Consumer complaint received 2025-03-13 00:00:00
Product: Mortgage — Reverse mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: PA

Complaint narrative:
I am writing to seek urgent intervention and assistance from the Consumer Financial Protection Bureau ( CFPB ) regarding the foreclosure sale of our home, which is scheduled for XX/XX/year>. I am the administrator of the estate who had a reverse mortgage with CarringtonXXXX. the borrower was tragically lost in a house fire on XX/XX/scrub>XXXX XXXX XXXX 
This situation has been devastating, and despite my tireless efforts to work with the mortgage servicer, I have been met with obstruction, excessive fees, unauthorized charges, and a lack of transparency that have made it impossible to resolve this matter fairly. I am pleading for the CFPBs intervention to stop the foreclosure and address the following egregious issues : 1. Mismanagement of Taxes and Insurance- The borrower was on a fixed income from Social Security , and based on her financial limitations, the servicer should have set aside funds for taxes and insurance. 
Despite a {$650000.00} reverse mortgage credit line, taxes and insurance were not deducted, forcing the borrower into default. 
Upon contacting the tax assessment office, I was informed that no taxes were owed, meaning the mortgage company advanced funds and added excessive charges beyond what was necessary. 
2. Forced-Placed Insurance & Insufficient Payout- After the borrowers death in the house fire, the servicers forced-placed insurance ( which is significantly more expensive than a standard policy ) failed to cover the full mortgage line of {$650000.00}. 
Instead, the insurance company only paid {$370000.00}, which is not enough to rebuild the home. 
The insurance check was sent to the mortgage servicer but is being held in escrow despite my written request on XX/XX/year>, to apply it to the outstanding balancea clear breach of contract. 
3. Excessive & Unauthorized Fees & Charges- The outstanding balance has grown at an alarming rate due to continuous fees and charges that I have no control over. 
The mortgage company has sent a third-party repair company to the property without my authorization, incurring additional costs that further inflate the balance. 
These inspections, repairs, and fees were not authorized, not requested, and not needed, yet they continue to increase the estates financial burden. 
4. Lack of Communication & Refusal to Work with the Estate- I have made countless attempts to contact the mortgage servicer, only to be transferred from department to department , disconnected, and ignored. 
The attorney representing the bank refused to delay the foreclosure sale despite the pending insurance claim payout and extenuating circumstances. 
The servicer and lender are completely disregarding the medical, financial, and personal hardships of the borrower and her family.

5. Predatory & Deceptive Practices of Reverse Mortgage Servicer- This reverse mortgage preyed upon an elderly borrower, setting her up for financial hardship with no clear protections or assistance. 
The exorbitant fees, lack of transparency, and aggressive foreclosure tactics seem designed to strip families of their homes rather than provide the financial security that reverse mortgages claim to offer. 
Heirs are not being considered, despite the devastating circumstances of the borrowers passing and the total loss of the home. 
Request for Urgent CFPB Intervention Given the egregious nature of these actions, I am pleading for immediate assistance from the CFPB to : Delay or halt the foreclosure sale until a fair resolution can be reached. 
Ensure that the insurance proceeds are properly applied to the balance as outlined in the original mortgage contract. 
Investigate the excessive fees, charges, and forced-placed insurance issues that have unfairly inflated the debt. 
Hold the mortgage servicer accountable for their failure to properly communicate and work with the estate. 
Review the predatory nature of this reverse mortgage and the undue hardship it has caused both the borrower and her family. 
This has been an emotionally and financially devastating ordeal, made worse by the lack of compassion, transparency, and fairness from the mortgage company. The borrower deserved better, and as the estate administrator, I am simply trying to make things rightbut I am being met with roadblocks at every turn.

Company response to consumer: Closed with explanation