Consumer complaint received 2022-11-28
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: NEW YORK COMMUNITY BANCORP INC (MT)

I entered into a COVID foreabrance under the CARES act in XXXX. I called my mortgage bank, Flagstar Bank, in late XXXX, early XXXX and told them I would like to exit my forbearance on XXXXXXXX XXXX. I filled out a loss mitigation package over the phone and was told in 4-6 weeks I would hear back with an approval. I was also instructed NOT to make payments until the package was recieved and approved. I did not recieve a package, so I made the regular mortgage payment to be deposited by XXXX XXXX  to avoid accruing any additional debt, and to show good faith in my effort to pay back the loan. XXXX waited approximately 2 weeks ( XXXX ) before sending me a letter stating the check I wrote them was incorrect and unable to be deposited. I followed the procedure they outlined in the letter to retrieve the check back, and in the meantime sent another. They have refused to deposit that 2nd check as well, or even acknowledge reciept of it. I also recieved a letter in the mail just before XXXX that I was going to be in default of my loan on XX/XX/XXXX. I called them, and when I got ahold of a representative she made no mention of what happened to my previous loss mitigation package, just that I would recieve one within 3-5 days. After XXXX I called again and spoke to a third representative, this time he stated my loss mitigaation package was denied back on XXXX XX/XX/ 2022 and they sent a letter. I explained that I never recieved any indication, their last rep didn't tell me it was denied, and that we need to figure something out quickly because under the CARES Act I am not to pay the entire past due balance in a single payment. He replied with, " Well we sent you a letter back then, so there's that. And the CARES Act is over. So you they're wrong. '' I tried explaining that on the CFPB 's website, on the VA 's Website, on any government website that explains provisions of the CARES Act for VA Home loans- ALL of them continue to spell out, in no uncertain terms that I am NOT liable to pay the entire past balance in a single payment, with no date assigned to end that provision. His reply was simply that Flagstar was following the law, and no matter what the government says, I need to pay the entire past balance or go into default. 

I have documentation proving I was never informed of a loss mitigation package being denied, and it even appears they never truly accepted my application. According to my account page on their website the only indicator for any loss mitigation is that I applied for an application on XXXX XX/XX/2022?? 

Whenever I speak with them on the phone they do not connect me with representatives in a timely manner, when I do reach a rep they give me false or differing information from one another, and that my account page with them does not accurately reflect almost any step taken in the process. They have still yet to return my first check as requested, or deposit my second check for the month of XXXX, willfully attempting to ruin my perfect credit and increase my debt. Also, that they adhere to certain provisions of the CARES Act while also claiming it is no longer valid, and then entrapping a XXXX veteran.