Consumer complaint received 2025-01-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Trying to communicate with the company to fix an issue with the application process
Company: BANCO POPULAR DE PUERTO RICO
State: TX

Complaint narrative:
We just got this information from Banco Popular Puerto Rico as part of their response to our complaint RE : CFPB COMPLAINT NO. XXXX, " After the forbearance period concluded in XXXX XXXX, you did not reinstate the loan nor formalized a new alternative through Loss Mitigation, so we referred the loan to foreclosure on XX/XX/XXXX, XXXX " This is our response to this affirmation Based on your explicitly mention in communication from XXXX XXXX " : Once the terms to this moratorium had concluded, you should had resolved the overdue payments or establishing communication with us to evaluate other alternative to reinstate your mortgage loan '' We followed this directive and just before the end of the moratorium, we showed up on XXXX XXXX XXXX, to sign documents at the Popular Mortgage Office : Loss Mitigation Unit ; and proceeded with the application for loan modification. We filled out all the requested information and provided all the required documents for the Loss Mitigation Unit starting the same day with the following timeline : XX/XX/scrub>XXXX XXXX XXXX : XXXX XXXX XXXX received : General and Personal information, letter explaining the facts, Property information, Credit Information authorization payroll stubs and other documents like IDs and Job contract. XXXX XXXX XXXX : XXXX XXXX XXXX confirmed all documents were received to start the application. XXXX XXXX XXXX : XXXX XXXX confirmed receipt of payroll stubs again. XXXX XXXX XXXX : XXXX XXXX confirmed receipt of leased property and payments. XXXX XXXX XXXX  : XXXX XXXX confirmed receipt of IDs for XXXX XXXX and XXXX XXXX again. Following these deliveries, there was a period of email silence until XXXX XXXX XXXX, which we broke with daily calls asking for any news of the financial evaluation for the loan modification and the results of the approval or rejection. However, the reality is we were still waiting for BPPR to answer our petition for refinance ( loan modification ) ; we did not receive any notice of rejection or approval during this step. What is really a surprise is the Foreclosure proceedings during the Loan Modification process referred on XXXX XXXX, which was finally accepted on XXXX XXXX XXXX, and formalized on XXXX XXXX, We were informed today by BPPPR that they had referred the Mortgage loan for foreclosure on this date. it looks like a Violation of the prohibition on Foreclosure during loan Modification review, from Banco Popular de Puerto Rico as they confirmed they were working with P.R.H.F.A to subordinate the second mortgage loan on our property loan during these dates. Subsequently, on XX/XX/scrub>XXXX XXXX XXXX, BPPR received authorization from the XXXX XXXX XXXX XXXX ( XXXX ) to subordinate the second mortgage on your property, and BPPR approved a mortgage modification. What is clear from its communications is the servicer Banco Popular de Puerto Rico initiated foreclosure proceedings while the application was under review. It looks like Dual tracking we were looking how to fix the issue and feeling safe because we averted the foreclosure, but the lender was pursuing Foreclosure and simultaneously reviewing our refinance application. In our opinion this is a violation of key Regulations under RESPA This unusual practice contradicts the principles of Full Transparency during the resolution of issues and as BPPR statements label us as a carrier of high-Risk loans making use the recipient of excessive fees for refinance. In fact, as shown below, we were still receiving emails from XXXX : XXXX XXXX XXXX : XXXX XXXX XXXX sent an email requesting information on school payments, evidence of a lease agreement, and an update on payroll stubs. The documents were sent the same day. XXXX XXXX XXXX  : XXXX XXXX confirmed receipt of the lease agreement contract. Apparently and during this period on XXXX XXXX Banco Popular de Puerto Rico reported in his answer to CFPB COMPLAINT NO. XXXX " received authorization from the XXXX XXXX XXXX XXXX XXXX XXXX ) to subordinate the second mortgage on your property, and BPPR approved a mortgage modification '' So they still were working on the Loan Modification by that time. Finally, on XXXX XXXX XXXX we received news on the loan modification when we received a disclosure of the payments due to proceed with the loan modification named Step Rate II. We accepted and formalized the agreement with a payment of USD XXXX to the order of Banco Popular. This is the best proof we had been working in how to reinstate the loan or getting a loan Modification, which contradicts your explanation about the foreclosure proceedings. It is unclear why BPPR took two months to evaluate a loan modification and why BPPR did not place a temporary hold on foreclosure proceedings and wait for the results. it was not our fault that the process for loan modification took two months due to BPPR 's business practices, but it is on your side the dual-tracking actions pursuing foreclosure while simultaneously reviewing our loan modification, and the lasting impact of your actions for seven years and the permanent label on our side as high-risk loaners. Sincerely XXXX XXXX & XXXX XXXX

Company response to consumer: Closed with explanation