Consumer complaint received 2016-06-12
Company: M&T BANK CORPORATION
State: CA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
*********PART 1********* To whom it may concern, We feel that our current mortgage servicer M & T Bank ( MT ) has placed our loan into imminent danger of going into foreclosure. Our troubles appear to have begun back in XXXX when our family had suffered an extreme reduction of income. MT, offered a loan modification on XXXX XXXX, XXXX which appeared only on the surface to be a satisfying way for bringing my loan current. Unfortunately this offer is predatory in nature and offered no long-term net tenable benefit to our family for years to come. 
The teaser rate of 4 % literally baited our family into acceptance, only to later adjust to and reset back to a cap rate of 6.375 %. These figures equate to an increase in payment of {$100.00} each year, for up to 8 years, taking our payments from {$2300.00} to {$3100.00}. Once the final adjustment occurs our loan payment will push my debt to income ( DTI ) ratio upwards to 40 % which is completely unaffordable. At the time of acceptance my DTI was under 30 %. 
Furthermore, this same loan modification never actually brought my mortgage loan balance current, in fact I have been carrying a rolling 30 day late payment since MT allegedly modified our mortgage. This error has placed our family under further financial duress, as well as accumulated excessive late fees in the amount of {$4200.00}. We feel that the sole purpose of communicating that our family sought relief in XXXX, by way of modification would bring our loan current which would in turn help to correct our credit profiles. The fact of the matter is our loan was never brought completely current and our credit reports reflect negatively as a result of MT 's negligence. We feel that they have violated the Fair Credit Reporting Act ( FCRA ) as a result of their negligence. 
This predatory loan carries adjustable rates within which exceed my origination rate of 6 %. To further support my claim it is a violation of the Real Estate Settlement Procedures Act ( RESPA ), for any national loan mortgage bank to place consumers into loans which carry no tangible net benefit to the consumer. From the beginning of our acceptance of the above mentioned loan modification we have slowly been forced back into delinquency by MT. MT, also extended my loan to a 40 year term, in essence they have set themselves up to collect an additional .375 % over and extra 10 years. To make matters worse we purchased our home and made a down payment of {$100000.00} on top of these additional increases. 
Take a look at just a snap shot of how MT, is benefiting from my acceptance of this last offer : *Using the same loan amount of {$560000.00} and a term of 30 years at a 4 % rate FIXED, my principle and interest payment would have been {$2600.00}. Total interest paid over 30 years would have been {$400000.00}. 
*However, the interest paid over 40 years this number increases dramatically to {$560000.00}, not to mention the rate increase and cap at .375 % which is almost a full 1 % higher than my starting rate prior to the loan modification. 
The bank will make approximately XXXX, in interest just by slightly increasing my rate over the new 40 year term. 
This loan modification offer is quite predatory in the sense that I 'm paying back double the interest and the payments have increasingly strained my budget since the loan modifications conception date in XXXX. 
Finally after foreseeing and realizing the situation that we are facing, we approached MT, with a request to modify the loan to avoid the increase in payments in XXXX. MT, refused our regular payment during the modification review period.

Company response to consumer: Closed with explanation