Consumer complaint received 2020-06-14
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: GATEWAY FIRST BANK (AR)

Starting on XX/XX/2020, I notifieXXXX XXXX XXXX XXXXXXXX that I needed forbearance on my federally backed mortgage loan due to financial hardship caused by the COVID-19 emergency. 

I was informed that because I recently filed for Chapter XXXX  bankruptcy I was not eligible for the CARES ACT mortgage forbearance. I voiced my objection and informed them that they must provide the forbearance. XXXXXXXX XXXX XXXX did not provide the forbearance. 

After reading all of the HUD Mortgagee letters, I came to the conclusion that the CARES ACT did not disqualify individuals with federally backed mortgages from receiving the forbearance. The week of XX/XX/2020, I contacted XXXX XXXX XXXXXXXX again requesting the forbearance and again was refused. I stated that my federally backed mortgage property was not part of the Chapter XXXX bankruptcy plan, and the payments were being paid outside the plan by me. XXXX XXXX  XXXX at that time informed me that they had received an update from HUD stating that individuals in Chapter XXXX bankruptcy were not eligible for the CARES ACT mortgage forbearance, which turned out to be false. 

On XX/XX/2020 I contacted the FHA Resource Center by phone ( reference number XXXX ). I was provided documentation on the CARES ACT, which I read through completely. 

I called XXXX XXXX  XXXX on XX/XX/2020. This time after a lengthy amount of time speaking with XXXX ( no last name provided XXXX. She stated that she could not provide the forbearance. At that time, she forwarded my call to XXXX in the XXXXoss Mitigation Department. XXXX informed me again that XXXX XXXX  XXXX would not provide me with the CARES ACT mortgage forbearance. I insisted that XXXX XXXX  XXXX provide me with the link to the HUD update that provided information on not allowing individuals in Chapter XXXX bankruptcy to receive the CARES ACT mortgage forbearance or provide a letter from XXXX XXXX  XXXX stating why I could not receive the forbearance. On XX/XX/2020 I spoke to XXXX again and was informed the XXXX XXXX  XXXX would not provide me with a letter or a link. 

On XX/XX/2020, again I contacted the FHA Resource Center regarding CARES ACT - Mortgage Payment Forbearance ( XXXX ) specifically asking, " Would a Chapter XXXX bankruptcy disqualify me for the CARES Act forbearance program?. '' I received a phone call from a HUD-FHA representative - XXXX XXXX. She informed me that she would contact the mortgage lender and provide documentation regarding the CARES ACT forbearance. I called her back to make sure that we were specifically referencing any information regarding Chapter XXXX bankruptcy that would disqualify me for the CARES ACT forbearance program. She returned my call and stated that I am not disqualified from the CARES ACT forbearance program because of the recent Chapter XXXX bankruptcy. 

On XX/XX/2020, I called XXXX XXXX  XXXX. I was not allowed to speak to anyone in their Bankruptcy Department or Legal Department. I was finally able to speak with XXXX who was the head of the Loss Mitigation Department. He informed me that he was familiar with my complaint and had been involved for a few weeks. Again, I requested forbearance on my federally backed mortgage loan due to financial hardship caused by the COVID-19 emergency. At this time, I provided the HUD-FHA representatives name and contact information. He informed me that XXXX XXXX  XXXX 's legal department, in their legal opinion, determined that any individual in Chapter XXXX bankruptcy is disqualified from receiving mortgage forbearance through the CARES AcXXXX program. 

On XX/XX/2020, XXXX XXXX  XXXX forwarded an application for a regular mortgage assistance program to my bankruptcy attorney, which is not the same as the CARES Act forbearance. The regular mortgage assistance programs have more stringent conditions attached, which would cause me more hardship. This attempt to force me to apply for assistance outside of the CARES Act is outrageous. 

XXXX XXXX  XXXX is in violation of the CARES Act and should be stripped of opportunity to provide or acquire government backed mortgages.