Consumer complaint received 2026-02-03 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Loan sold or transferred to another company
Company: Mr. Cooper Group Inc.
State: IL

Complaint narrative:
Consumer Name : XXXX XXXX Current Address : XXXX XXXX XXXX XXXX, XXXX XXXX, IL XXXX Email : XXXX Companies Involved : Mr. Cooper / Nationstar Mortgage LLC XXXX, XXXX XXXX XXXX XXXX Bank Loan XXXX XXXX XXXX XXXX XXXX : XXXX XXXX XXXX XXXX, XXXX XXXX IL XXXX XXXX am filing this complaint due to serious mortgage servicing errors, escrow mismanagement, improper loan transfer accounting, and failure to accurately credit and remit funds related to my mortgage loan, which was serviced by Mr. Cooper and later transferred XXXX XXXX. 

Despite a full loan payoff reflected in XXXX own records, I suffered financial harm, loss of equity, and confusion caused by contradictory balances, escrow discrepancies, and misapplied funds, ultimately resulting in me receiving only approximately {$9000.00} from the sale of my home after payoff and closingan amount grossly inconsistent with the documented loan history. 
Key Evidence & Violations XXXX. XXXX XXXX XXXX XXXX XXXX XXXX ( Mr. Cooper ) XXXX XXXX records explicitly state : If there is a remaining escrow balance and the loan has been paid off or servicing transferred, the escrow balance has been sent to your new mortgage servicer. 

However : XXXX XXXX Escrow Account Disclosure Statement ( dated XX/XX/XXXX ) shows escrow activity through XX/XX/XXXX The escrow history reflects insurance and tax disbursements Mr. Cooper failed to clearly account for or directly remit the escrow surplus to me, and instead transferred funds without proper borrower reconciliation This constitutes failure to provide accurate escrow accounting under RESPA ( XXXX XXXX XXXX & XXXX ). 



XXXX. Contradictory Balances & Improper Accounting ( Servbank ) Servbanks own Payments XX/XX/XXXX statement shows : Loan paid in full on XX/XX/XXXX Principal Balance : {$0.00} Prior Restricted Monetary Adjustment of {$7900.00} Escrow balance movements that do not reconcile with XXXX XXXX records Despite this : Escrow funds were not properly disbursed to me No clear borrower-level escrow reconciliation was provided Funds appear to have been absorbed or netted internally without transparent accounting This is a servicing transfer failure and misapplication of funds in violation of RESPA XXXX XXXX 



XXXX. Inflated Past-Due Demands & False Account Status ( Mr. Cooper ) Mr. Cooper statements XXXX XXXX XXXX show : Claimed Amount Due of {$28000.00} Escrow shortage figures Simultaneous notices stating the account was for informational purposes only due to payoff or transfer These conflicting representations created borrower harm and confusion and constitute unfair and deceptive servicing practices under the XXXX XXXX standards. 



XXXX. Resulting Consumer Harm Because of these servicing failures : I was deprived of escrow funds I was entitled to I incurred closing costs and financial losses without accurate reconciliation After selling my home, I received only ~ {$9000.00} in proceeds, despite documentation showing substantially more equity should have existed absent servicing errors Formal Requests for Relief I am requesting that the CFPB require Mr. Cooper and XXXX to : XXXX. Provide a full, itemized escrow accounting from origination through payoff XXXX. Explain the {$7900.00} restricted monetary adjustment and escrow transfers XXXX. Identify where all escrow funds were ultimately applied or disbursed XXXX. Correct all servicing records to reflect accurate balances and payoff status XXXX. Return any escrow or loan funds improperly withheld XXXX. Cease any adverse reporting or internal mischaracterization of this loan Supporting Documentation Included Mr. Cooper escrow account disclosure ( XX/XX/XXXX ) Mr. Cooper billing statements showing escrow activity and inflated demands XXXX payment history confirming loan paid in full Loan transfer confirmation from Mr. Cooper Closing and payoff documentation Closing Statement Both servicers failed in their legal duty to maintain accurate accounting, transparent escrow handling, and proper borrower communication. These failures caused financial harm and loss of home equity, and warrant immediate regulatory review and corrective action.

Company response to consumer: Closed with explanation