Consumer complaint received 2023-04-19
Company: CITIZENS FINANCIAL GROUP, INC.
State: NY
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
1. During the Pandemic Citizen 's Bank incorrectly reported my pre-paid, and in forbearance and good standing mortgage as being late for over 180 days. 

2. After exiting forebearance, I was unable to purchase a new home or refinance because no national lender would entertain my application due to the forebearance. 

3. It took almost 10 months to rectify my credit reporting to being my home and refinance purchase due to this error ( which was only rectified after contacting the Chairman 's Office ). 

4. Citizen 's Bank apologized and corrected the error, but by then interest rates swelled and I was unable to obtain a favorable refinancing, take advantage of the increase in home prices, and favorable LTVs which would have eliminated my PMI and reduced my mortgage by over 45 %. 

5. Given that it is an error by the Financial Institution and their reporting team, as attested by their Executive Team, I have requested that they provide a one time rate adjustment and recalculation of my mortgage payment based on a refinance scenario during the favorable interest rate and home valuation period. 
6. It is now over a year since the correction and Citizen 's is claiming that they can not do this as they are not liable and their error would not result in not being able to access a refinance or new mortgage product, as the loan was in good standing!

7. Citizen 's Bank 's rebuttal in point 6 is categorically incorrect and not factual. Citizen 's, as evidenced by why I started the complaint in the first place around two years ago, and as admitted by them repeatedly did in fact incorrectly report my loan is being over 180 days late. This is the sole reason I was unable to access financial products for over one year. 


I am requesting the CFPB look into this matter - as the correspondence with the bank has gone unanswered for over 2 months and the responses are contradictory and designed to mitigate responsibility for erroneous reporting. 


As a consumer, and financial professional, this is the most straight forward request and within the norms of consumer lending. A bank has repeatedly admitted and corrected a mistake but will not accept a financial consequence for their mistake. 
I am requesting that the below action be taken to rectify the issue : 1. A one-time loan rate float down based on a calculation as proposed below : The Bank needs to provide evidenced calculations of : Approximate home value on my block and neighborhood in XXXX 2021. 

My approximate credit score in XXXX 2021 ( rescored using a simulation correcting for their error ). 

The correct average XXXX under a refi scenario in XXXX 2021. 

The correct interest rate under a refi scenario in XXXX 2021. 


Based on conversation with multiple loan officers from Citizen 's Bank in my neighborhood and other large FIs, it is evident that my loan should be priced in the significantly lower and under a simulated refi at the time not be subject to PMI. 


Furthermore, any additional funds paid above the recalculated amount should be credited to my loan, and any overpayments and accrued interest calculations should be adjusted to reflect those terms. 


This, in my professional opinion, is terribly deceptive and border-line fraudulent, though I prefer to reserve that characterization for those in the legal profession. 


Thank you and I look forward to a swift and just resolution. 


Please note : This complaint is repeatedly closed out by the bank " while under going research '' and is marked as resolved. This is deceptive. Please do not close out the complaint until it is resolved. This is one of many CFPB complaints marked as resolved, and yet is still being processed.

Company response to consumer: Closed with explanation