Consumer complaint received 2025-11-07 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Fees charged
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: HI

Complaint narrative:
The end of XXXX and start of XXXX I fell behind on my mortgage due to a couple of reasons. The main one being I developed XXXX  which was affecting my XXXX  and XXXX XXXX. I applied for mortgage assistance and they offered me an assistance where they would redo the loan but with a very high interest rate. I declined it and started saving money because they would not accept any amount other than what I owed in full. I applied for a second mortgage assistance but I forgot about it. Once I saved the money I owed ( {$11000.00} according to them ) I called them to pay it. They informed me they would not accept the money I had to first request a reinstatement letter. I was upset because I wanted to pay while I had it. They explained the 14 days was so they could review the account and see if any attorneys fees were charged because it had been in foreclosure. When I got the reinstatement letter, I called them to pay and they informed me that my 2nd mortgage asst application had been approved, this time with a partial claim which was better terms. Even though i had the funds, i accepted the partial claim so I could catch up on other bills. They sent me a notice and explained on XX/XX/XXXX that on XX/XX/XXXX the partial claim was going to pay my balance in full and i would be current on the loan. I began making my monthly payments about $ 2000/ month. the second or third month, when i called they informed me they could not take my payment because I owed {$7000.00}. I was baffled because I only owed the current payment. They informed me that there were around {$5000.00} in attorneys fees. I asked them why these fees were not assessed on the reinstatement letter and why they would give me mortgage assistance to help get me currrent and not do it for the entire amount that was owing. The other issue is, I am a XXXX  and I XXXX XXXX and I checked the courts and not a single paper was ever filed regarding this loan. As a XXXX  I know the first step to a foreclosure is to file a complaint and that never happened. Also when you apply for motgage assistance all foreclosure proceedings freeze, that is the law. They also refused to even accept my payment unless I could pay the entire {$7000.00}. I let them know that no documents were ever filed and they assured me all amounts due would be in the reinstatement letter. I also asked for a breakdown of the fees, which they did not provide. I called twice and then wrote a letter following the call to the dept they directed me to. I called to follow up and they said that they would not do anything to resolve this issue and all charges were legitimate. They sent me no statement or explanation as to why they are legitimate. I called two more times to try to get this resolved and they lied to me and gaslighted me. I tried to call again on XX/XX/XXXX as a last effort to try at resolution before filing a circuit court complaint against them. They pretty much mis managed my loan and offered me mortgage assistance and then forced me immediately back into default. I asked if I could please make my payments since I was disputing the fees so I don't fall behind and they said no. I actually found a way around it, if I pay using XXXX XXXX bill pay it seems that they have to accept the payment but they do not put it toward the payment, they keep it in another account called " undispersed funds '' and they still report you as delinquent and unpaid or in default. 
_____________________________________________________________________ Subject : Unfair and Deceptive Mortgage Servicing Practices Improper Attorney Fees and Payment Refusal Dear Consumer Financial Protection Bureau, I am submitting this complaint against Carrington Mortgage Services , LLC regarding what I believe are unfair, deceptive, and abusive mortgage servicing practices related to my home loan. 
Background I obtained my mortgage with Carrington in XXXX. My monthly payment was about {$1600.00}, which included escrow for property taxes and homeowners insurance. 
In XXXX, I developed XXXX XXXX XXXXXXXX ( XXXX ), which severely affected my XXXX, XXXX, and ability to manage my business. My income declined significantly, and I fell behind on my mortgage in early XXXX, approximately {$11000.00} past due. 
Mortgage Assistance and XXXX I first applied for mortgage assistance, but XXXX offer required restructuring my loan at a much higher interest rate ( above 2.25 % ), so I declined. 
I later applied again for mortgage assistance. During this period, I gathered enough funds to pay the past due balance and called Carrington to make payment. 
Carrington then informed me that my assistance was approved and that the {$11000.00} arrears would be added to the end of the loan, with no change in interest rate. 
I was told they would review my account for any fees ( including legal or attorney fees ) before issuing the reinstatement letter, which would take about two weeks. 
Two weeks later, I received the reinstatement letter for {$11000.00}, signed the documents, and accepted the assistance. I then resumed monthly payments as agreed.

Improper Fees and Account Mismanagement About three months later, I received a notice that I was past due {$6000.00}.

When I contacted Carrington, they claimed this amount was for attorneys fees.

This makes no sense because : Carrington already reviewed the account for such fees before approving the mortgage assistance.

No attorney ever filed any legal action or foreclosure in court. I personally checked the records as a court subscriber.

Despite my written dispute, Carrington refused to remove these improper fees.

Current Issues Carrington now refuses to accept partial payments and insists I must pay the full disputed amount before they apply my payments.

I found that if I pay through XXXX XXXX, they are forced to accept the money, but they place it in an undisbursed funds account instead of applying it toward my balance.

This practice has unfairly put me back into default even after I completed their assistance program and complied fully. It feels like predatory servicing behaviorhelping a borrower just to charge false legal fees and force delinquency again.

Relief Requested I respectfully request that the CFPB investigate Carrington Mortgage Services for : Adding improper or fabricated legal/attorney fees when no legal action occurred ; Failing to honor mortgage assistance terms that brought my loan current ; Refusing to accept reasonable payments and misapplying funds to undisbursed accounts ; and Causing financial and emotional harm by unfairly placing me back into default.

I ask that Carrington : Remove all improper fees ; Apply all payments correctly ; Reinstate my account as current ; and Cease any foreclosure or negative reporting related to these disputed fees.

Supporting Documentation I am enclosing or can provide copies of : My mortgage assistance approval and reinstatement letter, Proof of payments and XXXX XXXX receipts, My dispute letter to Carrington, and Mortgage statements showing the improper {$6000.00} charge. 

Thank you for your attention to this matter. I am submitting this complaint in good faith and hope the CFPB will ensure Carrington Mortgage corrects these unfair practices. 

Sincerely,

Company response to consumer: Closed with explanation