Consumer complaint received 2025-12-07 00:00:00
Product: Mortgage — Reverse mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: CA

Complaint narrative:
In reviewing the reverse mortgage taken out by my late parents, I discovered multiple violations of federal HECM rules and California law. The loan was originated by XXXX XXXX XXXX ( XXXX ), is now held by XXXX XXXX XXXX XXXX XXXX XXXX  ), and has been serviced or handled by XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX ( foreclosure trustee ), and XXXX XXXX XXXX ( foreclosure counsel ). 

The central defect is that the property NEVER qualified for an FHA-insured HECM loan . It contains a XXXX pre-HUD mobile home with : no HUD certification labels, no permanent foundation, and no 433A compliance certification recorded with the county. A home with these characteristics is categorically ineligible for
FHA/HUD HECM loans.

Despite this, the XXXX origination appraisal used a XXXX XXXX  XXXX XXXX single-family residence appraisal, falsely describing the structure as a site-built SFR. Manufactured/mobile homes must be appraised on Form 1004C. I am attaching the original appraisal to show the incorrect property classification, as well as the corrected XXXX appraisal that finally identified the home as a manufactured/mobile home. 

Additional major violations : Forged borrower signatures were used on the Deed of Trust, Occupancy Rider, and other documents dated XX/XX/XXXX ( confirmed by a certified forensic handwriting examiner ). I am attaching the loan coordination documents showing the XX/XX/XXXX signing date. 

My father died before the deed of trust was ever recorded, meaning he could not legally sign or authorize the loan. I am attaching the death certificate. 

Loan funds were disbursed months before recordation, and the deed was recorded almost a year after the alleged signing date. 

HUD counseling was expired at the time of the loan. 
The counseling certificate expired XX/XX/XXXX ( per the HUD screenshot I am uploading ), which exceeds the FHA 180-day limit. Loan signing occurred XX/XX/XXXX. 

FHA has notified me that the loan is internally flagged due to eligibility and documentation issues. 

Dual tracking is occurring in violation of California law. 
While the foreclosure was initiated and a Notice of Sale was recorded on XX/XX/XXXX, the property remained actively listed for sale, with the XXXX updated on XX/XX/XXXX, and still showing active status. 
The foreclosure attorney also informed me that a title insurance claim was being filed at the same time the lender and trustee pursued a short sale, which is another dual-tracking indicator. 

Between XXXX, I provided written notice of these issues to XXXX XXXX, Carrington, XXXX XXXX XXXX XXXX XXXX and the FHA XXXX XXXX XXXX. None of the companies have corrected the violations or paused foreclosure. 

Foreclosure is moving forward despite the loan being ineligible, forged, expired, misclassified, and recorded after a borrowers death, making the HECM void from origination.

I am requesting CFPB assistance because the companies involved have ignored clear evidence of : forged signatures, FHA ineligibility, improper appraisal form, expired counseling, premature disbursement of funds, post-death recordation, and illegal dual tracking.

I am uploading all supporting documentation, including the HUD counseling screenshot showing the XX/XX/XXXX expiration, loan documents, both appraisals, county/IBTS property verification, death certificate, foreclosure notices, XXXX evidence XXXX and communications with the servicer and foreclosure attorneys.

Company response to consumer: Closed with explanation