Product: Mortgage

XX/XX/2024 : My husband and I submitted a Loss Mitigation application. We were not behind on our payments or past due - nor had we ever been- we anticipated a XXXX XXXX and wanted to get ahead of it.

XX/XX/2024 : I contacted the bank to make a payment over the phone. Our total amount due was {$4900.00}. I paid {$2900.00} immediately on that date and scheduled a future-dated transaction for XX/XX/2024 for the remaining amount due, {$2000.00}.

XX/XX/2024. : I received a voicemail from Flagstar XXXX XXXX XXXX asking me to contact the bank urgently. I contacted the bank and was connected with the first Loss Mitigation agent I spoke to. He informed me we had been approved for Loss Mitigation and our trial payments for XXXX XXXX would be {$4900.00} - a decrease of {$0.00} per month. When I questioned the amount as I expected it to be lower, he told me we had to pay XXXX XXXX  of trial payments and then the bank would decide what our new payment amount would be after the trial payments. That seemed incorrect, so I did some research and then decided to call a second time.XX/XX/2024 : I contacted Flagstar a second time because I believed Id been given incorrect information. I began the call by expressing my difficulty with tracking and following topic changes in conversation and making it clear I know nothing about Loss Mitigation. The second person confirmed what Id been told by the first agent was not correct - the amount of our trial payments would be our new payment amount. The agent stated our our next payment due date was XX/XX/2024, which would be our first trial payment. He advised me that the payment we had scheduled for that day, XXXX XXXX, could be canceled prior to XXXX XXXX XXXX as it was factored into the Loss Mitigation and the payment wasnt required. We never once inquired about canceling our payment, that was a recommendation he made. At the time he read the script to receive my consent to cancel the payment, he never once stated canceling the payment would result in a negative credit reporting. At this time, I had not received any correspondence from Flagstar in writing/by mail. The Loss Mitigation packet - which outlined all of the details- was dated XX/XX/2024. 

XX/XX/2024: I received multiple credit alerts that a XXXX  late payment was reported to the credit bureaus. My credit score falls more than XXXX XXXX. I contact Flagstar, explain the situation, am told I have to completed a Credit Reporting Dispute form and fax or mail it Flagstar.

XXXX XXXX  : Were notified that our dispute was denied. We appeal the dispute. The appeal is denied.

XX/XX/2024. : I contacted Flagstar and am put in contact with a member of the Collections Team. Im told they cant and wont provide me with a copy of the recorded call without a court subpoena, but the representative tells me he will personally listen to the call and get back to me within one business day.

XX/XX/2024 : I receive a phone call from Flagstar with an update on my second appeal. Im told again that the appeal is denied because the payment was received after the first of the month, so therefore the reporting is correct. I questioned the representative about whether or not I was told prior to or at the time of payment cancellation that it would result in negative credit reporting, he confirmed that information had not been communicated prior to or at the time of cancellation. After about XXXX XXXX, I noticed the voice sounds familiar, but doesnt sound like the voice of the person I spoke with the day prior. He references the person Id spoken with yesterday, so I ask the representative if they are the person I spoke with on XX/XX/2024 during the second call when the payment was canceled, he confirmed he was that person. I expressed concern that he didnt identify himself as that person at the start of the call and that he was involved in any way with the review of a situation he had role in. 

Since then, I have spoken with Flagstar several more times. Ive submitted disputes with each of the major credit bureaus and I am hopeful that this additional reporting may help resolve the issue. It is an error that was caused by a Flagstar employee. I dont assert they were acting out of malice when they recommended we cancel the payment, but a lack of malice doesnt negate responsibility. Had that representative either mentioned canceling the payment or had been very clear and explicit that canceling the payment would result in a negative credit reporting, I would not have consented to canceling the payment that was scheduled which would have prevented this entire ordeal.