BBB Business Review
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According to the company website, the company is a mortgage servicing company providing services including payment counseling, assisting consumers who are delinquent on payments or facing foreclosure, loan modifications, and the Home Affordable Modification Program.
This business is not BBB accredited.
Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation.
To be accredited by BBB, a business must apply for accreditation and BBB must determine that the business meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses must pay a fee for accreditation review/monitoring and for support of BBB services to the public.
Reason for Rating
BBB rating is based on 16 factors. Get the details about the factors considered.
Factors that raised the rating for Residential Credit Solutions, Inc. include:
- Length of time business has been operating.
- Complaint volume filed with BBB for business of this size.
- Response to 181 complaint(s) filed against business.
- Resolution of complaint(s) filed against business.
- BBB has sufficient background information on this business.
Customer Complaints Summary Read complaint details
|Complaint Type||Total Closed Complaints|
|Problems with Product/Service||74|
|Total Closed Complaints||181|
Additional Complaint Information
Complaints processed on this company by the BBB primarily concern Credit/Billing, Service, and Customer Service issues. Specifically, consumers repeatedly make the following complaints about RCS: forced escrow payments, non-payment of property taxes, poor record keeping, erroneous fees assessed, failure to honor prior lender’s loan modification agreements, poor customer service, inability to get documents to the proper department for processing, delays in obtaining loan payoff information, and harassing collection calls.
A more detailed explanation of complaints follows.
Complainants report having a home mortgage with another lender and then having that mortgage sold to Residential Credit Solutions (RCS) for servicing. Consumers report almost immediate problems once RCS assumes the loan. These problems include forced escrow accounts despite consumers providing documentation that insurance and taxes have already been paid. Consumers also allege fees and charges being added erroneously when the company assumes the loan. In response, the company states that modifications were denied because the required documents were not received, refunding or waiving fees when they were assessed in error but without explaining why the error was made.
Complainants report problems with the company paying property taxes despite the money being in escrow, reporting payments late or incorrectly, and problems with loan modifications. In response the company pays the taxes and any penalty fees, blames online phone payment limitations and systematic posting errors for the issues consumers experience, and admitting errors causing documents to be loaded for incorrect loans. For loan modification problems, the company states that it was unable to assist consumers due to net present value results, but that it will attempt to resolve the issue via short sale or deed in lieu of foreclosure.
Complainants allege the company fails to honor contracts made with the original mortgage company despite consumers providing requested documentation or modifying a loan to a payment exceeding the original loan payment amount. In response, the company claims that gross income is sufficient to support the higher payment or that the consumer failed to supply documents to support their claims and the investor again denied the request to lower payments.
Customer Service Issues:
Complainants allege they are unable to speak to supervisors to resolve complaints, telephone messages go unanswered and unreturned, representatives fail to resolve issues in a timely fashion, documents are lost multiple times or do not reach the correct department, customers do not receive loan payoff information in a timely manner, and customers receive frequent harassing collection calls even during payment grace periods. In response, the company states that foreclosures will be cancelled if the consumer successfully completes the modification plan.
The BBB has noted an increasing volume of complaints being received on this company. The company is scheduled to meet with the BBB in April 2011 to discuss the pattern and volume of their complaints.
Customer Reviews Summary Read customer reviews
|Customer Experience||Total Customer Reviews|
|Total Customer Reviews||10|
Type of Entity
Business ManagementMr. Dennis Stowe, CEO Ms. Christy Allen, Resolution Specialist Ms. Kim Brouse, VP Loan Admin
REFINANCING MORTGAGES MORTGAGE FORCLOSURE ASSISTANCE