Consumer complaint received 2025-01-15 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: NEW YORK COMMUNITY BANCORP INC
State: HI

Complaint narrative:
Complaint Summary : I am filing this complaint against Flagstar Bank regarding a misleading loan modification process that resulted in a substantial and unexpected increase in my monthly mortgage payment. The modification appears to include terms that were not clearly disclosed, including a significant increase in my interest rate, which has caused financial hardship. 
Details of the Complaint : XXXX. Background : o My original mortgage had a XXXX XXXX interest rate, which I had no intention of changing. 
o XXXX XX/XX/XXXX, I received documents from Flagstar Bank related to a loan modification. I did not initiate this process but decided to accept the modification as I was behind on payments. 
o The documents were lengthy, totaling XXXX pages, and I was not made aware that the modification would include a drastic increase in my interest rate to XXXX XXXX 
o Flagstar Bank sent me this loan modification even though I did not request it. 
o Furthermore, I was not provided with my Right to Cancel or Right to Rescind, which is a clear violation of the Truth in Lending Act ( TILA ). 
XXXX. Payment Increase : o My monthly payment increased from approximately {$4100.00} to {$5600.00} for XX/XX/XXXX. 
o After XXXX, the payment is scheduled to decrease to {$4200.00}, which is still higher than my previous payments and unaffordable. 
o The payment increase includes an escrow shortage of {$1200.00} and other adjustments that were not adequately explained. 
o I can not afford an additional {$1300.00} per month beyond what I was paying before. 
XXXX. XXXX Practices : o The interest rate increase was not clearly disclosed or explained during the modification process. 
o I was not provided with sufficient notice or an opportunity to fully understand the terms of the modification. 
o The substantial interest rate increase was buried in the documentation, making it difficult to identify and comprehend. 
o This appears to be a deceptive practice aimed at collecting additional payments under misleading terms. 
o This also seems to constitute a violation of the California XXXX Fair Debt Collection Practices Act for engaging in deceptive debt collection practices. 
XXXX. Financial Impact : o The {$1300.00} monthly increase is unaffordable and has caused significant financial strain. 
o The unexpected spike in XXXX payment further exacerbates the situation. 
XXXX. Attempts to Resolve : o I contacted Flagstar Bank multiple times to seek clarification and assistance. 
XXXX Customer service representatives acknowledged the interest rate change but could not provide adequate explanations or solutions. 
o I was advised to reapply for loss mitigation or consider a XXXX forbearance, both of which add unnecessary complexity to my situation. 
Requested Resolution : XXXX. I request a full review of my loan modification and an explanation of how the interest rate increase was communicated. 
XXXX. I seek to have the loan modification terms renegotiated to reinstate my original XXXX XXXX  interest rate or a more reasonable rate. 
XXXX. I request a clear breakdown of the escrow adjustments and a detailed explanation of how my payments are calculated. 
XXXX. I ask for any misleading or deceptive practices by Flagstar Bank to be investigated and addressed. 
XXXX. I request confirmation in writing of any corrective actions taken. 
Supporting Documents : Copies of loan modification documents ( available upon request ). 


Conclusion : I feel that XXXX Banks loan modification process was misleading and has placed me in an unfair financial position. The failure to provide my Right to Cancel or Right to Rescind under TILA, coupled with what appears to be a violation of the California XXXX Fair Debt Collection Practices Act, further underscores the need for investigation and resolution. I urge the CFPB to investigate this matter and take action to prevent similar issues for other consumers. 

Thank you for your attention to this matter. 

Sincerely, 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