Consumer complaint received 2024-12-28 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Mr. Cooper Group Inc.
State: MD

Complaint narrative:
Subject : Complaint Regarding Failure to Provide Certified Copies of Original Note and Allegations of Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) Violations To All Applicable Administrative and Enforcement Entities, I am writing to file a formal complaint against Nationstar Mortgage LLC, d/b/a Mr. Cooper ( Nationstar ) , for failure to provide requested certified copies of the original endorsed promissory note, as well as for engaging in practices that raise significant concerns under federal and Maryland state consumer protection laws. 

Summary of Events : I have submitted several separate requests to Nationstar for a certified copy of the original endorsed promissory note as required under the Real Estate Settlement Procedures Act ( RESPA ), Regulation X, and the Uniform Commercial Code ( UCC ). The most recent request was acknowledged by Nationstar on XX/XX/year>, but no adequate response or certified copy of the requested documentation has been provided to date. This failure violates : RESPA Regulation X 1024.36 ( d ) ( 1 ) ( ii ) : Requires loan servicers to respond to a borrowers Request for Information ( RFI ) within 15 business days. Nationstar failed to provide the requested documents or request an extension within this timeframe. 

Maryland Commercial Law Code Annotated 3-305 : Establishes the rights of borrowers to inspect and verify the authenticity of negotiable instruments, including promissory notes. 

Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) : Nationstars inconsistent statements regarding the possession of the original note, refusal to present it, and delay in responding to requests constitute deceptive practices under federal consumer protection laws. 

Truth in Lending Act ( TILA ) 15 U.S.C. 1641 ( f ) ( 2 ) : Requires servicers to provide the borrower with the name and address of the holder of the loan upon request. Nationstar has not fulfilled this obligation despite repeated inquiries. 

Additional Concerns : Insurance and Property Tax Issues : Nationstar appears to have replaced my existing and paid homeowners insurance policy with property insurance, without my consent, making it appear as though I was noncompliant with the insurance requirements of the Deed of Trust. Nationstar and its affiliate, XXXX XXXX XXXX XXXX ( XXXX XXXX ), seem to have engaged in questionable practices. The cancellation of my existing policywhich was fully funded and in good standingwas justified by claims that " the roof was determined to be flat and/or low sloping, which is ineligible based on underwriting guidelines. '' This justification is inaccurate and misrepresents my adherence to the terms of the Deed of Trust, as it appears that XXXX XXXX XXXX XXXX and XXXX  share the same underwriter or operate under the same entity. Consequently, if the justification for cancellation was valid, both the XXXX XXXX XXXX XXXX policy ( Nationstar ) and the XXXX  policy ( XXXX ) should have been equally affected and canceled, as they were governed by the same underwriting criteria and conditions. Subsequently, the insurance account funds were redirected toward a new policy mandated by Nationstar. 

On XX/XX/XXXX, at XXXX XXXX, a representative from XXXX XXXX XXXX XXXX XXXX XXXX contacted me in a call lasting XXXX minutes and XXXX seconds, attempting to sell another insurance policy. Despite this interaction, no refund has been issued for the canceled policy, raising serious concerns about potential fraudulent attempts to extract additional funds. 
These actions warrant a thorough investigation for breach of trust and potential violations of federal and Maryland consumer protection laws, including the Real Estate Settlement Procedures Act ( RESPA ), Maryland Commercial Law Code Annotated 27-303, and the Consumer Financial Protection Act ( CFPA ).

The company has not provided a separate invoice or accounting for outstanding property taxes purportedly paid on my behalf. 


Loss Mitigation and Payoff Notices : Conflicting and unclear correspondence regarding acceleration notices and loss mitigation options have further exacerbated my concerns. 

Recent Discrepancy in Note Holder Statements : Nationstar recently issued a letter stating, " Nationstar Mortgage LLC d/b/a Mr. Cooper is the holder of the Note and Mortgage and as such can enforce all rights under those documents. These rights include the right to collect payments, assess fees and charges, and proceed with foreclosure. '' However, in the same correspondence, it was also stated, " Rushmore Servicing is the holder of the Note and Security Deed and as such can enforce all rights under those documents. These rights include the right to collect payments, assess fees and charges, and proceed with foreclosure. '' These conflicting statements raise significant concerns under the Truth in Lending Act ( TILA ) and UDAAP provisions, as borrowers have a right to clear and accurate information regarding the holder of their loan and any associated rights. The conflicting declarations also create confusion and doubt about the legitimacy of the claimed rights to enforce these documents. 

Requested Relief : Provide a certified copy of the original endorsed promissory note, including all endorsements, as required under UCC Article 3 ( 3-104 and 3-501 ) and other applicable laws. 

Cease all acceleration efforts and associated fees until the requested documentation is provided, per RESPA Regulation X 1024.35 ( b ).

Provide a clear and itemized statement of any outstanding property tax payments or other charges purportedly paid by Nationstar, along with supporting documentation to verify the legitimacy of these charges.

Investigate Nationstars practices for potential violations of UDAAP and other applicable consumer protection laws, and, if violations are found, impose appropriate penalties, such as fines, corrective actions, or additional oversight, to ensure compliance and prevent further harm to consumers. 

Citations : Real Estate Settlement Procedures Act ( RESPA ) : 12 U.S.C. 2601 et seq., Regulation X ( 1024.36 and 1024.35 ) Truth in Lending Act ( TILA ) : 15 U.S.C. 1641 ( f ) Maryland Commercial Law Code Annotated 3-305 Uniform Commercial Code ( UCC ) : Articles 3-104 and 3-501 Consumer Financial Protection Act ( CFPA ) : Title X of the Dodd-Frank Act, 12 U.S.C. 5481 et seq. 

Please acknowledge receipt of this complaint and inform me of any next steps. Should you require additional information or documentation, I am prepared to provide it promptly. 

Thank you for your attention to this matter. 

Sincerely, XXXX XXXX XXXX XXXX. 
XXXX & XXXX

Company response to consumer: Closed with explanation