Carrington Mortgage Services - A Waste of Time and Money


 Carrington Mortgage Services

Customer Service Department


To Whom It May Concern:

This letter serves as a formal complaint regarding inaccurate mortgage payment information provided by your representative and the improper assessment of fees and withholding of funds on my account.

During a recorded telephone call to your agent line, your representative informed me, on three (3) separate occasions, that my adjusted monthly mortgage payment was **$647.46**. This amount was clearly repeated and is documented in the call recording.

In reality, the correct mortgage payment was **$674.46**, a difference of $27.00. As a direct result of the misinformation provided by your employee, my payment was delayed and a late service charge of **$22.03** was assessed.

On March 2, 2026, a payment of **$750.00** to Carrington Mortgage on my behalf. Despite this payment, I have been informed that **$650.00 is currently being held for non-payment**, which is improper given that the discrepancy was caused by inaccurate information from your company.

This matter reflects a pattern of ongoing servicing issues I have experienced over the past five (5) years. I am formally requesting the following:

1. Immediate removal of the $22.03 late fee.

2. Immediate release and correct application of the $650.00 being held.

3. Written confirmation of my correct monthly mortgage payment amount.

4. A written explanation regarding the misinformation provided by your representative.

If this matter is not resolved promptly and in writing within ten (10) business days, I am prepared to file formal complaints with the Consumer Financial Protection Bureau (CFPB) and the appropriate state banking and mortgage regulatory authorities. I will also request a full review of my loan servicing history.

I expect your immediate attention to this matter and a timely written response.

Sincerely,

Carrington Mortgage Services has faced significant regulatory scrutiny, including a 2022 Consumer Financial Protection Bureau (CFPB) enforcement action for failing to implement COVID-19 protections, which resulted in a $5.25 million penalty. Recent 2025 audits also highlighted failures in complying with FHA requirements for loss mitigation and foreclosures.

  • CFPB Action (2022): The CFPB found that Carrington violated the Consumer Financial Protection Act of 2010 and Fair Credit Reporting Act by misleading borrowers about forbearance options, imposing improper fees, and providing false information to credit reporting agencies.
  • FHA Compliance Audit (2025): An audit revealed that in 2022, Carrington did not follow Federal Housing Administration (FHA) requirements for over 18% of its foreclosures. The company was advised to improve its procedures for reviewing borrowers for loss mitigation.
  • Ongoing Legal Issues: Lawsuits have continued, including allegations of "pay-to-pay" fees and improper handling of mortgage payments.
While the 2022 CFPB order was formally terminated on July 21, 2025, after the company complied with payment and refund requirements, the 2025 Office of Inspector General (OIG) audit findings indicate ongoing scrutiny regarding their foreclosure practices.

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