Consumer complaint received 2026-06-16 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: LAKEVIEW LOAN SERVICING, LLC
State: IN

Complaint narrative:
This formal complaint is submitted to expose severe, multi-layered statutory violations committed by Lakeview Loan Servicing , LLC and its agent XXXX XXXX XXXX ( collectively, " Servicer '' ). These violations span both systemic accounting failures during a recent early-2026 servicing transfer and incurable, structural compliance failures dating back to the point of origination. The Servicer is actively violating the Real Estate Settlement Procedures Act ( RESPA ) 60-day transfer safe harbor by assessing unauthorized default fees, demanding phantom past-due balances, and corrupting the escrow account through an unverified, broken data tape. Furthermore, a forensic review of the underlying loan file reveals structural violations of the Truth in Lending Act ( TILA ), Regulation Z, and the Ability-to-Repay ( ATR ) rules, stripping this loan of its Qualified Mortgage ( QM ) protections and compromising the current holder 's legal standing. I. Servicing Transfer Escrow Failure & RESPA Safe Harbor Violations Upon the transfer of servicing rights to Lakeview in early XXXX, the Servicer boarded a corrupt escrow data file originating from the prior servicer. This file contained severe accounting anomalies, specifically three erratic, concurrent disbursements of {$96.00} for XXXX XXXX XXXX disrupted the historical escrow baseline. Consequently, Lakeview 's automated billing system generated a fraudulent past-due balance of XXXX XXXXXXXXexactly double the standard monthly Principal, Interest, Taxes, and Insurance ( XXXX ) payment of $ XXXX claiming that the XX/XX/XXXX payment was missed. By treating the account as delinquent, assessing late fees, and threatening negative credit reporting within the immediate wake of a servicing transition, Lakeview is in direct violation of the RESPA 60-day transfer safe harbor under 12 U.S.C. 2605 ( d ) and 12 C.F.R. 1024.21, which explicitly prohibits a servicer from treating a timely payment as late or delinquent if it was misrouted or caught in transfer processing. II. Point-of-Origination Violations ( TILA, XXXX, and XXXX ) A structural compliance audit of the closing data from XX/XX/XXXX, reveals that the originating entity ( XXXX XXXX ) forced this loan to XXXX via an intentional bypass of federal consumer protection guardrails : XXXX. XXXX Timing & Regulation Z Violation ( 12 C.F.R. 1026.19 ( f ) ) : Internal compliance logs demonstrate a XXXX manual override window where the system 's tolerance errors were forced closed to print signatures. This zero-day execution completely violated the non-waivable three-business-day waiting period required between the delivery of a finalized Closing Disclosure ( CD ) and loan consummation. XXXX. TILA APR Misdisclosure & Finance Charge Understatement ( 12 C.F.R. 1026.22 ) : The Average Prime Offer Rate ( APOR ) on the date of closing was 3.86 %. The actuarial APR calculated by the compliance audit is 5.645 % a massive spread of 1.785 %. By misclassifying settlement, document preparation, and courier fees, the originating lender understated the true finance charge well beyond the statutory {$100.00} tolerance threshold, rendering the original disclosures legally fraudulent. XXXX. Ability-to-Repay ( ATR ) and XXXX XXXX XXXX Failure XXXX XXXX XXXX XXXX XXXX ) : This loan was executed at a Debt-to-Income ( DTI ) ratio of 55 %. Because the true XXXX exceeded the XXXX XXXX by more than XXXX percentage points, this transaction constitutes a Higher-Priced Mortgage Loan ( HPML ) under 12 C.F.R. 1026.35. A 55 % DTI triggers a heavy legal presumption of a violation of the Ability-to-Repay standard and completely invalidates any Qualified Mortgage ( QM ) Safe Harbor protection, exposing the current holder of the paper to unrestricted civil liability and statutory defenses. XXXX. Challenge to Real Party in Interest & Legal Standing Public land records for XXXX XXXX, XXXX, reveal a completely broken chain of title regarding this debt. There is no continuous, uninterrupted, and legally recorded Chain of Assignments linking the originating lender, XXXX XXXX, to Lakeview or any underlying securitized trust as required under XXXX XXXX XXXX. Because the debt has been separated from the security instrument via unrecorded digital tape transfers, the Servicer lacks the standing of a Holder in Due Course under the Uniform Commercial Code ( UCC ) and has no legal authority to collect payments, modify escrow balances, or enforce a lien against the subject property.

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