Consumer complaint received 2025-09-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Mr. Cooper Group Inc.
State: CA

Complaint narrative:
Consumer Financial Protection Bureau ComplaintServicer : Mr. Cooper for XXXX XXXX  XXXX Nationstar Mortgage LLC. ) Summary of Complaint : Mr. Cooper denied my XXXX XXXX  loan modification application without ever sending me the legally required notice of incomplete application. Instead, they first raised the issue of a supposed missing document only after issuing a denial, and then again in their XX/XX/year> letter responding to my appeal. This deprived me of any opportunity to correct the application, violating both RESPA and the California Homeowner Bill of Rights ( HBOR ).

Details of Servicer Errors : Failure to Provide Missing Document Notice Under 12 C.F.R. 1024.41 ( c ) ( 2 ) ( iv ), a servicer must promptly notify a borrower in writing if documents are missing and provide a reasonable time to cure before issuing any denial. 

Mr. Cooper never sent such a notice. Instead, they denied my application outright and only laterin their XX/XX/year> appeal responseclaimed something was missing. 

Box Error Mischaracterized as Missing Income I mistakenly checked the investment income box on their application form, thinking it related to my CalPERS retirement benefits.

I did submit my CalPERS benefits letter ( proving retirement income ). I have no investment income. 

XXXX could have clarified this with a simple document request before denial. Instead, they used this as a ground for denial after-the-fact. 
Improper Form Required In a XX/XX/year> letter, Mr. Cooper required me to resubmit my application on the Mortgage Assistance Application ( MAA ) form. 
The MAA form is for XXXX XXXX XXXX XXXX XXXX My loan is not GSE-backed and never has been. 

Directing me to complete the wrong form not only confused the process but also undermines the validity of the denial that followed. 
Pattern of Denials Without Resolution I submitted XXXX pages of documents in good faith, including IRS Form XXXX ( automatic extension through XX/XX/year> ), IRS Form XXXX XXXX and full financials. 

I have repeatedly demonstrated willingness to provide anything requested, but XXXX continues to issue denials without proper notices or chances to cure. 
Context : 16 Years Without Payments Yet Taxes Advanced I have not made mortgage payments in XXXX years. Despite this, Mr. Cooper ( and prior servicers ) have advanced property taxes for XXXX years. 
No servicer would continue this unless they knew the loans servicing history was defective. This pattern itself is extraordinary and relevant to my complaint. 

Harm and Request for Relief : Because of Coopers mishandling, I lost the chance to correct a simple clerical box error or provide clarification during the application review. This is not a fair or compliant process. 
I respectfully request that the CFPB require Mr. Cooper to : Reset my loan modification review ; Issue a proper incomplete application notice if they believe anything is missing ; Evaluate my application under the correct form and loan type ; Cease foreclosure activity while the review is pending.

Attachment/Reference : 12 C.F.R. 1024.41 ( c ) ( 2 ) ( iv ) ( Regulation X Loss Mitigation Procedures ) : If a borrowers complete loss mitigation application is missing documents or information, the servicer shall promptly provide written notice to the borrower stating what documents or information are required

Company response to consumer: Closed with explanation