Consumer complaint received 2025-08-01 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: PLANET HOME LENDING, LLC
State: AK

Complaint narrative:
I am filing this complaint against Planet Home Lending , LLC ( Planet ) regarding the improper transfer of my FHA mortgage loan from XXXXXXXX XXXX and subsequent servicing issues that have prevented me from making payments, resulted in an inaccurate delinquency status, and violated federal laws. Below is a detailed account of the events, followed by an explanation of the illegal actions taken by Planet. 

Background and Timeline of Events My mortgage is an XXXX loan originally serviced by XXXX XXXX. On or around late XX/XX/XXXX, the servicing of my loan was transferred to Planet Home Lending , LLC without any prior notice or knowledge provided to me by either the XXXX ( XXXX ) or the XXXX XXXX Planet ). I only became aware of the transfer after receiving a letter from Planet informing me of the change. 

Within days of receiving this letter, I created an online account on Planet 's website and logged in to review my loan status. Upon logging in, I discovered that my account was incorrectly marked as " past due '' in the amount of {$5300.00}, despite my payments being current with the previous servicer. I immediately added my checking account information to the portal with the intent to make a payment and resolve any perceived issue. 

However, despite successfully adding my banking details, I was unable to initiate or complete a payment through Planet 's online portal. The system did not allow me to proceed, providing no explanation or error message for the failure. 

On XX/XX/XXXX, I emailed Planet 's mitigation department at XXXX, requesting that they debit the payment from the checking account I had added via their portal. In response, I received an automated or generic email stating : " This message is to advise you that we received an e-mail or fax from you today. The contents of your e-mail or fax will be reviewed within XXXX business days and forwarded to the appropriate department. If you sent items relating to a request for an alternative to foreclosure, please note the following : If you submit a complete Borrower Assistance Package XXXX  or fewer calendar days before a scheduled foreclosure sale, there is no guarantee we can evaluate you for a foreclosure alternative in time to stop the foreclosure sale. Even if we are able to approve you for a foreclosure alternative prior to a sale, a court with jurisdiction over the foreclosure proceeding ( if any ) or public official charged with carrying out the sale XXXX not halt the scheduled sale. 

As of XX/XX/XXXX, the XXXX XXXX XXXX officially ended. Certain XXXX workout options are changing as of XX/XX/XXXX. For information regarding those changes please visit our website at https : //planethomelending.com/ or reach out to your XXXX Monday through Friday XXXX to XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX. 

Your request for assistance can also be completed online and the documents required to evaluate your request can be quickly uploaded by visiting our XXXX XXXX XXXX XXXX aXXXX XXXX XXXX XXXX 

Email is not a secure method of transmitting sensitive information, such as a social security number, unless it is a secure, encrypted or password-protected email. Accordingly, you should only use email for inquiries and not for submitting documentation containing personal information unless it is secure, encrypted or password protected. If you choose to submit personal information via non-secure email, you are doing so at your own risk. '' This response did not address my request to process a payment and instead treated my inquiry as a potential loss mitigation or foreclosure alternative request, which it was not. It provided no immediate assistance for tendering payment. 

Unable to pay online or via email, I attempted to contact Planet by phone. On XX/XX/XXXX, I called the number XXXX XXXX times. Each time, the call would connect briefly and then disconnect without any representative answering or providing options. This issue persisted over several days. During this period, Planet attempted to contact me from numbers that appeared as " spam '' on my caller ID, leaving voicemails. I returned these calls immediately, but again encountered non-responsive lines that disconnected. 

On XX/XX/XXXX, I tried calling the payment-specific number listed on XXXX 's website XXXX XXXX XXXX XXXX  ) at XXXX. This number was non-functional and did not connect at all. 

Additionally, I have requested a copy of the contract or agreement associated with the purchase/transfer of my mortgage from XXXX to Planet, but to date, I have received no response or documentation. 

These issues have caused significant frustration, prevented me from maintaining my loan in good standing, and exposed me to potential negative credit reporting or fees due to the incorrect delinquency status. 

Illegal Actions by Planet Home Lending Planet 's handling of this matter violates several federal laws and regulations governing mortgage servicing, particularly for FHA loans. These violations include : XXXX. Failure to Provide Proper Notice of Servicing Transfer : Under the Real Estate Settlement Procedures Act ( RESPA ), 12 U.S.C. 2605 and 12 C.F.R. 1024.33, the transferor servicer ( XXXX ) must provide written notice to the borrower not less than 15 days before the effective date of the transfer, and the transferee servicer ( Planet ) must provide notice not more than 15 days after the transfer. I received no advance notice from XXXX, and Planet 's letter arrived after the transfer had already occurred, without my prior knowledge. This lack of timely notification deprived me of the opportunity to prepare or address any transition issues, constituting a direct violation of RESPA 's requirements.

2. Misrepresentation of Loan Status and Incorrect Delinquency Reporting : Planet incorrectly displayed my loan as past due by {$5300.00} immediately after the transfer, despite it being current with the prior servicer. This misrepresentation of my payment history and transaction details violates CFPB regulations under 12 C.F.R. 1024.35, which requires servicers to investigate and correct asserted errors in loan accounts upon written notice from the borrower. Additionally, such inaccuracies can be considered unfair or deceptive practices under the Consumer Financial Protection Act ( CFPA ) and have been flagged in CFPB supervisory findings as red flags for mortgage servicers.

For FHA loans, HUD 's Single Family Housing Policy Handbook ( 4000.1 ) mandates accurate servicing and prompt resolution of discrepancies to avoid undue hardship on borrowers.

3. Failure to Accept Payments and Provide Accessible Payment Options : Federal rules require mortgage servicers, incl
uding those handling FHA loans, to maintain functional systems for accepting payments and to process them promptly. Planet 's online portal failed to allow payment despite added banking information, and their phone systems were inaccessible ( disconnecting calls or non-functional numbers ). This violates RESPA 's error resolution procedures ( 12 C.F.R. 1024.35 ) and FHA servicing guidelines, which emphasize borrower rights to tender payments without unreasonable barriers.

The FTC and CFPB have noted that refusing or obstructing payments can lead to improper fees or credit harm. My email request to debit the account was ignored in favor of an irrelevant foreclosure-related response, further exacerbating the issue.

4. Non-Response to Request for Information : My request for a copy of the transfer contract qualifies as a Qualified Written Request ( QWR ) under RESPA ( 12 U.S.C. 2605 ( e ) ), requiring servicers to acknowledge within 5 business days and respond substantively within 30 business days. Planet has failed to provide any response, violating these timelines and my right to loan-related documentation.

5. Inadequate Customer Service and Accessibility : CFPB rules require servicers to provide reasonable customer support, including live representatives and functional contact methods. Planet 's unresponsive phone lines, spam-flagged calls, and generic email responses fall short of these standards, particularly for FHA loans where HUD requires servicers to assist borrowers in avoiding delinquency. This pattern aligns with prior CFPB actions and complaints against Planet for unhelpful service and payment-related issues.

These violations have caused me undue stress, potential damage to my credit, and the risk of unwarranted fees or foreclosure threats. I request that the CFPB investigate Planet Home Lending, require them to correct my account status, accept my payment without penalties, provide the requested documentation, and impose appropriate penalties for these illegal practices. I also seek any compensation for harms incurred.

Company response to consumer: Closed with explanation