Consumer complaint received 2021-10-23 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Mr. Cooper Group Inc.
State: MN

Complaint narrative:
In XX/XX/2021 I, contacted Nationstar Mortgage LLC D/B/A MR. COOPER to make the lender aware that we the borrowers were not able to pay the {$23000.00} due on the Balloon loan as of the XX/XX/2021 maturity date and needed to know what our options were. I was told that there were 2 options : a loan modification or refinancing but was encouraged to refinance. I applied for refinancing but was denied. Reason : debt to income. 

In XX/XX/2021, I decided to apply for the Loan Modification but was told the Investor was no longer doing loan modifications and was encouraged again by customer service to submit an application to refinance the Balloon Loan and was referred to a Loan Officer. I made him aware that my 1st application was denied. After his initial review of our information he said we should move forward with a 2nd application because he believed we would be approved. Thus, the process begun. The loan officer later told us that our application had been approved. More than once, I reminded him that the 1st application was denied and asked what made the difference the 2nd time? He said because our income was from Social Security and Pension, we were good candidates for refinancing. We complied with all the requests : paid {$590.00} for an appraisal, e-signed many company generated documents, submitted several requested documents, communicated with the loan officer and loan processor by phone and email several times. 

After several weeks, we expressed our concern about the process going beyond the XX/XX/2021 maturity date of the loan to the loan officer, the loan processor and customer service and each time, we were assured the refinancing would override the default. The Loan Estimate Fact Sheet changed several times ( approx. 5 times ) and each time we asked for an explanation. The loan officer told us, we should close by the end of XXXX. Instead, on XX/XX/2021, we received a Statement of Credit Denial Letter ( attached ). It states, " Poor credit performance with us. '' When the loan was transferred to Nationstar Mortgage, they were authorized to automatically withdraw the payment on the first of each month. Nationstar discontinued the automatic withdrawal effective XX/XX/2021. Since then, we received letters offering assistance and referring us to a single point of contact ( SPOC ). Our attempts to contact the SPOC on numerous occasions were unsuccessful. However, I connected with a Call Center representative who referred me to the Loss Litigation department who then referred me to a Reverse Mortgage lender, Hope and HUD. 

On Tuesday XX/XX/2021, we removed from our mailbox a letter dated XX/XX/2021 from the Attorneys representing Nationstar d/b/a Mr. Cooper informing us of their intent to foreclose on our property within 33 days ending XX/XX/2021. 

Our Complaints : the reason ( s ) given for denial should have prevented the application process from going forward, we were robbed of 3 months that could have been used to find another solution, we should not have incurred the appraisal expense, we believe the foreclosure was always their intent. 

Thank you for your attention,

Company response to consumer: Closed with explanation