Consumer complaint received 2023-09-08
Company: NEW YORK COMMUNITY BANCORP INC
State: FL
Product: Mortgage
Sub-product: Conventional home 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:
Subject : Urgent Resolution Required for Mishandling of My Mortgage Account Dear Sir/Madam, I am writing to bring to your attention a distressing situation that has arisen due to a series of miscommunications and misinformation provided by Flagstar Bank 's customer service representatives and management. The financial losses I have incurred as a result of this situation are significant, and I believe it is crucial to address this matter promptly and fairly. 

In XX/XX/2023, I contacted Flagstar customer service seeking assistance with my mortgage payments, as I was falling behind. During this call, I was informed by a Flagstar agent that I could make payments without incurring penalties or facing foreclosure until XX/XX/2023. The agent emphasized that Flagstar Bank would not report any late payments to the credit bureau due to the state protection law extended until XX/XX/2023, following the hurricane in XX/XX/2023. 

This information brought me immense relief, as I was unable to make my mortgage payments at that time. I repeatedly sought confirmation from the agent that I could indeed make payments by XX/XX/2023, without any penalties, foreclosure proceedings, or credit bureau reporting. My credit was in good standing, and I had never been reported for late payments. Additionally, the Flagstar representative advised me to disregard any correspondence that Flagstar might send by XX/XX/2023, as it was considered standard procedure. 

Subsequently, a customer service representative approached me about a mortgage payment relief plan, to which I responded that I would consider it and provide a response if I decided to enroll. I want to clarify that I had not submitted an application or sent any paperwork related to this offer. 

At the end of XX/XX/2023, I contacted Flagstar with the intention of paying my mortgages in full, as per the instructions I had received earlier. However, Flagstar refused to accept my payment, citing that foreclosure proceedings had been initiated on my primary residence. To my shock and disbelief, I requested to speak with a manager to address this alarming situation. It was inconceivable to me that my home could be subject to foreclosure over a relatively small amount, approximately {$7000.00}. 

I explained the entire situation to the manager and requested access to the recorded phone conversations for clarification. He assured me that he would review the records and get back to me. Unfortunately, I did not receive any follow-up from him, prompting me to contact Flagstar Bank once again. I spoke with another manager who disclosed that when a customer discusses a mortgage relief plan, the state protection program is automatically removed as an option. This critical information had not been conveyed to me during the initial phone conversation with the Flagstar agent. If I had been aware of these rules, I would have refrained from discussing this option altogether.

When I inquired about the status of the recorded conversations, the manager stated she had no information on the matter and transferred me to her superior, XXXX, who she mentioned was the only person capable of addressing my concerns. 

I subsequently reached out to XXXX, who requested that I call back in a few days after he had a chance to review the XXXX recorded conversation with the Flagstar Bank representative. Following up as instructed, I made several attempts to contact him, but he was consistently unavailable and failed to return my voicemail messages, effectively ignoring my pleas for assistance. 

I find myself at a loss regarding the steps I need to take to resolve this matter. Due to the incompetence and misrepresentation of information, I incurred {$4600.00} in attorney fees, a substantial sum considering my mortgage balance at that time was only {$8800.00}. The total arrearage accrued late charges, inspections, title/appraisal costs, attorney fees, and attorney costs have now ballooned to {$13000.00}, with a due date of XX/XX/2023. 

I kindly request your immediate attention and intervention in rectifying this situation. It is my sincere hope that we can resolve this matter swiftly and equitably, ensuring that I am not burdened with these unjust financial losses. Please contact me at your earliest convenience to discuss a resolution plan. 
Thank you for your prompt attention to this urgent matter. 

Sincerely, XXXX 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