Consumer complaint received 2017-11-08
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: M&T BANK CORPORATION (CT)

CFPB Complaint I Trouble During Payment-Servicing, Payment Process, Escrow XXXX XXXX XXXX XXXX lent a {$1.00} mortgage XX/XX/XXXX. XXXX policy offered rate change in 1 month using a 1-page application in 1 month with no underwriting. We requested a rate change XX/XX/XXXX. XXXX denied its policy delaying for 30 months. XXXX overcharged us and failed to correct its loan accounts, from our XX/XX/XXXX rate request until the transfer to M & T Bank in XX/XX/XXXX. 

M & T Bank acquired XXXX XXXX XXXX XXXX  and our mortgage on XX/XX/XXXX. M & T Bank, as lender, servicer and furnisher of credit data, failed to correctly : 1. Credit/apply XX/XX/XXXX-XX/XX/XXXX payments. 
a. XXXX Loan Activity shows six payments of $ XXXX each b. XXXX Loan Details shows total payments of $ XXXX 2. Eliminate duplicative tradelines for the same loan. 
a. XXXX Duplicative shows 2 derogatory accounts for same loan b. XXXX Duplicative shows 2 derogatory accounts for same loan 3. Eliminate old tradelines dating from first delinquency date of XX/XX/XXXX a. XXXX ( 2 ) Shows XX/XX/XXXX date of first delinquency b. XXXX  Shows XX/XX/XXXX date of first delinquency c. XXXX  XX/XX/XXXX Shows XX/XX/XXXXdate of first delinquency d. FTC Opinion Shows XX/XX/XXXX unchanged by later payments e. FTC Opinion Shows XX/XX/XXXX unchanged by M & T acquisition 4. Furnish or withhold data and tradelines to the credit bureaus a. Despite substantial, multiple source evidence ( see Attachments ) b. Despite pending Disputes/QWRs ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX ) c. Furnished post QWRs and Disputes ( attach XXXX  showing updates ) d. Failed to Advise Credit Bureaus of Dispute 5. Fix loan records. M & T acknowledged receipt of our requests and promised response, but made no substantive response or correction. See Attachments : a. XX/XX/XXXX M & T Customer Service Research b. XX/XX/XXXX M & T QWR/Notice of Error c. XX/XX/XXXX XXXX Customer Service Research d. XX/XX/XXXX XXXX QWR/Notice of Error e. XX/XX/XXXX Updated Revisions, M & T Based Revisions f.XX/XX/XXXX Revisions g. XX/XX/XXXX QWR Follow up h. XX/XX/XXXX QWR and Request for Information 6. Provide balances, payoff amounts and monthly invoices in XX/XX/XXXX and XX/XX/XXXX a. Monthly statements XX/XX/XXXX and XX/XX/XXXX b. Incorrect Payoffs including XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX Please see below our summary evidence that the M & T loan records and tradelines are inaccurate, incomplete and unverifiable. See detail below and attachments : XXXX and M & T Tradelines Inaccurate The XXXX tradelines are inaccurate in all respects from XX/XX/XXXX to XX/XX/XXXXper our correspondence dated XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX of this year. Errors include principal balance, interest, monthly and other charges. 

M & T tradelines, based solely on inaccurate XXXX data, are also inaccurate. 

M & T Bank has failed to do independent analysis, provide responsive communications and correct loan errors. See XX/XX/XXXX QWR Corrected Principal and Interest Balances from XX/XX/XXXX to XX/XX/XXXX. These errors persist for 75 months from initial request XX/XX/XXXX to the M & T transfer at the end of XX/XX/XXXXincluding XXXX  Overcharges : Outstanding Principal : All months from {$1400.00} to {$72000.00} Monthly Interest : All months from {$2500.00} to {$3600.00} Late Fees : All months from {$1400.00} to {$20000.00} Corporate Advances : All months to {$11000.00} Regular Monthly Payment : All months from {$2800.00} to {$2800.00} Total Amount Due : All months from {$2800.00} to {$460000.00} Modification XX/XX/XXXX : Overstated principal and interest by {$180000.00} Transfer XX/XX/XXXX : Borrower has {$8000.00} credit not overdue payments. 

XXXX overcharged and M & T failed to correct modification loan balances as of XX/XX/XXXX.
XXXX XX/XX/XXXX modification included overstated payoff balances for principal, interest and other charges. XXXX Failure to provide an accurate payoff balance amount upon a borrower 's request in violation of section 12 CFR 1026.36 ( c ) ( 3 ).
XXXX Overcharges Loan Modification XX/XX/XXXX : XXXX Stated Principal {>= $1,000,000} XXXX Stated Interest {$230000.00} XXXX Stated Other {$6900.00} XXXX Stated Total {>= $1,000,000} Corrected Principal {>= $1,000,000} Corrected Interest {$130000.00} Corrected Other {$0.00} Corrected Loan Total {>= $1,000,000} Corrected Monthly {$7500.00} On XX/XX/XXXX, XXXX lent us {>= $1,000,000}. We only owed {>= $1,000,000}. The remaining {$180000.00} was our credit balance. With our additional XX/XX/XXXX payments of {$20000.00}, our credit balance grew to over {$200000.00}. There were no late payments or a default in XX/XX/XXXX. By falsely claiming default, XXXX violated 1024.41 ( f ) or ( j ). M & T  continues this violation by using a false XX/XX/XXXX default to get a foreclosure judgment on XX/XX/XXXX. 

The XXXX tradelines are entirely wrong for at least 75 months from the initial XX/XX/XXXX modification request through the XX/XX/XXXX transfer to M & T.
Three credit unions conflict with each other, XXXX contracts and M & T practice. 

M & T tradelines, based solely on inaccurate XXXX data, are also inaccurate.
XXXX and M & T Tradelines Incomplete XXXX tradelines are incomplete. From XX/XX/XXXX to XX/XX/XXXX, XXXX omitted monthly statements and credit bureau reports. From XX/XX/XXXX-XX/XX/XXXX, XXXX omitted suspense account, escrow account and loan modification accounts. XXXX admitted escrow payments, but M & T confirmed the lack escrow and other records. 

XXXX tradelines are incomplete missing 30 monthly statements, suspense and escrow account records. XXXX admitted suspense and escrow items in XX/XX/XXXX-XX/XX/XXXX letters but made no records. XXXX no longer exists. It cant provide missing items. Per our XX/XX/XXXX QWR, M & T confirmed the lack of XXXX escrow records etc. 

M & T tradelines, based solely on incomplete XXXX data, are also incomplete.
XXXX  Tradelines ( and M & T ) Unverifiable XXXX  tradelines are unverifiable. The bank ceased to exist as of XX/XX/XXXX. Due to this and incomplete records, the tradelines can not be verified. M & T will not verify tradelines as there is missing data. Also, XXXX ( and M & T continuing ) errors breach the XX/XX/XXXXnote and XX/XX/XXXX modification. They also violate federal law and M & T policy. 

Based on initial review with Consumer Financial Protection Bureau ( CFPB ), M & T Bank and XXXX are in violation of multiple CFPB regulations ( please see XX/XX/XXXX Specific Legal Violations ). M & T Bank, in addition to its breach of the XX/XX/XXXXnote, the XX/XX/XXXX modification and other agreements, M & T Bank is also in violation of Consumer Financial Protection Bureau guidelines and regulations : 1. XX/XX/XXXX and XX/XX/XXXX Failure to Credit Payments WhenReceived12 CFR 1026.36 ( c ) ( 1 ) ; 2. XX/XX/XXXX and XX/XX/XXXX Failure to Properly Apply Payments per the note and regulations ; 3. Unauthorized Escrow and Suspense Accounts by XXXX from XX/XX/XXXX-XX/XX/XXXX ; 4.  Failure to Refund Escrow and Suspense accounts XXXX ( b ) ; 5. Neglecting monthly statements, escrow and suspense accounting XX/XX/XXXX and XX/XX/XXXX; 6. Using wrong default Letter Basis for Motion for Judgment of XXXX ( f ) or ( j ) ; 7. XX/XX/XXXX-XX/XX/XXXX Incorrect Information re Loss Mitigation/ Loan Modification ; and 8. Adverse reports to Credit Bureaus despite Notices of Error M & T tradelines, based solely on unverifiable XXXX data, are also unverifiable.
M & T Verification of Tradelines Violates Note and Regulations FCRA requires deletion of tradelines that are either inaccurate, incomplete or unverifiable. M & Ts tradelines meet all three FCRA criteria. CFPB suggests borrowers disputte all duplicate tradelines as they hurt borrower credit. M & T duplicates XXXX. 
Following this federal law, I will dispute the M & T tradeline with all three credit bureaus. 

Disputes are being sent to all three credit bureaus seeking deletion of the M & T tradelines within 30 days. Each will contact M & T for verification. M & T can not and should not verify the M & T tradelines when asked to do so by the credit bureaus. 
By withholding verification, M & T lets credit bureaus delete all M & T tradelines. 

M & T cant verify tradelines because : 1. M & T lacks complete data ; 2. The loan errors breach XXXX policy, XX/XX/XXXX note and XX/XX/XXXXmodification ; and 3. The errors violate CFPB and FCRA regulation. This is documented by QWR and XX/XX/XXXX. 
Therefore, M & T verification would constitute contract breach and federal violation. 

On XX/XX/XXXX, we included M & T Based Revisions, using M & Ts own statements and loan calculations to demonstrate loan errors. Since M & T was using the exact same loan assumptions as XXXX, the M & T Based Revisions confirm loan errors. M & Ts own work suggests M & T should not verify either XXXX or M & T tradelines. 

If M & T ignores the above and verifies anything, we require a prompt, specific, written explanation why M & T chooses to breach loan agreements, federal law and M & T policy. 

Here are examples of XXXX and M & T loan contract breaches federal violations : 1. XXXX  XX/XX/XXXX letter confirms it credited no XX/XX/XXXXpayments to anything in XX/XX/XXXX. CFPB confirms this violated federal law including 12 CFR 1026.36 ( c ) ( 1 ) ( and the terms of the XX/XX/XXXX note ). M & T Based Revisions show the XXXX error and the specific corrections. Fixing this error is required by law, M & T should fix it now. 

2. XXXX XX/XX/XXXXletter confirms XXXX made XX/XX/XXXX-XX/XX/XXXXescrow tax payments. M & T, however, confirms the loan is non-escrow, no such payments can be made without our written authorization and there are no XXXX escrow records at all. 

3. M & T shows tax payments made as non-interest bearing corporate advances. This were set forth to be capitalized as part of the XX/XX/XXXXmodification agreement. XXXX XX/XX/XXXXloan  modification discloses no tax payments for capitalization. 

4. XXXX XX/XX/XXXXmodification also shows the loan balance was unchanged from XX/XX/XXXX to XX/XX/XXXXto the XX/XX/XXXX modification, further proving XXXX  credited no payments violating 12 CFR 1026.36 ( c ) ( 1 ). 

5. XXXX admits in its XX/XX/XXXX letter that the XX/XX/XXXX payments applied 100 % to interest despite the terms of the note calling for principal and interest payments. This violates of 12 CFR 1026.36 ( c  ) ( 1 ). M & T Based Revisions prove both the XXXX error and the specific M & T corrections.
6. M & T denied us the ability to make normal monthly payments in XX/XX/XXXX. According to the XXXX rate change notice and M & T monthly statements, normal monthly payments were {$8900.00} based on a 3 % rate. M & T added bogus XXXX charges inflating the total amount due to from $ XXXX {$580000.00}. The tradelines show no payment made, but dont explain that M & T blocked them. 

7. After accepting six XX/XX/XXXX payments from us, M & T unfairly closed the loan modification and refused to accept payment from us after XX/XX/XXXX. The tradelines show no payment made, but dont explain that M & T blocked them. 

8. M & T failed to credit six XX/XX/XXXXpayments totaling $ XXXX as XX/XX/XXXXpayments. The crdit bureaus report zero XX/XX/XXXXpayments made. This breached the XX/XX/XXXX note, the XX/XX/XXXX modification and federal law including 12 CFR 1026.36 ( c ) ( 1 ). Fixing this error is required by law, M & T should fix it now and report XX/XX/XXXXpayments made. 

9. M & T gave inaccurate payoff amounts as XX/XX/XXXX in the proposed M & T loan modification. M & T further refused to accept corrected loan modification balances even though they were set forth in identical XXXX XXXX Uniform instruments. M & T denied an approved loan modification and violated 12 CFR 1026.36 ( c ) ( 3. Tradelines indicate foreclosure, dont explain that M & T blocked modification. 

10. On XX/XX/XXXX, M & Ts counsel submitted a payoff as ofXX/XX/XXXX. It overstates the payoff amount by over {$300000.00} and violates 12 CFR 1026.36 ( c ) ( 3 ). It also denied us loss mitigation options e.g. reinstatement or payoff. 

11. Despite correspondence proving no XXXX  default and no grounds for foreclosure, M & T wrongfully proceeded to obtain an order of foreclosure in XX/XX/XXXX. M & T wrongfully moving for foreclosure in XX/XX/XXXXviolates 1024.41 ( g ) or ( j ). 

M & T can not ignore conflicting credit bureaus and claim all tradelines are correct. 
The credit bureau reports currently conflict with each other and with M & T records : 1. One bureau shows a closed account, but another shows it open.
2. One has no current mortgage debt but another has $ XXXX mortgage debt. 
3. Credit bureau reports all conflict with M & T Statements and M & T Online . 
Clearly, not all of these records can be correct as they vary greatly from each other : M & T Statements/Online Credit Bureau Reports Initial M & T Principal {>= $1,000,000} ( not {>= $1,000,000} ) Current M & T Principal Balance {>= $1,000,000} ( not XXXX ) Initial, M & T Monthly and Interest {$8900.00} and 3.0 % ( not {$10000.00}, 4.375 % ) Next M & T Monthly and Interest {$9300.00} and 3.5 %. ( not {$10000.00}, 4.375 % ) XX/XX/XXXX Payments Made 7+As Above (  not no payments made ) M & T Payments Made Late XX/XX/XXXX( not XX/XX/XXXX ) Percentage Loan Paid Off 1.25 % ( not negative 37 % ) Please let me know if I can provide additional information. 

Thank you for your help Sincerely XXXX XXXX CC : XXXX XXXX, XXXX XXXX of XXXX XXXX XXXX XXXX Attachments ( Via Upload ) 1. XXXX Loan Activity Shows XX/XX/XXXXto XX/XX/XXXX payments made 2. MTB Loan Details XX/XX/XXXX total interest and principal payments 3.XX/XX/XXXXXX/XX/XXXX M & T Customer Service Research 4. XX/XX/XXXX M & T QWR/Notice of Error 5.. XX/XX/XXXX Updated Revisions, M & T Based Revisions 6 .XX/XX/XXXX Revisions 7. XX/XX/XXXX QWR Follow up 8. XXXX Arrears Statement from XXXX XX/XX/XXXX showing XX/XX/XXXX first delinquency 9. FTC Advisory Later payments dont change Date of First Delinquency 10. FTC Advisory Loan transfer to new bank doesnt change date of first delinquency 11. XXXX  Duplicate Shows 2 adverse XXXX accounts for same loan 12.  FICO XXXX Shows duplication, no XX/XX/XXXX payments credited, reports post QWRs