Consumer complaint received 2022-11-14
Company: Flagstar Bank, N.A.
State: MD
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
Good Afternoon, I am reaching out to the Consumer Financial Protection Bureau regarding a pattern of coercion, committed by Flagstar Bank and their willful engagement to initial attempts to intentionally refuse and delay providing Maryland state officials with the necessary paperwork to address and assist me in my financial hardship. Flagstar Bank guided me toward requesting state assistance under the auspices I would receive a timely response. Rather than following through on their stated guidance to provide me with a notary public, I was misled into waiting for response from Flagstar Bank, regarding the notary, which resulted in me not being able to lock-in the modified payment of {$2400.00}. To the contrary Flagstar bank coerced me into applying for state assistance, resulting in over {$41000.00} of mortgage payments in the arrears. 


I am a VA homeowner currently, residing in XXXX, Maryland, In XX/XX/XXXX, I notified Flagstar Bank of a financial hardship I was enduring. Prior to applying for a loan modification, my mortgage payment was {$3400.00}. After notifying XXXX of my hardship, I was placed into a COVID forbearance program and given the option to apply for a loan modification. After applying for the first modification, I was provided with the option of having my mortgage reduced to {$2900.00}. During the course of attempting to have the paperwork properly notarized, Flagstar Bank incorrectly placed signature labels on the loan modification documents. This resulted in the county refusing to accept the mortgage documents. As a result of this action, Flagstar Bank continuously sent mortgage packets which contained further inaccuracies. Due to their mistakes, numerous paperwork was sent back and forth to XXXX due to inaccuracies on the documentation and which sections required a notary. This resulted in numerous delays for paperwork being returned. 

Due to the countless issues with the first loan modification, I requested a second review and was provided a revised payment of {$2400.00}. I notified Flagstar Bank I would like to have them send a notary from their company to avoid any possibility of errors or inaccuracies from occurring on their part. Flagstar Bank agreed to have a third-party notary come to my home and notarized the documents, however they failed to schedule the appointment. After 7-14 days, I called Flagstar Bank regarding the status of the notary and was then advised the timeframe for me to lock-in the {$2400.00} mortgage payment had expired. I immediately asked Flagstar Bank why they misled me and not send third party notary as they had advised, in response the representative advised that sometimes their company notaries fail to make their appointments. At this point I asked if I could retain the new revised payment, due to their failure, and have the paperwork resent to me. In response, the Flagstar Bank representative advised that I could not retain the revised payment ( {$2400.00} ) but could apply for state assistance. 

In late XXXX XX/XX/XXXX, I began the application process for XXXX XXXX XXXX  XXXX On XX/XX/XXXX, I received a response from the state assistance office that Flagstar Bank had denied state funding. I then immediately called Flagstar Bank to inquire on why they would deny my assistance and they advised the state had denied my application. 

I then requested a second review for assistance through the state, which is where my application currently stands. I do not understand why Flagstar Bank is engaging in a XXXX bias and discriminatory treatment with my attempts to pursue a loan modification to the original amount ( {$2400.00} ). Flagstar Bank is clearly engaging in a systematic XXXX discrimination against an African-American homeowner. I am respectfully asking for the Consumer Financial Protection Bureau assistance to inquire on my interaction with Flagstar Bank and events that have led up to this situation. 

The following is the most recent correspondence from XXXX XXXX XXXX office showing Flagstar Bank 's continued refusal to cooperate with the state and provide the documentation, until I began correspondence with the XXXX XXXX and now the Consumer Financial Protection Bureau. 

On XX/XX/XXXX, I spoke with XXXX XXXX XXXXXXXX  XXXX and was advised they are still awaiting a response from Flagstar Bank, regarding my paperwork. I am seeking assistance from the VA to intercede into the situation and demand Flagstar Bank provide the necessary paperwork to XXXX XXXX XXXX so that my application can proceed forward. 

As oh XX/XX/XXXX, I was notified Flagstar Bank provided the state with the requested documents, after being requested in XX/XX/XXXX. 

Respectfully, Mortgage Loan # XXXX

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