Consumer complaint received 2025-12-30 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: NC

Complaint narrative:
I am submitting this complaint to report materially false and misleading statements previously made by Carrington Mortgage Services , LLC to the Consumer Financial Protection Bureau regarding possession of a VA-secured property, and to provide newly obtained written evidence that directly contradicts Carringtons prior CFPB representations. 

In response to CFPB Complaint No. XXXX, XXXX stated in writing that it secured and took possession of the subject property on XX/XX/year>. However, on XX/XX/year>, Carringtons representative, XXXX XXXX, confirmed in writing that Carringtons Property Preservation team re-keyed an exterior access point to the property on XX/XX/year>. 

Re-keying any access point to a residential property constitutes an affirmative act of dominion and control and therefore constitutes possession under North Carolina law. It is not possible to lawfully re-key a property on XX/XX/XXXX and then claim possession began on XX/XX/XXXX. Carringtons statements to the CFPB are therefore materially inconsistent and false. 

At the time of both the re-keying and the admitted possession : No foreclosure action had been filed in XXXX XXXX, North Carolina No foreclosure judgment or order of possession existed No deed in lieu of foreclosure had been executed or recorded Carrington nevertheless changed locks, posted secured-property documentation, restricted access, and interfered with the veterans ability to sell the home or pursue proper loss mitigation. These actions occurred without lawful authority and prior to completion of any legally recognized transfer of possession. 

This discrepancy is not a clerical error. It reflects a misrepresentation to a federal regulator regarding a material fact central to consumer rights, foreclosure protections, and VA-backed loan servicing obligations. Carringtons conduct appears designed to retroactively justify unauthorized possession while pressuring the veteran to execute a deed in lieu of foreclosure after the fact. 

Due to these actions, I have now : Submitted a formal complaint to the North Carolina Department of Justice for unfair and deceptive acts and unauthorized possession Submitted a formal complaint and investigation request to the VA Office of Inspector General regarding improper handling of a VA-secured loan Preserved all written communications, delivery metadata, and admissions as evidence This matter has caused severe financial and emotional distress to a 100 % XXXX XXXX XXXX XXXX veteran and has undermined confidence in Carringtons compliance with federal consumer protection laws. 

Prior to submitting this complaint, the borrowers made repeated, documented efforts to resolve these issues directly with Carrington Mortgage Services and its legal counsel. Formal written communications were sent to Carringtons attorneys outlining the unauthorized possession, contradictory possession dates, and required corrective actions. The sole response received from counsel was a brief acknowledgment stating, we are in receipt of this message and attachments, with no substantive response, explanation, or attempt to resolve the issues raised. 

This lack of engagement occurred despite counsels full awareness of the possession discrepancy, the absence of any executed deed in lieu or foreclosure authority, and the veterans protected status under a VA-secured loan. The absence of any good-faith response or remedial action by Carringtons legal representatives further demonstrates knowledge of the issue and a failure to act to correct or mitigate the misconduct. 

All timelines, communications, acknowledgments, admissions, and delivery confirmations have been preserved and will be relied upon in ongoing regulatory review and anticipated litigation.

Company response to consumer: Closed with explanation