Consumer complaint received 2025-11-02 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: LoanCare, LLC
State: CA

Complaint narrative:
b'To Whom It May Concern,\n\nFollowing the filing of my second complaint, LoanCare has blocked access to online payments without explanation (see attached screenshot dated XXXX XXXX). This may be due to the XXXX XXXX  foreclosure notice, or it may reflect retaliatory behavior in response to my CFPB filings. Either way, I am now unable to make voluntary payments should my situation change  despite being in a confirmed forbearance plan from XXXX XXXX through XXXX XXXX0, which LoanCare has already acknowledged. My account is current, and there is no delinquency that would justify this restriction. In fact, LoanCare explicitly stated in their XXXX XXXX response to the CFPB that I am in active forbearance, yet their actions directly contradict that acknowledgment. I request that online payment access be immediately restored, along with written clarification of my account status.\n\nLoanCares XXXX XXXX response includes, as an attachment, a letter dated XXXX XXXX, which they describe as an acknowledgment of my forbearance extension request. However, this letter was never posted to my online account  not in the Document Center under Letters or Other  and it was never mailed to me. I only became aware of it because they included it in their CFPB response. Upon reviewing my account, the only letters actually posted dated XXXX XXXX  were Missed Payment notices, which falsely stated that I had not made my XXXX  and XXXX  payments  despite being in an active forbearance plan. One of those letters even threatened foreclosure if payment was not received by XXXX XXXX. This clearly shows that LoanCare was not recognizing my approved forbearance at the time. See attached letters.\n\nThese actions may have resulted from LoanCare deleting or overriding my forbearance history after I submitted a request for an FHA extension on XXXX XXXX. This raises serious concerns about recordkeeping errors, misrepresentation of my account status, and potential servicing violations. I request that LoanCare explain why I received foreclosure threats and delinquency notices during an active forbearance period, and why the so-called acknowledgment letter dated XXXX XXXX  which they included in their CFPB response  was never posted to my online account or mailed to me directly. If this letter was intended to confirm receipt or approval of my forbearance extension request, it should have been disclosed at the time, not retroactively attached to a regulatory complaint. This lack of transparency further undermines trust and raises questions about their internal recordkeeping and communication practices. See attached screenshot dated XXXXXXXX XXXX.\n\nI also want to note that I did receive one letter dated XXXX XXXX, which was mailed and received on XXXX XXXX. However, the information it contained was already known to me and did not address any of the substantive or punitive issues I raised in my prior communications. It also failed to indicate which of my letters or emails it was responding to, making it impossible to determine whether my concerns were even reviewed. It appeared to be a generic summary rather than a meaningful response, and it failed to resolve or even acknowledge the core concerns outlined in my letters and reaffirmation.\n\nAdditionally, LoanCare has never responded to any of my letters or emails. Ive lost count of how many times Ive reached out, but I have received automated acknowledgment notices stating that additional research time is needed. These notices offer no meaningful answers, and no one from LoanCare has followed up with a resolution. I have physical letters from LoanCare that validate this pattern of vague, non-substantive responses, but I currently do not have access to a scanner to upload them. Their responses are consistently evasive, as if they are intentionally withholding information or attempting to steer me toward decisions that could be financially harmful  even though I am protected under FHA guidelines. This lack of transparency and accountability is unacceptable. I am requesting a formal resolution in writing, as LoanCares communications have repeatedly misled me or contradicted their own statements, creating confusion and undermining trust in their servicing practices.\n\nFurthermore, I reaffirmed my unchanged hardship within the 90-day window required by FHA guidelines, which means no new assessment or application was warranted. This reaffirmation was emailed on XXXX XXXX. LoanCare already has in its possession my prior year W-2, layoff letter, and EDD award letter, all of which were submitted in my initial Loss Mitigation Application (LMA) on XXXX XXXX to secure protection for the period of XXXX XXXX through XXXX XXXX, which has not expired. According to HUD Handbook 4000.1, when a borrower reaffirms an unchanged hardship, the servicer is not required to conduct a new financial assessment. This policy is intended to ensure continuity of assistance and prevent unnecessary delays or documentation burdens. LoanCares failure to honor this reaffirmation and its apparent disregard for FHA servicing guidelines may constitute a violation of federal policy.\n\nAdditionally, I recently noticed a mortgage plan detail in my online account that includes a notice stating, you have been approved (see attached screenshot dated XXXX). However, to date, I have not received any formal letter confirming this approval. This mirrors the same pattern I experienced with my initial forbearance, where the approval was reflected online before any official letter was mailed or posted. This delay in documentation creates confusion and undermines my ability to make informed decisions about my account. I request that LoanCare immediately provide written confirmation of this mortgage plan approval, including the terms and effective dates, and ensure that all future approvals are properly documented and disclosed in a timely manner.\n\nI am also submitting this update to clarify that the XXXX in interest allegedly capitalized on XXXX XXXX XXXX, was not added to my online loan balance, yet was reported to credit bureaus  resulting in an inflated loan balance of XXXX My online account showed a balance of XXXX (reflecting XXXX minus a XXXX late fee paid with my August payment) and excludes any interest capitalization. This discrepancy violates both FHA servicing guidelines  specifically HUD Handbook 4000.1, Section III.A.2.k.v(B)(2), which states: The Mortgagee must not capitalize late charges, fees, penalties, or interest  and the Fair Credit Reporting Act (FCRA), which requires accurate and verifiable reporting. As a result of this inflated balance being reported to credit bureaus, my credit score dropped, causing additional financial harm during an already difficult period. I request a full breakdown of how this interest was calculated, why it was added to my credit file, and immediate correction of both my loan records and credit reporting. Therefore, LoanCare cannot legally add unpaid interest to my balance as reflected on my credit reports.\n\nI want to be clear: this is my forever home. I have no intention of selling, refinancing, or transferring it. Ive stated this repeatedly in prior written communications to LoanCare. The only reason Im able to write all of this is because Im currently stuck on my computer looking for a job  not because I have time or energy to spare. Im doing everything I can to protect my home and navigate this hardship. The FHA offers many programs to assist homeowners like myself, and Ive followed every step to request help. I simply ask that LoanCare honor my forbearances and forbearance extension requests now and in the near future, correct their records, and stop sending foreclosure threats that contradict their own statements. I do not have time  emotionally, financially, or practically  to deal with illegal foreclosure threats or attempts.'

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation