Consumer complaint received 2020-04-01
Company: Flagstar Bank, N.A.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Investigation took more than 30 days

Complaint:
In XX/XX/XXXX, XXXX XXXX  sold the right to my mortgage for my XXXX XXXX home to Flagstar Bank. I never received notification from XXXX XXXX  or Flagstar of the change in loan servicer. At around the same time, the loan for my house of residence was also changed. The loan was originally serviced by XXXX XXXX and was purchased by XXXX XXXX. I did receive notification of this change. This notification came by snail mail to my house of residence in XXXX XXXX. My complaint is that the lack of communication, lack of due diligence, and lack of customer service attention though the complaint process with Flagstar has now led to untrue and unfair reporting to the credit bureaus negatively, affecting my credit score and credit history. 

I never learned of the change in loan servicing until XX/XX/XXXX. On that day I received a text from an investor interested in purchasing the XXXX XXXX home. I was confused. The house was not for sale and, what I thought, was in good financial standing. I received more texts and calls throughout the day about my home being in foreclosure and them wanting to buy it, while lawyers contacted me about representing me as they tried to save my home. I contacted my loan servicer, XXXX XXXX, to inquire. XXXX XXXX  informed me that they had sold my mortgage back in XX/XX/XXXX. I asked the agent why I hadnt received notification of this change. They stated a letter was sent to the XXXX XXXX home. I never received it. I asked why it wasnt sent to my residence in XXXX XXXX. They said they didnt have that address. Not true. I asked what email they had sent it to. They didnt. I explained I had always received correspondence from XXXX XXXX  via email. I asked why they hadnt called me. They said the only phone number they had for me was an old work phone from when the loan originated. The agent explained that their online service portal doesnt talk to their basic profile contact information. The agent gave me the information for Flagstar. I immediately called them after getting off the phone with XXXX XXXX, but, learned they were based in XXXX, MI and had closed for the day. 

The next morning, XX/XX/XXXX, I called Flagstar first thing in the morning to figure out what was going on with my loan. I was sent directly to the claims department because my loan payments were not current. They offered to make an adjustment to my loan payments to help me with my financial problems. I explained I didnt need that, I was ready to make the payment in full. I explained the only reason I hadnt paid is because I was never informed Flagstar was the new owner of my loan. The agent informed me the loan had entered pre-foreclosure. After about 30 minutes of back and forth regarding the loan, pre-foreclosure, me not receiving notification, and modifications to the loan, the agent finally understood I was ready to make a single payment to bring the loan current. The agent assured me if I made the payment the same day, no further action would be taken. The agent gave me the bank information and I went to my bank and ordered the wire transfer for {$18000.00} which included seven months of mortgage ( including the month of XXXX, an upcoming payment ) and a corporate advance fee. I asked what a corporate advance fee was. He couldnt explain it. I asked for an explanation, but never got one. After confirming the wire with my bank, I called Flagstar back to confirm they had received it. They could not confirm that they had received the payment and said it takes a few days to process such payments. 
I called back again XX/XX/XXXX to confirm the payment.. I continued this for the next few days until they could give me proof, in writing, that my account was showing as current. The Flagstar agents would tell me they couldnt give me proof of payment. I would have to wait until the payment showed up as paid in my online account. 

Once the payment finally populated in my account in XXXX, there were many other charges attached to my account. These included the following ( numbers are totals, many were multiple smaller line items ) : Corporate Advance : {$1200.00} Attorney Fees : {$1300.00} Vacant Property : {$150.00} Foreclosure : {$300.00} Inspection : {$60.00} Title : {$300.00} I have issues with all of these charges. I asked multiple times about thecorporate advance. I never got an answer on this one, after multiple calls and inquiries. They company never followed up. As for the attorney fees, it is obvious the bank was charging me for services rendered on the part of the bank. There is a vacant property fee, which is inaccurate. The house has been occupied by the same renters since XXXX of XXXX. I was charged for foreclosure fees, but, was never informed that I entered foreclosure. I later learned that Flagstar reported entering foreclosure to the credit bureaus in XX/XX/XXXX. That was after the payment was made in full to bring the account to current. It was explained to me by Flagstar agents that the inspection fee was to pay for someone to see if the house was vacant. Someone was sent on four separate occasions, but, I pointed out not once did they go and knock on the door. This would have made it clear that the house was not vacant and would have helped alert my renters to the fact that there was a problem with the loan. This is another example of lack of due process and lack of effort on Flagstars part. Finally, there is a title fee of {$300.00}. Last I checked, there was no change to the title. Why have I been charged this? 

During my call on XX/XX/XXXX, to follow up on a previous verbal complaint I had lodged with Flagstar regarding the charges above and the inaccurate and unfair reporting to the credit bureaus, I was told that the previous verbal complaint ( from XX/XX/XXXX ) had not been submitted. The agent ( # XXXX ) told me, That is an error on our part. I was also told that the only form of written complaints that the company accepts is written and submitted via snail mail. I had submitted multiple verbal complaints via telephone and had gotten nowhere. I had looked for options through Flagstars website, but found nothing. When I asked about submitting a complaint via their website, they said that wasnt an option. I was then directed to the credit bureaus if I would like to make a complaint. I spoke with XXXX  and also with my loan agent. They directed me to your institution to complete this complaint. 

As you will see in my supporting documents, I always had enough money to make the required payments in a timely manner, only XXXX XXXX  did not share my correct contact information and Flagstar did not complete their legal requirements of due diligence in contacting me as the new loan servicer. My wife and I continue to be contacted by real estate investors attempting to purchase the XXXX XXXX home and lawyers attempting to save the home. After XX/XX/XXXX, I also received mail from the XXXX XXXX County Clerk notifying me that a Notice of Default had been filed on the XXXX XXXX home. This was sent to my house of residence. In review, the county knew where to find me ( by snail mail ), lawyers knew where to find me ( by phone and snail mail ), and investors knew where to find me ( by phone and snail mail ). Even my parents were contacted by investors asking them to help me decide on selling my home to them! But, Flagstar could not contact me for five months, let alone get out of the car and knock on the door of the home they thought was vacant. This is clearly a lack of due diligence. Flagstar filed the Notice of Default with the county, but didn't simply ask for my contact information. My current mailing address is also shown on the credit report I received from XXXX. I am guessing they could have coordinated with them for this information. 

I am requesting the negative credit reporting from XX/XX/XXXX - XX/XX/XXXX by Flagstar be adjusted. I also demand the Foreclosure Initiated reported to the credit bureaus in XX/XX/XXXX by Flagstar be rescinded. How are they reporting an initiation of foreclosure after the date I made a payment to bring my account to current? It is clearly shown in Flagstar documents that the payment was made on XX/XX/XXXX, yet, Flagstar reported to the credit bureaus in XXXX that a foreclosure had been initiated. 

As you will see with my attached bank statements, I was always willing and able to make the needed mortgage payments. In no way was I taking advantage of the change in loan servicer to benefit financially. You will also see in my credit report that I always make my payments on time and I am a reliable borrower with a stable job. The unjust and irresponsible reporting by Flagstar, along with the lack of effort and information sharing exhibited by XXXX XXXX should not affect my credit score, nor my finances by being asked to pay fees that do not apply to my account. Thank you in advance for considering this case, your time, and realizing I am a consumer in need of help.

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