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Filing a Lender or Servicer Complaint

HOMEOWNER'S CAN FIGHT BACK AGAINST THEIR LENDER

It is important to know that homeowners and authorized third parties are able to file complaints with the bank regulators or another option if reviewed under one of the Making Home Affordable programs like HAFA, then it is possible to open an escalation with the HAMP Solution Center who handles complaints about lenders and servicers who do not follow the program guidelines under the Making Home Affordable program which includes the HAFA Short Sale Program. It is not at all uncommon for the lenders to not be following the guidelines. The HAMP Solution Center is a great resource I am using now for clients and they are wonderful to work with. Also, Fannie Mae now has a short sale assistance desk available to real estate professionals like myself for post-offer issues with short sales. Use the Fannie Mae Loan Lookup tool to see if they are the investor.

Escalation Process Contacts
Fannie Mae Owned Loans	Phone: 1-800-7FANNIE [email protected]
Freddie Mac Owned Loans	Phone: 1-800-FREDDIE [email protected]
Non-GSE Owned Loans	HAMP Solution Center Phone: 1-866-939-4469 Fax: 1-240-699-3883 [email protected]

The HAMP Escalation process start page is a great tool for consumers to see if they have a valid complaint against their lender or servicer. Keep in mind that the HAMP Solution Center will only handle escalations for borrowers in the U.S. Treasury sponsored programs like Making Home Affordable or the HAFA Short Sale program.

To start, first, work through your normal contacts and channels with the servicer. If that does not resolve the issue, elevate your concern to a senior manager within the servicer's organization.

Here are examples of cases that represent valid reasons for escalation:

Servicer refuses to stop a scheduled foreclosure sale on a borrower's house while the borrower is being evaluated for HAMP.
Servicer charges up-front fees for the modification.
Servicer instructs the borrower to miss a payment.
Servicer claims that they are waiting for information or guidance from Treasury (i.e. Treasury is causing the delay).
Servicer advises the borrower to intentionally misrepresent their personal or financial information.
Servicer says they are not participating in HAMP, but the loan's investor is a GSE.
Servicer says borrower doesn't qualify, but counselor has reason to believe that the borrower is eligible.

Contact information for the Escalation or Complaint Process is below:

If escalating to senior management does not resolve the issue, escalate the issue using the following contact table:

Gather the necessary case information and borrower consent.

The inquiry information that a counselor will need to supply for a status includes the following:

Homeowner's Name

Property Address

Servicer Name

Servicer Loan Number

Foreclosure Date (if applicable)

Counselor Name & Organization

Counselor Email

Counselor Phone

Counselor Relationship to Homeowner

An escalation specialist will work with the servicer regarding the case and seek to provide you with an initial status within four business days of receipt of the requested inquiry information and borrower authorization. If the servicer is unwilling to comply with program guidance or the escalation team identifies systemic non-compliance, the escalation team may report the servicer to the Making Home Affordable Compliance team.

CAR Member Legal Services
Tel (213) 739-8200
Fax (213) 480-7724
March 29, 2025

NAR “The Washington Report” Conventional Residential Lending Report (March 15, 2025)

Brokers and agents have several options to help escalate issues they are having with lenders under the Making Home Affordable program. Valid reasons for escalations include:

Servicer refuses to stop a scheduled foreclosure sale on a borrower's house while the borrower is being evaluated for HAMP/HAFA.

Servicer instructs the borrower to miss a payment.

Servicer says they are not participating in HAMP, but the loan's investor is a GSE.

Servicer says borrower doesn't qualify, but broker/agent has reason to believe that the borrower is eligible.

Contact should be made with the servicer by phone or email to escalate the problem to a supervisor. It is important to cite the part of the guidance that the lender is not following and to keep records of the communication. If the supervisor cannot or will not assist with the situation, members should:

1. Check and see if the servicer is participating in the program. The Making Home Affordable program has an easy search option available on the program’s website: http://www.makinghomeaffordable.com/contact_servicer.html

2. Check to find out if the loan is owned or securitized by Fannie Mae or Freddie Mac. This can also be done at the Making Home Affordable website: http://www.makinghomeaffordable.com/loan_lookup.html

Use the following contact information to escalate the issue:

Real estate professionals who would like to raise questions or concerns related to the program can email them to [email protected].

(Source:http://www.realtor.org/wps/wcm/connect/04cbb28045cc9f638a5ecb342c47dc89/HAFA_escalation_31611.pdf?MOD=AJPERES&CACHEID=04cbb28045cc9f638a5ecb342c47dc89)

If you are seeking assistance for a specific borrower, you will be required to provide the escalation team with a written authorization from the borrower authorizing the escalation team and the servicer to share the borrower's personal financial information with you. The written borrower authorization must be received by the escalation team before status information can be shared with you. Additional instructions are available as needed from the escalation team.

Jason Hector, CA Dept of Real Estate License #01481898
11630 Seminole Cir • Northridge, CA 91326
Office: (818) 626-6469 • Cell: (818) 357-9658
Fax: (866) 791-3290