Consumer complaint received 2020-03-17
Company: Flagstar Bank, N.A.
State: MI
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
In XXXX of XXXX, I began the process of a loan modification with my ( then ) mortgage servicer. About two to three months into the process, I was notified by that said servicer that my mortgage had sold to Flagstar Bank and that the loan modification program I was in the process of would continue with Flagstar Bank. With previous knowledge of mortgages being sold to other servicers, back and forth, I had no concern and was not alarmed about my mortgage servicer changing. All payments were made on time during my loan modification process and in XXXX of XXXX, Flagstar Bank sent me the final loan documents to be signed. I returned the packet quickly per their request. About a week later, I received a call from Flagstar Bank stating that the numbers on the documents we incorrect and a new packet containing new final loan documents would be sent to me. I was instructed to sign what they were going to resend and return quickly. It took Flagstar Bank about 30 days to send me the new paperwork. In the meantime, their collection practices continued. I received calls about every four days asking why I was delinquent and how much I was going to pay over the phone. At the end of each call, the account representative would finally realize the situation by reading the notes on my account and the call would end with the representative stating they'd send me the new paperwork for signature that day. Four days later would result with another collection call and still no new paperwork was received. This went on about 4-5 times for about a month more till I finally received the new paperwork. I signed it and it was return quickly, per Flagstar Bank 's request. I then received a call that the paperwork was again, now for the second time, incorrect. The next couple of weeks mirrored what had happened before. Collections calls received while I was waiting for the paperwork, only this time a property inspector was sent to my home as well. The inspector took photos of my home and left a hand cut out note taped with painter 's tape to my front door. While I am aware of this practice in the collection process to make sure the payor still occupies the property, I was not delinquent. I received the third round of paperwork and mailed it back quickly - and my XXXX payment was made. This paperwork was also wrong. I had to sign three rounds of paperwork and take the continuous collection calls. I did ask to speak with the representatives ' supervisor which resulted in no return call after two attempts. I finally made contact with XXXX XXXX of Flagstar Bank who assured me that the process was over and I'd receive no more calls, no more property inspections. He apologized greatly for the automated process that was generating calls, letters and property inspections and assured me that I was to ( rightfully ) be removed from the collections process. He reinforced what my online account showed which was that I was current and that all the loan documents were finally correct. My XXXX payment was made and on XX/XX/XXXX another property inspector came to my house and took more photos. I made a phone call to XXXX XXXX and he told me he'd call me back after checking into the situation and ending it. I never received a call back from XXXX XXXX or any other Flagstar Bank representative, but of course, I made my XXXX payment. Yesterday, XX/XX/XXXX, I received a letter from Flagstar Bank asking me to call them because they can help me and we can work out a plan so my home doesn't go into foreclosure. It was another collection letter, signed by the representative, XXXX who had called me dozens of times over the past six months. XXXX has been assigned to me as my personal contact to get help. Help for what? The collection process continues on me and I am current, have been current. I did call XXXX XXXX of Flagstar Bank today, XX/XX/XXXX, but as of noon, no return call. I am filing a complain here, with the Federal Trade Commission, Michigan State Attorney 's office and my local prosecutor.

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