Consumer complaint received 2021-05-24
Company: Flagstar Bank, N.A.
State: TX
Product: Debt collection
Sub-product: Mortgage debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Seized or attempted to seize your property

Complaint:
I have just completed year three ( 3 ) of a five-year XXXX XXXX restructuring bankruptcy. The mortgage for my primary residence was NOT included in this bankruptcy. As of this writing, I have bank statements that provide proof that I have never missed a mortgage payment not have I ever been 30+ days late in paying a mortgage payment. 

Flagstar Bank purchased our primary residence home mortgage from XXXX XXXX XXXX XXXX XXXX ( XXXX ) on or about XX/XX/2021. I received a written " Notice of Servicing Transfer '' from Flagstar Bank dated XX/XX/2021 ( see attached ). In that notice, Flagstar stated that the transfer effective date was XX/XX/2021, and that I would be able to manage my loan online effective XX/XX/2021. 

Following the provided instructions, on XX/XX/2021, I created a login and password for www.flagstar.com/myloans and logged in to the site to review my loan and set up automatic payments. The website informed me that I was unable to set up automatic payments because my account was PAST DUE and I was in arrears. No amount or any additional information was provided. 

On XX/XX/2021, I called Flagstar Bank customer service at ( XXXX XXXX XXXX and was automatically re-routed to the " Collections Department. '' The representative informed me that Flagstar 's records indicated that I was 3 MONTHS past due and that I had not made a payment for XXXX, XXXX, and XX/XX/2021. She then informed me she could not discuss my loan in detail and I would need to talk to the " Bankruptcy Department. '' After several attempts to transfer me to that department, she told me that she could that " they're very busy '' and she could not get through. She informed me she would make a request that someone from the bankruptcy department call me within the next business day. 

On XX/XX/2021, ( dated the DAY AFTER they began servicing my mortgage loan ) I received a letter from Flagstar Bank informing me that my loan was in delinquency and included instructions on what I needed to do to avoid FORECLOSURE ( see attached ). 

I called Flagstar Bank every business day thereafter. Each time I spoke to a customer service representative in the collections department and each time I was transferred to the bankruptcy department and each time I was unable to be connected to the department and, as before, each time the representative made a request to have someone from the bankruptcy department call me within the next business day. 

As of this writing, I have never received a call back from anyone at Flagstar Bank. Each time I CALL and speak to the collections department I am informed that my account is delinquent and that only the bankruptcy department can talk to me about my account. 

Moreover, the loan statements I have downloaded from the Flagstar website ( see attached ), clearly show that I NEVER missed a payment on this loan when it was serviced by XXXX. 

In addition, each time I spoke with a customer service representative ( from collections ) I asked what date my payment was due and asked what I needed to do to begin the process of removing mortgage insurance from my loan. Each time I was told that I had to speak to the bankruptcy department to discuss these issues. 

In accordance with the federal Real Estate Settlement Procedures Act ( RESPA ) I sent Flagstar Bank a " notice of error '' letter ( dated XX/XX/2021 ) regarding their reporting that my mortgage loan is in delinquency. As of this writing, I have not been contacted by Flagstar Bank regarding this matter. 

In addition, the federal Homeowners Protection Act gives me the right to make a formal request to my mortgage lender for the removal of PMI from my home loan. Flagstar Bank, by refusing to contact me after repeated requests to have them do so, is denying me my right under the federal Homeowners Protection Act to have PMI removed from my loan.

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