Consumer complaint received 2017-11-08
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: M&T BANK CORPORATION (CT)

I am writing to request correction of the errors described below in regard to the mortgage on my property at XXXX XXXX XXXX, XXXX XXXX CT XXXX. Hudson City Savings Bank XXXX XXXX XXXX made the loan in XXXX. M & T Bank XXXX M & T ) acquired XXXX and our loan, becoming our lender, debt collector and XXXX in XXXX XXXX. 

XXXX failed to transfer to M & T accurate information relating to the servicing of the loan. M & T compounded the errors and overstated monthly payments, monthly loan balances from XXXX. M & T overstated payoff balances including the XXXX/XXXX/XXXX transfer date, the XXXX/XXXX/XXXX modification and later on XXXX/XXXX/XXXX payoff statement. 

Please note from XXXX XXXX, XXXX note, modification, XXXX letter and XXXX letter were non-responsive on the part of M & T as they provided no original information, loan corrections or independent analysis of our requests. XXXX XXXX, XXXX details how Hudsons XXXX modification, XXXX and XXXX letters support our case not XXXX. 

The errors and our corrections are detailed in several correspondences already sent to M & T XXXX  including, in XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, and XXXX XXXX, XXXX. M & T requested specifics. We provided XXXX XXXX Revisions, XXXX XXXX Updated Revisions and M & T-Based Revisions and most recently an XXXX XXXX, XXXX Qualified Written Request/Notice of Error. M & T now has ample specific evidence from multiple sources for the specific changes we request. 

M & T Bank acquired Hudson City Savings Bank and our mortgage on XXXX/XXXX/XXXX and became as lender, servicer and furnisher of credit data. XXXX made errors XXXX. M & T needs to respond and correct XXXX errors : XXXX. Eliminate old tradelines dating from first delinquency date of XXXX XXXX Equifax XXXX XXXX ) Shows XXXX date of first delinquency XXXX TransUnion Shows XXXX date of first delinquency c. XXXX XXXX Shows XXXX date of first delinquency XXXX FTC Opinion Shows XXXX unchanged by later payments XXXX FTC Opinion Shows XXXX unchanged by M & T acquisition XXXX. Eliminate duplicative tradelines, XXXX and M & T, for the same loan. 
XXXX Experian XXXX shows XXXX derogatory accounts for same loan XXXX Equifax XXXX shows XXXX derogatory accounts for same loan XXXX. XXXX XXXX XXXX XXXX XXXX using XXXX XXXX and XXXX a. XXXX XXXX XXXX XXXX XXXX, XXXX Revisions XXXX. XXXX XXXX Principal, e.g. Credit/Apply Payments XXXX and XXXX a. XXXX XXXX especially XXXX XXXX and XXXX XXXX XXXX. XXXX XXXX Overcharges XXXX. XXXX/XXXX/XXXX XXXX XXXX a. XXXX XXXX especially XXXX XXXX XXXX. Delete XXXX tradelines as they are Inaccurate, Incomplete and Unverifiable a. Despite substantial, multiple source evidence ( see XXXX XXXX b. Despite pending Disputes/QWRs ( XXXX XXXX, XXXX XXXX, XXXX XXXX and XXXX XXXX XXXX Furnished post QWRs and Disputes ( attach MyFICO showing updates XXXX XXXX Failed to Advise Credit Bureaus of Dispute XXXX. Fix loan records. M & T acknowledged receipt of our requests and promised response, but made no substantive response or correction. See Attachments : a. XXXX XXXX, XXXX XXXX Customer Service XXXX XXXX XXXX XXXX, XXXX XXXX XXXX of Error c. XXXX XXXX, XXXX Updated Revisions, M & T XXXX XXXX XXXX XXXX XXXX, XXXX Revisions XXXX XXXX XXXX, XXXX XXXX Follow up XXXX XXXX XXXX, XXXX QWR and Request for Information Please see below summary evidence that the M & T loan records and tradelines are old, duplicative, inaccurate, incomplete and unverifiable. Also see Exhibits and Attachments : XXXX. XXXX XXXX is Too Old-First Delinquency Date XXXX XXXX XXXX had date of first delinquency XXXX XXXX. Made a few additional payments XXXX and XXXX but didnt bring current. According to FTC opinions, these payments dont change the date of first delinquency. M & T Bank acquired Hudson City Savings Bank and our mortgage on XXXX/XXXX/XXXX. According to FTC opinions, transfer from XXXX bank to another doesnt change date of first delinquency and XXXX deadline. 

Transunion has already deleted the XXXX tradeline as its too old. Equifax and Experian are processing our disputes and deletion requests now. Please see : Equifax XXXX XXXX ) Shows XXXX date of first delinquency, TransUnion Shows XXXX date of first delinquency, XXXX XXXX Shows XXXX date of first delinquency, FTC Opinion Shows XXXX unchanged by later payments and FTC Opinion Shows XXXX unchanged by M & T acquisition XXXX. XXXX XXXX XXXX M & T XXXX for the same loan Experian and Equifax both show XXXX derogatory accounts, XXXX and M & T, for the same loan originated by XXXX in XXXX XXXX and bought by M & T XXXX XXXX. As a result, our credit is damaged with XXXX adverse accounts ( 30 days late, 60 days late etc. ) instead of XXXX. CFPB recommends disputing duplicate accounts like this so we are disputing the XXXX tradeline and requesting deletion. Please see : XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX offered rate change in 1 month using a XXXX application in 1 month with no underwriting. We requested a rate change XXXX XXXX. XXXX denied its policy delaying rate change for 30 months then charging an above-market rate. XXXX overcharged us and failed to correct its loan accounts, from our XXXX XXXX rate request until the transfer to M & T Bank in XXXX XXXX. 

XXXX written policy, XXXX market rates and the interest charges were all detailed in correspondence to M & T. XXXX XXXX especially XXXX XXXX Revisions and XXXX XXXX Updated Revisions. 

XXXX. XXXX XXXX XXXX, Credit/Apply Payments XXXX and XXXX XXXX requested and received $ XXXX in XXXX payments. XXXX failed to credit the payments to the loan. This violated the note and CFPB requirements for immediate credit of full monthly payments. XXXX declared a false XXXX default and initiated a dual-track foreclosure. Using XXXX & XXXX calculations and the same assumptions below, we can correct this lack of credit. Please see Attachments especially XXXX XXXX and XXXX XXXX. 

XXXX faced a situation in XXXX substantially similar to XXXX & XXXX situation in XXXX. XXXX claimed a loan repayment default, on or about XXXX XXXX. The loan, interest and {$10000.00} monthly payment assumptions were exactly the same for both banks. but XXXX and M & T acted completely differently. 

Comparing the XXXX loan statements to the XXXX XXXX modification document prove XXXX applied {$0.00} in XXXX and applied {$0.00} to the XXXX modification balances. The loan balance in both documents was identical and unchanged despite $ XXXX in XXXX payments made. M & T clearly quantifies XXXX XXXX errors. 

Using M & T statements from XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, XXXX/XXXX/XXXX and XXXX/XXXX/XXXX, the XXXX errors in XXXX can easily be fixed. XXXX {$10000.00} payments are applied as follows : Principal : {$3300.00} {$3300.00} {$3300.00} {$3300.00}. XXXX {$3400.00} {$3400.00} XXXX {$20000.00} XXXX : {$6900.00} {$6900.00} {$6900.00} {$6900.00} {$6900.00} {$6800.00} XXXX {$41000.00} The balance of {$2400.00} would briefly be in a suspense account as a partial payment but then refunded to us in XXXX. According to XXXX & XXXX response to our QWR, XXXX had no accounting for suspense accounts. Even if the XXXX loan payment agreement justified an abnormal $ XXXX suspense account, XXXX claims default in XXXX of XXXX so a full refund of the larger suspense account should have been made in XXXX. Despite this, we never received XXXX suspense accounting or suspense refunds. 

M & T Bank applied our XXXX payments to XXXX using the same monthly payments of {$10000.00} and the exact same rate and term assumptions. We would expect that payments would be applied first to interest and principal per the note and applied as monthly payments of principal and interest per the XXXX modification. 

This would have resulted in a reduction in principal balance, a reduction in accrued interest and a refund of any remaining funds less than a full monthly payments. 

XXXX Payments CFPB requires full monthly payments to be applied when received. Partial payments can be in suspense briefly if disclosed and promptly refunded. In their XXXX XXXX, XXXX letter, XXXX admits 0 % of the XXXX payments were applied in XXXX. Instead, 100 % of the XXXX payments went to an undisclosed, multi-year suspense account. 

XXXX claims in the XXXX XXXX, XXXX letter that our XXXX payments of {$20000.00} were applied as XXXX monthly payments of {$10000.00} plus an extra {$23.00}. Contemporaneous records contradict XXXX. The XXXX form XXXX shows that 100 % of the {$20000.00} plus {$8100.00} from XXXX was credited 100 % as interest. 

Based on M & T statements from XXXX/XXXX/XXXX and XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, XXXX payments of {$10000.00} should be allocated and applied to principal and interest as follows : Principal : {$3300.00} {$3300.00} Total {$6700.00} Interest : {$6900.00} {$6900.00} Total {$13000.00} The extra funds of {$23.00} ( i.e. the amount in excess of XXXX full months XXXX were acknowledged in the XXXX letters, but they were not contemporaneously disclosed or accounted for as a suspense amount. {$23.00} was never refunded to us. 

XXXX. Correct XXXX Overcharges including XXXX/XXXX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX/XXXX/XXXX : XXXX XXXX XXXX {>= $1,000,000} XXXX XXXX XXXX {$230000.00} XXXX Stated Other {$6900.00} XXXX XXXX XXXX {>= $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 XXXX, XXXX lent us {>= $1,000,000}. We only owed {>= $1,000,000}. The remaining {$180000.00} was our credit balance. With our additional XXXX payments of {$20000.00}, our credit balance grew to over {$200000.00}. There were no late payments or a default in XXXX. By falsely claiming default, XXXX violated XXXX ( f XXXX or XXXX j ). M & T continues this violation by using a false XXXX default to get a foreclosure judgment on XXXX/XXXX/XXXX. Please see Attachments especially XXXX XXXX and XXXX XXXX. 

XXXX. Delete XXXX tradelines as they are Inaccurate, Incomplete and Unverifiable a. XXXX XXXX XXXX The XXXX tradelines are inaccurate in all respects from XXXX XXXX to XXXX XXXX per our correspondence dated XXXX XXXX, XXXX XXXX and XXXX XXXX of this year. Errors include principal balance, interest, monthly and other charges. 

M & T Bank has failed to do independent analysis, provide responsive communications and correct loan errors. XXXX XXXX XXXX XXXX XXXX Principal and Interest Balances from XXXX to XXXX. These errors persist for 75 months from initial request XXXX XXXX to the M & T transfer at the end of XXXX including 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 XXXX/XXXX/XXXX : Overstated principal and interest by {$180000.00} Transfer XXXX/XXXX/XXXX : Borrower has {$8000.00} credit not overdue payments. 

XXXX overcharged and M & T failed to correct modification loan balances as of XXXX/XXXX/XXXX. 
Hudsons XXXX modification included overstated payoff balances for principal, interest and other charges. Hudsons Failure to provide an accurate payoff balance amount upon a borrower 's request in violation of section XXXX XXXX XXXX XXXX c ) ( XXXX ). 

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

XXXX XXXX XXXX XXXX XXXX tradelines are incomplete. From XXXX XXXX to XXXX XXXX, XXXX omitted monthly statements and credit bureau reports. From 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 XXXX letters but made no records. XXXX no longer exists. It cant provide missing items. Per our XXXX XXXX XXXX, M & T confirmed the lack of XXXX escrow records etc. 

XXXX XXXX XXXX XXXX by XXXX and per regulations XXXX tradelines are unverifiable. The bank ceased to exist as of XXXX 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 XXXX and M & T continuing ) errors breach the XXXX note and XXXX modification. They also violate federal law and M & T policy. 

Based on initial review with Consumer Financial Protection Bureau XXXX CFPB XXXX, M & T Bank and XXXX are in violation of multiple CFPB regulations ( please see XXXX XXXX Specific Legal Violations ). M & T Bank, in addition to its breach of the XXXX note, the XXXX modification and other agreements, M & T Bank is also in violation of Consumer Financial Protection Bureau guidelines and regulations : XXXX. XXXX and XXXX Failure to XXXX Payments XXXX CFR XXXX XXXX c ) ( XXXX ) ; XXXX. XXXX and XXXX Failure to Properly Apply Payments per the note and regulations ; XXXX. Unauthorized XXXX and XXXX Accounts by XXXX from XXXX ; XXXX. Failure to XXXX XXXX and XXXX accounts XXXX XXXX b ) ; XXXX. Neglecting monthly statements, escrow and suspense accounting XXXX and XXXX ; XXXX. Using wrong default XXXX XXXX for XXXX for Judgment of XXXX ( f XXXX or XXXX j ) ; XXXX. XXXX Incorrect Information re Loss Mitigation/ Loan Modification ; and XXXX. Adverse reports to Credit Bureaus despite XXXX XXXX XXXX XXXX M & T XXXX XXXX XXXX XXXX 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 dispute all duplicate tradelines as they hurt borrower credit. M & T duplicates XXXX. 

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 : XXXX. M & T lacks complete data ; XXXX. The loan errors breach Hudsons policy, XXXX note and XXXX modification ; and XXXX. The errors violate CFPB and FCRA regulation. This is documented by QWR and XXXX XXXX. 
Therefore, M & T verification would constitute contract breach and federal violation. 

On XXXX XXXX, we included M & T XXXX XXXX, 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 XXXX XXXX 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 : XXXX. Hudsons XXXX letter confirms it credited no XXXX payments to anything in XXXX. CFPB confirms this violated federal law including XXXX XXXX XXXX XXXX c ) ( XXXX ) ( and the terms of the 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. 

XXXX. Hudsons XXXX letter confirms XXXX made XXXX escrow 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. 

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

XXXX. Hudsons XXXX modification also shows the loan balance was unchanged from XXXX to XXXX to the XXXX/XXXX/XXXX modification, further proving XXXX credited no payments violating XXXX XXXX XXXX XXXX c ) ( XXXX ). 

XXXX. XXXX admits in its XXXX letter that the XXXX payments applied 100 % to interest despite the terms of the note calling for principal and interest payments. This violates of XXXX CFR XXXX XXXX c ) ( XXXX ). M & T XXXX XXXX prove both the XXXX error and the specific M & T corrections. 

XXXX. Despite correspondence proving no XXXX default and no grounds for foreclosure, M & T wrongfully proceeded to obtain an order of foreclosure in XXXX XXXX. M & T wrongfully moving for foreclosure in XXXX violates XXXX XXXX g XXXX or XXXX 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 : XXXX. XXXX bureau shows a closed account, but another shows it open. 
XXXX. XXXX has no current mortgage debt but another has $ XXXX mortgage debt. 
XXXX Credit bureau reports all conflict with M & T XXXX and M & T XXXX XXXX 

The credit bureau reports conflict with M & T XXXX and M & T XXXX e.g. : M & T XXXX Credit Bureau XXXX XXXX M & T XXXX {>= $1,000,000} ( not {>= $1,000,000} ) XXXX M & T XXXX XXXX {>= $1,000,000} ( not XXXX ) Initial, M & T XXXX and Interest {$8900.00} and 3.0 % ( not {$10000.00}, 4.375 % ) XXXX M & T XXXX and Interest {$9300.00} and 3.5 %. XXXX not {$10000.00}, 4.375 % ) XXXX Payments Made XXXX Above ( not no payments made ) M & T XXXX XXXX Late XXXX ( not XXXX ) Percentage Loan Paid Off 1.25 % ( not negative 37 % ) Attachments XXXX. XXXX XXXX, XXXX XXXX Customer Service XXXX XXXX. XXXX XXXX, XXXX XXXX QWR/Notice of Error XXXX. XXXX XXXX, XXXX Updated Revisions, M & T XXXX XXXX XXXX. XXXX XXXX, XXXX Revisions XXXX. XXXX XXXX, XXXX XXXX Follow up XXXX. XXXX XXXX, XXXX XXXX and XXXX for XXXX XXXX. Fico XXXX Shows Duplication, No credit XXXX pmts, Adverse post QWRs XXXX. XXXX XXXX XXXX statement XXXX Delinquency XXXX not brought current XXXX. Equifax XXXX XXXX Shows XXXX derogatory accounts for the same loan XXXX. Experian XXXX Experian XXXX account still not deleted despite age XXXX. Experian XXXX Experian Duplicate Negative Accts for same loan XXXX. Equifax XXXX XXXX Shows XXXX account date of first dueling XXXX