RoundPoint mishandled payments, borrower lawsuit claims

RoundPoint Mortgage Servicing, a subsidiary of Two Harbors Investment Corp., is facing allegations in federal court that it failed to record payments when received, improperly charged fees and mishandled corrections.

In the lawsuit filed in Wyoming District Court, plaintiff Gary Ventling claims payments he made within a stated grace period resulted in the fees and other issues, violating the terms of the note, state and federal statutes.

A Two Harbors representative declined comment. The company has not yet filed a response to the lawsuit in the court record.

The court filing follows a broader legal and regulatory focus on "junk" fee allegations that some financial institutions have been fighting. These include a Mr. Cooper payoff charge lawsuit, and Fay Servicing's recent settlement of alleged mortgage insurance overcharges and other claims.

At issue in the case at hand is a mortgage Ventling and his spouse obtained from Pinnacle Bank in 2016. RoundPoint began managing the loan in 2023, according to court documents. Ventling said he typically overpays his $2,805.12 monthly obligation by $4.88 and obtains receipts for it.

Those receipts show mailed delivery of payments within the grace period, but RoundPoint recorded them with a lag time of several days in crediting payments such that they ended up being recorded as late, generating a $140.26 fee, the lawsuit alleges.  

While the company made efforts to correct the issue, credits in that effort were misapplied, with such errors made repeatedly over a span of multiple months, Ventling claimed.

He also alleged RoundPoint "does not have proper procedures" to handle Qualified Written Requests, a formal process for submitting servicing inquiries under the Real Estate Settlement Procedures Act.

Ventling is attempting to obtain class certification for the lawsuit.

A Better Business Bureau listing also notes other recent payment-related complaints at RoundPoint but shows company responsiveness to them.