Consumer complaint received 2022-08-14
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: GATEWAY FIRST BANK (NJ)

I entered into Covid Forbearance with Gateway Mortgage XX/XX/XXXX and in the transition of forbearance I was forced into a Modification. They come back with loan modification documents with an increase in rate causing an increase in monthly payment. I have called and spoke to XXXX requesting contact with loss mitigation or underwriting to request other payment options more specifically partial claim. My account was noted and received a call from XXXX on XXXX indicating that my request to appeal my modification was denied and I exhausted partial claim. I had no options pay the outstanding balance in lump sum or agree to modification. If these options didnt work they will start the process of Foreclosure. I asked my account be noted to have a Supervisor call me, at which time I was informed they return calls 24-48 hours. I called again on XX/XX/XXXX requesting update on Supervisor call and was informed I should receive call on Monday XX/XX/XXXX. Today, XX/XX/XXXX I received alert from Credit reporting agencies, that Gateway reported my account delinquent and reported last payment on XX/XX/XXXX, when last payment was submitted on XX/XX/XXXX for the actual monthly payment. It appears that my rights were violated under the FHA after Covid Forbearance and my XXXX payment was not applied to my account. I can resume my monthly payment with an option of partial claim for 5 Covid forbearance payments. After doing research and CFPB site see : Forbearance ends with a payment plan, not a lump-sum payment Homeowners who receive COVID hardship forbearance are not required to repay their paused payments in a lump sum once the forbearance period ends. You can talk with your mortgage servicer, or start with a HUD-approved housing counseling agency , to discuss a repayment plan that works for your situation. 
Most servicers must offer forbearance, and the others can provide options The COVID hardship forbearance applies to all federally backed and federally sponsored mortgages, which includes HUD/FHA XXXX VA, USDA, XXXX XXXX XXXX and XXXX XXXX mortgage loans. This includes most mortgages. Homeowners with federally backed loans have the right to ask for and receive a forbearance period for up to 180 dayswhich means you can pause or reduce your mortgage payments for up to six months. Additionally, you can request an extension of forbearance for up to 180 additional days, for a total of 360 days. 
The consumer reporting protections of the CARES Act continue to apply to the time period that was covered by the accommodation after the accommodation ends. Assuming payments were not required or the consumer met any payment requirements of the accommodation, a furnisher can not report a consumer that was reported as current pursuant to the CARES Act as delinquent based on the time period covered by the accommodation after the accommodation ends. A furnisher also can not advance the delinquency of a consumer that was maintained pursuant to the CARES Act based on the time period covered by the accommodation after the accommodation ends.