Consumer complaint received 2018-07-11
Company: Flagstar Bank, N.A.
State: NJ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
During a period of short term illness in XX/XX/2016, I was out of work and receiving XXXX income. In XX/XX/2016 I made my regularly scheduled mortgage payment to my company, Flagstar Bank, but realized that my XXXX income would make XX/XX/XXXX and XX/XX/XXXX difficult. I called to ask if I could make payment arrangements, as I knew that by XX/XX/2016 ( two months ), my financial situation would be improved. I was advised to complete the financial aid package, which I did immediately in XX/XX/XXXX, and was told that they alone could decide what my financial options or alternatives could be. 

I was told to make no further payment attempts, or the underwriters would determine that I had " no need for financial help. '' I followed directions, made no payment and waited patiently. In XX/XX/2016 I was advised that I was approved for a loan modification, and it was the only option being offered to me at that time, unless I was able to make XX/XX/XXXX & XX/XX/XXXX 's payment at that time in full, plus late charges. Of course, I was not. 

I was told to begin my new modified payments on XX/XX/XXXX, and that after making three consecutive payments, I would have a modification agreement. I did so, making all payments on time, XX/XX/XXXX, XX/XX/XXXX and XX/XX/2016. By mid XX/XX/XXXX, I did not receive any formal notices, so I called my account representative and was told that the underwriters were " preparing my documents, so just keep making my modified payments on time ''. I followed directions, making XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX on time for the full modified amount. 

The documents finally arrived in XX/XX/2016 but I immediately received a call from my Flagstar Bank account representative NOT to sign them, that the underwriters had made an error and a new set were on the way. The new documents were also incorrect, then the third set received late XX/XX/2016 was finally correct. All the while, I continued to make my modified payments, on time, each month. 

Despite my having made a payment to Flagstar Bank EVERY MONTH from XX/XX/2016 right through XX/XX/2016, Flagstar reported my payments as late on my credit. Seven straight payments. I called, upset, and spoke to several individuals to complain. Their excuse is that " they can '', it's a loophole that consumers fall into, and they're sorry but it will eventually come off and not have such an impact. This is destroying my credit. I followed the agreement, I made the payments every month, XX/XX/XXXX through XX/XX/XXXX. I  continue to make every payment on time, and have not missed one payment. It is unfair that my credit should have to suffer simply because their " underwriting department '' took three extra months to get closing paperwork correct. I was NEVER told that every month I was in modification, I would be given negative credit marks. 

All I had ever asked for was a deferrment on two months mortgage, and was willing to make my normal payments beginning XX/XX/2016 - having the two missed payments added on. I am suffering great personal loss due to the impact of a credit rating hit with seven late payments. I have contacted XXXX and XXXX  credit reporting agencies who opened disputes, and both agree that these late payments should be removed, but they say that their hands are tied because Flagstar refuses to cooperate. The most they could offer me was to place a " statement '' onto my credit report. This is not acceptable.

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