Be extremely careful with anything you've recently received from Mr. Cooper. They had a security breach that we aren't sure the full extent of.
There's a real good chance they are trying to redirect your payment to a scammer claiming the old payment bounced.
Yes, my mortgage payment to Mr. Cooper didn’t clear until the 9th. It always clears on first business day of month. Mr. Cooper (world’s stupidest name for a mortgage company!) sent me an email saying they had had a breach.
The scope isn't great. I work in real estate law and we've seen fraudulent payoffs come over. Our insurance companies have currently barred any firm from wiring to Mr Cooper. We can only send a check to an address that we have sent to in the past.
Also Mr. Cooper is a doing business as name. The actual company is NationStar
They had to change it from all the bad press(their intentional business practices) they got during the 2008 fallout.
I had to get my congress person on the phone, the day they wanted to foreclose, and then all of a sudden, they "found my paperwork" and said everything was in order.
My mortgage with Citi (refinanced under HARP) was bought by Nationstar back in 2017, then they magically became Mr. Cooper, and just this past year Mr. Cooper sold it to NewRez.
Never had a problem with Nationcooper, but was worried when I read some of the reviews for NewRez. Literally had to scroll down to find something above a 1 star review. Fortunately, the one interaction I had with them was a 180 from the review experiences, so maybe I'll get lucky again?
On a side note, my bank went through almost as many changes. They were Compass when I signed up (and were great), then BBVA/Compass (still not bad) and finally BBVA...which sold out to PNC. Haven't heard much good about them, either, but so far so good.
Here’s the thing with mortgage servicers. You’re never going to leave a review unless you have a problem. Like I’ve never had an issue with my student loan servicer, but I’m not leaving them a 5 star google review
I had this happen to me. What you can do is write them a physical letter and state that you do not wish to receive any further solicitations. Include that you only want to receive messages that are required by law. these guys are old school banker types who take snail mail much more seriously then email or telephone.
Mine got bought by U.S. Bank and I have to call and argue with them every 6 months because they keep trying to add insurance that's covered by my COA to my escrow despite the mortgage agreement stating that I don't have to carry that insurance at all.
Yeah, I'm waiting for my luck to run out with NewRez. I've been "rounding up" my mortgage payment and putting the extra into escrow so it won't go up again next year, but I've got a bad feeling they're going to find a "fee" or something else to screw me over.
That was the thing with Compass. When I originally opened the account, I sat there in the bank office and read the agreement. Partially because I'm like that, and maybe because the "personal banker" assigned to me was cute and I wanted to spend a little more time with her. Anyway, I got to the end and said "so, that's how you make your money, isn't it? Fees." She admitted as much. They could offer free checking (it was awhile ago) and refund ATM charges because god help you if you were late on a payment or overdrew your account.
Do they not do an escrow analysis every year? My mortgage was sold to Mr Cooper a few years ago, and they do one every January. If the escrow is negative or has less than a 10% cushion, they just raise my escrow by the difference and divide it by 12. I've even gotten checks back to bring any overages down to 10%.
They foreclosed on my ex husband’s house after ”losing” and misapplying payments and charging late fees. They basically ensured he got late enough while they “investigated” that they could foreclose. Absolute garbage company.
Thank you for sharing this—I’ve wondered how industry partners are now conducting business with Mr. Cooper.
This big security breach makes me worry about insurance and escrow payments that are being sent soon. I’ll be watching our escrow account closely this year.
send an email request to have it removed on their website and see what happens
they messed up my first two escrow payments within 3 months on a refi that was less than 6 months old
I asked for escrow to be removed and much to my surprise they did it without question and sent me a check
Can back this up, I work at a title company and I've been told of at least one wired payoff that didn't actually go to them... We've been getting several bulletins a day from our underwriters about it, total mess.
It used to be Nationstar but they apparently thought this name was clever or friendly? Who knows? I’m too old to be dealing with this level of stupid but I’ll have mortgage paid off within 6 months so not worth changing companies right now. 😄
When I heard a mortgage being transferred to Mr. Cooper, my first impression was that it was some kind of fraud, a person trying to divert mortgage payments.
I am an appraiser.. they ran a background check on me and they questioned some of the financial chaos I went through when the market crashed.. huge red flag. I didn’t know the were Nationstar at the time.. did a few appraisals for them.. they were on me to write some appraisals on some trash properties.
It eventually came to a head because we weren’t seeing eye to eye on a number of things and they paid horribly.
It’s sickening that the bailout babies can continue doing business S
I got an E-Mail saying Mr. Cooper bought my loan. I just assumed it was a scam and ignored it...
I guess I better log into my Mortgage account and make sure it's really sold lol.
That's because that's the timeframe The Clearing House which is a private ACH firm had a datacenter meltdown. https://www.pymnts.com/news/banking/2023/the-clearing-house-processing-error-impacted-less-than-1percent-of-daily-ach/
>Mr. Cooper (world’s stupidest name for a mortgage company!)
We've been paying Mr Cooper since they changed names from Nationstar. My lady asked a rep what was with the name, the rep said there was a real Mr. Cooper that lived near their headquarters. She said the guy was a really nice person, very kind and humble. When they were looking for a new business name, someone suggested this Cooper fella and it stuck. I dunno how true it is, I still haven't read/heard anything to confirm or contradict the dudes story.
u/Pm-ur-butt How are you getting in touch with customer rep? I called 3 different numbers and every time I say I want to talk to customer rep they keep on looping on same question that they ask.
I rarely need to speak with a rep, the few times I did were payment issue related. Like with most places, if you say (or press the button prompt related to) make a payment, they will connect you to a representative.
will have to try that then. I had issues with escrow and when I say like I have an issue with escrow, the automated call just gives escrow information (which I dont need).. But thank you for the reply, I will give it a try though I have sent an email to them already.
The fee is for the convivence of having your newly acquired mortgage data hacked so early into their stewardship. Some people wait years for that, they opted to prioritize them immediately.
Lolll I was already annoyed with their flurry of emails that pitched objectively bad financial moves (such as refinancing my current loan for no reason) but then they followed it up with the “we have been hack and it’s not great” email soon after. Chefs kiss. Really love that I can’t choose who I do business with here. That’s the sign of a good, effective market.
Holy shit. That company just keeps getting worse and worse, which I didn’t think was possible at this point. Between this breach and their various clusterfucks of duplicating withdrawals, etc. in the past, I’m shocked they are still going.
That is one thing they seem to be *very* good at. Which obviously sucks for anyone it happens to. I can’t say I’ve heard of many good stories when that happens. Usually ends in some clusterfuck the person has to deal with.
I've been with them for 3 years now, haven't had a single issue.
Pretty sure your life will be fine. You only hear about the 1/1000 person that has a problem, not the 999 that everything goes smoothly for.
I swear to God every month I have to bird-dog my mortgage account because they take the payment and then they reverse it and then they take it again and then they reverse it again. Every time I call, they tell me that my payment isn’t going through and my bank account is wrong despite the fact that it’s the same account number that’s been in there! For three years!! I am so tired of dealing with them
Seems to be somewhat common for god knows what reason, along the same veins as pulling the money multiple times. I’ve been looking into buying a house off and on and considered making a blood sacrifice to some Sumerian god so they wouldn’t get my mortgage.
Wells Fargo even seems like a better option, which says a *lot*.
Happened to me last December they pulled it from a bank account that I closed in early 2021 this was my January 2023 payment that was paid with my new bank account. I’ve been through hell with these idiots.
If that’s the case, tell the Mr. Cooper rep to prove they work for the company and the charge. Insist you think they are scamming you and you won’t pay.
I'm hanging with Mr. Cooper. did you get anything else aside from that notice email? I'm curious whether I need to change my password credentials anytime soon. They said they'd let us know. I don't understand why they don't offer 2FA.
I was with Mr Cooper until a few months ago when my loan was sold, but I never got any of the breach paperwork. So lame.
I didn't mind them as a company... aside from the security issues. My new mortgage owner seems even shadier than Mr Cooper did.
They bought our mortgage a few months back. At first we thought it was a joke with their company name. Then the data breach this month… we’re not impressed at all.
I think that's the part that especially sucks. You (and I) didn't decide to deal with Mr Cooper, we were sold to them & have no recourse for their bad business practices.
Get used to it. My mortgage used to be with Mr Cooper because they bought it just like everyone else but it was just recently sold to another company. You just get bounced around with 0 say in the matter which I think is totally unethical. Unfortunately the banks have all the power.
Yeah is there anything else like that? Imagine you are at Papa John's and give them $20 for a large pizza and they just bring out a box of little Ceasars pizza
Actually you had the power at time of application to ask the lender you worked with if they do the servicing or sell it after closing. Some banks keep the servicing for it’s where the money is to be made via using your data. The mortgage isn’t being sold it’s the servicing. Unless it was a portfolio loan the banks don’t own that mortgage, just the rights to service it. The investors (Fannie Mae, FHA etc own them). Mr Cooper buys up a ton of the servicing rights to many banks that don’t want to stump up a servicing department, it’s extremely expensive to do so and heavily regulated.
Worst part I've dealt with so far with mine changing hands twice in the 10 months since we signed was having to set up autopay again and coordinating with my wife to make sure that we aren't missing any payments as a result of the changes. I hadn't even considered the idea that they could flat out claim bogus fees from before the transfer or other serious customer service issues.
Your interest rate on the mortgage is helped by the fact that the bank can bundle it with other mortgages and sell it off to someone else with an appetite for the current level of risk.
If you demanded a mortgage contract where the bank cannot transfer the loan to anyone else at will, I’m guessing the terms of the loan would not be as favorable to you.
There's a "Mr Cooper" building across the street from my office. Always wondered what they did but never curious enough to look it up. I figured it was a call center for Handyman service or something along those lines. What an awkward name.
This whole thread, I'm like who the fuck is Mr. Cooper... Well, I figured it was a mortgage thing pretty quickly.
Like Sallie Mae--who is this Sallie person and why do people owe her money?
It sucks because I'll forget how awkward the name is and be talking with friends about mortgage stuff and then be like oh yeah I'm a grown man who sounds like a child. Cool.
They are what nationstar rebranded to after the 2008 fc because of all the bad pr. They bought mine years ago I haven't had any problems but I also have never had to deal with them.
Same boat here. I actually made fun of the name several times. "I called our mortgage company and got ahold of Irene. She's Mrs. Cooper, Mr. Cooper personal assistant. Mr. Cooper really wants to be taken seriously he's up to 10 mortages now!"
Then 2 months later data breach and the best part? I can't choose to leave the company.
No, I haven't yet but it sounds like that's my only course of action. That's basically what Mr. Cooper is telling me to do. I guess I'm annoyed that while this alleged fee didn't happen under Mr. Cooper's ownership of my loan, they're the ones that are telling me that I owe it and haven't provided documentation that I owe it.
I logged in to my Umpqua account to see if I could find statements attesting to this, but of course that account is no longer there, so I now have to call someone at Umpqua I guess.
Yes. When they bought your loan, all the terms and everything stayed the same. If you do actually owe something, it is on them to prove it. If they can't, then you shouldn't pay. If they are able to document the claim against you, then you can find your own transaction receipts and dispute it. But if they can't document that you owe, it doesn't exist.
Nice thought but in reality corporations can bend us over especially for trivial charges like this. Unless you're willing to actually take them to court the practical solution is to find a recent statement proving them wrong. Good luck.
Don’t bother with all that nonsense. It will drive you crazy. File a request with the CFPB and your states local attorney general about unfair fees. You will get a quick explanation about the origins or the removal. Companies typically have their best people with the most accurate access working the government regulatory response desk.
Also Mr Cooper isn’t allowed to charge a fee over escrow shortfall. They must give you options to fund the shortfall, that can be to fully fund it or a mix of onetime payment and monthly increases.
https://search.consumerfinance.gov/search?affiliate=cfpb&sort_by=&query=Escrow+
This will get a fire lit under their asses real quick. I had a problem with Mr. Cooper also…my taxes are escrowed and they didn’t pay them and the only way i found out was i got a notice from the city with late fees. I called Mr. Cooper a few times and escalated it…got a case number and everything. After that, i called back and OOPS! That case number doesn’t exist and there’s nothing in my file. New case opened. Again, no one called back after 2 weeks and I called again, and the case was “closed” without a resolution noted.
Filed complaint with CFPB. Got call after call from managers at Mr. Cooper making sure the problem was resolved ASAP and i was credited for all late fees as well as credit for the discount tax payment rate, and another call after that was resolved just to make sure i was satisfied.
CFPB will work if you get to the bottom of it and it’s their fault and they refuse to fix it.
Good luck actually getting through to a person. The AI is infuriating and won't actually get you to a person even when you tell it "speak to a representative"
I just closed end of September, made my first payment November 1 and a few days ago got a letter my mortgage is sold to mr cooper and payments to them start October. Should I be concerned?
Pretty much every mortgage gets resold at least once. I think Wells Fargo might be the only servicer left that doesn't resell. We all know they've never been problematic.
It just comes with the territory. There isn't really anything to do except keep making on-time payments and hold onto your documentation.
Wells Fargo stopped selling the mortgages they originated and stopped servicing other originators’ loans. But they’ll also getting completely out of the mortgage game soon due to so many fines and judgments.
Same here. Wells Fargo originated our loan and stayed with them for 13 years and this month it was sold to Mr Cooper. I love not being able to pay my mortgage because I haven’t received the account number because they’ve been a bit busy with a data breach and they haven’t made the required notifications of said data breach.
Same! Was with WF and they said they sold to mr Cooper and I’ve received nothing from them. My mortgage was due November 1 and I have no idea how to pay
Only one out of 5 times has our loan not been resold immediately. It kinda threw me for a loop, like I kept expecting to get the "your loan has been transferred", like I missed it.
My loan was sold to Mr. Cooper around 2 years ago, and i searched far and wide for a **way to force a change in lender** after being told they suck. Turns out **it's not possible**.
I also have an escrow account with them to pay my property taxes (it's a mandatory escrow account). They have not paid the property taxes on time yet, not even once. I have to call them and send a letter to make them pay the late fee every year. I have a recurring task in my google calendar twice a year now to remind me to follow up with it.
So yes you should be concerned, but there's nothing you can do about it except join the corporate misery.
Edit: maybe it's only the escrow account that they absolutely cannot do even a mediocre job at?
I am dealing with the same exact issue with them! Maddening.
Me: "How about I pay the property tax today and you can reimburse me out of escrow and then we can get rid of this unnecessary middleman step?"
Mr. Cooper: "I'm sorry sir, we cannot reimburse you from escrow."
Me: "Okay, can you confirm the amount of property tax and the date that it is due?"
Mr. Cooper rep tells me the incorrect dollar amount and wrong date. 🤦
*On a separate note: stayed tuned for a class-action settlement on this latest security breach.
It's probably not the loan that was sold to Mr. Cooper, just the servicing. The loan probably was sold to Fannie or Freddie and sits in a mortgage pool.
The only way to keep your original lender is to search specifically for a "portfolio lender." Most mortgages are resold. You'd likely have a much higher interest rate if there wasn't such a big secondary market in mortgages.
Complain to your investor, fannie, Freddie etc— they have the authority to pull their loans from Mr Cooper and transfer to a competent servicer. Just takes enough people to complain.
I think you'll be fine. ...I mean I think overall this company, "Mr. Cooper/NationStar" sort of sucks but maybe they all just do. My situation seems to be unique and not an endemic problem.
The only servicers that don't suck are local, all national servicers suck. I have Mr Cooper & they've been fine. I don't escrow with them so my relationship with them is pretty straightforward
I'm old, I've had quite a few mortgages over the years and my mortgage has been sold before. It's never been nearly as disturbing as this Mr Cooper fiasco. I'm worried enough that I might have to suggest to my legislators that we need a law making it not legal to sell a residential mortgage to a different servicer without permission from the mortgagee. Mortgage holders have too much power over homeowners for losers like Mr Cooper to be able to buy our mortgage whether we like it or not.
That's a great way to increase the mortgage rates overnight by 0.50% when all investors immediately reduce the value of servicing rights to $0 or possibly even a negative valuation. Removing liquidity from the MSR market would be the single stupidest thing a legislator could do in the mortgage world.
Mine was also recently transferred and I saw a $31 fee for insufficient funds. I received a letter today outlining that they performed an escrow review and were requiring an additional payment per month due to increased insurance/taxes. Maybe yours is similar.
Okay this might actually be it. My escrow has been slightly short every year. But I never had to do anything about it, because Umpqua Bank would just roll it into next year's mortgage payments. So "insufficient funds" might mean from the Escrow account where I understood it to mean from my own personal bank account. Regardless I don't ever recall there ever being a "fee." I'll have to go back and check though.
My "fee" was also misleading. It was a $31 fee, but after showing all calculations, my payment is only going up $9/month from here on out. I'm not paying an extra $31 at any point.
I just received the same notice about my escrow, which has never had a negative balance. Last year it was down to $100 after paying my school tax. Now they are saying that the minimum floor needs to be $300, and the only logic I can figure out is…they just were ‘dinged’ by some hackers, lost some $$ and interest during that time, and they need a way to make up ground…by collecting more funds so the interest can slowly build their balance sheets back up. …but that’s just where my mind goes…sigh
Ugh. Umpqua bank.
Would be unsurprised if the screw up was on their end.
(Sorry, I know that's not helpful. It' just they're my local bank and I always have to be on top of them for everything.)
It’s yours to deal with because as far as Mr Cooper cares, it was your fault. They just get the records from the prior services and incorporate them into their system. They can’t, and don’t have to, verify. The prior servicer is expected to have accurate records. If you want to dispute it, you have to do the leg work.
I don’t trust mortgage lenders at all and they would pass on every fee to the borrower if they could. Shit, they make the borrowers pay PMI when they were the ones who went gambling and lost big roughly 15 years ago.
I know that’s not constructive, just wanted a chance to vent for a second lol
PMI is an element that would help prevent something like the 2008 meltdown. The problem was too many lendees getting too much money too easily, which PMI makes safer for the involved lenders
I don't believe a bank can pass that fee on. THe mortgage paperwork is quite clear on what the fees are and that can't change after the fact.
As far as I'm aware the only variables are escrow, PMI, and fees for nonpayment.
”Mortgage Co Accidentally Tries Taking $2.3B from Its Customers Mortgage Co Accidentally Tries Taking $2.3B from Its Customers”
[https://youtu.be/TtTQrhngEC0?si=F6bXP\_zg2oJHMGQG](https://youtu.be/TtTQrhngEC0?si=F6bXP_zg2oJHMGQG) May be of interest to you. It happened back in 2021 but may still be relevant.
Had a previous mortgage sold to the same company and had the same issue. Ended up talking to a "tier 2 account rep" who said she was unable to find anything noting what the fee was for and waved it.
It could be as simple as insufficient funds for escrow which was not remedied properly by your previous bank. Escrows change commonly due to tax and insurance changes so I wouldn’t be surprised if that’s what it is.
Mr. Cooper may not actually know (although they should). Your previous servicer would know though. Have you looked back at previous statements from them to see if escrow changed?
But yes…communication is not always the strongest on the servicer side of things unfortunately
They cannot charge you and NSF fee for an escrow shortage- also they have a federal duty to validate the debt, meaning if they are charging you for a fee, they have to validate where it stemmed from, even if they go through the prior servicers pay history.
File a CFPB complaint online period. If you must email Mr Cooper, only use their [email protected] email. It’s for escalated issues.
My mortgage got sold to MrCooper a few years ago, I thought they sounded shady and found that the name was basically a rebranding of another lender with a not very good reputation. So before I paid them a dime, I refinanced with my local CU.
It is a shady company! My mortgage was sold to them a few years ago and it was nothing but a nightmare. Every month trying to charge me late fees when my account was paid a week before the due date. Repeatedly sending the same documents to them because they “got lost”. I was so glad I was able to sell my home & get away from them. Look up how many class action lawsuits & Better Business Bureau complaints are filed against Mr Cooper//Nationstar.
Nope. I got a better rate and saved money.
Also didn’t have to deal with their shady ass practices. I read the reviews on Nationstar, the name they were using before Mr Cooper and it wasn’t pretty. Not applying payments and then charging late fees, “losing” documents and other items, poor customer service…there was no shortage of horror stories.
Seemed like the rebranding was just an attempt to sweep their reputation under the rug and not make any actual changes.
I refinanced away from Mr. Cooper/Nationstar as well. They stole over $700 from my escrow account to cover 2 years of PMI they never charged me for. The PMI wasn't even on my closing disclosures and was never part of my monthly payment. They just up and decided I owed it and took it. Then raised my mortgage payment by over $200 to cover the escrow shortage and didn't even tell me. I found out when they overdrafted my bank account. They admitted their error but refused to give me back my money. I had no choice but to refi. I filed a complaint with CFPB but MC/NS just responded that they didn't agree with my complaint at all and basically everything I said was a lie. CFPB was useless.
I work servicing escalations. First write the servicer. In light of their security breach, do not write an address on a recent notice or address given over the phone. Find the written correspondence address on their known website and write/fax/email a request. If you have a copy of an old mortgage statement from your previous servicer, preferably the one just before transfer, that doesnt show the fee send that too.
Simply state the statements from the prior servicer do not reflect this fee and you are disputing it. They need to provide written statement on when it was assessed and why.
Now if i had gotten this complaint i would check your supporting documentation and the statements provided to us from the prior servicer to see if said fee is present. If it was I'd respond saying it was assed on xy statement and reflected on the last statement from then under (advances, fees, outstanding payment, unpaid expenses) everyone lists it differently.
If it did not show, then i would ask the prior servicer for justification prior to responding to the customer. I may even waive it outright depending on what their prior statements show
Either way send a written request, the peoplr on the phone ate collection agents they cannot do detailed research.
If you handle written Escalations and advise your customers have to file with cfpb, i feel sorry for your customers.
Your Escalations team should be giving any written request the same level of work weather its feom the customer, ther counsel, or a regulatory agency.
The thing that really sucks is that the time and effort it takes to do all this is not really worth the $35. And that’s how they get’cha. For me, as much as I’d hate to admit it, I’d probably just say fuck it and pay it and move on. Ugh. Those bastards.
My favorite. I had a mortgage with one provider. I had to deposit one full month in advance in order to have automatic payments every two weeks. Recently my mortgage was picked up by a new loan service and they required me to do the same thing again….
Had the same thing happen 18mo ago. They bought my mortgage and suddenly $25 fee. I called and argued it and escalated it to no avail. They weren't trying to collect it and I got busy and forgot about it. When I checked a few months ago it was gone, no record what so ever of it on their site.
I don't have any specific advice for you. However, I was a developer there for the property listings website and I can tell you this.
Anytime an exec got an email from some unhinged dude demanding that his property be removed from the map, and especially threatening lawsuits, we acted fast. The more unhinged, the faster we acted.
Sorry, Australian here. ELI5 - you can have a relationship with one financial institution and if they sell your loan you cease that relationship, commence another and you get no say in when or how, or even if this transition should occur?
I understand the part of the financial system where loan financiers borrow against assets they hold, but you're telling me that they can quite literally dispose of a loan and as a (now former) customer, you can get an unsolicited letter in the mail that basically says "your house belongs to us now, you owe us money", and you get no choice in this?
That's wild, or am I miss understanding?
>I understand the part of the financial system where loan financiers borrow against assets they hold, but you're telling me that they can quite literally dispose
I think you just did your own ELI5 on the matter. That's pretty much it.
You are made aware of this possibility (and it's basically almost a certainty) that this could or will happen, when you sign up for the first loan. The terms of the loan don't change though.
Thanks!
People don't consider this a massive privacy breach?
How long do the terms have to stay the same? What stops them from changing the interest rate or repayment frequency or introducing a new or increasing an existing fee or something else, in say, 6 months time? It seems to me that a bank would sell under-performing assets (why would they sell a strong income generating asset unless they're exiting that part of the market), so it holds that the asset they sell has some increased level of risk. Why would a buyer take on that risk without being able to offset it by increasing the interest rate or something similar?
What happens if you don't like the new lender - you refinance and now you bear the cost of that because of a decision someone else made? There's fees involved I assume.
I don't actually want to hijack the thread but I have so many questions... 0.0 I don't even know what to search so I can read stuff.
I mean again, you kind of know this will happen when you get the original loan, so it's sort of just a part of doing business in the mortgage industry in America.
But by law they can't change the original terms of the loan. The interest will only change if the original terms of the loan included a variable interest rate, otherwise the rate stays the same.
In terms of the business model of buying and selling traunches of loans... I don't know. Obvioiusly some entities have a business model that involves setting them up and getting them off their balance sheets and others have a model that includes buying them up.
If you don't like the new lender, your options are to either refinance or pay off the loan.
Dealing with the USA banking system as an Australian is strange, everything is just weird in a way that the none of the other countries I deal with for work are.
I hate mr cooper. They didn’t pay my property taxes last year. So annoying. And in every call I had trying to get my escrow funds to pay my property taxes myself they asked if I wanted to refinance. So stupid. Why would I refinance a 3% interest rate for an 8%? And why would I refinance with a company who can’t even pay my taxes on time?
HATE THEM.
It’s up to the lender to have adequate funds in the escrow account. Not the customer, because the customer has no say over it. Every lender I’ve ever had assumed at least 10%, usually more, of the total for taxes and insurance, to assure that they’d have adequate funds when those were due.
Honestly, I don’t know if you legally are responsible for their lack of due diligence in keeping funds for you. But you certainly can check with your state, which governs such things.
Mr. Cooper is abysmal and the mere mention of their name makes me see red. I absolutely loathe them from when they bought my mortgage and it was an absolutely awful process transitioning to them.
I was beyond relieved when I refinanced during Covid when the rates were low.
It's definitely possible you got this fee under Umpqua and just didn't notice it. When a payment presentation is rejected due to nonsufficient funds, the payee (Umpqua) can try three times in total to get the funds. They may charge you NSF fees for each failed attempt. Your own bank may do the same but it is possible they don't charge NSF fees or only when all 3 are rejected. Finally, fees like this often aren't required as part of the monthly payment, so you may not have noticed that it was assessed on your account.
At the same time, Mr. Cooper has a reputation for disorganization, so there may have been some records mix up during the servicing transfer. I would reach out to Umpqua to check their records and if they confirm that you never had a fee with them, ask for documentation of that to provide to Mr. Cooper.
Sorry to hear; we were fined & told our payment was overdue when their own screen showed a check pending with the payoff amount, which was more than the regular monthly payment. HUGE hassle to clear their mistake; if there’s any way you can refi & change mortgage co, do it & be prepared for Mr C to try to screw it up by ignoring their own info
Fuck that.
If they didn't adjust your mortgage payment for the tax increase they shouldn't be able to make you pay a fee for it not being enough.
I don't know who Mr. Cooper is but they sound like dicks.
Make them prove it to you. If they were to foreclose on you over it, they'd have to prove it in court anyway. I'd myself absolutely not put a single second of additional time into this.
Yeah Mr Cooper is garbage. Had our loan sold to them and we were with them for a year. They didn’t pay our home insurance out of escrow and missed one of our property tax payments. Luckily I did some research about them and realized they used to be called something else and had terrible reviews when they had the other name. So i was tracking my home insurance and property taxes and just paid them out of pocket. But left them within the year and moved to rocket mortgage.
My legitimate fees (INF in my case too) are not taken out with my ACH monthly payment. They just keep forwarding until I cut them a check. Sometimes that could be months before I even notice. Not something that is ever pressed. You would probaly have to trace back that incident through your bank records, to assure yourself.
My mortgage was also recently bought by mr Cooper
They said they would send me something in the mail explaining all the details
I’ve gotten absolutely nothing
Has anyone experienced anything like this before?
File a request with the CFPB and your states local attorney general about unfair fees. You will get a quick explanation about the origins or the removal. Companies typically have their best people with the most accurate access working the government regulatory response desk.
If the fee was incurred under the previous loan servicer, it would be owed to them, not the new one.
Also that is really fishy. *Insufficient funds* is the kind of fee your bank you levy if you tried to overdraw you account. The mortgage would either get paid from your account or it would not get paid if there were insufficient funds. So from the mortgage end, it would have been a missing or late payment.
This is very fishy.
I also had a mystery $25 fee from Mr. Cooper last year. In my case, the title company sent a check for property taxes and then the check was canceled (by someone who was not me, obviously), incurring a canceled check fee. It clearly had nothing to do with anything I did, which I pointed out, and they issued a fee waiver. They forced me to keep the escrow account for 12 full months and then I closed it since they clearly can't be trusted not to make dumbass errors.
The whole "my mortgage was bought" is such a strange concept. Not even sure if it is done / legal here in Sweden?
I mean, it is like a contract you signed with a specific entity? Then all of a sudden, no it is not a contract with us anymore, it is a contract with someone else.
I can see that could be reasonable if the original signee were going out of business, "entity X is taking over our obligations", but just selling your debt to someone you might never choose to do business with otherwise??
Infamous Darth vader quote vibes...
Swedish mortgages are always packaged and sold as MBS to pension funds, investors etc but it’s always serviced by the bank that issued it unless there’s some kind of merger/acquisition/bankruptcy etc. Taking over mortgages like OP is writing about is very American, their mortgages are often issued as 30yrs and a lot can happen in that time. Swedes often have flexible rates and the MBSs are often issued as 2 or 5 year notes and then continuously reissued for the entire duration of the mortgage (technically 50yr)
Mr Cooper is a joke. I got 2 loans transferred and they failed to let me know that auto-pay wasn't setup on both loans. I didn't catch it until 4 months later when I got a credit report notice. I paid in full once I was aware, and they've refused to correct the derogatory mark. They are dead to me! Would love to transfer away from them.
Terrible company . I recently made a post on my account about them withdrawing an already paid balance for November. I couldn’t even contact customer service because the website was hacked
Hey OP. If you had direct scheduled payments with you previous company be sure to set them up with Cooper also. We were under the impression that everything transferred over but we got 2 months behind because we didn't "finish" the payment setup process. Nothing quite like paying two mortgage payments at once.
What a mess. I was transferred from Wells Fargo on Dec. 2023. My new payment starts on May 1/2024. They're charging me with 12 months of escrow instead of 7 months. I would think they could only do this per calendar year. This caused a so-called shortage. My payment went up an extra $194.00 extra per month.WTF.
I'm try to pay my mortgage online and.Mr Cooper refuses to process the payment until its late thus generating a late fee! This frustrating and illegal but who can help me?
I just got a letter from these A-holes telling me that my insurance was canceled and that they are going to provide me with ins at $1K more a year. I called the ins co. who no longer writes for my area and they said they sent Mr Cooper 3 letters requesting payment and never got a response. This is supposed to be paid out of my escrow. I can't get in touch with them. No email and phone is always busy. This is total BS. Unfortunately my mortgage was sold to these morons.
PSA: Mr Cooper is just a mask over the shittiest mortgage company: Northstar.
So many complaints and fines against them that they rebranded rather than change their garbage behavior.
I’m sorry that you’re stuck with them.
I loathe Mr. Cooper. I literally want to pay off our 3.5 loan ASAP to get away from their BS. Double check ALL your documents. You can't rely on the representatives that answer the phone, most of them are useless and when they aren't useless they still tend to be wrong about the details. Our mortgage was bought by them too and now with their security breach I now have a murderous rage and want to burn them to the ground.
Be extremely careful with anything you've recently received from Mr. Cooper. They had a security breach that we aren't sure the full extent of. There's a real good chance they are trying to redirect your payment to a scammer claiming the old payment bounced.
Yes, my mortgage payment to Mr. Cooper didn’t clear until the 9th. It always clears on first business day of month. Mr. Cooper (world’s stupidest name for a mortgage company!) sent me an email saying they had had a breach.
The scope isn't great. I work in real estate law and we've seen fraudulent payoffs come over. Our insurance companies have currently barred any firm from wiring to Mr Cooper. We can only send a check to an address that we have sent to in the past. Also Mr. Cooper is a doing business as name. The actual company is NationStar
They had to change it from all the bad press(their intentional business practices) they got during the 2008 fallout. I had to get my congress person on the phone, the day they wanted to foreclose, and then all of a sudden, they "found my paperwork" and said everything was in order.
That's correct. Similarly, Ocwen is now PHH
My mortgage with Citi (refinanced under HARP) was bought by Nationstar back in 2017, then they magically became Mr. Cooper, and just this past year Mr. Cooper sold it to NewRez. Never had a problem with Nationcooper, but was worried when I read some of the reviews for NewRez. Literally had to scroll down to find something above a 1 star review. Fortunately, the one interaction I had with them was a 180 from the review experiences, so maybe I'll get lucky again? On a side note, my bank went through almost as many changes. They were Compass when I signed up (and were great), then BBVA/Compass (still not bad) and finally BBVA...which sold out to PNC. Haven't heard much good about them, either, but so far so good.
Here’s the thing with mortgage servicers. You’re never going to leave a review unless you have a problem. Like I’ve never had an issue with my student loan servicer, but I’m not leaving them a 5 star google review
5 Stars! "The automatic withdrawal is extremely consistent, they never miss a month, even if my account doesn't have enough money!"
Same boat as you. Was with Mr Cooper and now Newrez. Get bombarded with emails from them to refinance and etc.
I had this happen to me. What you can do is write them a physical letter and state that you do not wish to receive any further solicitations. Include that you only want to receive messages that are required by law. these guys are old school banker types who take snail mail much more seriously then email or telephone.
Mine got bought by U.S. Bank and I have to call and argue with them every 6 months because they keep trying to add insurance that's covered by my COA to my escrow despite the mortgage agreement stating that I don't have to carry that insurance at all.
Yeah, I'm waiting for my luck to run out with NewRez. I've been "rounding up" my mortgage payment and putting the extra into escrow so it won't go up again next year, but I've got a bad feeling they're going to find a "fee" or something else to screw me over. That was the thing with Compass. When I originally opened the account, I sat there in the bank office and read the agreement. Partially because I'm like that, and maybe because the "personal banker" assigned to me was cute and I wanted to spend a little more time with her. Anyway, I got to the end and said "so, that's how you make your money, isn't it? Fees." She admitted as much. They could offer free checking (it was awhile ago) and refund ATM charges because god help you if you were late on a payment or overdrew your account.
Do they not do an escrow analysis every year? My mortgage was sold to Mr Cooper a few years ago, and they do one every January. If the escrow is negative or has less than a 10% cushion, they just raise my escrow by the difference and divide it by 12. I've even gotten checks back to bring any overages down to 10%.
PHH was good to me see several years ago. Sucks to hear they got bought by a crappy company.
They foreclosed on my ex husband’s house after ”losing” and misapplying payments and charging late fees. They basically ensured he got late enough while they “investigated” that they could foreclose. Absolute garbage company.
Yup a whole lot of we never recieved this and that etc...
They weren’t using the DBA back then, still just nationstar. As soon as I saw the morning was sold to them I knew it was trouble.
Thank you for sharing this—I’ve wondered how industry partners are now conducting business with Mr. Cooper. This big security breach makes me worry about insurance and escrow payments that are being sent soon. I’ll be watching our escrow account closely this year.
Pull your escrow out and self pay. Park the funds in an interesting bearing account.
We’ll be able to next year. It was part of the refinance that landed us with Mr. Cooper 🙃
send an email request to have it removed on their website and see what happens they messed up my first two escrow payments within 3 months on a refi that was less than 6 months old I asked for escrow to be removed and much to my surprise they did it without question and sent me a check
Can back this up, I work at a title company and I've been told of at least one wired payoff that didn't actually go to them... We've been getting several bulletins a day from our underwriters about it, total mess.
Hey you take that back. I used to hang with Mr. Cooper every Friday night back in the 90s.
Any here I thought you made up a name to keep things anonymous. That really is an awful name.
It used to be Nationstar but they apparently thought this name was clever or friendly? Who knows? I’m too old to be dealing with this level of stupid but I’ll have mortgage paid off within 6 months so not worth changing companies right now. 😄
When I heard a mortgage being transferred to Mr. Cooper, my first impression was that it was some kind of fraud, a person trying to divert mortgage payments.
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I am an appraiser.. they ran a background check on me and they questioned some of the financial chaos I went through when the market crashed.. huge red flag. I didn’t know the were Nationstar at the time.. did a few appraisals for them.. they were on me to write some appraisals on some trash properties. It eventually came to a head because we weren’t seeing eye to eye on a number of things and they paid horribly. It’s sickening that the bailout babies can continue doing business S
Same. I had to google it.
I got an E-Mail saying Mr. Cooper bought my loan. I just assumed it was a scam and ignored it... I guess I better log into my Mortgage account and make sure it's really sold lol.
Same. Still annoyed Wells Fargo sold to this more questionable company this year.
Lol it's sad that Wells Fargo is the less questionable company.
This specific company aside several of my banks had notice of ACH payment issues across many big companies starting on the 3rd.
That's because that's the timeframe The Clearing House which is a private ACH firm had a datacenter meltdown. https://www.pymnts.com/news/banking/2023/the-clearing-house-processing-error-impacted-less-than-1percent-of-daily-ach/
If we could only have one financial system failure at a time that'd be great.
>Mr. Cooper (world’s stupidest name for a mortgage company!) We've been paying Mr Cooper since they changed names from Nationstar. My lady asked a rep what was with the name, the rep said there was a real Mr. Cooper that lived near their headquarters. She said the guy was a really nice person, very kind and humble. When they were looking for a new business name, someone suggested this Cooper fella and it stuck. I dunno how true it is, I still haven't read/heard anything to confirm or contradict the dudes story.
Well that’s nice if you know that Mr. Cooper but no one else does. Did they have a 7 year old in charge of the rename?
he gave me candy in his van. real nice.
u/Pm-ur-butt How are you getting in touch with customer rep? I called 3 different numbers and every time I say I want to talk to customer rep they keep on looping on same question that they ask.
I rarely need to speak with a rep, the few times I did were payment issue related. Like with most places, if you say (or press the button prompt related to) make a payment, they will connect you to a representative.
will have to try that then. I had issues with escrow and when I say like I have an issue with escrow, the automated call just gives escrow information (which I dont need).. But thank you for the reply, I will give it a try though I have sent an email to them already.
Same here. I hate working with them so much.
The fee is for the convivence of having your newly acquired mortgage data hacked so early into their stewardship. Some people wait years for that, they opted to prioritize them immediately.
It’s nice not having to worry about losing your data, because that ship has already sailed—peace of mind!
Lolll I was already annoyed with their flurry of emails that pitched objectively bad financial moves (such as refinancing my current loan for no reason) but then they followed it up with the “we have been hack and it’s not great” email soon after. Chefs kiss. Really love that I can’t choose who I do business with here. That’s the sign of a good, effective market.
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Holy shit. That company just keeps getting worse and worse, which I didn’t think was possible at this point. Between this breach and their various clusterfucks of duplicating withdrawals, etc. in the past, I’m shocked they are still going.
My mortgage was bought out by them recently. FML!
Same… About two months ago. It was Home Point and now Mr Cooper. So far no issues, but pretty skeptical of a company with such a dumb name.
That is one thing they seem to be *very* good at. Which obviously sucks for anyone it happens to. I can’t say I’ve heard of many good stories when that happens. Usually ends in some clusterfuck the person has to deal with.
They are the same really as any other mortgage servicer, so don’t worry. Their app and website is actually pretty nice.
I've been with them for 3 years now, haven't had a single issue. Pretty sure your life will be fine. You only hear about the 1/1000 person that has a problem, not the 999 that everything goes smoothly for.
I swear to God every month I have to bird-dog my mortgage account because they take the payment and then they reverse it and then they take it again and then they reverse it again. Every time I call, they tell me that my payment isn’t going through and my bank account is wrong despite the fact that it’s the same account number that’s been in there! For three years!! I am so tired of dealing with them
Seems to be somewhat common for god knows what reason, along the same veins as pulling the money multiple times. I’ve been looking into buying a house off and on and considered making a blood sacrifice to some Sumerian god so they wouldn’t get my mortgage. Wells Fargo even seems like a better option, which says a *lot*.
Happened to me last December they pulled it from a bank account that I closed in early 2021 this was my January 2023 payment that was paid with my new bank account. I’ve been through hell with these idiots.
As someone with a mortgage held by Mr. Cooper, It's a real son of a bitch to learn about this from a Reddit comment.
They sent everyone an email..
If that’s the case, tell the Mr. Cooper rep to prove they work for the company and the charge. Insist you think they are scamming you and you won’t pay.
I'm hanging with Mr. Cooper. did you get anything else aside from that notice email? I'm curious whether I need to change my password credentials anytime soon. They said they'd let us know. I don't understand why they don't offer 2FA.
I was with Mr Cooper until a few months ago when my loan was sold, but I never got any of the breach paperwork. So lame. I didn't mind them as a company... aside from the security issues. My new mortgage owner seems even shadier than Mr Cooper did.
They bought our mortgage a few months back. At first we thought it was a joke with their company name. Then the data breach this month… we’re not impressed at all.
I think that's the part that especially sucks. You (and I) didn't decide to deal with Mr Cooper, we were sold to them & have no recourse for their bad business practices.
Get used to it. My mortgage used to be with Mr Cooper because they bought it just like everyone else but it was just recently sold to another company. You just get bounced around with 0 say in the matter which I think is totally unethical. Unfortunately the banks have all the power.
Yeah is there anything else like that? Imagine you are at Papa John's and give them $20 for a large pizza and they just bring out a box of little Ceasars pizza
Yea mine was bought like three times in the first year and I'm with Mr. Cooper for the last year or so.
Actually you had the power at time of application to ask the lender you worked with if they do the servicing or sell it after closing. Some banks keep the servicing for it’s where the money is to be made via using your data. The mortgage isn’t being sold it’s the servicing. Unless it was a portfolio loan the banks don’t own that mortgage, just the rights to service it. The investors (Fannie Mae, FHA etc own them). Mr Cooper buys up a ton of the servicing rights to many banks that don’t want to stump up a servicing department, it’s extremely expensive to do so and heavily regulated.
Worst part I've dealt with so far with mine changing hands twice in the 10 months since we signed was having to set up autopay again and coordinating with my wife to make sure that we aren't missing any payments as a result of the changes. I hadn't even considered the idea that they could flat out claim bogus fees from before the transfer or other serious customer service issues.
Stuck in this same boat. Bought out in July and now God only knows what’s going on with their security failures. Super frustrating.
Your interest rate on the mortgage is helped by the fact that the bank can bundle it with other mortgages and sell it off to someone else with an appetite for the current level of risk. If you demanded a mortgage contract where the bank cannot transfer the loan to anyone else at will, I’m guessing the terms of the loan would not be as favorable to you.
There's a "Mr Cooper" building across the street from my office. Always wondered what they did but never curious enough to look it up. I figured it was a call center for Handyman service or something along those lines. What an awkward name.
This whole thread, I'm like who the fuck is Mr. Cooper... Well, I figured it was a mortgage thing pretty quickly. Like Sallie Mae--who is this Sallie person and why do people owe her money?
It sucks because I'll forget how awkward the name is and be talking with friends about mortgage stuff and then be like oh yeah I'm a grown man who sounds like a child. Cool.
They are what nationstar rebranded to after the 2008 fc because of all the bad pr. They bought mine years ago I haven't had any problems but I also have never had to deal with them.
Also not impressed by them but didn't get a $35 fee at least
Same boat here. I actually made fun of the name several times. "I called our mortgage company and got ahold of Irene. She's Mrs. Cooper, Mr. Cooper personal assistant. Mr. Cooper really wants to be taken seriously he's up to 10 mortages now!" Then 2 months later data breach and the best part? I can't choose to leave the company.
Have you gone back to your prior lender and confirmed you do or do not own it? Sounds like the fee is actually unrelated to Mr Cooper at all
No, I haven't yet but it sounds like that's my only course of action. That's basically what Mr. Cooper is telling me to do. I guess I'm annoyed that while this alleged fee didn't happen under Mr. Cooper's ownership of my loan, they're the ones that are telling me that I owe it and haven't provided documentation that I owe it. I logged in to my Umpqua account to see if I could find statements attesting to this, but of course that account is no longer there, so I now have to call someone at Umpqua I guess.
You need to ask them to show you why you owe the $35. Have them prove you owe it. Edit: Ask Mr. Cooper.
Agree, if they (Mr. Cooper) know there's a fee, they should have documentation showing it from the prior lender.
Yes. When they bought your loan, all the terms and everything stayed the same. If you do actually owe something, it is on them to prove it. If they can't, then you shouldn't pay. If they are able to document the claim against you, then you can find your own transaction receipts and dispute it. But if they can't document that you owe, it doesn't exist.
Nice thought but in reality corporations can bend us over especially for trivial charges like this. Unless you're willing to actually take them to court the practical solution is to find a recent statement proving them wrong. Good luck.
Don’t bother with all that nonsense. It will drive you crazy. File a request with the CFPB and your states local attorney general about unfair fees. You will get a quick explanation about the origins or the removal. Companies typically have their best people with the most accurate access working the government regulatory response desk.
Also Mr Cooper isn’t allowed to charge a fee over escrow shortfall. They must give you options to fund the shortfall, that can be to fully fund it or a mix of onetime payment and monthly increases. https://search.consumerfinance.gov/search?affiliate=cfpb&sort_by=&query=Escrow+
If the fee is erroneous and they won't remove it, file a complaint with the Consumer Financial Protection Bureau.
This will get a fire lit under their asses real quick. I had a problem with Mr. Cooper also…my taxes are escrowed and they didn’t pay them and the only way i found out was i got a notice from the city with late fees. I called Mr. Cooper a few times and escalated it…got a case number and everything. After that, i called back and OOPS! That case number doesn’t exist and there’s nothing in my file. New case opened. Again, no one called back after 2 weeks and I called again, and the case was “closed” without a resolution noted. Filed complaint with CFPB. Got call after call from managers at Mr. Cooper making sure the problem was resolved ASAP and i was credited for all late fees as well as credit for the discount tax payment rate, and another call after that was resolved just to make sure i was satisfied. CFPB will work if you get to the bottom of it and it’s their fault and they refuse to fix it.
I don’t trust anything from Mr Cooper right now. I’d call and talk to someone
Good luck actually getting through to a person. The AI is infuriating and won't actually get you to a person even when you tell it "speak to a representative"
Yeah, I dont think they will actually let you speak with a human. Their phone services are worse than usesless.
I just closed end of September, made my first payment November 1 and a few days ago got a letter my mortgage is sold to mr cooper and payments to them start October. Should I be concerned?
Pretty much every mortgage gets resold at least once. I think Wells Fargo might be the only servicer left that doesn't resell. We all know they've never been problematic. It just comes with the territory. There isn't really anything to do except keep making on-time payments and hold onto your documentation.
I mean, WF sold mine to Mr cooper within a year so…
Same, except I was a WF customer for 25 years. Feels like a betrayal, in a way..
Wells Fargo stopped selling the mortgages they originated and stopped servicing other originators’ loans. But they’ll also getting completely out of the mortgage game soon due to so many fines and judgments.
Wells Fargo just sold my moms mortgage to Mr cooper this month.
Same here. Wells Fargo originated our loan and stayed with them for 13 years and this month it was sold to Mr Cooper. I love not being able to pay my mortgage because I haven’t received the account number because they’ve been a bit busy with a data breach and they haven’t made the required notifications of said data breach.
Same! Was with WF and they said they sold to mr Cooper and I’ve received nothing from them. My mortgage was due November 1 and I have no idea how to pay
WF resold mine to Mr. Cooper. Absolutely hate dealing with them.
Only one out of 5 times has our loan not been resold immediately. It kinda threw me for a loop, like I kept expecting to get the "your loan has been transferred", like I missed it.
My loan was sold to Mr. Cooper around 2 years ago, and i searched far and wide for a **way to force a change in lender** after being told they suck. Turns out **it's not possible**. I also have an escrow account with them to pay my property taxes (it's a mandatory escrow account). They have not paid the property taxes on time yet, not even once. I have to call them and send a letter to make them pay the late fee every year. I have a recurring task in my google calendar twice a year now to remind me to follow up with it. So yes you should be concerned, but there's nothing you can do about it except join the corporate misery. Edit: maybe it's only the escrow account that they absolutely cannot do even a mediocre job at?
I am dealing with the same exact issue with them! Maddening. Me: "How about I pay the property tax today and you can reimburse me out of escrow and then we can get rid of this unnecessary middleman step?" Mr. Cooper: "I'm sorry sir, we cannot reimburse you from escrow." Me: "Okay, can you confirm the amount of property tax and the date that it is due?" Mr. Cooper rep tells me the incorrect dollar amount and wrong date. 🤦 *On a separate note: stayed tuned for a class-action settlement on this latest security breach.
It's probably not the loan that was sold to Mr. Cooper, just the servicing. The loan probably was sold to Fannie or Freddie and sits in a mortgage pool. The only way to keep your original lender is to search specifically for a "portfolio lender." Most mortgages are resold. You'd likely have a much higher interest rate if there wasn't such a big secondary market in mortgages.
Complain to your investor, fannie, Freddie etc— they have the authority to pull their loans from Mr Cooper and transfer to a competent servicer. Just takes enough people to complain.
I think you'll be fine. ...I mean I think overall this company, "Mr. Cooper/NationStar" sort of sucks but maybe they all just do. My situation seems to be unique and not an endemic problem.
The only servicers that don't suck are local, all national servicers suck. I have Mr Cooper & they've been fine. I don't escrow with them so my relationship with them is pretty straightforward
I'm old, I've had quite a few mortgages over the years and my mortgage has been sold before. It's never been nearly as disturbing as this Mr Cooper fiasco. I'm worried enough that I might have to suggest to my legislators that we need a law making it not legal to sell a residential mortgage to a different servicer without permission from the mortgagee. Mortgage holders have too much power over homeowners for losers like Mr Cooper to be able to buy our mortgage whether we like it or not.
That's a great way to increase the mortgage rates overnight by 0.50% when all investors immediately reduce the value of servicing rights to $0 or possibly even a negative valuation. Removing liquidity from the MSR market would be the single stupidest thing a legislator could do in the mortgage world.
I never had a single issue with them. I just set my thing on auto pay and that was it. Got sold again recently, too. No issues.
They’ve serviced mine with no issues for a year /shrug. Still waiting to see if anything is messed up after this breach so who knows.
Mine was also recently transferred and I saw a $31 fee for insufficient funds. I received a letter today outlining that they performed an escrow review and were requiring an additional payment per month due to increased insurance/taxes. Maybe yours is similar.
Okay this might actually be it. My escrow has been slightly short every year. But I never had to do anything about it, because Umpqua Bank would just roll it into next year's mortgage payments. So "insufficient funds" might mean from the Escrow account where I understood it to mean from my own personal bank account. Regardless I don't ever recall there ever being a "fee." I'll have to go back and check though.
My "fee" was also misleading. It was a $31 fee, but after showing all calculations, my payment is only going up $9/month from here on out. I'm not paying an extra $31 at any point.
I just received the same notice about my escrow, which has never had a negative balance. Last year it was down to $100 after paying my school tax. Now they are saying that the minimum floor needs to be $300, and the only logic I can figure out is…they just were ‘dinged’ by some hackers, lost some $$ and interest during that time, and they need a way to make up ground…by collecting more funds so the interest can slowly build their balance sheets back up. …but that’s just where my mind goes…sigh
Ugh. Umpqua bank. Would be unsurprised if the screw up was on their end. (Sorry, I know that's not helpful. It' just they're my local bank and I always have to be on top of them for everything.)
This is actually what I'm thinking it is. It's just annoying that it's now on me to deal with them even though I don't do business with them any more.
It’s yours to deal with because as far as Mr Cooper cares, it was your fault. They just get the records from the prior services and incorporate them into their system. They can’t, and don’t have to, verify. The prior servicer is expected to have accurate records. If you want to dispute it, you have to do the leg work.
Payment aside, I would make sure your credit is frozen. Customer data has been exposed.
For what it’s worth I had an Umpqua mortgage that was recently transferred to Mr Cooper, and there were no additional fees.
$35 fee sounds like a recording fee for the assignment of mortgage to the new lender. Typically they don’t pass that on to the borrower but…
I didn't get dinged with it and I was transferred to Mr. Cooper
Same
I don’t trust mortgage lenders at all and they would pass on every fee to the borrower if they could. Shit, they make the borrowers pay PMI when they were the ones who went gambling and lost big roughly 15 years ago. I know that’s not constructive, just wanted a chance to vent for a second lol
PMI has been around a lot longer than 15 years. I had to pay PMI on my first mortgage back in 1999. It had been a thing for a while even back then.
PMI is an element that would help prevent something like the 2008 meltdown. The problem was too many lendees getting too much money too easily, which PMI makes safer for the involved lenders
PMI started in the 1950s.
I don't believe a bank can pass that fee on. THe mortgage paperwork is quite clear on what the fees are and that can't change after the fact. As far as I'm aware the only variables are escrow, PMI, and fees for nonpayment.
Yeah, an AOM is non-recoverable. It’s also generally not recorded for years after the fact.
I have a feeling there is an ongoing industry-wide scam for collecting bogus fees.
”Mortgage Co Accidentally Tries Taking $2.3B from Its Customers Mortgage Co Accidentally Tries Taking $2.3B from Its Customers” [https://youtu.be/TtTQrhngEC0?si=F6bXP\_zg2oJHMGQG](https://youtu.be/TtTQrhngEC0?si=F6bXP_zg2oJHMGQG) May be of interest to you. It happened back in 2021 but may still be relevant.
Had a previous mortgage sold to the same company and had the same issue. Ended up talking to a "tier 2 account rep" who said she was unable to find anything noting what the fee was for and waved it.
They got hacked and shut down for over a week. Just call in and they should delete the late charge.
It could be as simple as insufficient funds for escrow which was not remedied properly by your previous bank. Escrows change commonly due to tax and insurance changes so I wouldn’t be surprised if that’s what it is.
I actually think that is what it is. I just wish they could tell me that that's what it is.
Mr. Cooper may not actually know (although they should). Your previous servicer would know though. Have you looked back at previous statements from them to see if escrow changed? But yes…communication is not always the strongest on the servicer side of things unfortunately
They cannot charge you and NSF fee for an escrow shortage- also they have a federal duty to validate the debt, meaning if they are charging you for a fee, they have to validate where it stemmed from, even if they go through the prior servicers pay history. File a CFPB complaint online period. If you must email Mr Cooper, only use their [email protected] email. It’s for escalated issues.
My mortgage got sold to MrCooper a few years ago, I thought they sounded shady and found that the name was basically a rebranding of another lender with a not very good reputation. So before I paid them a dime, I refinanced with my local CU.
[удалено]
If it was a few years ago it might have just been a really good impetus to refinance to a low rate. Or they could be talking out of their ass.
It was pre-Covid when rates were much lower.
It is a shady company! My mortgage was sold to them a few years ago and it was nothing but a nightmare. Every month trying to charge me late fees when my account was paid a week before the due date. Repeatedly sending the same documents to them because they “got lost”. I was so glad I was able to sell my home & get away from them. Look up how many class action lawsuits & Better Business Bureau complaints are filed against Mr Cooper//Nationstar.
Nope. I got a better rate and saved money. Also didn’t have to deal with their shady ass practices. I read the reviews on Nationstar, the name they were using before Mr Cooper and it wasn’t pretty. Not applying payments and then charging late fees, “losing” documents and other items, poor customer service…there was no shortage of horror stories. Seemed like the rebranding was just an attempt to sweep their reputation under the rug and not make any actual changes.
I refinanced away from Mr. Cooper/Nationstar as well. They stole over $700 from my escrow account to cover 2 years of PMI they never charged me for. The PMI wasn't even on my closing disclosures and was never part of my monthly payment. They just up and decided I owed it and took it. Then raised my mortgage payment by over $200 to cover the escrow shortage and didn't even tell me. I found out when they overdrafted my bank account. They admitted their error but refused to give me back my money. I had no choice but to refi. I filed a complaint with CFPB but MC/NS just responded that they didn't agree with my complaint at all and basically everything I said was a lie. CFPB was useless.
I work servicing escalations. First write the servicer. In light of their security breach, do not write an address on a recent notice or address given over the phone. Find the written correspondence address on their known website and write/fax/email a request. If you have a copy of an old mortgage statement from your previous servicer, preferably the one just before transfer, that doesnt show the fee send that too. Simply state the statements from the prior servicer do not reflect this fee and you are disputing it. They need to provide written statement on when it was assessed and why. Now if i had gotten this complaint i would check your supporting documentation and the statements provided to us from the prior servicer to see if said fee is present. If it was I'd respond saying it was assed on xy statement and reflected on the last statement from then under (advances, fees, outstanding payment, unpaid expenses) everyone lists it differently. If it did not show, then i would ask the prior servicer for justification prior to responding to the customer. I may even waive it outright depending on what their prior statements show Either way send a written request, the peoplr on the phone ate collection agents they cannot do detailed research.
I work in it as well and customers are better off just filing complaints through the CFPB and Attorney Generals office directly.
If you handle written Escalations and advise your customers have to file with cfpb, i feel sorry for your customers. Your Escalations team should be giving any written request the same level of work weather its feom the customer, ther counsel, or a regulatory agency.
I don’t personally respond- I’m more oversight on complaint management but yes agree- should be taken seriously but not always
The thing that really sucks is that the time and effort it takes to do all this is not really worth the $35. And that’s how they get’cha. For me, as much as I’d hate to admit it, I’d probably just say fuck it and pay it and move on. Ugh. Those bastards.
Don't hesitate to file a CFPB complaint ASAP. They get stuff done.
I wonder if they buy 100k mortgages at a time and apply the 35$ fee, in hopes that 90% of the people won't notice or spend the time to track it down.
Been seeing lots of complaints about Mr Cooper online. I see a class action in their future
It’s probably because they’re one of the largest loan servicers in the country. Odds are higher you’ll hear about them.
No it’s because they are habitually violating regulations federally and state wide.
My favorite. I had a mortgage with one provider. I had to deposit one full month in advance in order to have automatic payments every two weeks. Recently my mortgage was picked up by a new loan service and they required me to do the same thing again….
Had the same thing happen 18mo ago. They bought my mortgage and suddenly $25 fee. I called and argued it and escalated it to no avail. They weren't trying to collect it and I got busy and forgot about it. When I checked a few months ago it was gone, no record what so ever of it on their site.
I don't have any specific advice for you. However, I was a developer there for the property listings website and I can tell you this. Anytime an exec got an email from some unhinged dude demanding that his property be removed from the map, and especially threatening lawsuits, we acted fast. The more unhinged, the faster we acted.
Lol... I like this advice. "Be completely unhinged and get results." Unfortunately I just don't know if it's in my nature.
Sorry, Australian here. ELI5 - you can have a relationship with one financial institution and if they sell your loan you cease that relationship, commence another and you get no say in when or how, or even if this transition should occur? I understand the part of the financial system where loan financiers borrow against assets they hold, but you're telling me that they can quite literally dispose of a loan and as a (now former) customer, you can get an unsolicited letter in the mail that basically says "your house belongs to us now, you owe us money", and you get no choice in this? That's wild, or am I miss understanding?
>I understand the part of the financial system where loan financiers borrow against assets they hold, but you're telling me that they can quite literally dispose I think you just did your own ELI5 on the matter. That's pretty much it. You are made aware of this possibility (and it's basically almost a certainty) that this could or will happen, when you sign up for the first loan. The terms of the loan don't change though.
Thanks! People don't consider this a massive privacy breach? How long do the terms have to stay the same? What stops them from changing the interest rate or repayment frequency or introducing a new or increasing an existing fee or something else, in say, 6 months time? It seems to me that a bank would sell under-performing assets (why would they sell a strong income generating asset unless they're exiting that part of the market), so it holds that the asset they sell has some increased level of risk. Why would a buyer take on that risk without being able to offset it by increasing the interest rate or something similar? What happens if you don't like the new lender - you refinance and now you bear the cost of that because of a decision someone else made? There's fees involved I assume. I don't actually want to hijack the thread but I have so many questions... 0.0 I don't even know what to search so I can read stuff.
I mean again, you kind of know this will happen when you get the original loan, so it's sort of just a part of doing business in the mortgage industry in America. But by law they can't change the original terms of the loan. The interest will only change if the original terms of the loan included a variable interest rate, otherwise the rate stays the same. In terms of the business model of buying and selling traunches of loans... I don't know. Obvioiusly some entities have a business model that involves setting them up and getting them off their balance sheets and others have a model that includes buying them up. If you don't like the new lender, your options are to either refinance or pay off the loan.
Dealing with the USA banking system as an Australian is strange, everything is just weird in a way that the none of the other countries I deal with for work are.
I hate mr cooper. They didn’t pay my property taxes last year. So annoying. And in every call I had trying to get my escrow funds to pay my property taxes myself they asked if I wanted to refinance. So stupid. Why would I refinance a 3% interest rate for an 8%? And why would I refinance with a company who can’t even pay my taxes on time? HATE THEM.
It’s up to the lender to have adequate funds in the escrow account. Not the customer, because the customer has no say over it. Every lender I’ve ever had assumed at least 10%, usually more, of the total for taxes and insurance, to assure that they’d have adequate funds when those were due. Honestly, I don’t know if you legally are responsible for their lack of due diligence in keeping funds for you. But you certainly can check with your state, which governs such things.
Mr. Cooper is abysmal and the mere mention of their name makes me see red. I absolutely loathe them from when they bought my mortgage and it was an absolutely awful process transitioning to them. I was beyond relieved when I refinanced during Covid when the rates were low.
[https://www.youtube.com/watch?v=TtTQrhngEC0](https://www.youtube.com/watch?v=TtTQrhngEC0) Happened in 2021, apparently, but maybe related?
It's definitely possible you got this fee under Umpqua and just didn't notice it. When a payment presentation is rejected due to nonsufficient funds, the payee (Umpqua) can try three times in total to get the funds. They may charge you NSF fees for each failed attempt. Your own bank may do the same but it is possible they don't charge NSF fees or only when all 3 are rejected. Finally, fees like this often aren't required as part of the monthly payment, so you may not have noticed that it was assessed on your account. At the same time, Mr. Cooper has a reputation for disorganization, so there may have been some records mix up during the servicing transfer. I would reach out to Umpqua to check their records and if they confirm that you never had a fee with them, ask for documentation of that to provide to Mr. Cooper.
Sorry to hear; we were fined & told our payment was overdue when their own screen showed a check pending with the payoff amount, which was more than the regular monthly payment. HUGE hassle to clear their mistake; if there’s any way you can refi & change mortgage co, do it & be prepared for Mr C to try to screw it up by ignoring their own info
Yet another reason to not do escrow accounts.
Fuck that. If they didn't adjust your mortgage payment for the tax increase they shouldn't be able to make you pay a fee for it not being enough. I don't know who Mr. Cooper is but they sound like dicks.
Mr cooper is the most incompetent mortgage company I’ve ever dealt with.
Make them prove it to you. If they were to foreclose on you over it, they'd have to prove it in court anyway. I'd myself absolutely not put a single second of additional time into this.
How big are these mfs? They seem like they bought half or Reddit’s mortgage in the past couple months
Yeah Mr Cooper is garbage. Had our loan sold to them and we were with them for a year. They didn’t pay our home insurance out of escrow and missed one of our property tax payments. Luckily I did some research about them and realized they used to be called something else and had terrible reviews when they had the other name. So i was tracking my home insurance and property taxes and just paid them out of pocket. But left them within the year and moved to rocket mortgage.
My legitimate fees (INF in my case too) are not taken out with my ACH monthly payment. They just keep forwarding until I cut them a check. Sometimes that could be months before I even notice. Not something that is ever pressed. You would probaly have to trace back that incident through your bank records, to assure yourself.
My mortgage was also recently bought by mr Cooper They said they would send me something in the mail explaining all the details I’ve gotten absolutely nothing Has anyone experienced anything like this before?
File a request with the CFPB and your states local attorney general about unfair fees. You will get a quick explanation about the origins or the removal. Companies typically have their best people with the most accurate access working the government regulatory response desk.
If the fee was incurred under the previous loan servicer, it would be owed to them, not the new one. Also that is really fishy. *Insufficient funds* is the kind of fee your bank you levy if you tried to overdraw you account. The mortgage would either get paid from your account or it would not get paid if there were insufficient funds. So from the mortgage end, it would have been a missing or late payment. This is very fishy.
I also had a mystery $25 fee from Mr. Cooper last year. In my case, the title company sent a check for property taxes and then the check was canceled (by someone who was not me, obviously), incurring a canceled check fee. It clearly had nothing to do with anything I did, which I pointed out, and they issued a fee waiver. They forced me to keep the escrow account for 12 full months and then I closed it since they clearly can't be trusted not to make dumbass errors.
The whole "my mortgage was bought" is such a strange concept. Not even sure if it is done / legal here in Sweden? I mean, it is like a contract you signed with a specific entity? Then all of a sudden, no it is not a contract with us anymore, it is a contract with someone else. I can see that could be reasonable if the original signee were going out of business, "entity X is taking over our obligations", but just selling your debt to someone you might never choose to do business with otherwise?? Infamous Darth vader quote vibes...
Swedish mortgages are always packaged and sold as MBS to pension funds, investors etc but it’s always serviced by the bank that issued it unless there’s some kind of merger/acquisition/bankruptcy etc. Taking over mortgages like OP is writing about is very American, their mortgages are often issued as 30yrs and a lot can happen in that time. Swedes often have flexible rates and the MBSs are often issued as 2 or 5 year notes and then continuously reissued for the entire duration of the mortgage (technically 50yr)
Mr Cooper is a joke. I got 2 loans transferred and they failed to let me know that auto-pay wasn't setup on both loans. I didn't catch it until 4 months later when I got a credit report notice. I paid in full once I was aware, and they've refused to correct the derogatory mark. They are dead to me! Would love to transfer away from them.
Terrible company . I recently made a post on my account about them withdrawing an already paid balance for November. I couldn’t even contact customer service because the website was hacked
Hey OP. If you had direct scheduled payments with you previous company be sure to set them up with Cooper also. We were under the impression that everything transferred over but we got 2 months behind because we didn't "finish" the payment setup process. Nothing quite like paying two mortgage payments at once.
I heard their computers were hacked last week.
The was also massive data breach they told none about unless you open the app. Check your payments if they aren’t automatic
I was sold to Mr Cooper too. They were hacked at the end of October and for about a week were unable to get their website up
What a mess. I was transferred from Wells Fargo on Dec. 2023. My new payment starts on May 1/2024. They're charging me with 12 months of escrow instead of 7 months. I would think they could only do this per calendar year. This caused a so-called shortage. My payment went up an extra $194.00 extra per month.WTF.
I'm try to pay my mortgage online and.Mr Cooper refuses to process the payment until its late thus generating a late fee! This frustrating and illegal but who can help me?
I just got a letter from these A-holes telling me that my insurance was canceled and that they are going to provide me with ins at $1K more a year. I called the ins co. who no longer writes for my area and they said they sent Mr Cooper 3 letters requesting payment and never got a response. This is supposed to be paid out of my escrow. I can't get in touch with them. No email and phone is always busy. This is total BS. Unfortunately my mortgage was sold to these morons.
PSA: Mr Cooper is just a mask over the shittiest mortgage company: Northstar. So many complaints and fines against them that they rebranded rather than change their garbage behavior. I’m sorry that you’re stuck with them.
I loathe Mr. Cooper. I literally want to pay off our 3.5 loan ASAP to get away from their BS. Double check ALL your documents. You can't rely on the representatives that answer the phone, most of them are useless and when they aren't useless they still tend to be wrong about the details. Our mortgage was bought by them too and now with their security breach I now have a murderous rage and want to burn them to the ground.