Consumer complaint received 2025-10-31 00:00:00
Product: Mortgage — VA 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: Mr. Cooper Group Inc.
State: NC

Complaint narrative:
My VA Partial Claim was approved in XX/XX/XXXX but was not properly submitted to the VA for funding or disbursement until XXXX XXXXa delay caused entirely by the servicers failure to complete and transmit the required documents.

As a result, my loan was reported as delinquent for over 17 months, even though I continued making payments and was eligible for reinstatement through the VA program. The mishandling of the partial claim caused inaccurate delinquency reporting, wrongful fees, added interest, foreclosure activity, and long-term credit damage, none of which has been corrected.

Timeline of Events XX/XX/XXXX : VA Partial Claim approved. I signed all required paperwork and was told my loan would be reinstated. 
XX/XX/XXXX- XX/XX/XXXX : XXXX XXXX repeatedly failed to finalize or submit the VA documentation. I was told my loan was in the modification department and that I could not access my account online. Each time I called, I was told the account was in good standing, even though they had not transmitted the partial claim to the VA. 
XX/XX/XXXX : The servicing of my loan transferred to XXXX XXXX  ( XXXX ). My first statement from XXXX showed a past-due balance of over {$36000.00}, which was false. I immediately contacted XXXX and explained that a VA Partial Claim had been approved and was pending proper submission. 
XXXX - XX/XX/XXXX : I continued to make payments, which XXXX held in a suspense account instead of applying them. 
XX/XX/XXXX : The VA finally funded and disbursed the Partial Claim, after XXXX and XXXX corrected their paperwork. That delay was entirely due to servicer error. 
XXXX : XXXX continued assessing late fees and additional interest, and began foreclosure proceedings based on the inaccurate delinquency. 
Throughout XXXX : I submitted multiple loan modification applications attempting to correct the balance and stop foreclosure, but they were denied using the same inaccurate data that their own mishandling created. 
XX/XX/XXXX : I reached a settlement agreement with XXXX, XXXX, and Mr. Cooper to resolve my prior lawsuit. However, despite that settlement, my loan remains inaccurately serviced and improperly reported. 
XX/XX/XXXX : XXXX issued a Resolution Letter that repeats my exact statements, acknowledging that the prior servicer did not submit properly executed paperwork to the VA and that my loan underwent significant changes, yet concluded no error occurred. The letter also references irrelevant modification denials and fails to correct the errors. 
Late XXXX : XXXX has now reported negative payment history to credit bureaus and shows my account as closed, although the loan remains active. 

Resulting Harm Due to these continuing errors and the 17-month delay in properly submitting the VA claim in accordance with VA guidelines : I have incurred substantial, unnecessary interest and late fees ; I have been wrongfully reported delinquent for over a year ; I have suffered severe credit-score damage and loan denial risk ; I have been subjected to foreclosure activity despite being eligible for reinstatement ; and I have been forced to hire attorneys and live under ongoing financial and emotional distress.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation