Consumer complaint received 2022-04-28
Company: M&T BANK CORPORATION
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
Unfair, deceptive, or abusive acts and practices ( UDAAPs ) can cause significant financial injury to consumers, erode consumer confidence, and undermine the financial marketplace. Under the Dodd-Frank Act, it is unlawful for any provider of consumer financial products or services or a service provider to engage in any unfair, deceptive or abusive act or practice.1 The Act also provides CFPB with rule-making authority and, with respect to entities within its jurisdiction, enforcement authority to prevent unfair, deceptive, or abusive acts or practices in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service. 

M and T Bank is employed by the Fair Housing Administration They are an approved lender yet they have failed to adequately implement COVID1 19 relief programs and the COVID-19 Recovery Modification on our behalf requiring paperwork that was not required and imposing qualifications that are not necessary under the FHAs guidelines and when we inquired about the homeowners assistance program XXXX of XXXX and XX/XX/XXXX instructed me during customer-service phone calls that this option did not exist and that I needed to sign the modification documents or my home would go into foreclosure The FHA Handbook XXXX and the Updated mortage letters Clearly state that Trial Payment Plans are not required for Covid 19 modifications however the M and T bank Requires the Following : M and T Bank Requires Trial Payment Plans . Trial Payment Plans as outlined in the updated Mortgagee letters are not required.

M and T Bank Required Trial Payments to begin 60 days before Loan Modification Documents were signed which led to a delay and subsequent cancellation of our modification When we asked why we were required to make Trial Payments we were told that the modification had been granted and that the payments would begin before the documents were signed.

M and T Bank Required Trial Payments to begin 60 days before Loan Modification Documents were signed which led to a delay and subsequent cancellation of our modification When we asked why we were required to make Trial Payments we were told that the modification had been granted and that the payments would begin before the documents were signed. The Documents that were Required clearly state that the modification was not guaranteed and that in order to move forward with a modification, the title must be free and clear of all liens and judgements ( Not a Requirement under the Covid 19-Modification ) M and T Bank Required Loan docs signed and Notarized before the 30-Day Grace period once they were received.

M and T Bank Required two on time payments before modification would be finalized On Multiple Occasions we reached out to M and T Bank and FHA/HUD notifying them of the Updated Mortgagee letters but customer service reps stated they were unaware of the updated mortgagee letters.

M and T Bank Cancelled the modification agreement when trial payments were not made and before the modification was completed. 
M and T bank Sent a letter notifying us of their intent to foreclose on my home due to not making the required trial payments. ( Please see attachment ) M and T Bank Sent emails to FHA Counselors that were not true and placed us in a position where we had to send documentation proving that the statements that were made were False FHA Counselor Acknowledged that the Trial Payments were not required and requested that the Lender resend the documents M and T Bank the Lender that is Employed by FHA has not resent the documents or acknowledged the complaint that was made. ( Please See attachment ) M and T Banks Unfair, deceptive, abusive acts and practices have caused us significant financial injury to our Family- Our payments to M and T bank will be significantly higher due to the rise in mortgage rates- had they followed the guidelines our monthly payments would have been significantly less and would have saved us at least {$75000.00} over the course of our Loan.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation