I have been a 21st Mortgage customer since 1999. We have always been current until recently. For the last couple of months I have been what's called a "rolling 1x30". What this means is we are running a month behind. There are several laws and acts that govern how a mortgage or mortgage servicer can collect on a loan. I know this because I work for a mortgage servicer that does NOT violate these laws.
The primary law that governs collection of debt is called the Fair Debt Collection Practices Act (FDCPA for short). This law sets requirements for when a customer can be contacted (not too early/too late), sets requirements for advising customers of truthful information, and cannot be threatening. I am sad to report that 21st Mortgage Corp not only is out of compliance with the FDCPA, they have trounced it and burned it to the ground.
I started receiving collection calls that stated I was going to be foreclosed on immediately if I didn't pay today. Are they not understanding the fact that Florida is a judicial foreclosure state ? That a foreclosure has to go through the courts ? There was a company several years back called Fairbanks Capital Corp. that was all over the news for doing this and the Federal Trade Commission (FTC) slapped them with a 40 million dollar penalty as a settlement to a class action lawsuit. 21st is guilty of the same exact offenses.
It is NOT legal to overstate the severity of the debt in question. Telling a customer who is not even 30 days down a foreclosure is imminent is against the law. It is unethical and vile and this company should feel the full weight of the FTC and the federal government. I filed a complaint with the FTC. I encourage other customers who are receiving similar threats to do the same. The other way 21st Mortgage is breaking the law is in regards to the Real Estate Settlement Practices Act. (RESPA for short).
A mortgage servicer has set time frames for resolving qualified written disputes from customers. I sent a dispute in writing to 21st Mortgage back towards the end of June. It has been over 60 days and I have not received the required by law resolution letter to my dispute. I was writing to dispute the application of payments (they were holding the money and not applying payments timely) and the principal balance on the loan. I forwarded a copy of this dispute to the FTC as well. I will be notifying the FTC today that 21st Mortgage did nothing to resolve the dispute other than sending me a payment history and two payoffs which both had completely different figures written on them. This company is unethical and to be frank - poorly managed.
My final complaint about 21st Mortgage was the rude and unethical treatement I received at the hands of one of their (I assume) Collections Supervisors. I was told and I quote "you must not want your home and we are going to take it from you if you don't pay today". I was not even 30 days down. I tried explaining to this supposed Supervisor the payment would be there in a matter of days and he was not in adherence with federal laws governing collection of a debt. He continued using abusive and rude language implying that I was acting like a deadbeat and that they were going to make sure my credit was ruined if I didn't make a payment today. This information was included in the qualified written dispute I sent to 21st Mortgage Corp. I requested that they pull the call and review it for themselves. I received no response to any of this.
The best advice I can give those people reading this is do not do a loan with this company and if they purchase it, REFINANCE and QUICK.