Consumer complaint received 2024-08-16 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — Paying off the loan
Company: Lil' Wave Financial, Inc.
State: GA

Complaint narrative:
Dear CFPB, I am writing to formally lodge a complaint against my previous mortgage lender and servicer, XXXX, XXXX XXXX XXXX, MERS, and Superior Loan Servicing. The issues I have encountered with these entities have caused severe financial harm and undue stress, and I am seeking your assistance in addressing these matters. 

1. Unjustified Refusal of Payments In XX/XX/XXXX, without any prior notice or explanation, my mortgage servicer stopped accepting my payments. This sudden and unexplained action left me in a precarious financial situation and raised serious concerns about the transparency and reliability of my servicer. 

2. False Verification of Mortgage ( VOM ) and Imposition of Default Fees On XX/XX/XXXX, my lender sent a Verification of Mortgage ( VOM ) to the bank handling my refinance application. This VOM falsely indicated that I had nine late payments over 30 days in the last 12 months. Based on this inaccurate information, my lender applied default interest fees at an exorbitant rate of 17 % to each of these alleged late payments, resulting in an additional {$86000.00} in charges. 

These fees were applied without any opportunity for me to dispute or correct the erroneous VOM, leaving me in a financially vulnerable position. 

3. Delayed and Inaccurate Responses to Subsequent VOM Requests On XX/XX/XXXX, a second VOM request was made by another lender. It took 13 days for my servicer to respond. The second VOM, while slightly more accurate, still contained errorsthis time listing only two late payments over 30 days in the last 12 months. Despite this revision, none of the previously imposed fees were removed or adjusted, further exacerbating the financial burden placed on me. 

4. Obstruction of Refinance Efforts and Foreclosure Proceedings Throughout this period, my lender engaged in a pattern of delays and misinformation, which significantly hindered my ability to refinance my home. Their actions appeared to be deliberately obstructive, as they continued to provide false information to prospective lenders. Simultaneously, they initiated foreclosure proceedings against my property, compounding the stress and financial difficulty I was already facing. 

5. Improper Billing for Taxes and Insurance In addition to the aforementioned issues, I was billed for property taxes that were never paid by my lender, as well as for insurance that extended beyond my closing date, despite the fact that I had an active policy on my new loan. These improper charges further illustrate the pattern of negligence and misconduct by my lender. 

6. Excessive Overpayment Due to Lender 's Errors As a result of the lender 's errors and mismanagement, I was forced to overpay approximately {$120000.00}. My original principal balance was {$580000.00}, but due to the lender 's actions, my final payoff amount ballooned to {$700000.00}. This inflated payoff amount was reached only after my lender acknowledged their mistakes and provided a credit of {$47000.00}, which included all late fees and 50 % of the default interest. Despite this partial credit, the financial damage was already significant. 

7. Forced Bridge Loan at Predatory Interest Rate After exhausting all other options, I was finally able to secure a bridge loan by presenting substantial evidence of my lender 's wrongdoing. However, this loan came with a predatory interest rate of 14.99 %, which I am now forced to maintain for a year just to establish a clean payment history. This is necessary for me to eventually refinance my home with a conventional mortgage. The costs associated with this new loan have been staggeringnearly {$91000.00} in fees just to obtain the loan, and monthly payments of {$10000.00} for the next 12 months, totaling {$120000.00} in additional fees. 

8. Ongoing Financial and Emotional Impact The wrongful actions taken by my lender have not only caused me significant financial harm but have also subjected me to immense emotional distress. The combination of obstructive behavior, false reporting, and predatory lending practices has placed me in a precarious financial situation, with no immediate relief in sight. 

Request for Intervention I urge the CFPB to investigate these matters thoroughly and take appropriate action against XXXX, XXXX XXXX XXXX, MERS, and Superior Loan Servicing. Their actions have not only violated my rights as a borrower but have also caused significant financial and emotional harm. I seek restitution for the damages incurred and request that the CFPB ensure that these practices do not continue to harm other consumers. 

Thank you for your attention to this matter. I look forward to your prompt response and intervention. 

Sincerely,

Company response to consumer: Closed with explanation