Consumer complaint received 2022-10-10
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: NY
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
Dear Consumer Financial Protection Bureau, My name is XXXX XXXX XXXX I live at XXXX XXXX XXXX XXXX XXXX NY XXXX. XX/XX/XXXX I closed on my property and HSBC Bank XXXX XXXX XXXX XXXX FHA mortgage loan # XXXX at purchase. 

In XX/XX/XXXX due to XXXX related shutdowns I had a Forbearance Agreement with my mortgage servicer HSBC from XX/XX/XXXX - XX/XX/XXXX. My Forbearance Agreement was extended by HSBC to XX/XX/XXXX due to continued Clovid-19 related job shutdowns. 

HSBC informed me that at the end of my Forbearance Agreement, in XX/XX/XXXX, to prevent foreclosure they offered me the option of a Payment Deferral Plan, explaining that my mortgage payments that were paused/suspended during my Forbearance Agreement period of XX/XX/XXXX - XX/XX/XXXX would be put on the backend of my already existing mortgage with no changes and I would resume my regular mortgage payments of {$3100.00} in XX/XX/XXXX. I agreed to this option for repaying my loan. 

In XX/XX/XXXX after my Forbearance Agreement period ended I resumed making my mortgage payments to HSBC in the amount of {$3100.00} until XX/XX/XXXX when my loan was transferred to XXXX XXXX. I made my mortgage payments over the phone to HSBC and they were deducted from my bank account by HSBC. ( See attached bank statements. ) I received my Forbearance Agreement letters, but still have not received my Payment Deferral Plan Agreement letter from HSBC. 

In XXXX of XXXX after my mortgage was transferred from HSBC to XXXX XXXX I immediately received notices from XXXX XXXX stating I must pay a lump sum of $ XXXX, the total of all my mortgage payments during the period of my Forbearance Agreement from XX/XX/XXXX - XX/XX/XXXX or they will foreclose on my home. Im confused with whats happening and how its happening. 

My Payment Deferral Plan Agreement with HSBC aka XXXX should have applied when my mortgage loan was transferred over to XXXX XXXX and it hasnt. XXXX XXXX refuses to take my monthly mortgage payments since my loan was transferred to them in XX/XX/XXXX, causing my account to be delinquent since than until now. They are stating before they can accept mortgage payments from me I would have to pay the lump sum first. Can a bank refuse to take a mortgagees monthly mortgage payments and use that as a reason to also foreclose on them. 

Im receiving foreclosure letters from XXXX XXXX stating if I dont pay the lump sum of now $ XXXX, theyre going to take my home where my grandkids and kids live with me. 

XXXX XXXX also sent me a letter stating I filed for bankruptcy, please note I did not and have not filed for bankruptcy. XXXX XXXX is stating they can foreclose on my house over this too. Again Im confused how this is happening to me and my family.

Ive repeatedly called HSBC aka XXXX to get a copy of my Payment Deferral Plan Agreement to submit to XXXX XXXX to correct this erroneous error. Ive only received letters from HSBC stating theyll get back to me in 30 days. Thirty days has turned into 5 months. The communication with HSBC is lacking and Im getting the run around. Each time I call I have to retell them my backstory, that I was offered a payment deferral plan and need a copy of my payment deferral agreement. This should be an easy resolve but HSBC is making it impossible for me.

Im contacting the Consumer Financial Protection Bureau for help with getting my Payment Deferral Agreement from HSBC aka XXXX and for them to honor it to stop XXXX XXXX from wrongfully foreclosing on my home. XXXX XXXX is stating that I dont have a Deferral Payment Plan Agreement with HSBC XXXX that it was rejected. 
I dont understand why or how XXXX XXXX can make that statement, when that was the offered and agreed to option with HSBC for repaying my loan well before my mortgage loan was transferred to them. 

Please note I resumed making my mortgage loan payments as agreed with HSBC consistently for seven months after my Forbearance Agreement ended ( until my mortgage was transferred to XXXX XXXX XXXX, without any notices from HSBC of lump sum payments due, foreclosure or otherwise. I wouldnt have to deal with threats of losing my home to foreclosure and demands of lump sum payment if HSBC remained as my mortgage servicer and not transferred my mortgage loan to XXXX XXXX. 

I found the following information below from the Consumer Financial Protection Bureau website section : Exit from Your Forbearance and from the HUD.Gov website Cares Act Forbearance Fact Sheet for Borrowers with FHA, VA and USDA loans.

I believe this information applies to me, my Covid-19 related Forbearance, my federally backed FHA mortgage loan and what my initial mortgage servicer HSBC followed and did when they offered the payment deferral plan agreement that I accepted, and proceeded to make my mortgage payments after my forbearance ended. However, it is not being applied by my now mortgage servicer XXXX XXXX. 

2021 Mortgage Servicing COVID-19 Rule - Under the new rule, most mortgage servicers are required to take certain steps to help homeowners in forbearance find options for repaying their loan.

HUD/FHA does not require lump sum repayment at the end of the forbearance for an FHA mortgage loan. Homeowners on special COVID-19 Forbearance will be assessed by their servicer first for eligibility for FHAs COVID-19 Recovery Standalone Partial Claim home retention option no later than at the end of the forbearance period. If you were current or less than 30 days delinquent as of XX/XX/XXXX, you may be entitled to this option. 

The COVID-19 Recovery Standalone Partial Claim is for homeowners who can resume making their current monthly mortgage payments in the future. The COVID-19 Recovery Standalone Partial Claim places amounts you owe into a subordinate lien that is repaid only when you refinance your mortgage, sell your home, or your mortgage otherwise terminates. This lien does not accrue interest.

If you can not resume making your existing monthly mortgage payment, servicers of FHA-insured mortgages will assess you for the COVID-19 Recovery Modification. The COVID-19 Recovery Modification extends the term of the mortgage to 360 months at a fixed rate and targets reducing the monthly principal and interest portion of your monthly mortgage payment. 

With respect to the 2021 Mortgage Servicing COVID-19 Rule and the COVID-19 Recovery Stand-alone Partial Claim mentioned above, this is exactly what was offered and done by HSBC with my covid-19 forbearance and federally backed mortgage loan. I dont understand why HSBC is not directly responding to my request for a copy of my payment deferral agreement and why XXXX XXXX is saying it was rejected. 

Although, HUD/FHA does not require a lump sum repayment at the end of the forbearance for an FHA mortgage loan, Im confused why XXXX XXXX is stating that I have to make a lump sum payment of my paused/suspended mortgage payments during my covid-19 forbearance that is not required and was already put on the back end of my mortgage or XXXX XXXX is going to foreclose on my house. Can XXXX XXXX legally do this? 

HSBC followed the new CFPB 2021 Mortgage Servicing COVID-19 Rule, The COVID-19 Recovery Standalone Partial Claim and HUD/FHA for my FHA loan that was in Forbearance and followed through with actionable steps by offering me the payment deferral plan that I accepted and resumed my loan payments although they did not send me my payment deferral agreement that provides me with proof that follows the actions of HSBC and a fighting chance against foreclosure on my home. HSBC transferred my loan to XXXX XXXX in order to not be held responsible for how XXXX XXXX handles my loan or rather mishandles my loan based on my agreed to payment deferral plan option offered by HSBC for repaying my loan to avoid/prevent foreclosure on our home.

HSBC has been an approved servicer of FHA-insured loans for many years. In order to obtain and maintain FHA approval to service FHA-insured loans, HSBC was required to submit and did submit annual certifications stating that it adhered to all FHA handbooks XXXX regulations and policies. -The United States XXXX XXXX XXXX XXXX XXXX NY XXXX XXXX attached the following supporting documents : -HSBC Forbearance Agreement Letters -Bank Statements showing I resumed making my mortgage payments to HSBC after my forbearance period ended -HSBC Statements -HSBC Loan transfer letter XXXX XXXX Transfer Letter XXXX XXXX Letters Stating I owe lump sum payment $ XXXX and need to pay immediately -Selene Finance Letters of Forclosure -XXXX XXXX Letter stating XXXX filed bankruptcy Thank you for your time and attention to my urgent matter. 

I look forward to hearing from you. I can be reached at XXXX Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation