Consumer complaint received 2025-04-30 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: Mr. Cooper Group Inc.
State: FL

Complaint narrative:
I am filing this complaint to report serious misconduct by Nationstar Mortgage LLC d/b/a Mr. Cooper in connection with my attempt to assume an existing FHA-insured mortgage on a property located in Florida. 

Unlicensed Loan Officer Handling My Application : The individual assigned to process my assumption request, XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXXXXXX ), represented herself as authorized to handle FHA assumptions in Florida. However, after reviewing public XXXXXXXX  Consumer Access records, I discovered that XXXX XXXX does not hold an active Florida mortgage loan originator license, as required by the S.A.F.E. Act

( 12 CFR Part 1008 ) and Florida law. I believe it is a violation of federal and state law for Mr. Cooper to a
llow an unlicensed individual to work on a mortgage transaction in Florida. 

Misleading and Incorrect Denial Letter : Mr. Cooper ultimately denied my assumption request. Shockingly, the denial letter referenced XXXX XXXX unrelated third party that has nothing to do with my transactionand directed me to contact XXXX with questions. 
This demonstrates a clear lack of review and accuracy, and shows a pattern of using pre-filled templates rather than evaluating assumption applications on their individual merits. I believe this behavior constitutes unfair and deceptive practices. 

I Was Qualified and Verified Preapproved by Mr. Cooper Themselves : Adding to my concern, I had already been preapproved for a new home purchase loan by Mr. Cooper themselves. If I was qualified for a new mortgage, I was certainly qualified to assume the existing FHA loan, which would have a lower balance and a significantly lower interest rate. 
This strongly suggests that my denial was not based on qualification issues, but rather on an effort by Mr. Cooper to prevent consumers from assuming low-rate FHA loans XXXX to encourage new originations at higher market rates instead. 

Pattern of Obstructing Assumptions : In my view, Mr. Coopers handling of my request reflects a broader practice of improperly delaying, discouraging, and denying loan assumptions. This behavior harms consumers like myself and undermines the intent of FHA programs, which are supposed to preserve affordable homeownership opportunities. 

Requested Action : I respectfully request that your office investigate Mr. Coopers : Use of unlicensed personnel for Florida mortgage transactions ; Issuance of materially inaccurate and misleading denial letters ; and Apparent policy of unjustifiably obstructing FHA loan assumptions by qualified borrowers. 

Supporting Documentation : Attached you will find the XXXX report for XXXX XXXX, a copy of the denial letter, and evidence of my verified preapproval for a new loan issued by Mr. Cooper. 
Thank you for taking the time to review my complaint. I would appreciate your assistance in holding Mr. Cooper accountable and ensuring that other borrowers are not treated unfairly.

Company response to consumer: Closed with explanation