Date Received: 2023-10-18
Issue: False statements or representation
Subissue: Attempted to collect wrong amount
Consumer Complaint: Mr Cooper Inc continues to try and collect on a debt not owed. Mr. Cooper is a servicer of the alleged mortgage loan. A servicer has no right to collect any monetary obligations. The servicer holds the loan. Holding and collecting are two different jobs. servicer ( 2 ) Servicer The term servicer means the person responsible for servicing of a loan ( including the person who makes or holds a loan if such person also services the loan ). The term does not include ( A ) the Federal Deposit Insurance Corporation or the Resolution Trust Corporation, in connection with assets acquired, assigned, sold, or transferred pursuant to section 1823 ( c ) of this title or as receiver or conservator of an insured depository institution ; and ( B ) the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Resolution Trust Corporation, or the Federal Deposit Insurance Corporation, in any case in which the assignment, sale, or transfer of the servicing of the mortgage loan is preceded by ( i ) termination of the contract for servicing the loan for cause ; ( ii ) commencement of proceedings for bankruptcy of the servicer ; or ( iii ) commencement of proceedings by the Federal Deposit Insurance Corporation or the Resolution Trust Corporation for conservatorship or receivership of the servicer ( or an entity by which the servicer is owned or controlled ). The depositor bank which is XXXX XXXX XXXX XXXX took my promissory note and securitized it so he Treasury paid it out. There was no exchange of any money between me and Mr. Cooper that would hold me liable for this alleged debt. ( 2 ) " Depositary bank '' means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter ; I have requested Mr. Cooper provide the official book entry for that proves they indeed loaned me money for this loan. According to the Federal Reserve Act section 16 subsection 2 states no collateral shall be required for the FRN notes that banks hold. Mr. Cooper stated under SEC they are not a bank so they hold no such FRN therefore my home can not be used as collateral for this alleged loan. 2. Application for notes by Federal Reserve banks Any Federal Reserve bank may make application to the local Federal Reserve agent for such amount of the Federal Reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under section 10A, 10B, 13, or 13A of this Act, or bills of exchange endorsed by a member bank of any Federal Reserve district and purchased under the provisions of section 14 of this Act, or bankers ' acceptances purchased under the provisions of said section 14, or gold certificates, or Special Drawing Right certificates, or any obligations which are direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency thereof, or assets that Federal Reserve banks may purchase or hold under section 14 of this Act or any other asset of a Federal reserve bank. In no event shall such collateral security be less than the amount of Federal Reserve notes applied for. The Federal Reserve agent shall each day notify the Board of Governors of the Federal Reserve System of all issues and withdrawals of Federal Reserve notes to and by the Federal Reserve bank to which he is accredited. The said Board of Governors of the Federal Reserve System may at any time call upon a Federal Reserve bank for additional security to protect the Federal Reserve notes issued to it. Collateral shall not be required for Federal Reserve notes which are held in the vaults of, or are otherwise held by or on behalf of, Federal Reserve banks. [ 12 USC 412. As amended by the acts of Sept. 7, 1916 ( 39 Stat. 754 ) ; June 21, 1917 ( 40 Stat. 236 ) ; Feb. 27, 1932 ( 47 Stat. 57 ) ; Feb. 3, 1933 ( 47 Stat. 794 ) ; Jan. 30, 1934 ( 48 Stat. 338 ) ; March 6, 1934 ( 48 Stat. 991 ) ; June 30, 1941 ( 55 Stat. 395 ) ; May 25, 1943 ( 57 Stat. 85 ) ; June 12, 1945 ( 59 Stat. 237 ) ; June 19, 1968 ( 82 Stat. 189 ) ; Nov. 10, 1978 ( 92 Stat. 3672 ) ; March 31, 1980 ( 94 Stat. 140 ) ; Dec. 6, 1999 ( 113 Stat. 1638 ) ; and Oct. 28, 2003 ( 117 Stat. 1193 ). ] If Mr. Cooper is the owner of the security there should be a book entry proving ownership. I am requesting a copy of this book entry not a copy of the simple consumer agreement/contract. If there is no such documentation Mr. Cooper should cease all collection attempts are further legal action will be take not limited to reporting the company to the sec for fraudulent mishandling of unregistered securities. What Are Book-Entry Securities? Book-entry securities are investments such as stocks and bonds whose ownership is recorded electronically. Book-entry securities eliminate the need to issue paper certificates of ownership. Ownership of securities is never physically transferred when they are bought or sold ; accounting entries are merely changed in the books of the commercial financial institutions where investors maintain accounts
Company Response:
State: TX
Zip: 77084
Submitted Via: Web
Date Sent: 2023-10-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-18
Issue: Trouble during payment process
Subissue: Payment process
Consumer Complaint: My mortgage was sold to MR COOPER. I have always made bi-weekly payments ( plus a little more ) in order to pay down my mortgage. I have never been behind. Mr Cooper does not apply those payments, they simply " hold '' them - completely unapplied under the other payment comes in making a full payment. This completely negates the purpose of paying bi-weekly because since my payments are UNAPPLIED, I am still paying interest on the entire amount. I call every 2 weeks. It is like a full time job. This is their way to keep the interest compounding on the larger amount. Yesterday I spoke with XXXX who informed me that I need to give them my bank account information so they can debit my acct for bi-weekly payments. That is untrue. I've been in real estate over 30 yrs, 17 in sales. I am making my payments early or on time & they should be applied to the balance Immediately with the small amount of extra applied to the principle only. XXXX suggested I open a separate bank account if I don't " trust '' them & just use that. It is not necessary. He also informed me that I could refinance with a Portfolio lender who keeps the loans in house LIKE HE DOES - their rep doesn't even have his mortgage with them! I would love to do this but it would double my current interest rate. There are HUNDREDS of complaints, there's a woman who even made a tiktok video about this very issue. XXXX & XXXX are full of people complaining about them. People have even refinanced their homes only to be sold to them again a month or XXXX later. They are predatory and deceptive. They are taking advantage of people like me who can speak up but I can only imagine the frustration of those like the elderly or XXXX who have nobody to help them, tried & get nowhere with this company.
Company Response:
State: PA
Zip: 15090
Submitted Via: Web
Date Sent: 2023-10-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-18
Issue: Trouble during payment process
Subissue: Payment process
Consumer Complaint: On XX/XX/2023, I was made aware that my loan servicer, Nationstar Mortgage, dba Mr. Cooper had been reversing the mortgage payments that they were servicing on my behalf. The payment at least 5 times in one business day. After inquiring as to the reason why, said mortgage servicer could not provide a plausible explanation as to why they were reversing the mortgage payments. Even though, I pay my mortgage payment 15 days in advance prior to its due date, the aforementioned loan servicer showed that my account was 2 payments past due, and because of such, I received a foreclosure notice from said lender indicating that my home would go into foreclosure if the payments were not made. In addition, I also noticed that the payment history and multiple reversals on the mortgage account did not match my bank statements. Therefore, it is for this reason that I am asking that the CFPB investigate the forementioned company Nationstar Mortgage, dba Mr. Cooper in order to determine if other customers are experiencing the same issues in which I have. In closing, it was only after my multiple phone inquiries and threat of a lawsuit that my payments somehow reappeared the following business day showing that the aforementioned payments had been applied and the account reflecting the correct due date.
Company Response:
State: CA
Zip: 90303
Submitted Via: Web
Date Sent: 2023-10-24
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-19
Issue: Struggling to pay mortgage
Subissue: Trying to communicate with the company to fix an issue related to modification, forbe
Consumer Complaint: XXXX XXXX requested from Mr. Cooper to end of the XXXX Forbearance on or about XX/XX/2023. XXXX XXXX received a correspondence dated XX/XX/2023 from Mr. Cooper outlining the Current Payment and Terms of which they contend includes a Partial Claim Amount of {$77000.00}. This is incorrect, there is no partial claim. Additionally, instead of assisting the consumer with modified terms that are rational in nature [ and non-predatory ], they instead are selecting to put consumers in a predicament that puts them further in debt and worse, puts their homes at risk of foreclosure. This is evident in the Estimated Modified Payment and Terms that Mr. Cooper is proposing on the letter : i. Increase interest rate from 3.125 % to 8.000 % ii. Change remaining terms from 360 to 480 months iii. Change total monthly payment amount from {$1300.00} to {$1900.00} The amount in arrears as of XX/XX/2023 is {$5000.00}. Mr. Cooper instead of rationally deciding to place this arrears amount to the end of the loan, they choose predatory practices by extending loan term 10 years and changing interest rate to more than market rates for a primary home. In addition, Mr. Cooper and the loan servicer, XXXX XXXX XXXX XXXX XXXX. are failing to adhere to XXXX XXXX as a member of the military. XXXX XXXX asks the XXXX XXXX XXXX XXXX and the XXXX XXXX XXXX XXXX to thoroughly review of the above-named mortgage servicers lending practices. Thank you.
Company Response: Company believes the complaint provided an opportunity to answer consumer's questions
State: CA
Zip: 91791
Submitted Via: Web
Date Sent: 2023-10-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-17
Issue: Problem with customer service
Subissue:
Consumer Complaint: This complaint is been written due to the fact that Mr.Cooper will not give me an explanation on why the maturity date of XXXX/XXXX/XXXX on my loan documents is invalid according to them? After several times of me asking them I had no choice but to do my due diligence to research the possible reason of why on my own & discovered that it could possibly be due to their negligence & the negligence of prior banks that purchased my loan Not filing the required original XXXX Loan Modification Documents with the XXXX XXXX XXXX XXXX as they should have in XXXX which is definitely no fault of mine, which has dismayed me tremendously. They should have all of my original documents which I requested. I brought this matter to Mr. Cooper XXXX XXXX XXXX XXXX attention I believe on XX/XX/XXXX but prior to that I inquired on XX/XX/XXXX & XX/XX/XXXX to Mr. Cooper about correct maturity date of XXXX/XXXX/XXXX being put into their system and wondered why it still had not been put into their system, the answer was that they were going to investigate & theyre stating that theyre still investigating as of today, in spite of time being of an essence & the fact that they have reinstated this frivolous Foreclosure lawsuit against me & still trying to take my home that I have been paying on for years ( since XXXX ) & established equity into my home on my own. Im taken aback by their behavior but still hopeful & prayerful that it can be resolved promptly & it prevents similar issues from recurring in the future to other Homeowners. Ive requested documents & information from XXXX XXXX XXXX XXXX Mr.Cooper but have only received documents that I did Not request from Mr.Cooper. These are some of the reasons why I feel completely blindsided & betrayed by Mr.Cooper & the other banks that purchased & invested in my loan whom I put my trust into to do what they guaranteed that they would do especially with my XXXX XXXX XXXX documents that shouldve been recorded as required. Ive been a loyal customer since XXXX but now these incidents have left me extremely dissatisfied with the level & quality of services provided to me which has caused me severe stress & mental anguish. Since XX/XX/XXXX I have attempted several times to resolve this frivolous foreclosure lawsuit against me with Mr. Cooper however I feel like they continuously have given me the runaround & my concerns have not been adequately addressed. Ive had to Pray, plead, beg & borrow to come up with settlement money to offer these banks to settle the supposedly debt they are claiming that I owe but I believe & understand the importance of settling my obligations. I strongly believe that Mr.Cooper has the potential to provide exceptional services & I hope that this complaint can serve as an opportunity for them to show improvement & dedication to their customers. I kindly request that Mr. Cooper take the appropriate actions to rectify this situation & provide me with a suitable timely resolution. I appreciate your attention to this complaint & the urgency with which you handle this matter. Thank you in advance for your prompt action, consideration & cooperation into this unique and imperative situation.
Company Response:
State: OH
Zip: 44143
Submitted Via: Web
Date Sent: 2023-10-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-17
Issue: Closing on a mortgage
Subissue: Trying to communicate with the company to fix an issue with the loan closing
Consumer Complaint: I requested payoff documents from XXXX XXXX to pay off a HELOC loan. Wife and I signed the documents and setup to fax them at the fax number they provided on the pay-off documents- XXXX. I started the process of requesting a cashier 's check from my bank as instructed. After XXXX hours of being unable to fax to XXXX I waited until their customer service opened on XXXX and called them. I was told that that fax number was incorrect and to send to XXXX instead. I feel that they are making it as difficult as possible to pay off a loan and close the account. I have no confirmation whether that XXXX # is correct for pay off documents, and now that I had to wait until customer service opened, my payment is due to arrive on XX/XX/XXXX and the quote was as of XX/XX/XXXX, so I fear they'll charge another {$0.00} interest and require me to spend {$30.00} on another cashier 's check for the difference - because they have an incorrect phone number on their payoff docs.
Company Response:
State: PA
Zip: 190XX
Submitted Via: Web
Date Sent: 2023-10-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-17
Issue: Struggling to pay mortgage
Subissue: Trying to communicate with the company to fix an issue related to modification, forbe
Consumer Complaint: Mailed my monthly mortgage payment on XX/XX/XXXX. Get an email around XX/XX/XXXX stating Mr. Cooper had not received payment. I researched and found that Mr. Cooper had not picked up the payment from their mail drop box, yet it had been there for XXXX weeks. I issued a new payment and canceled the original since they would not pick up and process. A month later Mr. Cooper decided to cash the original check, which I had already stopped. Mr. Cooper charged me {$25.00} NSF for the check I stopped ( because they would not process it timely ). If I had not stopped the payment and reissued a new payment Mr. Cooper would have charged a late fee, so either way the customer is penalized due to Mr. Cooper mistake.
Company Response:
State: MO
Zip: 647XX
Submitted Via: Web
Date Sent: 2023-10-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-17
Issue: Trouble during payment process
Subissue: Payment process
Consumer Complaint: My loan was purchased by Mr. Cooper from XXXX XXXX in XXXX of this year. Little information was relayed to me about this transition, but I did get my account set up and autopayments were made in XXXX and XXXX on my account. Sometime in XXXX, they added a message in my account about autopay being turned off if I did not confirm it ( again? ) - this was not in a message center, but instead buried under statements -> miscellaneous documents. As a result, I did not make a payment in XXXX or XXXX. When I discovered the issue I talked to them and made a single payment, but their system would not allow me to set up autopay for " XXXX hours '' - I logged back into the system to set it up and that option was not available for several days. After setting up auto-pay I saw that my monthly mortgage amount had changed. This took another call to Mr. Cooper to find an obscure separate area for communication ( Again NOT located in the message center ) to find an " escrow analysis '' that had lowered my payment. I am in statistics and could tell that the analysis was incorrect and had me severely underpaying. Sure enough, I also discovered, through another obscure area of the site that they had inappropriately issued a check for overage to my escrow account that did not factually exist. This prompted them to need to apply this to my account which means I have to, yet again, turn off auto-pay and remember to come back in XXXX months to pay the difference in my XXXX payment and then AGAIN later in the month to reinstate autopay. I also found that they had discovered their issue with the escrow account analysis and although my payment had been $ XXXX up until XX/XX/2023, dropped to {$980.00} for XX/XX/2023 on, another escrow analysis has it increased to almost {$1400.00} in XX/XX/2023. This company has made it almost impossible to just simply pay my mortgage - canceling auto-pay, sending messages in obscure areas of their site ( with no link to the centralized message area ), and putting changes/policies in place that mean I have to constantly log in to manipulate options for payment. I have never been late on a mortgage payment in my life until Mr. Cooper and am facing additional months of constant manual and active requirement to jump through their hoops to simply pay it. A monthly payment swing of almost $ XXXX based on their poor planning is also not reasonable for a customer, especially with little to no communication. With loan % rates, it's not reasonable for me to refinance at this time, but it's completely unacceptable that Mr. Cooper can continue to operate this way legally.
Company Response:
State: MS
Zip: 39759
Submitted Via: Web
Date Sent: 2023-10-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-16
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: In accordance with the fair credit reporting the following : XXXX XXXX ( XXXX XXXX XXXX ) Nationstar/Mr Cooper ( XX/XX/XXXX XXXX XX/XX/XXXX, XXXX and XX/XX/XXXX ), and XXXX ( XXXX and XX/XX/XXXX, XXXX and XX/XX/XXXX ) has violated my rights. 15 USC 1681 Section 602 states I have the right to privacy 15 USC 1681 Section 604 A section 2 : It also states a consumer reporting agency can not furnish an account without my written instructions. 15 U.S. Code 1681a- Definitions : rules of construction Exclusions.-except as provided in paragraph the term " consumer report '' does not include-any report containing information solely as to transactions or experiences between the consumer and the person making the report 15USC 1666B : A creditor may not treat a payment on a credit card account under an open end consumer credit plan as late for purpose I have contacted these companies with no success.
Company Response:
State: SC
Zip: 29708
Submitted Via: Web
Date Sent: 2023-10-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-17
Issue: Trouble during payment process
Subissue: Trying to communicate with the company to fix an issue while managing or servicing yo
Consumer Complaint: RightPath Servicing has received numerous Notices of Error ( 16 ), this being the 17th notice via the CFPB portal and have refused to correct the errors, claiming no such errors occurred. RightPath Servicing seems to be under the impression that condominium insurance, providing coverage within the boundaries of the unit, can not exist without the words walls in and betterments and improvements, although neither of these terms are a requirement of XXXX XXXX or the CFPB, to meet the standard of proof of required coverage. Proof of the required unit interior insurance coverage has been provided to RightPath Servicing on multiple occasions. The Declaration for the condominium property ( XXXX XXXX XXXX ) clearly explains the master insurance policy covers interior replacement cost for the entire condominium ( 100 % ), and states in the DECLARATION OF CONDOMINIUM FOR XXXX XXXXXXXX XXXX Section 14 INSURANCE ( 14.2a ) - The Association shall maintain insurance covering the following : Casualty - The Building including all fixtures, installations or additions comprising that part of the Building within the boundaries of the Units and required by the Act to be insured under the Associations policy ( ies ). This can also be described as all walls coverage. The condominium Association has never failed to provide the required coverage. The language found within the insurance policy provided to RightPath Servicing states : A. Coverage We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss. 1. Covered Property Covered Property, as used in this Coverage Part, means the type of property described in this Section, A.1., and limited in A.2., Property Not Covered, if a Limit of Insurance is shown in the Declarations for that type of property. a. Building, meaning the building or structure described in the Declarations, including : ( b ) Materials, equipment, supplies, and temporary structures, on or within 100 feet of the described premises, used for making additions, alterations or repairs to the building or structure ; and ( 6 ) Any of the following types of property contained within a unit, regardless of ownership, if your Condominium Association Agreement requires you to insure it : ( a ) Fixtures, improvements and alterations that are a part of the building or structure ; and ( b ) Appliances, such as those used for refrigerating, ventilating, cooking, dishwashing, laundering, security or housekeeping. But Building does not include personal property owned by, used by or in the care, custody or control of a unit-owner except for personal property listed in Paragraph A.1.a. ( 6 ) above. Your Business Personal Property located in or on the structure described in the Declarations or in the open ( or in a vehicle ) within 100 feet of the described premises, consisting of the following : ( 1 ) Personal property owned by you or owned indivisibly by all unit-owners ; ( 2 ) Your interest in the labor, materials or services furnished or arranged by you on personal property of others ; and ( 3 ) Leased personal property for which you have a contractual responsibility to insure, unless otherwise provided for under Personal Property Of Others. XXXX Page 1 of 15 ( 1 ) Completed additions ; ( 2 ) Fixtures, outside of including outdoor fixtures ; ( 3 ) Permanently installed : ( a ) Machinery and ( b ) Equipment ; individual units, ( 4 ) Personal property owned by you that is used to maintain or service the building or structure or its premises, including : ( a ) Fire extinguishing equipment ; ( b ) Outdoor furniture; ( c ) Floor coverings ; and ( d ) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering that are not contained within individual units ; ( 5 ) If not covered by other insurance : b. ( a ) Additions under construction, alterations and repairs to the building or structure ; But Your Business Personal Property does not include personal property owned only by a unit-owner Property Not Covered Covered Property does not include : n. Electronic data, except as provided under Additional Coverages, Electronic Data XXXX Electronic data means information, facts or computer programs stored as or on, created or used on, or transmitted to or from computer software ( including systems and applications software ), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send data. This paragraph, n. does not apply to electronic data which is integrated in and operates or controls the building 's elevator, lighting, heating, ventilation, air conditioning or security system ; o. The cost to replace or restore the information on valuable papers and records, including those which exist as electronic data. Valuable papers and records include butare not limited to proprietary information, books of account, deeds, manuscripts, abstracts, drawings and card index systems. Refer to the Coverage Extension for Valuable Papers And Records ( Other Than Electronic Data ) for limited coverage for valuable papers and records other than those which exist as electronic data ; p. Vehicles or self-propelled machines ( including aircraft or watercraft ) that : ( 1 ) Are licensed for use on public roads ; or ( 2 ) Are operated principally away from the described premises. This paragraph does not apply to : ( a ) Vehicles or self-propelled machines or autos you manufacture or warehouse ; ( b ) Vehicles or self-propelled machines, other than autos, you hold for sale ; ( c ) Rowboats or canoes out of water at the described premises ; or ( d ) Trailers, but only to the extent provided for in the Coverage Extensionfor Non-Owned Detached Trailers ; or CP 00 17 10 12 Page 2 of 15 a. b. c. d. e. f. g. h. i. j. k. l. m. Accounts, bills, currency, food stamps or other evidences of debt, money, notes or securities. Lottery tickets held for sale are not securities ; Animals, unless owned by others and boarded by you ; Automobiles held for sale ; Bridges, roadways, walks, patios or other paved surfaces ; Contraband, or property in the course of illegal transportation or trade ; The cost of excavations, grading, backfilling or filling ; Foundations of buildings, structures, machinery or boilers if their foundations are below : ( 1 ) The lowest basement floor ; or ( 2 ) The surface of the ground, if there is no basement ; Land ( including land on which the property is located ), water, growing crops or lawns ( other than lawns which are part of a vegetated roof ) ; Personal property while airborne or waterborne ; Bulkheads, pilings, piers, wharves or docks ; Property that is covered under this or any other policy in which it is more specifically described, except for the excess of the amount due ( whether you can collect on it or not ) from that other insurance ; Retaining walls that are not part of a building ; Undergroundpipes, fluesordrains ; q. The following property while outside of buildings : ( 1 ) Grain, hay, straw or other crops ; ( 2 ) Fences, radio or television antennas ( including satellite dishes ) and their lead-in wiring, masts or towers, trees, shrubs or plants ( other than trees, shrubs or plants which are " stock '' or are part of a vegetated roof ), all except as provided in the Coverage Extensions. XXXX XXXX Servicer Guide - 4703.2c clearly states : Condominiums - The Project Documents will define the insurance requirements for the homeowners association and the individual unit owner in a Condominium Project, including a Detached Condominium Project and a 2- to 4-Unit Condominium Project. The insurance requirements will define the extent to which the homeowners association will insure the individual units and the unit owner responsibility for individual insurance. There are two acceptable options for unit coverage depending on what the governing documents indicate : * The condominium homeowners association must insure the building and structures in the Condominium Project as well as fixtures, machinery, equipment and supplies maintained for the service of the Condominium Project. To the extent required the homeowners association must also insure fixtures, improvements, alterations and equipment within the individual Condominium Units, regardless of ownership. To the extent the condominium homeowners associations policy does not cover the interior of the Condominium Unit or the improvements to the Condominium Unit, the Borrower must maintain an HO-6 unit owner policy. Coverage for the HO-6 unit owner policy must be sufficient to repair the Condominium Unit to at least its condition prior to the claim. A policy with a coinsurance clause, and inclusion of an agreed amount endorsement or selection of the agreed value option ( which waives the requirement for coinsurance ) is considered acceptable evidence that the 100 % replacement cost requirement has been met. The coverage provided in the Owl Pointe HOA Master Policy exceeds the requirement for walls in coverage, or HO-6 insurance as claimed by RightPath Servicing . All Inclusive coverage and inclusion of a coinsurance clause exceeds RightPath Servicings request for walls in and betterments and improvements coverage. Even if HO-6 insurance had been required, RightPath Servicing failed to state the need for interior coverage or HO-6 insurance in their first and second notices dated XX/XX/XXXX and XX/XX/XXXX. RightPath Servicing states hazard insurance although hazard insurance is not referenced in the XXXX XXXX XXXXervicer Guide 4703.2c, the guide RightPath Servicing referred me to for clarification. In fact, the word hazard can not be found anywhere in XXXX but HO-6 is referenced nine ( 9 ) times. In a letter dated XX/XX/XXXX RightPath Servicing states : Some homeowners associations include HO-6 in their condominium master policy. If they do, it is not required. It is required only when it is not included in the mater ( master ) policy. RightPath Servicing incorrectly claims that homeowners associations may include HO-6 in their master policy. If a homeowners association provides insurance for the interior of a condominium unit it would not be referred to as HO-6 insurance, rather, the master policy would simply describe the coverage of the unit to include all fixtures, installations or additions within the boundaries of the units. Whether or not improvements within the boundaries of the unit are covered may also be stated but seems to be avoided as improvements is subjective. RightPath Servicing has claimed that XXXX XXXX requires me to carry HO-6 insurance and bases this claim on the XXXX XXXX Servicer Guide - 4703.2c, of which they referred me to in order to substantiate their claim. RightPath Servicing ignores the language regarding WHEN a HO-6 policy shall be required, XXXX XXXX Servicer Guide 4703.2 ( c ) states : To the extent the condominium homeowners associations policy does not cover the interior of the Condominium Unit or the improvements to the Condominium Unit, the Borrower must maintain an HO-6 unit owner policy . Coverage for the HO-6 unit owner policy must be sufficient to repair the Condominium Unit to at least its condition prior to the claim. At no time does the language in 4703.2 ( c ) imply that the term HO-6 ( coverage ) could or may be found within a homeowners associations master policy. HO-6 insurance provides unique coverages and can be designed by each purchaser based on an individuals personal needs. HO-6 insurance is only available to an individual unit owner and not the association as a whole. In addition, the terms, as walls and/or betterments and improvements are not found in 4703.2 ( c ) as required language necessary to prove insurance coverage within the boundaries of the unit or interior, as claimed by RightPath Servicing . RightPath Servicing refuses to acknowledge the fact that the insurance coverage provided by me, the borrower, showing interior coverage and including a coinsurance clause in the master policy IS coverage for the interior of the unit and 100 % RC, Replacement Cost, has been met. RightPath Servicing has not stated any other reason they believe the interior insurance coverage I have provided does not satisfy this requirement, other than claiming XXXX XXXX requires an HO-6 policy if the declarations of the association state they do not cover the boundaries within the unit and the condominium associations master policy doesnt include the words walls in and betterments and improvements. This position is beyond negligence. No improvements or upgrades have been made to the unit that would not be covered by the master policy. I have never been required to carry HO-6 insurance and had never heard of HO-6 insurance until this issue. The repeated refusal to correct the error, or explain why the provided insurance coverage is not sufficient can only be understood to be a deliberate act of bad faith. This has now caused me to contact a law firm for representation. In addition to acting in bad faith, RightPath Servicing has severely damaged my credit by reporting negatively to credit bureaus although notices of error are existing, preventing RightPath Servicing from reporting for at least 60 days. CFPB - 1024.35 ( h ) ( i ) Effect on servicer remedies ( 1 ) Adverse information. After receipt of a notice of error, a servicer may not, for 60 days, furnish adverse information to any consumer reporting agency regarding any payment that is the subject of the notice of error.
Company Response:
State: FL
Zip: 33458
Submitted Via: Web
Date Sent: 2023-10-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A