Consumer complaint received 2023-05-03
Company: NEW YORK COMMUNITY BANCORP INC
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
In XX/XX/XXXX, my new construction mortgage was sold by XXXX mortgage to Flagstar Bank. At the time, my monthly mortgage payment was {$3600.00}. ( Please refer to attachment : Flagstar Bank XXXX XXXX - Exhibit A ). My monthly mortgage payment was {$3600.00} from XX/XX/XXXX through XX/XX/XXXX, when I was informed by Flagstar that my mortgage was reduced to {$2900.00} ( Please refer to attachment : Flagstar Bank Escrow Analysis XXXX XXXX - Exhibit B ). They provided the following statement, Each year we review the escrow account to ensure the correct amounts are being collected to pay the property taxes and homeowner 's insurance. In reviewing the escrow account, we found an extra {$4400.00} was paid. 

In XX/XX/XXXX, I was notified by Flagstar Bank that my monthly payment would increase from {$2900.00} to {$3500.00} ( Please refer to attachment : Flagstar Bank Escrow Analysis Wright XXXX - Exhibit C ) because of what they determined to be a shortage in my escrow account. In addition to this, Flagstar Bank is demanding an additional {$1000.00} for an Escrow Shortage. Based on their math, the new monthly mortgage payment to would be {$4600.00}, beginning XX/XX/XXXX. 
I contacted Flagstar Bank and also made a complaint to the XXXX XXXX XXXX as I see this as an unfair practice. To date Flagstar has not provided an explanation. According to The Real Estate Settlement Procedures Act ( RESPA ), the mortgage documents, or state law is very clear that As allowed by the Real Estate Settlement Procedures Act ( RESPA ), the mortgage documents, or state law, the escrow balance should not go below XXXX months tax and insurance payments, which in my case is a minimum balance of {$1500.00}. ( Please refer to highlight in attachment : Flagstar Bank Escrow Analysis XXXX XXXX - Exhibit C ). Please note that when I added the current escrow amount of {$1000.00}, the proposed escrow shortage amount of {$1000.00} and then multiply it by 12 months ( [ {$100000.00} + {$1000.00} ] * XXXX = {$24000.00} ). This seem to exceed the Shortage amount Flagstar is claiming. Just to remind you, Flagstar is claiming an escrow shortage {$12000.00} for the year but asking me to pay {$24000.00} for the same year, almost twice the amount in excess. This seems unfair, an abuse of my rights as a consumer and illegal in the United States. 

By paying the updated escrow amount of {$1000.00} that Flagstar provided over the next 12 months, the escrow account will have a balance of {$12000.00}. This means that the discrepancy between my future escrow account balance and escrow shortage amount is actually {$75.00} ( {$12000.00} {$12000.00} ). 
After opening a dispute with you on XX/XX/XXXX, I signed into Flagstar Banks online portal on Friday, XX/XX/XXXX to pay my mortgage. However, I was unable to pay the amount of {$3500.00} online as the account was locked. The window where a customer can usually pay other amount was locked. The only payment option that was available online was to pay the full amount of XXXX the amount Im contesting additional principal and additional escrow. Consequently, I had to call Flagstar Banks customer service number to make a phone payment for the amount of my mortgage ( {$3500.00} ). When I filed by complaint to Flagstar on this matter, I indicated in my complaint to Flagstar that I would continue to pay my mortgage in the amount of {$3500.00} ( the same amount Ive been paying before this issue ), whilst I await resolution on my issue. ( See Exhibit C )

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