Consumer complaint received 2024-12-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: Mr. Cooper Group Inc.
State: WI

Complaint narrative:
This is in response to Mr. Cooper 's response to my complaint. 

I had been on a forbearance program and a payment in the amount of the total of all payments that were not made under the program was due on XX/XX/XXXX. As of XX/XX/XXXX, I had not yet made the payment. This was the last day on which payments were accepted by Mr. Cooper before the loan was transferred the next day to another servicer. 

Mr. Cooper reported my account status as past due more than XXXX  days because the payment, representing all payments that were deferred under the forbearance program, was unpaid as of the date of the transfer, XX/XX/XXXX. 

I had filed a complaint with the CFPB about this issue and the response from Mr. Cooper stated that, as of XX/XX/XXXX, the XX/XX/XXXX payment was past due more than XXXX  days. Therefore, according to the response, the status of the loan of more than XXXX days past due was appropriate. 

I disagree with this determination, as it is inconsistent with the terms of the forbearance agreement. Furthermore, if customers that are similarly situated are placed in this same situation, they will have an inappropriate adverse account status on their credit report. 

The determination is inconsistent with the terms of the forbearance. These terms stated that, " once the XXXX XXXX has expired, the full amount that [ the borrower ] did not pay during the term of the XXXX XXXX  will be immediately due. '' For the forbearance agreement under this loan, this indicates that the amount of all payments that had not been made, including the XX/XX/XXXX payment, was due on XX/XX/XXXX. Therefore, the reporting of a late payment would be appropriate if this payment had not been made within XXXX days, which in the case of this loan, was XX/XX/XXXX. 

The loan was transferred by Mr. Cooper to another servicer on XX/XX/XXXX, and the last day on which a payment could have been made to Mr. Cooper was XX/XX/XXXX. Because each of these days is prior to XX/XX/XXXX, the day when the payment due on XX/XX/XXXX would be XXXX days past due, Mr. Cooper did not have sufficient information to know whether the payment due on XX/XX/XXXX was past due XXXX days. Therefore, no reporting of any past due status should have been reported. 

In addition, the forbearance agreement does not address what will happen in the event that the payments that had not been made during the agreement remain unpaid at the end of the agreement. Certainly, if the payment due at the end of the forbearance agreement remains unpaid more than XXXX days, this is reportable as past due. However, there is no disclosure of the consequence for the purpose of credit bureau reporting of the amount due remaining unpaid for less than XXXX days after the end of the forbearance agreement. 

Attached are the resolution letter from Mr. Cooper, the forbearance agreement, and the notice of the transfer of servicing.

Company response to consumer: Closed with explanation