Consumer complaint received 2023-10-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Loan sold or transferred to another company
Company: NEW YORK COMMUNITY BANCORP INC
State: TX

Complaint narrative:
Flagstar was sloppy and incompetent in its communication of information regarding the transfer of servicing of my mortgage loan to a new service. This process has been handled in such a way as to create XXXX  and confusion regarding the mortgage loan servicing transfer process by lack of timely and sufficiently clear notification. I will add that I have had previous mortgages that underwent servicing transfer and I do not recall those transfers being anything but smooth transitions that did not require action on my part, other than to establish an account with the new servicer. 

This is the sequence of events : I received a letter from Flagstar Mortgage regarding the mortgage servicing transfer, as of XX/XX/2023, but no information was available as to the process. I was informed by USPS mail, with no concomitant email notification or follow-up notification. I was informed of the name of the new servicer, XXXX, and that the transfer date from Flagstar to XXXX was as of XX/XX/2023. The letter also stated that I could expect communication from XXXX. 

The date of XX/XX/2023 was not, however, the date of transfer to the new servicer, XXXX, as XX/XX/2023 was a Sunday. I took as fact the statement in the letter that XX/XX/2023 was the date of transfer, and I attempted to establish an account with XXXX on XX/XX/2023, because I had a busy week ahead and wished to get it done and off of my mind. I learned on XX/XX/2023 that I was not yet in the XXXX system and was not successful in attempting to establish an account with XXXX. On Monday XX/XX/2023, due to obligations, I did not have an opportunity to contact XXXX online or by phone. Today, Tuesday, XX/XX/2023, I contacted XXXX online and I established a new account with XXXX. On the XXXX website I was apprised that I would not have had to cancel my auto-pay service with Flagstar. I had already cancelled my auto-pay because no such information as to my ability to preserve my auto-pay account was offered on the Flagstar website or in the service-transfer notification letter I received. Of course I had already canceled my auto-pay when I was made aware that I did not have to cancel. After establishing my XXXX account I also learned that I I would not be able to make my XX/XX/2023 & first mortgage payment with XXXX until XXXX. So now I have to make sure I establish my auto-pay account with XXXX on the day I submit my first payment on XX/XX/XXXX. 

In summary, Flagstar did not do the right thing, & XXXX did not contact me via USPS or via the internet. But they followed the loose rules that govern such events. The rules regarding notification timeliness and process specifics need to be revised to accommodate an American public that do most of their banking and mortgage servicing business via the internet. Providers haven't kept up with communications expectations of customers because there are no rules that require them to do so. This leaves the customer responsible for interpreting the ambiguities of inadequate communication from both servicers, especially amid the indifference of the old servicer to providing accurate information to the old customer, regarding the transfer to the new servicer. 

The level of incompetence or just sheer indifference to effective communication on the part of Flagstar is astounding! When their responsibility to me as a customer was curtailed, so it seems was their interest in providing adequate information regarding the transfer of my mortgage loan servicing responsibilities.

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