Consumer complaint received 2026-04-14 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: CO

Complaint narrative:
DOCUMENT XXXX : FORMAL APPEAL CARRINGTON MORTGAGE SERVICES XX/XX/year> Carrington Mortgage Services , LLC Loss Mitigation Department XXXX XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX and XXXX XXXX, CA XXXX Also submitted online at : www.carringtonmortgage.com ( Mortgage Assistance ) Re : FORMAL APPEAL OF LOSS MITIGATION DENIAL Loan Number : XXXX Borrower : XXXX XXXX XXXX XXXX Address : XXXX XXXX XXXX, XXXX, CO XXXX Decision Being Appealed : Loss Mitigation Evaluation Notice, XX/XX/year> Appeal Deadline : XX/XX/year> Dear Loss Mitigation Review Team, I am formally appealing the Loss Mitigation Evaluation Notice dated XX/XX/year>, in which my application for forbearance and related workout options was denied. I am submitting this appeal within the 30-calendar-day window and respectfully request that my file be reviewed by a different evaluator than the one who issued the original decision, as required under applicable federal guidelines. This appeal is based on three grounds : ( 1 ) the income figure used in the evaluation does not accurately reflect my actual income ; ( 2 ) the denial of the Repayment Plan was calculated using that same incorrect income baseline ; and ( 3 ) a Notice of Intent to Foreclose was issued while this appeal was already pending, which I address separately in the CFPB complaint filed concurrently with this appeal. GROUND 1 : INCOME USED IN EVALUATION WAS INACCURATE Your notice states that the income used in this evaluation was {$7500.00} net / {$9400.00} gross. This figure does not reflect my actual income and appears to have been drawn exclusively from the period of documented temporary hardship. I am a published author with over 110 published books. My income arrives in scheduled lump-sum payments on a 90-day delay, as well as contract advances paid on pre-established dates. A single month 's bank statement does not reflect current business health it reflects revenue from 90 days prior. My signed Business Profit and Loss Statement, dated XX/XX/year> and enclosed with this appeal, documents the following : Month Gross Income Net Income XX/XX/year> {$18000.00} - {$600.00} ( savings used ) XX/XX/year> {$60000.00} {$57000.00} ( brought mortgage current ) XX/XX/year> {$30000.00} {$11000.00} XX/XX/year> ( projected ) {$40000.00} {$21000.00} XX/XX/year> ( projected ) {$61000.00} {$42000.00} XX/XX/year> ( projected ) {$61000.00} {$42000.00} XX/XX/year> ( projected ) {$230000.00} {$210000.00} Evaluating my application using only the lowest period of a documented temporary hardship while disregarding the forward-looking income documentation I submitted does not constitute a complete evaluation as required under CFPB Regulation X ( 12 CFR 1024.41 ). GROUND 2 : REPAYMENT PLAN DENIAL BASED ON SAME INCORRECT FIGURE Your notice states that the Repayment Plan was denied because XXXX % of net surplus income is not sufficient to cure the delinquency within a six month period. ' This calculation was based on the incorrect {$7500.00} net income figure. At my documented XX/XX/year> net income of {$42000.00}, curing a two-month delinquency within six months is entirely achievable. I respectfully request this option be re-evaluated using accurate income figures. GROUND XXXX : GOOD FAITH PAYMENT ARRANGEMENT IN PLACE Following receipt of the foreclosure notice, I contacted Carrington by phone. A Carrington representative advised me to schedule payments on specific dates to avoid 60-day delinquency while my appeal is pending. I have done so, with the following confirmed arrangements : Payment Date Purpose Confirmation # XX/XX/year> XXXX mortgage payment XXXX XX/XX/year> XXXX mortgage payment XXXX XX/XX/year> XXXX mortgage payment XXXX These confirmed payment arrangements further demonstrate my good faith and commitment to retaining my home and honoring my mortgage obligation. WHAT I AM REQUESTING I respectfully request : ( 1 ) a full re-evaluation using accurate income documentation enclosed herewith ; ( 2 ) approval of a two-month forbearance for XXXX and XX/XX/year>, with resumption of regular payments beginning XX/XX/year> ; and ( 3 ) in the alternative, approval of a Repayment Plan re-evaluated using correct income figures. I respectfully request a written response within the timeframe required under federal mortgage servicing rules. A CFPB complaint has been filed concurrently with this appeal. Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, CO XXXX XXXX ( XXXX ) XXXX XX/XX/year> Enclosures : Signed Business Profit and Loss Statement ( XXXX XXXX XXXX XXXX XXXX ), XX/XX/year> Copy of Loss Mitigation Evaluation Notice, XX/XX/year> Copy of Notice of Intent to Foreclose, XX/XX/year> CFPB Complaint ( filed concurrently ) Colorado Attorney General Complaint ( filed concurrently ) DOCUMENT 2 : CFPB COMPLAINT NARRATIVE For submission at : consumerfinance.gov/complaint BORROWER AND LOAN INFORMATION Borrower Name XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, CO XXXX XXXX Number XXXX Servicer Carrington Mortgage Services , LLC Investor XXXX XXXX XXXX XXXX XXXX XXXX XXXX Trustee of XXXX XXXX XXXX XXXX XXXX Complaint Date XX/XX/year> SUMMARY OF COMPLAINT I am filing this complaint against Carrington Mortgage Services , LLC for three related violations : ( 1 ) use of inaccurate income figures in evaluating my forbearance application, resulting in wrongful denial ; ( 2 ) issuance of a Notice of Intent to Foreclose while my formal appeal was actively pending, in violation of the dual-tracking prohibition under 12 CFR 1024.41 ( g ) ; and ( 3 ) failure to conduct a complete evaluation of my financial circumstances as required under CFPB Regulation X. ISSUE 1 : WRONGFUL DENIAL BASED ON INACCURATE INCOME On XX/XX/year>, I submitted a forbearance reapplication with a signed Business Profit and Loss Statement demonstrating my income recovery. On XX/XX/year>, Carrington denied all workout options except Home Liquidation, using an income figure of {$7500.00} net / {$9400.00} gross that does not correspond to any month in my submitted documentation. My actual documented income beginning in XX/XX/year> exceeds {$42000.00} net per month. Carrington evaluated only my hardship period while disregarding submitted forward-looking income documentation, in violation of the complete-evaluation requirement under 12 CFR 1024.41. ISSUE 2 : DUAL-TRACKING VIOLATION On XX/XX/year> one day after issuing its denial and with my formal appeal confirmed on file Carrington issued a Notice of Intent to Foreclose demanding {$25000.00} by XX/XX/year>2026. Under 12 CFR 1024.41 ( g ), a servicer is prohibited from advancing foreclosure while a loss mitigation appeal is pending. This is a dual-tracking violation. Also on XX/XX/year>, XXXX acknowledged receipt of my Notice of Error / Qualified Written Request submitted via their website. The simultaneous issuance of a foreclosure notice while an appeal and a QWR were both pending reflects a failure of coordinated review that Regulation X is designed to prevent. ISSUE 3 : CONFIRMED PAYMENT ARRANGEMENT A Carrington representative advised me to schedule payments on specific dates to avoid 60-day delinquency while my appeal is pending. Three payments were confirmed with the following reference numbers : Payment Date Purpose Confirmation # XX/XX/year> XXXX mortgage payment XXXX XX/XX/year> XXXX mortgage payment XXXX XX/XX/year> XXXX mortgage payment XXXX A servicer whose own representative created a payment arrangement to protect the borrower from further delinquency should not simultaneously be advancing foreclosure. I request that no 60-day delinquency be reported to credit bureaus while this confirmed plan is in place. RELIEF REQUESTED Investigate Carrington for the dual-tracking violation under 12 CFR 1024.41 ( g ) Require re-evaluation of my application using accurate, complete income documentation Require Carrington to suspend foreclosure activity while this complaint and my appeal ( deadline XX/XX/year> ) are pending Review whether the {$25000.00} reinstatement figure is accurately calculated Ensure no 60-day delinquency is reported to credit bureaus while the confirmed payment plan is active DOCUMENTS AVAILABLE TO SUPPORT THIS COMPLAINT Loss Mitigation Evaluation Notice XX/XX/year> Notice of Intent to Foreclose XX/XX/year> QWR/Notice of Error acknowledgment email XX/XX/year> Formal Appeal Letter XX/XX/year> Signed Business Profit and Loss Statement XX/XX/year> Forbearance Reapplication Letter XX/XX/year> Payment confirmation numbers : XXXX ( XXXX ), XXXX ( XXXX ), XXXX ( XXXX ) Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX CO XXXX XXXX ( XXXX ) XXXX XX/XX/year> DOCUMENT 3 : COLORADO ATTORNEY GENERAL COMPLAINT For submission at : coag.gov/car | Colorado Attorney General Consumer Credit Unit COMPLAINANT INFORMATION XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX CO XXXX Email XXXX Phone ( XXXX ) XXXX COMPANY BEING COMPLAINED ABOUT Company Name Carrington Mortgage Services , LLC Address XXXX XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX and XXXX XXXX XXXX, CA XXXX Phone XXXX Loan Number XXXX DESCRIPTION OF COMPLAINT I am a Colorado homeowner filing this complaint against Carrington Mortgage Services , LLC regarding the improper handling of my loss mitigation application and the issuance of a foreclosure notice in violation of federal mortgage servicing law. On XX/XX/year>, I submitted a forbearance reapplication with full income documentation demonstrating my financial recovery. On XX/XX/year>, Carrington denied all retention options except Home Liquidation, using an income figure of {$9400.00} gross that does not match any month in my submitted documentation. My documented net income beginning XX/XX/year> exceeds {$42000.00} per month. Carrington 's failure to evaluate my complete financial picture violates CFPB Regulation X ( 12 CFR 1024.41 ). On XX/XX/year> XXXX day after the denial and with my formal appeal confirmed on file Carrington issued a Notice of Intent to Foreclose under Colorado Revised Statutes XXXX ( XXXX ) ( d ), demanding {$25000.00} by XX/XX/year>. Issuing a foreclosure notice while a loss mitigation appeal is pending constitutes dual-tracking in violation of XXXX CFR 1024.41 ( g ). Also on XX/XX/year>, Carrington acknowledged receipt of a Notice of Error / Qualified Written Request I submitted via their website. Despite having an active appeal, an active QWR, and a confirmed payment arrangement in place, Carrington continued to advance foreclosure action against a Colorado homeowner. A Carrington representative subsequently advised me to schedule three payments to avoid 60-day delinquency, which I did with the following confirmed reference numbers : XX/XX/XXXX ( # XXXX ), XX/XX/XXXX ( # XXXX ), and XX/XX/XXXX ( # XXXX ). A servicer that created a payment arrangement to protect the borrower from further delinquency should not simultaneously be advancing foreclosure proceedings. RELIEF REQUESTED FROM THE COLORADO ATTORNEY GENERAL Investigate Carrington Mortgage Services for violations of Colorado mortgage servicing laws and CFPB Regulation X Require Carrington to suspend foreclosure action while the pending appeal ( deadline XX/XX/year> ) and federal complaint are resolved Require Carrington to re-evaluate my loss mitigation application using accurate, complete income documentation Ensure no adverse credit reporting occurs while a servicer-confirmed payment plan is actively in place Review whether the {$25000.00} reinstatement amount includes improper fees or charges A concurrent complaint has been filed with the CFPB at XXXX. All supporting documentation is available upon request. Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, CO XXXX XXXX ( XXXX ) XXXX XX/XX/year> 2026

Company response to consumer: Closed with explanation