Consumer complaint received 2026-01-28 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Mr. Cooper Group Inc.
State: TN

Complaint narrative:
On XXXX I had initiated a conventional cash out re-fi for a second lien on my initial mortgage of my home ( XXXXXXXX XXXX XXXX XXXXXXXX ) with Mr. Cooper. I spoke to the loan officer over the phone with Mr. Cooper and explained what I wanted to do and I only needed a {$15000.00} loan. He advised me that the minimum loan would have to be {$40000.00} and that once I received the money I could use the {$15000.00} that I needed and then re-contact them and they would do a re-cast of my loan so that I could return the {$25000.00} and refinance the balance, which would be the {$15000.00}. He explained explicitly that the loan would be a conventional loan and not a HELOC and he explained why I should NOT want a HELOC since a HELOC loan will not qualify for a re-cast. I emphatically stated that I DID NOT want the HELOC and he then set up the loan as Convention cash out re-fi. I had even signed the loan documents reflecting as much. The closing date was XXXX. I have copies of that document. 

Fast forward XXXX  months later after making my first loan payment ( {$390.00} ), I contacted a loan officer with Mr. Cooper to begin the process of setting my loan up to be a re-cast. I was then told by the loan officer that for some unknown reason my loan did not qualify for a re-cast. I explained that the loan was a conventional loan so she said she would investigate as to why my loan was being rejected for a re-cast. She called back later and informed me that somehow my loan was now considered a HELOC and would not qualify. 

I sent her copies of my closing papers that showed that it was closed as a conventional loan and she told me that someone must have made a mistake on their end. After that I did not receive any follow up calls, which I did request. 

I then contacted the title closing firm, XXXX  XXXX, who handled the closing and they investigated it on their end and confirmed that the loan was closed by them as a conventional load qualifying for a re-cast. 

I was finally able to recontact the loan officer again and informed them of what the title company had told me. They said that since their computers show that my loan had somehow been changed to a HELOC that the loan was not eligible for a re-cast. 

Since I was retired on a fixed income I had emphatically stated to the initial loan officer that I could not afford the current monthly notes ( {$390.00} ) for a span of XXXX  years and that I would only agree to the conventional loan so as I could have it re-casted in a few months to drastically reduce my monthly payments. 

I will attach the documents that I signed for this loan to this complaint and also a handwritten note that I had written while talking to XXXX XXXX on XXXX and XXXX while discussing the HELOC vs Conventional Loan. I hope that this matter can be quickly resolved and that I can finally do a re-cast on the loan.

Company response to consumer: Closed with explanation