The Federal Reserve Board issued amendment to the Truth In Lending Act, for consumers to receive notice when their mortgage loan has been sold or transferred.
There are compliance guidelines which mortgage servicers must follow RE: transfer of service/loan ownership, escrow accounts, force placed insurance, fees, inquiries, disputes AND posting payments.
It is in this last component where LenderLive fails to comply with the law.
My loan was sold by Discover Home Loans to LenderLive. And boy, do i regret this ever happened.
I would have accepted a higher interest on my loan to simply not deal with this company.
The SERVICER must credit a payment to your account as of the day it is received.
However, the online payment website provided by LenderLive is faulty and continuously problematic.
You follow all the steps to make a payment but it logs you off after the final step, which leads you to believe you have made a payment.
If consumers are not diligent in following up days later, to see if your payment posted, which it may not – then you run the risk of being charged LATE FEES.
Lender Live also functions as a collection agency.
And i am sympathetic in this regard, since i imagine it deals with many customers who are undisciplined with their finances.
But in the case where you are being responsible and diligent about compiling with personal financial matters.
This company creates a hurdle, and i can see where others, who may be less tech savvy, will unwittingly fall into a trap and be assessed late fees for payments which are not properly posted.
I have written emails and made multiple calls to address this concern and to inform them they must correct this “bug” in their system.
They state it is the fault of my bank and not theirs. I have never had my bank’s debit card, check or credit card be denied at any business… ever!
This evening, i again attempted to make my mortgage payment through their website. Once again, i was logged off at the final stage.
I will call again in a few days, where i will ask the agent to manually withdraw money from my checking account.
LenderLive charges an additional fee when you ask them to do it by phone.
If you inform them you attempted via their website and now resort to calling them, they will offer to waive the fee – but only once!
Future calls to make payment shall incur a $9 fee. I wonder how much revenue this company generates on late fees?
Which are imposed on you as a result of their flawed system. The Federal Trade Commission is the nation’s consumer protection agency.
It works to prevent fraudulent, deceptive and unfair business practices in the market place. I hope the FTC initiates an investigation into this company.
Do yourself a favor, before you sign a loan for a home – ask the lender to see if they will sell your loan or obtain the services of LenderLive.
If so…. turn and walk away. Make sure your loan is serviced by another company.