Consumer complaint received 2022-02-14 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Mr. Cooper Group Inc.
State: VA

Complaint narrative:
In XXXX of XXXX I underwent a XXXX XXXX XXXX XXXX. Because my long-term employment situation ( I'm a school teacher ) was potentially going to be affected by the XXXX and XXXX  I contacted my mortgage service provider, Nationstar Mortgage dba Mr. Cooper, to discuss my options. At this time, Mr. Cooper advertised through their website a program that allowed for those affected by COVID-19 that would allow for a deferral of mortgage payments for up to a year. The program as outlined on their website indicated that if approved the borrower would be allowed to begin repayment of their original mortgage at the end of the year -- or earlier if individual conditions changed -- with all deferred payments simply added to the end of the mortgage. In XXXX of XXXX I was contacted by Mr. Cooper to find out if I wanted to continue in the program. I told the representative that I wanted to return to paying my mortgage and have the outstanding balance added to the end of my loan. The representative confirmed my request and told me that Mr. Cooper would process the request to restart the loan. 

Instead, I was sent a modified mortgage agreement that while offering a lower interest rate, extended the length of the loan by 10 years ( thus adding additional interest payments ) and a slightly lower monthly payment would require that the loan guarantor, FHA, to place a $ 60K lein on the property. I found this rather absurd given that I was only about {$27000.00} behind in payments. I immediately contacted Mr. Cooper in XX/XX/XXXX and asked why I was not being granted the opportunity to 'just add the amount owed to the end of the loan ' as originally promised. From XX/XX/XXXX until today I have placed a number of phone calls to various officials at Mr. Cooper to 'reject ' their original loan modification and ask them to comply with their original offer of loan repayment. It was not until XX/XX/XXXX that Mr. Cooper finally 'closed " the original offer of a loan modification and began to 'process ' the original loan agreement with the outstanding amount ( which is now close to {$30000.00} ) in outstanding payments and escrow. I was told today that they don't know how long it will be before they can have this modification ( which really isn't a modification at all given that the original mortgage was never closed or changed ) 'approved. ' I am most concerned with the lack of disclosure by the Nationstar/Mr. Cooper that to restart payments to the provider I will have to assume the liability for a lien on the property by the FHA. No where in any of the advertising or documents related to this COVID relief program was this EVER stated or published. I would think that Mr. Cooper/Nationstar, LLC has a legal obligation to reveal the details of their repayment program at the time the consumer signs up for the program. To be told for the first time -- over a year later -- that in order to restart paying the mortgage that a lien. is being placed on the property ( potentially for DOUBLE the amount I am behind in payments ) and coupling it with a hard sell/fait accompli 'bait and switch ' to new loan terms that place the consumer in a WORSE financial situation by having to pay a longer loan terms that result in greater interest payments over the terms of the loan is not only fraudulent, but a deceptive business practice that preys upon the vulnerabilities of human beings during a health crisis. 

Clearly, Nationstar/Mr. Cooper, is hoping that consumers will simply forget about their original loan terms and revert to the new loan agreement and that is deceptive especially when it is offered as the only option. I expected to be able to restart paying my mortgage in XX/XX/XXXX... with the deferred amount 'added onto the end of the loan ' as was originally promised. I didn't expect to EVER have a lien placed upon my property by the FHA. It was never disclosed by Mr Cooper and was a VERY unpleasant surprise that affects not only my financial well-being, but I'm certain my credit rating in the long run. I also didn't expect to spend hours on the phone attempting to get Mr. Cooper to simply comply with their PUBLISHED programs. 

Further complicating things, Mr. Cooper, on its website does not make available copies of webpages, proposed mortgage modifications, etc. once they have been 'rejected ' or closed. A history of every consumer 's interaction with the mortgage provider should be made available to consumers via their website for immediate download. ( I know they have them, but they will not send them out once Mr. Cooper/Nationstar considers them 'closed. '

Company response to consumer: Closed with explanation