Product: Mortgage

Dear CFPB, I am writing to formally file a complaint against Flagstar Bank regarding their mishandling of my USDA home loan and the subsequent unwarranted foreclosure action they have initiated. Below, I outline the series of events and issues I have encountered, which I believe demonstrate that Flagstar Bank 's actions are unjustified and in violation of applicable laws. 

Background and Timeline of Events XX/XX/year> : I believed my auto-pay for the loan payments with Flagstar Bank was active. Upon realizing there was an issue, I called Flagstar Bank on XX/XX/year>, and made a payment of {$2000.00} using my personal checking account with XXXX XXXX XXXX. I also scheduled a future payment for the remaining amount due of {$1400.00} for XX/XX/year>, coinciding with my paycheck deposit. 

XX/XX/XXXX : Payments were made to bring my account current with no overdue balance, as confirmed by Flagstar Bank . 

XX/XX/year> : A payment reversal of {$2000.00} occurred unexpectedly. I did not receive any notification about these reversals and funds were available in my checking account. 

XX/XX/year> : A " loan advance '' of {$2000.00} was noted on my loan transaction history, followed by a reversal of {$530.00} on XX/XX/year>. I received a check for {$530.00} with no explanation. 

XX/XX/year> : I called Flagstar Bank to make a loan payment and redirected to XXXX XXXX XXXX XXXX, XXXX, the law firm handling the foreclosure. This was my first indication of foreclosure proceedings. I spoke with a receptionist who informed me the attorney assigned to the case was unavailable. I provided my contact information and asked for the attorney to contact me so that I could make all payments in full and resolve the issue. 

XX/XX/year> : I received a letter regarding loss mitigation from XXXX XXXX XXXX XXXX, XXXX. with File Number : XXXX. 

XX/XX/year> : I called the attorneys office again and was instructed to email a request for reinstatement. Despite providing my contact information, I received no return calls or emails. 

Issues and Concerns Unnotified Payment Reversals : Payments made were reversed without my knowledge or notification. This led to confusion regarding my loan status. 

Mysterious Loan Advance : A loan advance of {$2000.00} was noted on XX/XX/year>, without my consent or understanding of its purpose. 

Lack of Communication : I received no prior communication regarding the payment reversals, loan advance, or the check for {$530.00}. This has caused significant distress and confusion. 

Foreclosure Action : According to federal law ( 12 CFR 1024.41 ), a servicer can not initiate foreclosure until a loan is more than 120 days delinquent. As of the last communication and review of my banking records, I have made substantial payments, and my loan has not been delinquent for more than 120 days. Therefore, the foreclosure action initiated by Flagstar Bank appears to be in violation of this law. 

Stonewalling by Attorneys Office : Despite multiple attempts to contact XXXX XXXX XXXX XXXX, XXXX. and resolve this issue by making the necessary payments, I have received no assistance or communication from them. 

Flagstar Online Payment System : Flagstar 's Auto-Pay program does not allow for the set-up of advanced payments or auto-pay if you are late on a previous payment making it difficult to manage loan payments. 

Summary Given these discrepancies, the lack of communication, and the unwarranted foreclosure action by Flagstar Bank, I request the CFPB to investigate this matter. I am willing and able to make all necessary payments to reinstate my loan and resolve this issue promptly and have communicated this multiple times to both Flastar and their attorney 's office. 

I have attached copies of my transaction history, correspondence with Flagstar Bank and XXXX XXXX XXXX XXXX, XXXX, and other documentation supporting my claims. 

Thank you for your attention to this urgent matter. I look forward to your assistance in resolving this issue.