Consumer complaint received 2022-04-01
Company: Flagstar Bank, N.A.
State: GA
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
I lost my job during the pandemic, on XX/XX/XXXX. I had not retained employment by the close of the month and called Flagstar Bank to inform them that i would need to enroll in the covid 19 forbearance program. I asserted this was a temporary hardship, that i was planning to retain the home, and that i just wanted my payments deffered to the end of my loan, keeping everything the same except the loan length terms, accounting for the forbearance months at the end. I was assured that this was an option available to me and that it would be completed once my hardship was resolved. I had a hardship packet drafted by XXXX law sent to all my creditors informing them i was being impacted by my job loss during the pandemic. I followed all protocols set forth by Flagstar to report on my situation monthly. I had a series of medical situations hit our household causing me to be under employed for resolving my hardship concerning my mortgage. I reported all this during my monthly check ins, and was verbally assured each time that my deferral option was still available and that would be what happened a long as i continued to follow the forbearance protocols. This went on until XX/XX/XXXX when i was told by a Flagstar rep that i was no longer eligible for forbearance, and that if i didnt start making regularly scheduled payments on my mortgage, in conjunction with the missed payments in the amount of XXXX from the forbearance period that i would go into foreclosure. I informed the rep that under the cares act i was actually afforded XXXX more months and that they were unable to demand the full forbearance amount all at once, and recited the va servicers handbook clause to them that denied them that. The rep stated that it was at the servicers discretion to allow me to continue in forbearance or not, and that unfortunately since i had a va serviced loan that i was actually not eligible for defferment. I was obviously shocked at this revelation as i had been verbally assured the entire time i was in forbearance that deferment was not only an option, but was the action that was going to be taken once my hardship was resolved. I explained all this to the rep and was simply told " sorry you were told that, but you're ineligible regardless. '' I then went through a series of managers, and had my case " expedited to escalations '' where i was informed that va loans weren't ever eligible for defferment. I called my va rep, who informed my that the va couldn't " make '' the servicer ( flagstar ) give me more forbearance time, nor could they " make '' them give me a deferment, even though i was continually verbally told i was getting that option. I informed her that they were trying to force me into something called a streamline modification, and that i was not wanting that option. She gave me some resources to get some help. I started making my payments again in XX/XX/XXXX per Flagstar 's demands. I continued to be forced to make my payments over the phone with the covid task force, so every single time i call i have to reassert that yes I'm trying to retain my home, i continually explain that every time i call i am given different information, from ppl in the same dept. I was threatened with foreclosure in XXXX because i kept rejecting the high pressure streamline modification they kept trying to push me into. I continued to make the payments as requested on the timeline requested by Flagstar and continued to request deferment and was told that my case had been sent to the underwriters to see if i could be given a defferment since the va loans had recently become available for defferments. I told the rep that the modification to the va loan terms was completed on XX/XX/XXXX, BEFORE i came out of forbearance, so why was i being denied, especially since complying with all protocols set forth by Flagstar. I was told that it was because i had missed more payments than what was allowed to be considered for defferment, and that compliance didn't necessarily impact my ability to be given defferment. I then contacted a 3rd party with XXXX XXXX, and had them contact Flagstar with me, only then with the 3rd party did flagstar assure me that i wasn't in foreclosure, that i wasn't in danger of going into foreclosure, and that my account WAS being reviewed by under writers for a possible partial claim, which in flagstar speak means defferment. Then made XXXX 's payment, was asked by the rep what was going on with my account, told them I'm doing what I'm asked and that i was told it was waiting for a review. Called to make febs payment, had the rep take the payment from a different account with the same bank, for some reason they still tried to take the payment from the other account, was charged an ach fee from my bank, XXXX, i called the same day i realized the mistake had been made, and corrected the payment, i was told to submit documents showing i was charged the ach and that a XXXX would review the recorded call showing i gave new account info and that i would either be reimbursed or that my account would be credited. I followed reimbursed protocols on this, and was sent an email by the company asking why they would be responsible for reimbursement, i explained it again in the email what i was promised, and provided supporting docs, silence. I then called to make my XXXX payment, and was casually told by the rep who was taking my payment that if i was able to make a double payment this month that i would then become eligible for defferment, because since i make my payments after the first of the month that technically it puts me at 13 months behind instead of 12, and if i could get my account up to date, where it looks like im only 12 months behind that i would be within company policy to qualify for defferment. I became extremely upset at this, as this was the first time i had heard anything about being able to actually do something to get defferment and if that was the case why wasn't i given more time to get some resources together since apparently it had to be done by XX/XX/XXXX to make me eligible. I was apologized to and told that if i could get the money together to call back, make the payment and deferral would be guaranteed. My payment cleared my XXXX bank on XX/XX/XXXX. On XX/XX/XXXX i received my tax refund money, and called Flagstar Bank at XXXX am, i was told the task force had to handle my call and they opened at XXXX, so i called back then. I was connected to a rep, i told her my situation, that i was calling to make this extra payment so that i could FINALLY be provided the defferment i deserved. She informed me that there was no such thing within flagstar, that she had never heard of any such incentive plan to get defferals, and started to look back at all the notes in my account detailing all of my months of compliance, detailing all of my conversions with reps from the company. She told me that she was sorry that i was misinformed, but that she needed more time to review all of the notes, and that she was going to ( yet again ) expedite this to her escalations XXXX. This rep told me her name was XXXX and that her rep id number was XXXX. She promised to call back to follow up no later than XX/XX/XXXX. There was no mention of paperwork in route to me. I received my loan modification with partial claim offer on XX/XX/XXXX, and was given only until XX/XX/XXXX to accept. The packet in the mail from them details how now all of a sudden i owe not XXXX from unpaid forbearance payments, but instead owe XXXX and they have the listed months of defferment at XXXX in this new modification offer, and when i add up the missed payments, the missed escrow, and the missed interest ( which i was understanding was paused during forbearance ) it doesn't equal the XXXX they're calling for to be rolled into the modification, all of those numbers only equal up to XXXX. Not only has this company been predatory on a XXXX veteran and continually intentionally misinforming me ( said veteran ) but they're literally trying to force me to not only repay what i owe ( i have no problem paying what i owe, hence the defferment seeking ) but now they're trying to tack on an extra XXXX on to it too? Egregious and abusive lending practices, and i don't deserve it and neither does anyone else.

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