Consumer complaint received 2021-06-14
Company: Flagstar Bank, N.A.
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
Flagstar Bank appears to be conducting business in the same manner that caused the CFPB to seek a $ XXXX settlement with $ XXXX in penalties back in XXXX. This time, I am its apparent victim. I need your immediate help to keep my home. 

I became unemployed through no fault of my own in late XX/XX/XXXX. I immediately contacted Flagstar and let them know I was unable to pay my mortgage. My financial situation changed when I accepted a new job, but at a substantially lower rate of pay. 

I contacted Flagstar in early XXXX and explained that I wanted to restart a payment plan, but that my financial situation permanently changed and I would need to work-out a loan modification plan with them. Flagstar told me that I should begin with allowing them to provide a Streamlined Loan Modification. They told me they would not need any proof of income or provide any documentation because the process was streamlined and automatic. They said that if the new loan amount was not affordable, I could always come back and complete a more formal loan modification request that would need much more documentation. I told them I was skeptical about the Streamlined process, because it appeared to anticipate helping borrows that merely had a delay of income, and not necessarily a substantial permanent change in income. Consequently, I told Flag Star I would look at their Streamlined proposal, but they should probably just send me the application for the more detailed modification review so I could avoid delays later. 

I determined and communicated that Flagstars Streamlined loan was unaffordable with my new salary. I called Flagstar, told them that the Streamlined loan was unacceptable and also that I would be submitting a new, detailed, application for modification. I submitted a new FULL and COMPLETE application with ALL required documents on XX/XX/XXXX. Flagstar did not respond to this receipt, so I called them and they were able to confirm receipt by phone. 

Since Flag Star actually received all required documents on XX/XX/XXXX. Their response was due to me by XX/XX/XXXX. I called Flagstar frequently during this period. They never called me nor sent me any letters about my new application. I called to ask status very frequently and they told me they received all of my documents and everything was fine I just needed to wait. Still, I kept calling to check-in because they sent me a letter saying that they closed my application at my request. When I called Flagstar again, they said it was only the Streamlined application that was closed, that was normal and I should ignore the letter. Moreover, they confirmed everything with my full loan modification application was fine and being processed. 

I called numerous times and kept getting switched to different first-level customer service agents even when I asked to speak with managers. On or about XX/XX/XXXX, I was switched between 6 different agents, each one asked me all over again all of my personal information and each one started again from scratch. One lady, named XXXX, was very rude to me and asked me for my full social security number instead of just the last 4 numbers of my account. She then immediately demanded to know what happened and the specific reasons why I was unable to pay my mortgage. I was continually transferred and waiting for a period of 2 hours. I kept demanding to speak with a manager, but each agent said only they could help me and managers were not available. Finally, one agent named XXXX XXXX ( Process ID XXXX ) said she was a supervisor and would take personal care of my case. She explained that Flagstar never took action on my XX/XX/XXXX application and I would need to " update '' some documents again. I updated documents within 24 hours of their request ( after I called them ). However, I have not received any letters about my application or phone calls about it. 

Now I see in Flagstar 's on-line system that my application was submitted XX/XX/XXXX. This is complete non-sense! I submitted it in XX/XX/XXXX. Even their own records contradict this! They just want it to appear that they are not delayed in taking action, so they simply made-up a new application date!!! As for XXXX, who says she would personally get involved and call me back by noon on XX/XX/XXXX NOTHING! I tried calling on requesting a call-back when my so called XXXX was not immediately available. They promised a call-back last week, but it is EOB on XX/XX/XXXX today and NOTHING! 

Meanwhile Interest rates are changing and my forbearance is running out! Soon, it will all impact my credit and I may lose my home. Flagstar should NOT be managing FHA loans for the government. They are at best incompetent and at worst. 

Today, I called yet again. They argued with me and said that they were waiting on me to submit documents. However, they had the exact same documents in XXXX, but this time only the dates on the docs, like my new pay stubs, changed. I asked yet again to speak to a manager. Yet again, they switched me to a non-manager " XXXX, '' ID # XXXX. He said he'll have a manager return my call, but EVERY TIME a Flagstar agent tells me this, it is a complete LIE.

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