Consumer complaint received 2022-03-11 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Caliber Home Loans, Inc.
State: TX

Complaint narrative:
Caliber Loans has a system that does not work and has advised that they have no way to change payments which has the impact to really harm consumers that are proactively making their payments and making them timely. 

I have bi-weekly payments set up to through my bank account XXXX for my monthly mortgage at Caiber Home Loans. My account number is XXXX. My monthly payment in XXXX and XXXX was {$2200.00} and starting on XX/XX/XXXX my payment is {$2900.00}. 

I commenced bi-weeklly payments using my bi-weekly bank payment in XX/XX/XXXX. 

On XX/XX/XXXX and XX/XX/XXXX - I may payments utilizing the bill pay in the amount of {$11000.00}, which was applied to my XXXX XXXX payment and {$.00} was applied to principle. 

On XX/XX/XXXX, my automated payment was made in the amount of XXXX and applied to my mortgage payment. However, on XX/XX/XXXX, ( 2 business days later ), they took that same payment and applied it as a extra principle payment. On XX/XX/XXXX, I sent another payment of {$1100.00} via my bank 's auto payment ( bill pay ) and Caliber applied it to my Mortgage Payment. I received a notice early XXXX advising me my payment was not in full and I need to send in additional funds in the amount of {$1100.00}. 

I called and spoke to an agent in XXXX and was advised she would have the principle payment reversed and send me the caliber automatic payment forms to complete so I didn't have this issue any more. She further advised if I had this issue again to call back and they can reverse the payment until the autopay goes into effect. 

I kept my bank auto bi-weekly auto payment on as I was told if it happened again it could be corrected. 

On XX/XX/XXXX I sent in a payment in the amount of {$1500.00} which was for my XXXX, XXXX payment. Caliber took XXXX and applied it to my XXXX payment. Additionally they took the additional {$350.00} and applied it to principle. 

XXXX XX/XX/XXXX, I sent another payment in the amount of {$1500.00} for my XX/XX/XXXX payment. This payment reflects on my online portable as being applied as a mortgage payment. 

On XXXX XXXX, I was sent a letter advising me that they applied the payment sent to my suspense account as they were insufficient to pay my mortgage and I needed to send an additional {$2900.00} to avoid a late fee. However in the same letter they also advised I needed to make an additional payment of {$1400.00} online. However, when I go online I am unable to make any payment except {$2900.00}. 

XXXX XX/XX/XXXX, I sent {$1100.00} via my automated payment to Caliber Loans. 

On XX/XX/XXXX, I called Caliber Loans and spoke to XXXX. XXXX told me that my prior loan payments were not reversed and that Caliber denied the reversal previously requested and applied them to principle. She further told me I could not send in bi-weekly payments unless it was on their system and the prior agent didn't write good notes and gave me bad advise. 

She said my payment will be past due and I will be charged a late fee and she can not apply my funds to the payment and reverse or change any prior payments made. I need to submit the full payment or will be changed a late fee. She said she would go in and request the automatic payment form to be sent to me. 

I tried to explain to her I was ahead on my payments and that I had sent in bi-weekly payments starting in XXXX and the XX/XX/XXXX payment should have been towards my XXXX Payment. She said I could not do that and once the funds are applied they can't do anything and I needed to send extra money now to cover my mortgage payment for XXXX. 

I was very frustrated because if I didn't have extra month in my account this would have cause me extreme harm and caused me to become delinquent on my mortgage payment when I am not delinquent I have been sending bi-weekly payments for two months. 

In XXXX they correctly applied by payments with no issue but starting in XXXX they suddenly could not do that anymore. Caliber should notify consumers when payments are received and they are not clear on what they are doing with funds or if they can not follow in suit with prior months ( XXXX ). I was never advised that this was a problem. No Caliber has taken {$3000.00} from my payments and applied to the principle and will not correct the allocation and has caused me to appear late on my payment. 

I am able to make the payment as they requested but if I was a consumer that lived month-to-month, this would have cause severe borrower harm and cause a consumer to become delinquent on their loan and fall into a viscous cycle. 

Further, Caliber did not advise me of any denial of reversals or refund me any money. 

Lastly, when speaking to XXXX I was advised no managers could speak to me and I would receive a call back in 21-48 hours but because it was Friday it would likely be longer. 

I am requesting that the CFPB look into this matter as this practice has the potential to cause extreme distress on consumers and should be updated. I would like to understand why Caliber can not take money that has been proactively sent and misapplied and correct their error on my account.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation