Consumer complaint received 2022-03-16
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: M&T BANK CORPORATION (IN)

M & T Bank, subservices VA mortgage loan. During the pandemic, I had a loss in income that prompted me to request a forbearance. The forbearance was approved for one year and I then entered into an agreement for a temporary trial payment period ( 3-months ), which I've completed. Upon completion, I received loan modification documents that were streamline approved. Yet despite the CFPB 's rules on streamline approval of modifications as a result of the pandemic, M & T was assessing fees. First, they assessed {$170.00} before the modification ( during forbearance ), then they assessed a {$350.00} fee for the modification. Additionally, the modification was simply to balloon the deferred amount at a rate of XXXX percent interest over the remaining term of the loan ( 23 years ). It is my understanding that the VA currently offers a 2nd mortgage at 0 percent interest on the deferred amount, but that was never offered or even discussed with me. Second issue stems around the fact that the loan modification documents are violative of XXXX. Specifically, the bank entered my wife as a co-borrower throughout the loan documents despite my wife not being an obligor on the original note and my home ( and my wife and I ) are not located in a community property state. Upon discussion with a banker, the divulged the fact that this was happening quite frequently and they had to go back to underwriting, who then took another 60 days to turn the documents around. All the while, the bank contacts me every single weekday requesting an update on their loan documents ( until I notify them that I'm waiting on them, they check their notes, and then the call is complete ). I even contacted their customer service department in hopes that they could stop calling me, but to no avail. This all of course occurred after they delayed in providing me documentation that I was no longer in forbearance after my broker requested documentation during an unsuccessful refinance at a rate of XXXX percent. It was unsuccessful because the bank took weeks to provide me a certified letter that stipulated I was no longer in forbearance despite calling them and requesting to have them email it or provide any notation that I was no longer in forbearance, which was denied. Once I received the documentation, rates had already jumped up and it no longer made economical sense to refinance despite having nearly {$200000.00} in equity. I then requested a payoff statement upon which they took days to respond and then requested a formal request from me despite my contact being within the secured portal of their online banking platform. In sum, my concern is two-fold. One, it is clear the bank 's systems are not built to handle these forbearance modifications and thus things like violating fair lending laws appear commonplace. Two, the fee revenue generated unlawfully is of concern. This is particularly troubling when the press release from XX/XX/14 shows M & T with an increase in non-interest income. I am now considering just refinancing my mortgage, even at a higher rate, just so I don't have to have M & T service my mortgage any longer. That is how bad they have been.