Consumer complaint received 2018-10-09
Company: Flagstar Bank, N.A.
State: FL
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
Due to Hurricane Irma in XX/XX/XXXX, I was placed into the disaster relief forbearance program, which would suspend my mortgage payments and prevent any delinquent reporting to the credit bureaus. Even though I was enrolled in this program, Flagstar is reporting my mortgage payment late to the tune of 180+ days past due.

I was initially told that the forbearance would last approximately 3 months, and per the verbiage on their website : Flagstar has a special, no paperwork, Hurricane Relief Program, to help manage the payments that will come due at the end the 90 day period. If you choose to opt-in to the program, you will be provided a single point of contact to help establish a repayment plan and review additional options ( including financial hardship relief, and many loan modification options that could potentially include term extensions, interest rate adjustments, and payment reductions. 

At the end of the 3 months, I went online to make my normal mortgage payment. When I was unable to do so online, I contacted customer support. They told me to hold off making any payments since my file was still being reviewed. Shortly after, I started to receive letters stating I was past due on my mortgage, along with literature on how to avoid foreclosure. Concerned, I contacted Flagstar, and was told the letters were automatically generated, and my file was still in underwriting. When I inquired what the issue was, they stated it had to do with interest rates being higher than on my original loan, but assured me that the loan was not being reported late, nor was I in any danger of foreclosure. 

Between XXXXXXXX-XX/XX/XXXX, ( contrary to the no paperwork verbiage listed on Flagstars website ), I was asked to submit a hardship letter along with copies of pay statements. I immediately sent them the requested documents. Shortly after I received a packet of papers to fill out for the application, and mailed via XXXX. 

It was not until XXXX/XX/XX/XXXX until I finally had received my approval letter for a disaster standalone partial claim, and paperwork stating that my next payment would not be due until XX/XX/XXXX. Upon checking my credit report, I noticed that the loan was being reported delinquent by 180+ days. I contacted Flagstar twice to alert them to the fact I was in the disaster relief program, and that my modification had just been approved so reporting the payments as late was incorrect. Flagstar replied they would not resolve this issue, stating the credit reporting moratorium was lifted in XXXX. 

As of XX/XX/XXXX, my loan is current. The disaster partial claim has paid for the months missed due to the storm, so I can not fathom why this is being reported as late. This process took longer than expected and I should not be penalized for matters beyond my control. 

Thank you very much for your assistance on this.

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