Consumer complaint received 2024-03-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA

Complaint narrative:
I got an 18 month deferment of my mortgage during covid 19 pandemic, which should have extended my loan payoff period by 18 months. However, the company has made an error in placing or categorizing the deferred payments in a way that would still allow me to pay off my entire balance following the 18-month loan term extension. In another word, after the 18-month extension at the end of my loan payments, I will still be left with a remaining balance of {$81000.00} in unpaid interest payments. Trying to pay off the {$81000.00} will take me BEYOND the extended 18-month period of the original loan terms. Deferment by 18 months, should extend my original loan terms by only 18 months, with no other balances remaining, which is not happening in my situation. I tried to alert the company regarding this error in XXXX and XXXX ( while making multiple attempts to complain about this error and their lack of understanding about it here at CFPB ) but it fell on deaf ears. But within a few months of my last complaint, they sent me a letter ( attached ) confirming their error, but their solution to fix the error does not completely fix the error based on my calculations of the current amortization schedule. 

In my opinion, they originally made the error by placing only the interest portion of the paused mortgage payments ( and not the principal portion ) in a deferred category. This way the principal portion stayed in the unpaid principal category and continued to accrue redundant or double interest for the remainder term of the loan. If both the interest and principal portions of the payments were placed in the deferred category, the math would work correctly : 18 months deferment adds up to 18 months of extended payments at the end of the loan term. But this is not happening now as I will still be owing {$81000.00} after the 18 month extension of the original loan terms. They made an error and that is why they admitted to it in the letter dated XX/XX/XXXX ( attached ) and tried to fix the error by reducing my interest rate to 0 % on XXXX/XXXX and until XXXX/XXXX. But this solution is not going to fix the error completely, if I am going to still have a balance of the deferred amount remaining after the 18-month loan term extension. 

I need the company to review the math very carefully since they have made an error before and recalculate the correct date that the interest rate should go to 0 % ( probably much earlier than XXXX/XXXX ) so that when my loan term ends in XXXX/XXXX, I have paid ALL principal AND interest as per the original loan term and the additional 18-month extension due to deferment. In other words, they need to CONFIRM that the {$81000.00} will also be paid off by the end of the 18-month extension ( XXXX/XXXX/XXXX ) of the original loan term ( XXXX/XXXX/XXXX ).

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation