Consumer complaint received 2021-10-07
Company: MIDFIRST BANK
State: TX
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
I am a XXXX XXXX XXXXXXXX XXXX XXXX I have a VA Home Loan. I participated in the CARES Act Covid - 19 Home Mortgage Forbearance, beginning in XX/XX/XXXX initially for a 6 month period, then requested an additional 6 month forbearance period which ended in XX/XX/XXXX. I entered into an agreement with my mortgage servicer, Midland Mortgage, Division of MidFirst Bank on XX/XX/XXXX, Loan Disaster Modification Program for a 3 month period which began on XX/XX/XXXX and ended successfully on XX/XX/XXXX. On XX/XX/XXXX, I received a Loan Modification Document, Read, Sign date and return, which ( 1 ). showed an increase in my interest rate, from the fixed rate that I signed in XX/XX/XXXX at 3.375 % -increased to 3.500 % on the documents, but was really 3.548 % ; { according to Section 1024.41 ( c ) ( 2 ) ( vi ) for certain loan modification options ... .. to be eligible for the proposed new exception, the loan modification option would need to satisfy certain criteria. Specifically, " not increase the required monthly principal and " interest payment '', not charge a fee associated with the option, and waive certain other fees or charges '' ... ( 2 ). For loan modification to qualify under the proposed new exception, they must not charge interest on amounts that are deferred and will not become due until the mortgage loan is refinanced, the mortgage property is sold or the loan modification matures. ( 2a ) It would appear that Midland Mortgage was in error in that the payments I made in XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX were applied to the amounts that were deferred during my participation in the CARES Act. ( 2b ) It also appears that fees were not waived and despite my insistence upon receiving a detailed accounting of " exactly how much money I owe for the period of my forbearance '' I am still uncertain of the exact amount, simply because I am not exact as to what " interest rate '' was used by Midland and because of a fluctuation in the monthly amount owed beginning in XX/XX/XXXX. During my conversations with Midland over the past couple of months, it appears that Midland Mortgage and its Modification Managers are " not aware '' of the { Section 1024.41 ( c ) ( 2 ) ( vi ) ( A ). Treatment of Certain COVID - 19 Related Loss Mitigation Options; Under the Real Estate Settlement Procedures Act ( RESPA ) ( REGUALTION X ). I am not all convinced that they are " unaware '' of these rules and guidelines, put simply, I am concerned that Midland Mortgage is attempting to skirt these rules and regulations! I understand that as of XX/XX/XXXX the rules and guidelines were in an " interim final rule effective on XX/XX/XXXX and that was open for comments on or before XX/XX/XXXX. I also admit, with my limited knowledge of law, that there may have been some changes to the law, but in my research I have not found any changes that would suggest that " Servicers are under any other guidelines concerning Government Backed Mortgages ( my VA Mortgage loans is, I hope, still valid for these guidelines and rules for " modification of mortgage upon exiting from CARES Act XXXX Forbearance ). I believe the rules that are set would be advantageous to my situation and would help alleviate issues that could create a hardship for me and family based upon my limited and fixed income. I am writing to CFPB in hopes that you and your staff would consider taking an in-depth look at my situation and the situations of other Veterans who may or may not know the protections CFPB has set forth need to be enforced and that Servicers who manage VA Loans must abide by them! I have contacted my DVA Mortgage Case Manager and He assisted me in getting Midland to restore my initial " fixed interest rate '' at 3.375, yet, I haven't been given a reasonable explanation as to " WHY '' Midland Mortgage even dared to change my interest rate to begin with? I honestly feel that this action was intentional and derelict with the express intent to " put free money into their pockets '' at my expense. This should not have happened and I wonder how many other VA Loan Mortgage Holders have experienced this action? This action of increasing the interest rate upon exiting a CARES Act forbearance period should be thoroughly investigated! Also, is or was it an " illegal action '' on the part of Midland Mortgage to use the monies I paid during my participation in the Disaster Loan Modification Program to pay back payments on monies that was supposed to be " set aside '', without the penalty of drawing interest, until the property is refinanced, sold or the loan matures? I am not even sure, after repeated inquiries as to exactly where Midland has placed the " deferred amount ''! Your attention to this matter is of great importance to me and my family! Thank you! Semper Fi!

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