaid interest to refund.

This is wrong and conflict with a PayOff Quote as of XX/XX/XXXX ( where they applied interest credit, only the amount of interest credit was incorrect. Interest is charged based on the balance remaining every month.

Pre-paid interests for XXXX, XXXX, and XXXX were never applied to the principal balance. XXXX XXXX from the escalation department gave us false information when pushed us to pay the mortgage in full to get our refund.

I prepared 3 options of amortization schedule. One of them is if I pay my bills on due date ( not in advance ). Overpaid interest would be {$890.00} ( {$1200.00} XXXX XXXX ). 
The second option is based on daily accumulated interest {$900.00} ( {$1200.00} XXXX XXXX ) The third option is based on monthly accumulated interest {$810.00} ( XXXX XXXXXXXX XXXX ). 

I know, that Mr. Cooper owes us {$900.00} in overpaid ( pre-paid ) interest, calculation based on daily accumulated interest.

Company response to consumer: Closed with explanation