Consumer complaint received 2020-10-16 00:00:00
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — 
Company: LoanCare, LLC
State: FL

Complaint narrative:
RE : Closing costs for refinanced VA loan did not disclose a late charge amount. 

I received a letter on XXXX XXXX advising me of a late paymnent on a mortgage serviced by Loancare, m XXXX XXXX XXXX, XXXX  XXXX, VA XXXX. The notification also included a {$38.00} late charge posted on XXXX XXXX. 

I contacted the service center to confirm loan pay off and to dispute the assignment of a late charge advising that the mortgage was refinanced two days previously on the morning of XXXX XXXX. I was advised that because the original loan had been " closed '' a refund could not be made.

I asked to speak to a supervisor who indicated that she was not empowered to make a refund.

I called the the originator of the refinance loan prior to calling Loancare to ask why I would have received a letter indicating scheduled payment had not been made. He made me aware that it was likely a computer generated notice of non payment.and to contactc the loan servicing agent. He also made me aware that servicing companies are made aware of the pending closing date/payoff date. This in turn generates an estimated pay off amount several days prior to the actual closing. It is customary to roll the monthly payment and interest into the pay out as well as includ a late fee in that amount. My originator noted that is a
customary practice to add the late fee and that most borrowers do not " catch '' it. In my case, the computer generated letter brought it to my attrention.

I was also made aware that once a closing date is firmly set the servicing company is contacted for a final payout amount. That amount would have been determined the previoujs Friday, XXXX XXXX. 

Discussion with the loan service agent and supervisor addressed the following concerns : 1. The inclusion of a late fee and non-disclosure of that fee in calculating the final payout is inapporpriate and denies the consumer the right to full disclosure of the loa amount.

2. Failure to remove the late fee in the final payout amount with the forknowlege that the closing date for the new loan will occur prior to the end of a grace period or date for computer generated posting of an accrued late fee evidences an intent to willfully hide that amount from the consumer and will hopefully not " be caught. '' 3. LoanCare 's records reflect that the loan was closed as discussed but that the final  posting of the payout to them did not occur until XXXX XXXX due to the mandatory XXXXday waiting period. That posting evidences that the transaction occured prior to the morning of XXXX XXXX - the day prior to the computer generated letter and assignment of the late charge. 

4. The addition of a late fee improperly asserts that the lender willfully failed to make a payment. Loancare was advised prior to XXXX XXXX of the pending closing process and to discontinue the automatic mortgage deduction that has run the course of the original loan. 

5. It is a customary business practice of forgiveness for one-time late payments. Loancare 's servicing agent and supervisor were not empowered to do this - especially considering the times, dates and circumstances in their records.

6. Providing an email address to further this complaint within Loancare fails to address the problem at the lowest level, but " passes the buck ''.

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