13 Crucial Red Flags to Watch for with Rushmore Loan Servicing

📚 Table of Contents

1. Introduction – Why This Guide Matters
2. Red Flag #1: Misapplied Payments
3. Red Flag #2: Escrow Account Errors
4. Red Flag #3: Poor Communication and Unreturned Calls
5. Red Flag #4: Mishandled Loan Modifications
6. Red Flag #5: Force-Placed Insurance Without Notification
7. Red Flag #6: Foreclosure Actions During Active Reviews
8. Red Flag #7: Credit Reporting Mistakes
9. Red Flag #8: Delays in Payment Processing
10. Red Flag #9: Inaccurate Payoff Quotes
11. Red Flag #10: High Volume of BBB & CFPB Complaints
12. Red Flag #11: Unclear Ownership of Your Loan
13. Red Flag #12: Mishandled Forbearance or Hardship Plans
14. Red Flag #13: Lawsuits, Class Actions & Investor Risk

🔍 Introduction – Why This Guide Matters

If you’ve received a letter stating your mortgage has been transferred to Rushmore Loan Servicing, you’re not alone. This mortgage servicing company handles more than 200,000 residential loans across the U.S., and while it operates legally under federal guidelines, borrower satisfaction has been alarmingly low.

Multiple independent platforms such as WalletHub, ComplaintsBoard, and Birdeye report overwhelmingly negative reviews—often around 70–90% 1-star ratings.

📊 Customer Review Breakdown (as of July 2025)

Platform	Average Rating	% of 1-Star Reviews
WalletHub	1.7 / 5	78%
ComplaintsBoard	1.3 / 5	82%
Birdeye	3.2 / 5	65%

“I called them 11 times over a 3-week period. No one called back. My payment was misapplied and they almost started foreclosure proceedings. I had to hire an attorney.”
– Verified Borrower, Texas (via ComplaintsBoard, 2025)

Unfortunately, this is one of the only many negative reviews available. Most reviews are brief complaints or legal filings without resolution. That alone is a red flag.

Let’s now break down each of the 13 most serious complaints that have surfaced—and how to protect yourself if Rushmore is your servicer.

🚩 Red Flag #1: Misapplied Payments

A disturbing number of borrowers report that Rushmore misapplies payments—even when they were sent correctly and on time. This can lead to incorrect delinquency notices, credit damage, and even foreclosure threats.

🔎 Why This Happens

• Rushmore sometimes applies payments to fees or escrow first, not principal + interest
• Manual errors during transfer from another servicer (e.g., from Mr. Cooper or PHH)
• System glitches during weekend or holiday processing

✅ What You Can Do

1. Request a complete payment history in writing (certified mail recommended)
2. Check your escrow statement for inconsistencies
3. Dispute any errors via CFPB or your state regulator

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🚩 Red Flag #2: Escrow Account Errors

Escrow account mismanagement is one of the most common and damaging issues reported by borrowers dealing with Rushmore Loan Servicing. These errors can lead to overcharges, unpaid taxes, lapsed insurance policies, or even forced-placed insurance that costs two to three times more than market rates.

📉 What Escrow Errors Typically Involve

• Failure to pay property taxes on time
• Insurance policies canceled due to non-payment
• Unexplained escrow shortages or spikes in monthly payments
• Improper escrow analysis or projections

📊 Comparison: Proper vs. Mishandled Escrow Accounts

Aspect	Proper Escrow Handling	Rushmore Complaint Example
Insurance Payment Timing	Paid 15–30 days before due date	Missed deadline, policy lapsed
Tax Disbursements	Full property tax paid on time	Partial payment sent; lien risk
Escrow Analysis Accuracy	Reviewed annually, with clear notice	Errors in projections; $700/month increase

🔐 What You Can Do Immediately

Learn more about your escrow rights through the CFPB’s official escrow guide or Nolo’s breakdown of homeowner protections.

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🚩 Red Flag #3: Poor Communication and Unreturned Calls

One of the most frequent and dangerous complaints lodged against Rushmore Loan Servicing is its failure to communicate effectively with borrowers. This includes long phone hold times, unanswered emails, unfulfilled promises to “call back,” and frequent changes in assigned representatives.

📉 How This Affects Borrowers

When communication breaks down, it can lead to a cascade of problems:

• Missed payment confirmations or approvals
• Loan modifications denied due to incomplete documentation
• Delayed foreclosure alternatives during hardship periods
• Repeated re-explanations due to rotating support agents

📊 Impact Comparison: Good vs. Bad Servicing Communication

Scenario	Good Servicer	Rushmore (Complaint-Based)
Loan Modification Processing	Completed in 30–45 days with 1 rep	Stretched over 90 days; rep changed 3x
Response to Urgent Inquiries	Answered within 24–48 hours	Unanswered for 5–10 business days
Delinquency Notifications	Sent clearly by mail and phone	Only discovered via credit alert

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🚩 Red Flag #4: Mishandled Loan Modifications

Loan modifications are meant to protect borrowers during times of financial hardship. But with Rushmore Loan Servicing, multiple borrowers allege that modification requests were lost, delayed, or denied without clear justification—in some cases resulting in foreclosure proceedings that borrowers believed were paused.

🕒 The Most Common Modification Failures Reported

• Documents marked “incomplete” after already being confirmed as received
• Borrowers forced to restart the application due to internal delays
• Dual tracking: foreclosure continues while modification is under review
• Failure to follow HUD/Fannie Mae guidelines for hardship cases

📊 Case Study Comparison: Proper vs. Mishandled Loan Modifications

Modification Step	Standard Procedure	Rushmore Issue (Reported)
Document Receipt	Email & phone confirmation with timestamp	Confirmed, then “lost” without notice
Review Timeline	30–45 days under RESPA	Extended past 90 days with no updates
Foreclosure Hold	Paused until decision is made	Foreclosure initiated mid-review

According to HUD’s Loss Mitigation guidelines and the RESPA mortgage servicing rules, loan servicers must not “dual track” foreclosures. Yet Rushmore has multiple public complaints citing this illegal behavior.

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🚩 Red Flag #5: Force-Placed Insurance Without Notification

When a servicer determines that your homeowner’s insurance has lapsed—or was insufficient—it may place a new policy on your behalf. This is called force-placed insurance (FPI). While legal in specific cases, multiple borrowers accuse Rushmore Loan Servicing of using FPI without proper warning or verification.

🔥 Why Force-Placed Insurance Is a Red Flag

• FPI often costs 2–4x the price of normal insurance
• It protects the lender—not you—and has limited coverage
• Rushmore has been reported for ignoring proof of insurance already provided
• These policies can spike your escrow and monthly mortgage payments

📊 Force-Placed Insurance vs. Regular Homeowner’s Insurance

Category	Regular Insurance	Force-Placed Insurance
Annual Cost	$900 – $1,400	$2,800 – $4,200
Coverage	Full property + belongings	Structure only (no belongings)
Cancellation Policy	Flexible with pro-rata refunds	Hard to reverse; no refund guarantee

The CFPB issued a compliance bulletin on FPI practices, warning that servicers must not use it to increase borrower costs unfairly. Additionally, NCLC has flagged Rushmore in past reports on excessive FPI usage.

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🚩 Red Flag #6: Foreclosure Actions During Active Reviews

Imagine applying for help from your mortgage servicer—only to discover they’ve already initiated foreclosure behind your back. This is called “dual tracking,” and it’s one of the most severe allegations against Rushmore Loan Servicing in recent years.

🛑 Why Dual Tracking Is Illegal

Under the CFPB’s RESPA servicing rule, mortgage companies may not start or continue foreclosure proceedings while a borrower’s loss mitigation application is under review—unless specific exceptions apply.

Yet numerous borrowers allege that Rushmore violates this rule by moving forward with foreclosure anyway, especially after “losing” paperwork or stalling document verification.

📊 Dual Tracking Impact: Borrower Expectations vs. Reality

Step	What Should Happen	Reported Reality with Rushmore
Submit Forbearance or Loan Mod App	Foreclosure paused pending review	Foreclosure continues without pause
Receive Review Status	Written notice within 30 days	No updates until sale notice is posted
Approved or Denied Based on Docs	Decision made before legal action resumes	Borrower evicted during open review

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🚩 Red Flag #7: Credit Reporting Mistakes

If you’re paying your mortgage on time, you expect your credit to reflect that. But with Rushmore Loan Servicing, many borrowers report incorrect delinquency records, missed payment marks, and even wrongful foreclosures showing up on their credit history.

🧨 Why Credit Errors Are So Damaging

• Late mortgage payments lower your score more than credit cards or loans
• Incorrect data can stay on your credit report for up to 7 years
• You may lose access to home refinancing, car loans, or job opportunities
• Rushmore has been accused of failing to correct false reports even after disputes

📊 Impact of Credit Report Errors (Real Data)

Error Type	Effect on Credit Score	Correction Timeline (Reported)
Incorrect 30-Day Late Mark	-60 to -90 points	2–3 months
Reported Foreclosure (In Error)	-150+ points	6–12 months
Misreported Forbearance as Delinquent	-100+ points	Varies – often unresolved

Under the Fair Credit Reporting Act (FCRA), you have the right to dispute any inaccurate information on your credit report. Servicers like Rushmore are legally obligated to correct verified errors within 30 days. Yet many complaints suggest these corrections are delayed or ignored.

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🚩 Red Flag #8: Delays in Payment Processing

Making your mortgage payment on time isn’t enough if your loan servicer doesn’t process it on time. With Rushmore Loan Servicing, numerous borrowers report that payments submitted via check, ACH, or online portal were processed late or misposted, causing penalties and “past due” status despite their compliance.

⏳ What’s Causing These Delays?

• Backlog in Rushmore’s internal payment system (especially during holidays)
• Third-party processing errors via bill pay portals or mobile apps
• Checks “lost” in processing centers or not scanned in time
• ACH delays not accounted for in cutoff times

📊 Payment Method vs. Average Processing Delay (Based on Complaints)

Payment Method	Expected Processing Time	Reported Delay (Rushmore)
Online Portal (Bank Draft)	1–2 Business Days	4–7 Business Days
ACH Auto-Debit	Same or Next Day	3–5 Days (inconsistent)
Mailed Check	5–7 Days	7–14 Days

🚧 Consequences of Processing Delays

Even if you pay early, delays in Rushmore’s system can lead to:

• Late fees ($30–$70 per instance)
• Negative credit marks (30/60 day lates)
• False delinquency notices
• Unjustified foreclosure escalation

According to FDIC consumer guidance, lenders must credit payments on the date they are received—not the date they are processed—if sent via approved methods.

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🚩 Red Flag #9: Inaccurate Payoff Quotes

Paying off your mortgage—or refinancing to another lender—should be a smooth, documentable process. But with Rushmore Loan Servicing, many borrowers have reported receiving incorrect payoff amounts, outdated balances, or conflicting closing dates that jeopardize final transactions.

⚖️ Types of Payoff Issues Reported

• Delays of 5–15+ days to generate payoff letters
• Payoff quotes that don’t include recent payments already posted
• Discrepancies in per diem interest calculations
• Incorrect mailing addresses for checks, causing return delays

📊 Common Rushmore Payoff Quote Errors

Error Type	Effect on Borrower
Expired Payoff Quote	Delays closing; incurs extra daily interest
Missing Final Payment in Total	Overcharged by $1,000–$3,000
Wrong Lien Holder Info	Funds sent to wrong entity, delay of 2+ weeks

📑 Industry Standards vs. Rushmore Reports

Most major loan servicers issue payoff quotes within 3 business days. Rushmore, however, has drawn complaints for taking over a week, issuing conflicting payoff instructions, and being unreachable by title agents during urgent closings.

Under Regulation Z, servicers must respond to payoff requests in a timely manner. Yet, borrowers repeatedly report inaccurate payoff letters from Rushmore across multiple platforms.

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🚩 Red Flag #10: High Volume of BBB & CFPB Complaints

When hundreds—or even thousands—of formal complaints are filed against a mortgage servicer, that’s no coincidence. With Rushmore Loan Servicing, the evidence of poor borrower experience is well-documented across multiple government and consumer platforms.

🔍 What Do People Complain About?

Across platforms, the most commonly reported issues include:

• Loan modification stalling or denial
• Incorrect credit reporting
• Unresponsive customer service or unreturned calls
• Escrow mismanagement and insurance force-placing
• Misapplied or delayed payments

📊 Rushmore Complaint Metrics (As of July 2025)

Platform	# of Complaints	1-Star %	BBB Grade
CFPB	483+	~75%	N/A
BBB	289 (36 months)	82%	F
Birdeye	1,320	65%	N/A

“Rushmore is by far the most difficult and unhelpful servicer I’ve dealt with. They deserve the F rating from the BBB.”
— Real estate attorney, California (2025 interview)

🚨 What These Complaints Really Mean

While all servicers receive some complaints, the volume and consistency of issues reported against Rushmore point to serious internal problems. A 2024 Fitch Ratings downgrade specifically cited “escalating borrower dissatisfaction” as a reputational risk.

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🚩 Red Flag #11: Unclear Ownership of Your Loan

A common complaint among Rushmore borrowers is: “Who actually owns my loan?” This confusion often arises because Rushmore acts as the servicer — not the lender or investor — and fails to provide timely or clear ownership disclosures.

🤯 Why Ownership Clarity Matters

Borrowers have a legal right to know who owns their note. Without that clarity, it becomes nearly impossible to:

• Request a loan modification or hardship relief directly
• Validate payoff balances during closing or litigation
• Challenge wrongful foreclosure filings or escrow errors

📊 Loan Ownership Disclosure Comparison

Mortgage Servicer	Responds to Ownership Requests?	Allows Contact with Investor?
Rushmore	No (per many complaints)	Rarely disclosed
Mr. Cooper	Yes (upon request)	Provides contact details
Wells Fargo	Yes (in monthly statement)	Investor info included

⚖️ What the Law Says

Under the TILA Section 131(g), borrowers must be notified of any new owner within 30 days. Yet multiple online reports claim Rushmore dodged this responsibility by stating they “do not own the note” — without saying who does.

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🚩 Red Flag #12: Poor Communication and Customer Service

According to hundreds of reviews and complaints, Rushmore Loan Servicing consistently fails to provide prompt, clear, and competent communication. Many borrowers report unreturned calls, incorrect information, and departments that don’t communicate with each other.

📉 Customer Satisfaction Rating

Based on aggregated data across consumer platforms:

Platform	Avg Rating	Common Complaint
Trustpilot	1.4/5	Unresponsive staff
BBB	1.1/5	Mixed messages from reps
Google Reviews	1.7/5	Never answers phones

🤔 Why This Is Dangerous

Inconsistent or inaccurate communication can have serious consequences, including:

• Misunderstanding payment due dates or amounts
• Delays in modification or forbearance requests
• Incorrect foreclosure notices due to misapplied payments
• Stress, confusion, and legal complications for the borrower

📌 Third-Party Evidence

The CFPB complaint portal shows over 300 cases directly referencing “inability to reach a rep” or “conflicting responses.” The pattern repeats across forums like Reddit and review aggregators.