Consumer complaint received 2019-02-27
Company: Flagstar Bank, N.A.
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
When it became clear we were going to be unable to pay our mortgage in XX/XX/XXXX I found the Loss Mitigation Application on the Flagstar website. Up to this time we have never been late or missed a payment. I followed the instructions provided in the application and uploaded the application, with all the requested supporting documents, on XX/XX/XXXX. I requested a temporary six month forbearance for reasons I explained in one of the required documents, the hardship letter. I then called Flagstar on two occasions, XX/XX/XXXX and XX/XX/XXXX, and both representatives stated they had not received the application and were unable to see that it had been uploaded. This was despite the Flagstar website still showing I had uploaded the application on XX/XX/XXXX. On XX/XX/XXXX I faxed and mailed a hardcopy of the application and all the supporting documents because we still had not received word that the application had been received. We received a letter, dated XX/XX/XXXX, stating that the application had been received and was assigned to a Flagstar representative. We then received a Notice of Incomplete Application, dated XX/XX/XXXX, stating there were five items missing from the application and we had until XX/XX/XXXX to reply. XXXX of the items identified had been included in the original application and two of the items were not included in the instructions as being required documentation. I submitted my response to Flagstar via the website on XX/XX/XXXX and also mailed a hard copy of the response as well. In my response, I explained my confusion regarding the missing items and items being requested that werent in the instructions and asked for clarification. We then received three more notices of incomplete application stating they had received additional information, however, our application was still incomplete ( notices dated XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX ). We then received a letter, dated XX/XX/XXXX, that our file had been closed because they had not received critical information necessary to complete our application. I called Flagstar the next day ( XX/XX/XXXX ) and spoke to a representative who read me a list of errors with what was submitted, which included : the hardship letter was missing the co-borrowers signature, co-borrower has signed the 4506-T EZ form in the wrong place, they needed an unemployment award letter and two months of bank statements showing the unemployment deposits and tax returns for one of the borrowers. NONE of these errors were included in the Notice of Incomplete Application Notice. When I asked if the representative could provide the errors in writing, I was told Flagstar doesnt send personalized letters. The representative was unable to tell me if the errors were corrected would application be processed or would we need to submit an entirely new application. 

I was proactive and responsive to all of Flagstars requests, yet the information they provided was extremely inaccurate and not helpful. Even if I were to go through the entire process again, how I am I to correct what I dont know I did wrong and if the requirements for what needs to be submitted isnt clear in the instructions? 

I am attaching my initial application, all of Flagstars correspondence and my response to Flagstar.

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