Consumer complaint received 2025-05-14 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: COLORADO HOUSING AND FINANCE AUTHORITY
State: CO

Complaint narrative:
XX/XX/XXXX To : Colorado Housing and Finance Authority ( CHFA ) Complaint Department XXXX XXXX XXXXXXXX XXXX XXXX XXXX CC : CHFA Legal Department Consumer Financial Protection Bureau ( CFPB ) U.S. Department of Housing and Urban Development ( HUD ) Subject : Formal Complaint Regarding Mishandling of Mortgage and HAF Assistance by CHFA re : Loan XXXX XXXX Dear CHFA Complaint Department, I am writing to formally lodge a complaint concerning the mishandling of my mortgage account and associated assistance through the Colorado Homeowner Assistance Fund ( HAF ) by the Colorado Housing and Finance Authority ( CHFA ). The series of events and guidance provided by CHFA representatives have not only exacerbated my financial hardship but have also potentially violated federal and state regulations designed to protect homeowners.

Background : In XX/XX/XXXX, I initiated the process to obtain assistance through the Colorado HAF program to address my past-due mortgage balance. At that time, the HAF program was capable of covering my entire delinquency, which would have reinstated my mortgage and allowed me to resume regular payments.

However, due to delays attributed to CHFA in submitting necessary documentation and processing my loss mitigation application, my mortgage balance continued to accrue. In XXXX, I received a call from a CHFA representative informing me that I could proceed with loss mitigation. However, I was advised that doing so would forfeit the HAF funds. Based on this guidance, I declined the loss mitigation option, trusting that the HAF assistance would be processed.

Subsequently, I was informed that my declination of loss mitigation was reported to HAF, and due to the increased balance exceeding the {$40000.00} assistance cap, HAF now required an approved loss mitigation plan to release funds for the remaining amount. I then resumed the loss mitigation process, but despite my efforts, my application has neither been reviewed nor approved for the past 11 months.

Concerns : Violation of Federal Regulations : Under the Real Estate Settlement Procedures Act ( RESPA ) and its implementing regulation, Regulation X ( 12 C.F.R. 1024.41 ), servicers are required to evaluate a complete loss mitigation application within 30 days of receipt. CHFA 's failure to process my application within this timeframe constitutes a violation of this federal mandate. Prohibited Dual Tracking : Colorado law ( C.R.S. 38-38-103.2 ) prohibits dual tracking, where a servicer continues foreclosure proceedings while simultaneously processing a loss mitigation application. CHFA 's delays and lack of communication have placed me at risk of foreclosure without a fair evaluation of available alternatives.

Negligent Guidance : The advice provided by CHFA representatives led me to decline loss mitigation, which was later required to access HAF funds. This contradictory guidance has directly contributed to my current financial predicament.

Potential Predatory Practices : The cumulative effect of CHFA 's actionsor inactionshas resulted in a situation where my mortgage balance has grown beyond the assistance cap, and I am now being told that the balance may be too high for loss mitigation. This sequence of events, none of which are due to my actions, suggests potential predatory lending practices.

Requested Actions : Immediate review and processing of my loss mitigation application.

Coordination with the HAF program to secure the initially available assistance.

A thorough investigation into the guidance provided by CHFA representatives and the delays in processing.

I am formally requesting that CHFA reconsider my case and provide equitable relief by restoring me to the position I would have been in had CHFA exercised proper due diligence and timely processing. Specifically, this would involve : Recognizing that I would have qualified for full assistance under the HAF program at the time of my original application; Applying those funds toward the balance that existed at that time ; Reinstating my mortgage under the same terms, allowing me to resume monthly payments as I would have last summer ; Removing any accrued penalties, interest, or disqualifying balances that resulted from CHFAs delays and miscommunication.

This request is not merely about convenience or preference it is rooted in principles of fairness and equity. The preventable failure to process my application and the conflicting guidance I received have resulted in significant financial harm and denied me access to assistance for which I was fully eligible. I am not seeking special treatment, but rather the outcome that would have occurred had CHFA met its obligations under the law and within the bounds of its authority and responsibilities.

I am also submitting this complaint to the Consumer Financial Protection Bureau ( CFPB ) and the U.S. Department of Housing and Urban Development ( HUD ) for further investigation into CHFA 's practices.

I trust that CHFA will take this complaint seriously and act promptly to rectify the situation. I am seeking a resolution that will allow me to retain my home and recover from the financial hardship exacerbated by these events.

Company response to consumer: Closed with explanation