Consumer complaint received 2026-01-09 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: FCI Lender Services Inc.
State: GA

Complaint narrative:
CFPB COMPLAINT XX/XX/XXXX Respondent : New Loan Servicer State : Georgia Complaint Summary I am submitting this complaint regarding improper mortgage servicing following a loan servicing transfer, including failure to honor an approved forbearance, improper assessment of late fees, and defective loss-mitigation practices that appear to accelerate foreclosure. 
________________________________________ Detailed Complaint I had an approved mortgage forbearance from XX/XX/XXXX through XX/XX/XXXX with my prior loan servicer XXXX. During this forbearance period, late fees should not have been assessed, and my loan should not have been treated as delinquent when it was transferred to my new loan servicer. 

My loan was transferred to a new loan servicer in XX/XX/XXXX. Following the transfer, the new servicer or the initial servicer failed to properly code my active forbearances, resulting in late fees being assessed during the forbearance periods. 

This failure to honor an existing loss-mitigation status during a servicing transfer is improper and has caused financial harm. I wrote a letter to the new servicer on XX/XX/XXXX because when I initially called and spoke with the representative in XXXX to ask about the transfer of the loan and inquire about the total amount due on the loan and also to inform him that I was still in deferment and at that time the representative informed me he did not know anything about the funds placed in the escrow account or the deferment because the loan had not been fully transferred over yet. I was inquiring about the funds because I had placed of my mortgage payment into that account for the XXXX mortgage payment and now I was being told that my money was not available for my XXXX mortgage because he did not have a record of the money. I dont believe I ever received a response back in writing informing me if the loan balance and all the associated fees were correct once the loan was fully transferred or even if it was fully transferred. 

After I questioned the new servicer regarding a loan modification, the servicer sent a loan modification offer letter dated XX/XX/XXXX, which expired on XX/XX/XXXX. The modification offered materially worse terms than my existing loan and did not reflect a fair or complete evaluation of available foreclosure-prevention alternatives. 
The modification terms offered were as follows : Estimated modified unpaid principal balance : {$350000.00} Interest rate : 8.00 % fixed Loan term : 30 years Estimated principal & interest payment : {$2500.00} Escrow : Available upon request for taxes and insurance First payment due : XX/XX/XXXX Trial period : 12 months required Additional conditions : Proof of active homeowners insurance required My original interest rate is in the 5 % range, making this offer significantly worse than my existing loan. This loan modification would not help me financially to catch up and keep my home, but basically it would worsen my situation. 

In a separate letter, the servicer listed foreclosure-prevention alternatives including reduced interest rates, reduced payments, loan maturity extensions, temporary modified terms, capitalization of delinquent payments, principal deferment or reduction, short sale, short payoff, and deed-in-lieu of foreclosure. None of these options were discussed with me, evaluated, or formally approved or denied in writing. 

The new loan servicer offered only XXXX unfavorable modification, failed to explain why other listed options were unavailable, and did not provide written denial reasons or appeal rights. This conduct suggests a procedurally defective loss-mitigation review. 
Additionally, the improper assessment of late fees during forbearance appears to have artificially accelerated default and foreclosure timelines.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation