Consumer complaint received 2025-11-23 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: CMG Financial Services, Inc.
State: CA

Complaint narrative:
I am filing a formal complaint regarding XXXX  mishandling of my Servicemembers Civil Relief Act ( SCRA ) benefits and California Military Families Financial Relief Act protections, which resulted from XXXX outsourcing all of its secure-message servicing functionsincluding SCRA processingto untrained overseas contractors in XXXX. My attached correspondence shows that I submitted my military orders on XX/XX/year>, and XXXX did not correctly process my SCRA benefits or my statutory California XXXX  deferment for nearly three months, until XX/XX/year>, and only after I filed a CFPB complaint. During XXXX, XXXX, and XXXX, every secure message I sent was handled by offshore staff who repeatedly misinterpreted SCRA and California law, demanded unnecessary documents ( including commanding officer letters and wet signatures ), and provided incorrect statements such as falsely claiming the California deferment required government fundswhich is not true under Cal. Mil. & Vet. Code 800811. These delays and misstatements directly violate 50 U.S.C. 3919 ( prohibiting unnecessary documentation requirements ), 50 U.S.C. 3937 ( requiring timely application of military protections ), and 50 U.S.C. 3902, which states that SCRA must be interpreted to reduce burdens on servicemembers, not increase them. In addition, as a VA-backed loan, XXXX was required under the VA Servicer Handbook M26-4, Ch. 5 to use properly trained staff knowledgeable in SCRA rights ; outsourcing this work to foreign call-center contractors with no SCRA or U.S. mortgage law training violates VAs mandatory servicing standards. Regulation X also requires servicers to maintain competent, knowledgeable staff under 12 C.F.R. 1024.38 ( b ) ( 1 ) ( i ) ( iv ), which XXXX did not do. Because XXXX only routed SCRA-capable U.S. staff through phone lines and refused to provide email or secure-message access to them I was forced, while XXXX XXXX, to incur international calling fees simply to reach someone capable of understanding SCRA. This is an unfair act under 12 U.S.C. 55315536 ( UDAP ) because the injury ( international charges and months-long delays ) was substantial, not reasonably avoidable, and caused by XXXX servicing model, which routed all written communications to untrained foreign staff. These failures resulted in my XX/XX/year> principal payment being misapplied and reversed, unlawful blocks on additional principal-only payments, and my account being falsely shown as past due during a valid deferment all documented in the attached record. As a XXXX servicemember, I was legally entitled to straightforward processing of SCRA benefits within 30 days, but instead XXXX  outsourced, untrained offshore workforce caused months of delays, misinformation, unlawful documentation demands, financial harm, and violations of SCRA, Regulation X, VA servicing rules, and federal UDAP standards. I request a regulatory investigation into XXXX outsourcing of protected military servicing functions overseas, enforcement action for the violations cited above, reimbursement of international calling charges I was forced to incur, and confirmation that XXXX will establish U.S.-based SCRA-trained personnel accessible through secure messages, not just paid international calls.

Company response to consumer: Closed with explanation