Consumer complaint received 2025-08-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Mr. Cooper Group Inc.
State: TX

Complaint narrative:
I am filing this complaint against my mortgage servicer, Mr. Cooper ( Nationstar Mortgage LLC ), regarding deceptive and unfair servicing practices. 

Background My loan has had two prior servicers before being transferred to Mr. Cooper at the beginning of XXXX of this year, including XXXX and XXXX  Both of these servicers allowed me to pay a single installment if the oldest delinquent installment was less than 60 days past due, and they did not require multiple missed installments to be paid simultaneously. 


When the loan transferred to Mr. Cooper, I was not informed that their servicing policy would be materially different from my prior servicers. 


In addition, I had applied for mortgage assistance earlier, but despite that, I was still willing and able to make at least minimum payments toward my loan. 



Issues Online Portal Blocking All Payments Mr. Coopers online payment portal completely XXXX the Pay button, shutting down my ability to make any payment at all for the minimum payment as I had two strikes against me. 


This goes beyond simply refusing partial payments it was an active obstruction of my ability to tender performance under the Note and Deed of Trust. 


I could not even attempt to pay the minimum due, because the system blocked the payment process entirely. 


It was also apparent that even if I sent a money order or cashiers check, it would not have been properly credited, since their system applies payments only to the oldest installment and still shows the account as unpaid. 


This obstruction was never disclosed and directly prevented me from reducing delinquency in good faith. 


Improper Counting of Delinquency Strikes Mr. Cooper is counting strikes against me starting from the initial 60-day grace period after transfer from XXXX, which is customarily a period where borrowers are given leniency. 


This is unfair and deceptive because I was not informed that the grace period would be used against me in this way. 


Illegal Late Fees During Transfer Period Mr. Cooper charged late fees during the XXXX transfer period following the move of my mortgage from XXXX 


This directly violates 12 U.S.C. 2605 ( d ) ( RESPA ), which explicitly protects borrowers from being penalized with late fees during the first 60 days after a servicing transfer. 


By charging fees during this period, Mr. Cooper not only imposed financial harm but also misrepresented my account status. 


Departure from Previous Servicers Practices Neither of my two previous servicers ( including XXXX ) enforced this restrictive policy. Both allowed me to cure delinquency by paying a single installment so long as the oldest unpaid installment was less than 60 days past due. 


By contrast, Mr. Coopers abrupt change in approach and their obstruction of payment through a XXXX portal has prevented me from curing my delinquency in good faith, even when I had funds available to make at least one installment.

Deceptive and Unfair Practices ( UDAAP ) By blocking all payment attempts, charging fees illegally during the transfer period, and refusing to disclose these practices, Mr. Cooper has created confusion and financial harm. 


Under RESPA and UDAAP standards enforced by the CFPB, this conduct is both deceptive ( failing to disclose material servicing changes ) and unfair ( actively obstructing borrowers from making payments and penalizing them during a legally protected period ). 


Financial Hardship Exacerbated by Policy I was recently laid off from employment, and I am doing my best to keep my mortgage current during this difficult period. 


I had applied for mortgage assistance earlier, but I was still willing to make regular payments while awaiting that review. 


I did have the funds to pay the minimum due ( one installment ), but Mr. Coopers refusal to accept it combined with their obstruction of the payment portal and practice of charging late fees during the 60-day transfer grace period has created an even more adverse financial impact, placing me at greater risk of delinquency and foreclosure. 


Their rigid and undisclosed policy punishes me for trying to make payments and prevents me from reducing the delinquency. 



Pattern of Misconduct by Mr. Cooper I am also aware that Mr. Cooper ( Nationstar Mortgage LLC ) has a documented history of servicing misconduct and wrongful foreclosure practices. 
In XXXX, the CFPB and state regulators ordered Nationstar to pay over {$90.00} XXXX in restitution and penalties for illegal mortgage servicing practices. These included misapplying borrower payments, failing to honor modifications, and causing wrongful foreclosures affecting more than XXXX borrowers. 


Nationstar has also been fined in prior years for deceptive servicing practices and improper handling of borrower accounts. 


Given this history, my experience appears to reflect a broader pattern of unfair and deceptive practices. I respectfully request that regulators investigate whether Mr. Coopers current servicing policies including blocking minimum payments via the portal using XXXX buttons and no prior notification either by email or us mail, charging illegal late fees during the 60-day transfer period, and misusing transfer grace periods are part of the same systemic issues for which they have already been penalized.

Company response to consumer: Closed with explanation