Consumer complaint received 2024-09-15 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Changes in loan terms during the application process
Company: Mr. Cooper Group Inc.
State: MA

Complaint narrative:
XX/XX/XXXX I had 3 unsecured loans outstanding from previous years.

2 from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX {$1600.00} and XXXX XXXX XXXX XXXX {$24000.00} And 1 from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX {$4600.00} XX/XX/XXXX The payments we high so I tried to take out a Loan, a 2nd Mortgage from Mr. Cooper XXXX to pay all 3 of the unsecured loans off.

This new Loan would be for {$40000.00} and extend for 20 yrs and have a lower interest rate so the payments would be lower than the unsecured loans prior. 
XX/XX/XXXX Mr. Cooper asked me to send them the bills f

or the outstanding loans they saw on my credit report. I took a screen shot which included routing numbers and account numbers for the 3 loans XXXX, XXXX and XXXX. 
Mr. cooper agreed but said that even though Im still paying down the loans each month, they are going to use the balance reported on a credit report from a few months prior, which shows a larger balance than what is Currently owed, they also intend to include several Thousand Dollars for Closing Costs and other Fees. But This would still allow any checks sent to me, not only pay off the remaining balance of the 3 loans but would have additional cash available in the check so I could then deposit that into my savings account at XXXX XXXX  here in Massachusetts where I live. 
Mr. Cooper said they would directly pay the loans given that they got the routing and account numbers for the outstanding unsecured loans, of XXXX XXXX ( XXXX ) when I previously uploaded the screenshots to the Mr. Cooper portal they set up for this.

After 2 months I received a Check in the Mail from Mr. Cooper to Pay off Loan XXXX, The Check was Larger than the amount due, I used it to pay off XXXX, and in a couple weeks XXXX XXXX  send me a check for the over payment in the mail, I then Deposited this extra cash it into my XXXX savings account here in Massachusetts. 
I waited for the remaining 2 checks to be sent to me so I could then pay off the remaining 2 loans XXXX and XXXX. As I was waiting for the remaining 2 checks, I noticed Mr. Cooper started billing me via the Mr. Cooper website dashboard for payments toward the 2nd Mortgage XXXX, but I never received any checks to pay off XXXX or XXXX, also the loans were coming up as not paid off according to the XXXX XXXX XXXX dashboard even though Mr. Cooper should have routing and account numbers they needed to do this by now. 
Next thing I noticed was my saving account was being drafted by XXXX to pay off these loans XXXX and XXXX that the Mr. Cooper loan XXXX was supposed to pay off, even though Mr. Cooper was billing me for the loans they never provided for me, the secured 2nd Mortgage XXXX. 
Given it was me who is taking out the 2nd Mortgage loan. which included several XXXX Dollars for Closing Costs and other fees, Mr. Cooper Should be sending me the loan money not someone else.

I should have received not only the payments to cover the loans XXXX and XXXX but there should have been extra funds regardless of the closing costs and other fees. and given the timeframe of using a Previous Credit Report higher balance and my continuing to pay the loans down as well. 
I went to my XXXX XXXX XXXX  and talked to the Manager, he asked me for proof of Payment towards his 2 loans XXXX and XXXX, he was curious anyway why I stopped the Auto payment, thats because both banks are trying to bill me at the same time. I then I contacted Mr. Cooper and they emailed me a copy of 2 checks that were sent to the some XXXX XXXX in Texas however my local XXXX XXXX is where I live here in Massachusetts, The Local Bank Manager here in Massachusetts pointed out that the 2 Checks {$5000.00} and {$25000.00} that should be used to pay off XXXX {$1600.00} and XXXX {$24000.00} made out to an irrelevant bank in Texas were not endorsed therefore not cashed by XXXX, Mr. Cooper is telling me there is nothing they can do. 
Ive been caught up in a Telephone Matrix game with both banks ever since, with a negative balance in my XXXX  XXXX checking account. 
I need Mr. Cooper to send me the funds of the 2nd Mortgage XXXX they are Billing me for so I can pay off the XXXX Loans XXXX and XXXX.

Company response to consumer: Closed with explanation