Consumer complaint received 2025-11-21 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:
This is what XXXX XXXX stated when I emailed it to Mr. Cooper, To Whom It XXXX Concern : I am submitting this letter to document the financial hardship caused by an unexpected escrow increase and to formally demand immediate corrective action regarding the servicing and review of my mortgage loan. I fell behind solely due to an unanticipated and excessive escrow increase of approximately {$200000.00}, which caused a sudden and severe payment shock. This adjustment was not reasonably foreseeable and directly impaired my ability to maintain the previous monthly payment. Despite my ongoing efforts to tender monthly payments, Mr. Cooper has refused to accept them, exacerbating the delinquency and creating significant financial and emotional hardship for my family. 
My household maintains a stable gross monthly income of {$9300.00}, and I am fully able and willing to resume payments under a fair, sustainable, and affordable plan consistent with Fannie Mae requirements. The servicer has a legal duty to conduct a timely, fair, and good-faith review of my complete loss-mitigation application, in strict compliance with CFPB XXXX XXXX, RESPA, and all applicable investor guidelines. Any attempt to accelerate the loan or refuse payments while my application is pending constitutes dual-tracking and violates my federally protected loss-mitigation rights. I demand capitalization of arrears and that the loan be brought current in accordance with the Acceleration Amount and unpaid principal balance. The servicer must provide written notice of any deficiencies or decisions, and failure to act XXXX constitute unfair, deceptive, or abusive acts or practices ( XXXX ). Full compliance with statutory and contractual obligations is required, and all foreclosure or related activity must be immediately suspended until a proper review is completed. 
I hereby demand that Mr. Cooper and Fannie Mae conduct an immediate, good-faith review of my complete modification application under the Fannie Mae XXXX XXXX XXXX XXXX XXXX well as any other applicable investor or government loss-mitigation programs. 
XXXX. Capitalization of Arrears I request full capitalization of all arrears, including but not limited to : Escrow shortage : {$190000.00} Unpaid principal balance : {$200000.00} Bringing the total to the Acceleration Amount of {$430000.00}. Capitalization is necessary to bring the loan current and proceed with a compliant modification evaluation under investor guidelines. 
XXXX. XXXX XXXX XXXX I request the loan be modified to a XXXX, XXXX, or XXXX term, whichever results in the lowest and most sustainable monthly payment allowed under the Fannie Mae XXXX XXXX. The servicer is required to evaluate all permissible terms to determine the most affordable option. 
XXXX. XXXX Suspension of Foreclosure XXXX XXXX foreclosure activityincluding posting, publication, sale scheduling, referral, and continuationmust cease immediately. Under CFPB XXXX XXXX and Fannie Mae servicing policy, foreclosure proceedings must be suspended upon receipt of a complete loss-mitigation application. My application must be treated as complete unless and until the servicer provides written notice of specific deficiencies. 
XXXX. XXXX XXXX and Determination I demand prompt review and approval of my modification request without further delay. Foreclosure is not in XXXX XXXX financial interest, as a loan modification preserves property value, mitigates loss, and avoids unnecessary foreclosure costs. Continued delay or failure to properly review my application constitutes a violation of federal servicing standards and investor guidelines. 
The ongoing refusal to accept payments, combined with the failure to process my modification in a timely manner, is causing irreparable financial and emotional harm to my family. These delays are unacceptable and must be remedied without further excuse. 
Please confirm in writing the suspension of all foreclosure activity and the initiation of an immediate, good-faith review of my complete modification package. 


My Submission Electronic Submission : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation