Consumer complaint received 2022-06-16 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: Mr. Cooper Group Inc.
State: LA

Complaint narrative:
On Tuesday, I am closing on the sell off my home. The title company, XXXX XXXX, is required by Texas state law to pay HUD directly to remove a Partial Deed Claim lien through Mr. Cooper. However, when the title company received the mortgage payoff, Mr. Cooper ( Nationstar Mortgage XXXX ) included a general lenders fee in the amount of the HUD loan and instructed XXXX XXXX XXXX company to pay Mr. Cooper directly and Mr. Cooper will pay directly HUD to remove the Partial Deed Claim lien. This seemed abnormal and Mr. Coopers instruction on their payoff instructs us to pay HUD directly with specific instructions for the lien release. My contract for the HUD loan states the same, to pay HUD direct BUT Mr. Cooper explicitly told XXXX XXXX NOT to HUD. So, to mitigate this circumstance, I requested the Lenders Fee line on the payoff quote be updated to reflect that Mr. Cooper will remit payment to HUD. Mr. Cooper DENIED all requests. I communicated to Mr. Cooper that per Texas state law, if the lien is on county record and listed as a lender fee, I would be required to pay both HUD and Mr. Cooper to release the lien and sell my home. Mr. Cooper still refused to remove or update the payoff quote. 

Fraudulent Activity : When I called back in XX/XX/2022 to see why their was a lien on my home, Mr. Cooper said they already paid HUD on my behalf and HUD failed to process the paperwork to remove the lien. I requested proof of payment for the HUD lien payoff and I was sent the attached document as proof. However, it shows Mr. Cooper took out a SECOND MORTGAGE claim without my permission with XXXX XXXX XXXX XXXX, NOT directly with HUD so there is no way they are paying HUD directly. That is why they are verbally telling the title company and I not to pay HUD to release the lien. Also, when I received a communication from XXXX about them acquiring a loan, I reached out to Mr. Cooper and they said that there was no record of any Mortgage with XXXX. I emailed their research department and got no response. The email is attached. 

So, to close by contract date, I may have to pay double for this lien and it is my fear that Mr. Cooper will not return my money. This is predatory, unethical, and possible illegal. This has caused so much stress Ive been to urgent care, monitored by my PCP, and prescribed medication. So, I feel the need to seek help and protection. My last communication to Mr. Cooper is below : I'm formally requesting the immediate removal of the " Lender Fees '' on my official Mr. Cooper payoff. The Mr. Cooper payoff statement instructs me to pay HUD directly which is odd because Mr. Cooper is verbally telling me, and XXXX XXXX, NOT to pay HUD. The loan modification contract that I signed for states the same as well. So, why are you verbally asking me to do something that is outside of legally binding documents? 

Here is why you requiring me to pay Mr. Cooper : The attached document, sent to me by Mr. Cooper, shows an FHA settlement with funds from XXXX XXXX XXXX XXXX directly to Nationstar ( Mr. Cooper ) on my property. However, Mr. Cooper is REQUIRING me to pay Mr. Cooper so Mr. Cooper can directly pay HUD to remove the HUD lien which is flat out lie. Make it make sense, but you can't because the attached document shows Mr. Cooper received the money from XXXX XXXX XXXX XXXX. 

So, am I paying Mr. Cooper directly so Mr. Cooper can pay XXXX  and not HUD? If so, this was not in any of the contracts and the contract says pay HUD and so does HUD. Mr. Cooper legally owes XXXX XXXX XXXX XXXX, not XXXX XXXX . I have no contractual obligation to XXXX. My signed contract was with HUD so I don't know why you took out a SECOND mortgage with XXXX XXXX XXXX XXXX  without my permission for my property. Y'all need to pay them. 

Not sure what's going on, but if you do not remove the " Lender Fee '' off the payoff quote. I am required by Texas state law to pay both Mr. Cooper and HUD to remove the lien to sell my home. Again, please remove this fee and send me an updated payoff.

Company response to consumer: Closed with explanation