Consumer complaint received 2017-06-26
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I recently completed a permanent loan modification with Bank of America. The loan modification was recorded on XX/XX/XXXX by Bank of America ( exhibit A ). Once this loan modification was recorded, a new interest rate of 2 % was registered and my principal was reduced by XXXX to {$200000.00}. In order to qualify this Making Home Affordable aka HAMP modification, three trial payments were required to be paid. These payments were dueXX/XX/XXXX, XX/XX/XXXX& XXXX. After all three payments were made timely, a permanent loan modification was due to be issued as phase two of a two-step process. The trial agreement is a sole and separate contract that leads to the new permanent loan modification contract. Since the permanent loan modification agreement is a recorded mortgage note, it must adhere to the principals of RESPA law. RESPA law requires that mortgage notes move interest collected forward in time, since mortgage interest accrues in arrears. With that being said, since this mortgage note was recorded on XX/XX/XXXX, the first full payment of {$1300.00} be due XX/XX/XXXX. Bank of America has a XX/XX/XXXX payment due date, which obviously violates RESPA law and would affect the TIL mathematical calculations. I spoke to a manager at Bank of America ( XXXX XXXX ) He advised that Bank of America they is still collecting on the trial loan modification payments, even though the permanent modification has been recorded. Per clause 4 ( B ) in the new mortgage note, it clearly states This agreement supersedes the terms of any modification, forbearance, trial period plan or work out plan that I entered into with the lender. Therefore, there is no way to apply the any funds paid on this mortgage note prior toXX/XX/XXXX. Understand also that since this a Making Home Affordable modification deal, the Federal Government compensates Bank of America for economic loss. The mere fact Bank of America is trying to over collect on the debt and also bill the Federal Government is preposterous. The National Mortgage Settlement in XX/XX/XXXXclearly established law relating to bait and switch tactics relating to trial loan modification contract transition. Bank of America was the principal party named on the XXXX National Mortgage Settlement. Moving forward to XX/XX/XXXX, B of A transferred my loan to XXXX XXXX XXXX. XXXX claims that the loan was 90 days past due and had a {$1000.00} negative escrow balance at the time of the transfer. There is absolutely no way the the escrow could have been deficient at the time of the transfer, since the regular escrow payment due was {$320.00} per month and B of A was collecting {$430.00} per month. If anything, I am due an escrow refund from B of A. XXXX also forced me into a forbearance plan that increased my payment {$1400.00} per month, based on the alleged delinquency purported by Bank of America. Overall, I have overpaid my mortgage payments by over {$4600.00}. Since my regular monthly payments are {$1100.00} per month, I have over paid by three full payments plus a credit of {$1000.00}. Since both Bank of America and XXXX claim I am still delinquent, I am seeking your assistance on this matter.

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