Consumer complaint received 2026-04-01 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: IL

Complaint narrative:
Product/Service : Mortgage Issue : Trouble during the payment process / Struggling to pay mortgage Company : CARRINGTON MORTGAGE LLC . Complaint Narrative : I am a homeowner in XXXX with an FHA-insured mortgage. I am writing to report bad-faith servicing and predatory loss mitigation practices by CARRINGTON MORTGAGE LLC . Between XXXX XXXX and XX/XX/XXXX, I repeatedly contacted my loan servicer to request evaluation for FHA Loss Mitigation ( specifically a Partial Claim ) before I reached 120 days of delinquency. On multiple occasions, representatives from CARRINGTON MORTGAGE LLC. explicitly told me that I was not eligible for a Partial Claim until I reached at least 120 days of delinquency. I followed their instructions and allowed the loan to reach 120 days of delinquency. However, once I reached that threshold, the servicer denied me for the very program they told me to wait for. They stated I am ineligible for a Partial Claim because I reached a 30 % statutory limit ( set by a previous Partial Claim in XXXX ). This is predatory for the following reasons : 1. Misleading Information : The servicer knew ( or should have known ) the status of my 30 % Partial Claim cap the moment I applied. Telling me to wait until 120 days of delinquency for a program they knew I could never qualify for caused me " Actual Harm '' in the form of unnecessary late fees, severe credit damage, and a higher interest rate offer. 2. Failure to Follow Waterfall : Instead of a Standalone Partial Claim or the FHA Payment Supplement ( which I should have been evaluated for ), they are pushing me into a " Recovery Modification '' that increases my interest rate from 3.5 % to 6.625 % and extends my loan to a XXXX term. After paying this mortgage for 20 years, this " assistance '' adds 20 years of debt and increases my monthly payment by $ XXXX. 3. Induced Delinquency : The servicer 's instructions directly induced a deeper delinquency than was necessary, putting my home at greater risk of foreclosure. Desired Resolution : I request that CARRINGTON MORTGAGE LLC. perform a manual audit of my XXXX Partial Claim to verify the exact remaining balance of the 30 % cap. I also request to be evaluated for the FHA Payment Supplement and a Standalone Loan Modification that respects my original 3.5 % interest rate, given that the current delinquency was worsened by the servicers incorrect procedural guidance. I am asking for a " Notice of Error '' investigation into the representatives who instructed me to wait until 120 days to apply. I have also filed a notice of error with CARRINGTON MORTGAGE LLC. due to no communication and denying me a in person or live web meeting. I am writing to formally assert a Notice of Error regarding the servicing of my FHAinsured mortgage, pursuant to 12 C.F.R 1024035 and the continuity of contact requirements under 12 C.F.R 1024.40. My mortgage is currently in default, and I am actively seeking loss mitigation assistance. Your company has failed to provide me with a functional Single Point of Contact ( SPOC ) as required by federal law and HUD Handbook 4000.1. Specifically : Lack of Accessibility : Although I have may or may not have been assigned a ( SPOC ), this individual never answers the phone. When I call, I am redirected to general service agents who do not have specific knowledge of my file. Failure of Continuity : Speaking with different representatives each time has led to conflicting information and delays in my application review. Violation of Regulation X : Under 12C.F.R 1024.40 ( a ) ( 3 ), if a borrower does not receive a live response from their assigned personnel, the servicer must ensure a live response can be provided in a timely manner. This has not occurred. Request for Correction : I request that you immediately correct this error by : 1. Providing me with a direct phone number and extension for an assigned ( SPOC ) who is actually accessible and authorized to discuss my FHA loss mitigation options. 2. Ensuring that this contact is fully briefed on my current application status to prevent further dual tracking or delays. 3. Providing a written acknowledgment of this error within ( 5 ) business days, as required by 12 C.F.R 1024.35 ( d ).

Company response to consumer: Closed with explanation