Consumer complaint received 2017-02-07 00:00:00
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure — 
Company: Caliber Home Loans, Inc.
State: NV

Complaint narrative:
On XXXX XXXX, XXXX, I received a vague letter from Caliber Home Loans ( the CHL ) declining my home retention application. I notified the XXXX XXXX XXXX XXXX ( the XXXX ) XXXX XXXX XXXX regulator .., and now I notify the Consumer Financial Protection Bureau ( the Bureau ) as follows. 

The media report that the XXXX XXXX XXXX XXXX ( the XXXX ) has created NEW Non-Performing Loan Rules ( the XXXX ) for the non-bank companies that purchase from XXXX loans ( the XXXX ) at a discount. The media reports these new rules were created in XXXX of XXXX to ensure non-bank companies follow guidelines that will ensure a hardship homeowner 's Loan Modification Application are underwritten prudently. Attached are Caliber Home Loan 's ( the CHL ) LOAN MODIFICATION DECLINE LETTER. CHL vaguely declines my loan modification application. ( ) FACT 1 : CHL 's vaguely describes that my monthly OBLIGATIONS EXCEED the my GROSS MONTHLY INCOME [ refer attached ]. 

( ) FACT 2 : XXXX XXXX XXXX 's ( the CHL ) denial vaguely ascribes that my OBLIGATIONS ARE EXCESSIVE in relation to my GROSS MONTHLY INCOME yet they fail to specifically write ( they do not include ) what Excessive Obligations and Gross Monthly Income that CHL underwriters used? ( ) FACT 3 : An underwriter rarely ( never ) use the applications obligation and gross monthly income noted on their application. Rather, the processor and the underwriter use their own. ( ) FACT 4 : *If CHL 's underwriter use my monthly obligation noted on my application of XXXX, XXXX if CHL 's divide the my monthly obligations noted on my application of XXXX, that ratio is 88 %, target is 31 %. 

RATE REDUCTION, NEW ORIGINATION DATE AND TERM EXTENSION ( ) FACT 5 : *If Caliber Home Loan 's ( the CHL ) underwriter use my monthly income of XXXX, XXXX if CHL 's use my current principal balance owed of XXXX + XXXX ( arrearages ) = XXXX. Then, if CHL 's modify my current loan ; s terms from 30 years to 40 years, rendering a new loan modification loan term of 480 months, and if CHL reduce ( fix ) the interest rate to 2.75 %, that would render a modified principal and interest payment of {$1300.00}. Then, if CHL 's take that principal and interest payment of XXXX + XXXX ( taxes ) + XXXX ( hazard insurance ) = XXXX. Then, if CHL take the aforesaid modified payment and divide that by my applications gross monthly income of XXXX = 41 %, target is 31 %. 

PRINCIPAL REDUCTION Fact 6 : If Caliber Home Loan 's ( the CHL ) take the principal and arrearage owed of XXXX and they divide that by the real property 's RESEARCHED mark-to-mark ( the selling price ) of {$280000.00}, that renders a 140 % LTV XXXX this is well above XXXX XXXX 115 % LTV ratio. Hence, if CHL 's reduced their internal non-researched speculated selling price of $ XXXX, to the researched selling price of $ XXXX ( a reduced modified principal balance of XXXX ), if CHL 's placed the arrearage amount of XXXX @ 0 % on the back end of this modified mortgage, due and payable when the mortgage matures or when I sell or refinance my home. Then, if CHL 's extend this loan 's terms from 30 years to 40 years, now rending a new loan modification loan term of 480 months, and if CHL reduced ( fix ) the interest rate to 2.75 %, that would render a modified principal and interest payment of $ XXXX. Then, if CHL 's take the aforesaid modified principal and interest payment of $ XXXX + XXXX ( taxes ) + XXXX ( hazard insurance ) = XXXX and divide that my the applicants income of XXXX = 31 %, target is 31 %.

Company response to consumer: Closed with explanation