Consumer complaint received 2023-09-18
Company: FIRST HOME MORTGAGE CORPORATION
State: MD
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process
Sub-issue: Trying to communicate with the company to fix an issue while managing or servicing your loan

Complaint:
XXXX XXXX Mortgage XXXX XXXX XXXX XXXX XXXX XXXX XXXX, IL XXXX Dear CFPB Representative : On XX/XX/XXXX, I logged into Your Mortgage Online, First Home Mortgage 's ( XXXX ) payment portal, only to discover that XXXX blocked XXXX from making mortgage payments online. When I contacted their Customer Service Department, they routed me to the XXXX XXXX Department, where I learned that my payments for XXXX and XXXX had been rejected and that XXXX reversed these checks due to insufficient funds. XXXX had provided no prior communication regarding the check reversals had been provided to me, and I had not received any mail regarding this either. I asked the XXXX XXXX representative which bank they had attempted to pull the funds from, and they were unable to tell me because the XXXX XXXX Department could not access that information. The representative indicated that I would have to make payments through certified funds via XXXX XXXX ( until XX/XX/XXXX ) and that I was not allowed to make payments via phone or through a customer service representative. This posed a financial barrier for me, as it required payment of excessive fees, including a {$100.00} processing fee required when funds are withdrawn through a bank account ; a {$240.00} fee to process payment through credit card ; and a {$180.00} fee to process payment through a debit card or XXXX XXXX. 

For XXXX and XXXX payments, I received an e-mail notification confirming that my payment had been received and was in process ( XXXX confirmation # XXXX ; XXXX confirmation # number is XXXX ). I had not received any e-mail stipulating that the payments did not go through. 

As I had made previous payments through Bank XXXX XXXX ( BofA ), I assumed it was through this bank. I immediately contacted XXXX, and they confirmed that my account had sufficient funds. I generated the statements and letter from XXXX, and e-mailed it to the XXXX Department, as was explained to me by XXXX XXXX representative. On XX/XX/XXXX, the XXXX Department e-mailed me. Unfortunately, the XXXX Department, charged with investigating payment-related issues, is not reachable via phone, and responses can take up to XXXX weeks or more. The only way to escalate information is through e-mail, fax, and mail, as no intermediary direct calls are allowed to this Department, which further hinders case resolution in a timely manner, as per the guidance of the Consumer Financial Protection Bureau. The XXXX Department asked for statements that outlined transaction history or a letter on bank letterhead noting the amount of funds in the account on the days for which XXXX and XXXX were made. I furnished a letter from the bank stipulating that I had sufficient funds and attached bank statements for XXXX, XXXX, and XXXX. 

Their follow-up letter indicated that payments were attempted to be processed through an account ending in XXXX through the XXXX XXXX XXXX XXXX XXXX ), not BofA. I contacted XXXX for guidance and support on why the checks had been reversed. They confirmed that I had sufficient funds in my account, that their systems did not show any attempts to withdraw funds from XXXX XXXX Mortgage, and that no errors showed a reversal check. To this end, I submitted statements from XXXX that further demonstrated that I had sufficient funds. They noted that the statements did not correctly show any errors and transaction history. They requested a bank letter. On XX/XX/XXXX, I provided them with a balance statement and XXXX  letter outlining the funds available. They noted : " We have determined that we can not waive the fee at this time, as we can not substantiate that this fee was assessed due to an issue in our systems or the servicing of this account. '' Further : " After reviewing your loan, we concluded that your XX/XX/XXXX payment created online stated the account type listed as a checking account. Per the letter sent to us the account ending in XXXX is a savings account. '' Since I had entered multiple queries since XX/XX/XXXX, they had not provided any information regarding the XXXX and XXXX payments, although I had produced documentation with proof of funds. However, they noted that the XXXX payment had been returned due to the wrong account being selected. This is false, as I was already blocked from making payments in XXXX. There is no way that I attempted to make a XX/XX/XXXX mortgage payment when I was restricted from doing so through the portal. 

As of XX/XX/XXXX, I have not received guidance or public-facing policy stipulating that there would be penalties imposed or mortgage holders who mistakenly did not check off whether an account was in a checking or a savings account ; or for mortgage holders that had no knowledge of check reversals. When I learned of the check reversals, I immediately worked to rectify the issue and sent XXXX, XXXX, and XXXX payments through separate bank checks. These checks have since been posted. 

Of note, I had never missed a payment. XXXX continues to impose negative credit reporting, late fees, blocking portal access, and requiring that I submit certified funds. In XXXX, I sent a cashier 's check for the XX/XX/XXXX mortgage payment, and XXXX can not locate the check. On XX/XX/XXXX, the XXXX XXXX customer service representative suggested that I put a stop payment on the XX/XX/XXXX payment. This is not ideal, as I would have to wait 90 days before the {$2600.00} payment is refunded. Moreover, XX/XX/XXXX has already been reported as late by the mortgage company, even though they could not locate the check which had been sent to the same address as the XXXX, XXXX, and XXXX payments. 

On XX/XX/XXXX, I received a packet stating that I had been approved for a partial claim. This was confusing to me, as the payment had increased by {$20.00} to {$2600.00}, and I needed clarification about how this was supposed to help. In addition, XXXX has threatened me with a Partial Claim Deed of Trust. When I contacted the Customer Service and Loss Mitigation Departments, neither Unit could ascertain why a partial claim had been approved with the mortgage essentially staying the same plus {$20.00}. 

XXXX XXXX Mortgage 's response was disproportionate to what they allege concerning issuing false payments. They had issued penalties, such as late fees, adverse credit reporting, and had blocked access to the payment portal, requiring me to send cashier 's check ( one which they could not locate ). My XXXX XXXX had fallen to XXXX due to their disparate case investigation, impacting my ability to access credit, refinance, or obtain lower interest rates. 

In addition, they had explicitly stated that they could not waive any fees because " as we can not substantiate that this fee was assessed due to an issue in our systems or the servicing of this account. '' It was predatory that I have to carry the burden of additional fees and negative reporting history because they were unable to determine the origin of their fees or whether the issue was due to their system or XXXX. 

Additional notes : The Customer Service and Loss Mitigation Departments can not read the notes that another Department crafted, so they can not speak to the status and progress of my claim. 
The Loss Mitigation Department could not clearly explain the " principal curtailment '' payments or for which months the mortgage payments have been posted. They ( incorrectly? ) explained that if I go above the {$2600.00} mortgage payment, the amount will not be processed, and a check reversal will be applied for the total amount. I noted that there is unclear mortgage payment history and statements, as evident by " principal curtailment '' amounts. This inaccurate description of payments and transaction information is misleading, and I did not understand what it meant. 
The XXXX XXXX Department does not have access to essential information, such as verifying the bank account number I used to make payments. 
Unsecured items ( e.g., correspondence, bank statements ) are accepted via e-mail, and pose a security risk. 

I would appreciate any guidance or support that CFPB can offer. 

Best, XXXX

Company response to consumer: Closed with explanation