Consumer complaint received 2026-01-14 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Chrysalis Holdings LLC
State: NC

Complaint narrative:
Subject To the Consumer Financial Protection Bureau, I am submitting this complaint against NewDay USA and XXXXXXXX XXXX for violations of federal consumer financial laws, including RESPA, TILA, and UDAAP standards, arising from escrow misrepresentation, improper charges, non-disclosure, document manipulation, and conduct carried out under duress. 

Parties Involved Lender / Originator : NewDay USA Servicer : XXXX XXXX Summary of CFPB Violations This matter involves unfair, deceptive, and abusive acts or practices ( UDAAP ), escrow servicing failures under RESPA, and material non-disclosures under TILA. These are not isolated clerical errors but a pattern of conduct demonstrating intent, concealment, and consumer harm. 

1. Escrow Misrepresentation & RESPA Violations Both NewDay USA and XXXXXXXX XXXX represented that homeowners insurance funds were being held and managed through escrow. However : No insurance payment was ever sent to my insurance carrier by either NewDay or XXXX. 

Despite this, insurance charges continued to be added to my loan balance. 

If escrow funds existed as claimed, there should be verifiable proof of payment. None has been provided. 

This constitutes a violation of RESPA Regulation X ( 12 CFR 1024.17 ), which requires proper escrow administration and timely disbursement of escrowed funds.

2. Improper Charges & Deceptive Incentive Fee Explanation ( UDAAP ) On XX/XX/year>, XXXX XXXX of XXXX Mortgage stated that a {$500.00} charge was merely an incentive fee between the servicer and investor and did not impact my loan. 

This explanation is misleading and deceptive : Regardless of labeling, I incurred higher costs. 

The charge should never have appeared or affected my obligation. 

Presenting this after the fact as harmless minimizes consumer impact and obscures accountability. 

This conduct meets the CFPB definition of a deceptive practice under XXXX. 

XXXX. Non-Response, Stonewalling, and Servicing Failures XXXX received multiple emails regarding these issues and failed to respond. 

After XXXXXXXX XXXX claimed corrections were made, communication ceased. 

XXXX posted an online response without notifying or discussing it with me. 

Failure to meaningfully respond to servicing disputes violates RESPA error resolution requirements ( 12 CFR 1024.35 ).

4. New Issues After Check Was Signed Evidence of Intent Approximately 95 % of my complaints arose only after I signed the check. 
This timing is critical and demonstrates that once funds were secured, new problems emergedsupporting a finding of unfair and abusive conduct, not mistake. 

5. Duress and Unequal Bargaining Power ( XXXX ) I assert duress in this transaction : Material information was withheld. 

I was pressured to proceed without full transparency. 

Decisions were influenced by misrepresentations and omissions. 

This satisfies CFPB criteria for abusive acts, as my ability to protect my interests was materially interfered with. 

XXXX. Avoidance of Recorded Communications XXXX repeatedly called me from her personal cell phone at least four times, rather than from a recorded business line.

This appears to be an intentional effort to : Avoid call recordings Evade record retention Reduce accountability Such behavior supports an inference of intentional concealment.

7. Document Delivery Manipulation & Account Deletion ( UDAAP / Recordkeeping ) NewDay USA : Changed my document delivery from mail to online without my consent I possess screenshots proving this change Subsequently deleted my online account entirely These actions occurred one day after they waited for a check to be returned and cashed, demonstrating intent and bad faith.

8. Non-Disclosure of Loan Sale & False Representations ( TILA / UDAAP ) Before taking the loan, I explicitly asked whether the loan would be sold and was told no. 

This was false. 

Additionally : The loan officer stated my loan would be revisited in 612 months for a lower rate I was told I was in that program These representations materially influenced my decision and were not honored Failure to disclose loan transfer intentions and material terms violates TILA disclosure requirements and constitutes deceptive conduct. 

XXXX. Incomplete Correction and Abandonment by XXXXXXXX XXXX After XXXX from XXXXXXXX XXXX corrected some items, he treated the matter as resolved despite the fact that these issues should never have occurred. 

He then : Stopped responding Issued a website response without notice Referenced an unresolved XX/XX/XXXX payment during a call, which remains unexplained This is a servicing failure and improper dispute handling under RESPA. 

Harm to Consumer Overpayment Incorrect loan balance Loss of transparency Loss of records Emotional distress Inability to meaningfully dispute errors due to account deletion and unrecorded calls Requested CFPB Action I respectfully request that the CFPB : Conduct a full investigation Require a complete escrow accounting Require proof of insurance payments Review call logs and phone usage Preserve and produce all internal communications Address UDAAP, RESPA, and TILA violations Order corrective relief and restitution Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation