Consumer complaint received 2025-12-01 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Payment process
Company: CrossCountry Mortgage LLC
State: FL

Complaint narrative:
Subject : Formal Complaint Improper Cancellation of FHA Permanent Modification, Servicer-Induced Default, Illegal Retroactive Charges, Failure to Update Portal, and Violations of Regulation XXXX  ( XXXX XXXX XXXX ) XXXX. Summary of the Issue CrossCountry Mortgage improperly cancelled our approved FHA XXXX XXXX XXXX, despite full TPP compliance, by using a retroactive effective date, refusing to update the online portal, and creating a servicer-induced delinquency. 
The cancellation violates : HUD Handbook XXXX ( Sections XXXX ( XXXX ) - ( XXXX ) ) CFPB Regulation XXXX ( XXXX XXXX XXXX ) Federal servicing standards requiring accuracy, notice, and cure opportunity We request CFPB Escalated Enforcement , as the servicers actions resulted in significant financial harm, including a XXXX drop in credit scores. 

XXXX. Full Compliance With the Trial Payment Plan ( TPP ) All TPP payments were made on time. 
No delinquency or default occurred. 
CrossCountry confirmed completion and approval of the permanent modification. 

XXXX. Servicer Generated and Delivered Contract Late Timeline documented : Agreement generated : XX/XX/XXXX Letter dated : XX/XX/XXXX Delivered to borrowers : XX/XX/XXXX Returned signed : XX/XX/XXXX XXXX. Servicer Used an Illegal Retroactive Effective Date The contract claims an effective date of XX/XX/XXXX, even though : No contract existed on that date ; It was created XXXX  days later ; It was delivered 32 days later ; It was executed by us only after receipt. 
Using a retroactive effective date for payments that were not yet due is prohibited by XXXX  and violates Regulation XXXX. 

XXXX. Unsolicited Payment Wrongly Used as Grounds for Cancellation Before receiving the contract, we made a payment without : a valid agreement, a valid due date, or proper instructions. 
When we realized no contract had been received, the payment was reversed. 
Under XXXX  policy, this is an Unsolicited Payment, and : Unsolicited Payments can not be used to cancel or deny an FHA modification. 
CrossCountry used this reversed payment as justification for cancellation, which is illegal. 

XXXX. Attempt to Cure on XX/XX/XXXX Blocked by Servicer On XX/XX/XXXX, we contacted CrossCountry to make the correct payment. 
Instead of allowing payment, CrossCountry informed uswithout any prior noticethat the modification had been cancelled. 
This violates : Notice requirements Cure opportunity requirements Good-faith servicing obligations Regulation XXXX XXXX ( g ) XXXX. Failure to Update Portal ServicerCreated Default Throughout the TPP and after, the online portal was never updated to show : the new payment amount, the new due date, or the existence of a permanent modification. 
Repeatedly, representatives told us : The portal will update within 15 days. 
It never updated. 
Without accurate information, we could not make a valid payment, and XXXX failure prevented compliance. 

XXXX. Illegal Retroactive Charge Caused a XXXX Credit Score Drop CrossCountry reported us as delinquent for a payment allegedly due on XX/XX/XXXX, even though : The agreement did not exist then, It was not received until XX/XX/XXXX, And we returned it signed on XX/XX/XXXX within the required timeframe. 
This wrongful delinquency reporting caused a XXXX drop across : XXXX  XXXX  XXXX  All relevant phone callsfrom the first TPP payment through the return of the signed contractare recorded and demonstrate that : We acted in full good faith ; The servicer failed to perform its obligations, And CrossCountry created and reported an artificial delinquency. 

XXXX. Regulation X Violations ( XXXX CFR XXXX ) CrossCountry violated : XXXX ( b ) ( XXXX ) failure to provide accurate and timely information XXXX ( c ) ( XXXX ) failure to honor an approved modification XXXX ( d ) adverse action based on servicer-created errors XXXX ( g ) prohibited termination of loss mitigation options These constitute unfair, deceptive, and abusive servicing practices. 

XXXX. Requested CFPB Actions We respectfully request that the CFPB : XXXX. Order immediate reinstatement of the FHA XXXX XXXX. 
XXXX. Require correction of all credit reporting. 
XXXX. Require removal of the illegal retroactive effective date. 
XXXX. Investigate and enforce penalties for servicer misconduct. 
XXXX. Require process improvements to prevent recurrence.

Company response to consumer: Closed with explanation