June 5, 2018
***** R. ********* **** ****** ****** ***** ******** ** *****
RE: Complaint ID: ********
Loan No.: ********** Property Address: **** ****** ******* ***** ******** ** *****
Dear Ms. *********:
The Customer Advocate Department of Carrington Mortgage Services, LLC (“CMS”) is in receipt of your complaint filed with the Better Business Bureau (“BBB”) received in our office via email on May 16, 2018. CMS is committed to responsible lending and servicing and we would like to address any concerns you may have. The following is our response to the issue(s) raised in the inquiry.
As we understand your complaint, you state that since the service transfer, CMS has not reported your loan information or account status to the credit agencies. You express concerns with such lack of reporting and you believe that, as a result, your credit score has been negatively affected. In addition, you express concerns and dissatisfaction with CMS’s servicing of your loan and the fees being charged for certain payment services. Your desired resolution is to have CMS report your loan information and all payments on time to the credit agencies and to continue the credit reporting every month.
Upon review, the records show that the servicing of this Federal Housing Administration (“FHA”) insured loan was transferred from **** ** ******* to CMS on or about February 2, 2018. Attached for your ease of reference is a copy of the February 9, 2018 Notice of Service Transfer (“Hello Letter”) sent to you by CMS that notified you of the service transfer. At the time of the service transfer the loan was showing due for the February 1, 2018 payment.
Please note that, while CMS began servicing the loan on February 2, 2018, the Real Estate Settlement Procedures Act (“RESPA”) at 12 USC 2605(d) prevents CMS from treating any payment as late for any purposes until the expiration of sixty (60) days after the effective date of the servicing acquisition. This sixty (60) day period is specifically intended to allow the acquiring servicer the necessary time to receive the acquisition file from the prior servicer and to ensure the records of the acquiring servicer reflect the correct loan information. Included in that process are the reviews and complete post-transfer diligence and escrow analysis that are due within sixty (60) days of the acquired date.
In light of the above, CMS suppressed the credit reporting for your FHA insured loan for sixty (60) days following the servicing transfer. Accordingly, the credit suppression was scheduled to expire in April 2018, after which CMS would resume the credit reporting of your loan in May 2018.
However, on May 16, 2018 CMS received a credit dispute from you. Thus, pursuant to the Consumer Financial Protection Bureau (“CFPB”) guidelines, CMS is required to suppress the reporting of the loan and payment information on the credit profile for a period of sixty (60) days after receipt of such dispute. This credit suppression is scheduled to expire on or about July 16, 2018. As such, CMS is set to resume the reporting of your loan and payment information to the credit agencies in August 2018.
Nevertheless, solely as an expression of our commitment to the highest standards of customer satisfaction, CMS has agreed to send an Universal Automated Data Form to the three major credit agencies to report your loan and payment information on your credit profile. Additionally, CMS will request that your payments from February 2018 to May 2018 show these payments were paid on your loan timely. Please allow up to thirty (30) days for the credit agencies to update your credit profile with this information.
In response to your concerns regarding the fees we charge for certain payment options. Please be advised that CMS strives to accommodate the needs of its customers, and we pride ourselves on our commitment to the highest standards of customer service. That being said, CMS does incur personnel and technology-related costs to make certain payment avenues available to customers. The fees outlined in your complaint represent our attempt to more accurately approximate a reasonable fee for the bona fide services provided. Moreover, we note that the fees at issue are permitted by law and are comparable to fees charged by other companies in the mortgage servicing industry.
We would like to take this opportunity to point out that CMS continues to make multiple payment options available to you at no cost including AutoPay, payment online through your banking institution, or payment by check. Thus, while we understand you would prefer that the fees not be increased, we believe the increase is reasonable and fair under the circumstances. Please be advised that you may access CMS’s publicly available website at https://carringtonms.com for a comprehensive list of the available payment delivery options and addresses to send mortgage payments to CMS.
Based on the foregoing investigation and review of the account, we believe the record is clear that CMS has properly serviced your loan. As discussed above, the credit reporting for your loan was suppressed for sixty (60) day periods due to the service transfer, and again upon receipt of
your written credit inquiry. Therefore, to the extent that the statements in your complaint consist of allegations of wrongdoing of any nature by CMS or otherwise, all such allegations are denied.
Nevertheless, we would like to take this opportunity not only to express our sincere apologies for the inconvenience that you may have experienced as a result of the credit suppression by CMS, but also to thank you for bringing this matter to CMS’s attention. CMS is always looking for ways to improve service levels and your feedback is important us.
In closing, please know that CMS remains committed to the highest standards of customer satisfaction and will continue to do the utmost to assist any customer with a complaint. If you wish to contact CMS regarding the administration of your loan you may do so by calling our Customer Service Department at (800) 561-4567, Monday through Friday, from 8:00AM to 8:00PM, Eastern Time. You can also send written correspondence including inquiries and complaints about your mortgage to Carrington Mortgage Services, LLC, Attention: Customer Service Research Department, P.O. Box 5001, Westfield, IN 46074 or fax your correspondence to (800) 486-5134.
We trust that this communication addresses all of the concerns noted in the complaint. If you have any further questions, please contact the undersigned at (866) 874-5017, Monday through Friday, from 8:00AM to 5:00PM, Pacific Time.
******** ****** Customer Advocate
CC: Better Business Bureau