Consumer complaint received 2025-12-26 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Village Capital & Investment LLC
State: OK

Complaint narrative:
My mortgage loan servicing was recently transferred from XXXX XXXX XXXX, XXXX to Village Capital & Investment LLC. At the time of the servicing transfer, XXXX provided a Notice XXXX XXXX XXXX dated XX/XX/year>, which clearly stated that my unpaid principal balance was {$180000.00} and that nothing about my loan would change other than the company servicing it. 

Prior to the transfer, my loan was being serviced correctly. I had made all required monthly mortgage payments on the original loan amount, including my XXXX and XXXX payments. In addition to my required payments, I had also made extra principal payments totaling {$2500.00}. These prepaid principal payments were applied directly to reduce my loan balance and shorten my loan term. As a result, my remaining loan term was XXXX  months, and my amortization schedule reflected a projected payoff date of XX/XX/year>. 

After XXXX XXXX assumed servicing of my loan, I began to notice multiple material errors. The XXXX  mortgage statement I received from XXXX XXXX reflected an outstanding principal balance of {$180000.00}, which is {$3000.00} higher than the balance reported by the prior servicer only days earlier. There was no explanation or lawful accounting provided to justify this increase. Interest accrual over that short period can not account for the discrepancy, and escrow balances do not affect principal. 

In addition, XXXX XXXX  records no longer reflect the prepaid principal of {$2500.00} that I had already paid. Instead, my account now shows XXXX prepaid principal. As a result of this error, my remaining loan term has been extended from XXXX  months to XXXX  months, and my projected payoff date has been moved from XX/XX/year> to XX/XX/year>. These changes represent a material alteration of my loan terms that did not exist prior to the servicing transfer and that I did not authorize. 

XXXX XXXX  own amortization schedule demonstrates that these errors have significantly increased the cost of my loan. Under the prior servicers correct amortization schedule, my total interest over the life of the loan was projected to be {$200000.00}. Under XXXX XXXX  incorrect amortization schedule, my total interest is projected to be {$220000.00}. This represents an increase of approximately {$15000.00} in interest, solely due to the failure to credit prepaid principal, properly apply prior payments, and maintain the correct loan term after the servicing transfer. This financial harm is documented and not hypothetical. 

Compounding this issue, the incorrect principal balance and loan terms have been reported to the credit bureaus, resulting in inaccurate credit reporting. I have raised these discrepancies with the servicer, but they have not yet been corrected. 

I now have a mortgage payment due on XX/XX/XXXX, and I am deeply concerned because the principal balance, amortization schedule, and interest calculations currently reflected by XXXX XXXX are incorrect. I can not verify the accuracy of the amount due, and making a payment under the current accounting risks overpayment of interest, improper application of funds, further inflation of the balance, and additional credit reporting harm. This places me in an untenable position through no fault of my own. 

All of these issues arose solely as a result of the servicing transfer and represent servicing errors, inaccurate accounting, and inaccurate credit reporting. I am requesting CFPB assistance to ensure that XXXX XXXX restores the prepaid principal of {$2500.00}, corrects the principal balance to reflect all prior payments including those made in XXXX and XXXX, reinstates the correct remaining loan term of XXXX  months, corrects the amortization schedule and payoff date, reverses all inflated interest charges resulting from these errors, corrects all inaccurate credit bureau reporting, and provides a full written accounting of how my loan was transferred and corrected. I am also requesting that my XX/XX/XXXX payment be held without penalty or applied only after the loan accounting has been properly corrected to prevent further harm. 

I have attached documentation from both the prior servicer and the current servicer, including amortization schedules, payment records, and statements, which clearly demonstrate these discrepancies.

Company response to consumer: Closed with explanation