Consumer complaint received 2025-05-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: Mr. Cooper Group Inc.
State: GA

Complaint narrative:
This complaint is related to a " Notice of sufficiency of documentation and demand for compliance with Mr. Cooper 's Mortgage, XXXX. XXXX XXXX, XXXX, TX XXXX Loan Number : XXXX Property Address : XXXX XXXX XXXX XXXX XXXX, GA XXXX Research Reference # : XXXX They will not recognize the successor 's interest. I sent a correspondence dated XX/XX/XXXX, in which I requested my mortgage to recognize the transfer of the asset. The response was they require the Trust document ( including all pages ) for the XXXX XXXX XXXX. I sent them a response today in writing to inform them that their request for the entire trust document is legally improper, unnecessary, and potentially violates federal law protecting borrowers. 

XXXX XXXX XXXX XXXX. On XX/XX/XXXX, the property at XXXX XXXX XXXX, XXXX, GA XXXX was transferred to the XXXX XXXX XXXX, an unincorporated irrevocable family trust. 
XXXX. On XX/XX/XXXX, proper notice of this transfer was provided to Mr. Cooper 's office, along with a Certificate of Trust and other required documentation. 
XXXX. The transfer of the property to the XXXX XXXX XXXX is explicitly protected under the Garn-St. Germain Depository Institutions Act of 1982, 12 U.S.C. 1701j-3 ( d ) ( 6 ). 
XXXX. In their own records they confirmed that XXXX XXXX XXXX remains an occupant of the property as a beneficiary of the trust, as evidenced by their letter dated XX/XX/XXXX. 

Certificate of Trust Is Sufficient : Under Georgia law ( O.C.G.A. 53-12-280 ), a Certificate of Trust is the proper document to provide to third parties. The Certificate of Trust serves as conclusive proof of the existence of the trust and the authority of the trustees. You have been provided with this document.

Protected Transfer Under Federal Law : The transfer to an unincorporated irrevocable family trust where the borrower remains an occupant is explicitly protected under the Garn-St. Germain Act, 12 U.S.C. 1701j-3 ( d ) ( 6 ), which states : " With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation , or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon ... a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property. '' Privacy and Confidentiality Concerns : The request for the entire trust document is an unreasonable invasion of privacy. The full unincorporated irrevocable family trust document contains confidential family information, estate planning provisions, and other private matters not relevant to their security interest in the property. 

RESPA Requirements for Insurance : Under the Real Estate Settlement Procedures Act ( RESPA ) and its implementing regulation, Regulation X ( 12 C.F.R. 1024.37 ), a servicer is required to provide information about force-placed insurance and must ensure proper insurance coverage on the property. This includes maintaining accurate records of the property owner and ensuring that insurance policies correctly reflect the current owner.

CFPB Regulations : The Consumer Financial Protection Bureau 's regulations require mortgage servicers to promptly respond to and recognize successors in interest upon receipt of reasonable documentation. The Certificate of Trust constitutes reasonable documentation under these regulations. 
REQUEST FOR IMMEDIATE ACTION : Based on the above, I demanded that Mr. Cooper : 1. Immediately recognize the XXXX XXXX XXXX as the proper owner of the property ; 2. Update their records to reflect : Property Owner : XXXX XXXX XXXX Property Occupant : XXXX XXXX XXXX ( Beneficiary ) Address : XXXX XXXX XXXX, XXXX, Georgia XXXX XXXX. Update any force-placed insurance policy or other hazard insurance policy maintained by Mr. Cooper to protect its security interest to include XXXX XXXX XXXX XXXX XXXX named insured/additional insured/loss payee as appropriate. 
XXXX. Provide copies of any and all insurance policies, binders, or certificates being maintained by Mr. Cooper on this property, as required under the Real Estate Settlement Procedures Act ( RESPA ) and Regulation X ( 12 C.F.R. 1024.37 ). 
XXXX. Confirm in writing within ten ( 10 ) business days that they have processed this transfer, updated their records, and adjusted all insurance documentation accordingly. 
XXXX. Cease all requests for the entire trust document, as they have been provided with sufficient documentation under state and federal law.

Company response to consumer: Closed with explanation