Consumer complaint received 2017-08-26 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — 
Company: Flagstar Bank, National Association
State: CA

Complaint narrative:
I believe we are being targeted for filing a complaint with the Consumer Financial Protection Bureau. We 've been lied to by NYCB representatives, our loan payoff submitted electronically from our bank has been placed on a 10 day hold, and when contacting NYCB representatives, we 've been given the run around, lied to, and told to 'stop recording ' when informing them we were recording telephone calls. Yet in every call we made there is a notification that they are recording our calls and they have never asked consent just a notification. 

We have a discharged HELOC with New York Community Bank. We are at the end of our rope financially and emotionally dealing with this situation. NYCB illegally sent us a letter in XX/XX/XXXX saying they were calling our loan and the full amount was due in XX/XX/XXXX. They then changed their minds and sent us a letter that the loan was due in XX/XX/XXXX.
We were denied any home retention options on the discharged HELOC/Lien and denied our two attempts at a payoff request.
NYCB stated they will only accept full payment. The only way my family can stay in our home is to pay in full? They offered no home retention options or alternatives. They refused our offers for a settlement of the discharged HELOC that they 'charged off ' years ago. Big financial banks getting to double-dip and profit and get tax kickbacks on the backs of families and struggling taxpayers. 

We were able to scrape together the funds to pay the discharged HELOC in full. We spoke with NYCB representatives several times on XX/XX/XXXX.We requested a payoff letter last week and still had n't and to date still have not received it. We wanted to resolve this as quickly as possible. NYCB representatives told us we could send in payment by EFT directly through our bank and it would be ok. They quoted us a final payoff amount over the phone on XX/XX/XXXX they also gave us the address to input to our bank. They never explained any difference between bill pay and other secure forms of payment. NYCB representatives gave us the payment address for the bill pay, which was a totally different payment address than we 'd been using for our monthly payments. ( Why would they use a different payment address than what people are used to? To confuse us the consumers, to hope we make mistakes in entering it, to delay the process? ) We submitted and sent payment by EFT through our bank for the entire payoff amount on XX/XX/XXXX. We called NYCB on XX/XX/XXXX and a representative confirmed they received the payment and that it was placed on 'hold '. We called another time on XX/XX/XXXX to clarify why the payment was on 'hold ' and were told it 's just a formality and that " it 's just a waiting game now. '' We were told it would be 30-45 days to process the payoff. 

Today, XX/XX/XXXX, we called NYCB again to get the status of our payoff payment. We were told that the payoff was on a '10 day hold '. This seemed wrong. How can a bank put a bill payment through EFT on hold for 10 days? We called our bank where the payment came from and they confirmed the payment was submitted eletronically, not by 'check ' and that the money was in NYCB accounts. Our bank said they were 'surprised ' that NYCB had put the payment on hold and said they would do whatever needed to assist. NYCB 's own documents state that they only put payments on hold that are by personal check. ( See Attachment NYCB Release Letter ) We callled NYCB supervisor today, XX/XX/XXXX, after hearing this from our bank. We wanted to record the call to be sure we were hearing accurate information. One call to NYCB attached below shows how unfriendly and unsupportive they are. I only wanted to be transferred to the supervisor and the NYCB representative told me to 'stop recording '. He was so rude! Completely unsupportive. ( Attached XXXX XXXX ... ) We 're just trying to payoff a discharged HELOC and we get nearly yelled at, rudely talked to by the bank? This is n't right. 

So, now we come to the fact that NYCB put our payoff payment of $ 41k+ on a 10 day hold from an EFT that went through in 24 hours. How can this be legal? We tried calling the NYCB supervisor today, XX/XX/XXXX and were given the run around. ( Attached XXXX XXXX   ... ) We were told the supervisor 's supervisor spoke with the manager that put the hold on the payment and they need 'proof ' that the funds were out of our account. This is what 's crazy to me ... the money is already in their account. Nothing more to say. Why would the consumer need to take all of these extra steps to 'verify ' and show 'proof ' that the payment is legit ... it 's in their accounts! This policy needs to be changed immediately. Consumers do not need to be treated like this. Bullying by big banks is bullying and it does a diservice to all customers. 
We were told that all the supervisors were not in, yet the supervisor we spoke with was clearly getting advise from someone that knew what they were doing. Throughout the call, she would place me on hold and return with some new information like she had spoken with her supervisor. Then, I ask to speak with her supervisor and she says 'she 's not in her office '. Of course she is n't, she was right behind her giving her instructions and refusing to speak with me. Lies!!! 

The icing on the cake was when I asked if I was president of the bank could I get the hold removed and I said I know I know I am low on the totem pole, and she, XXXX, agreed with me. Not right on any level. 

So, my complaint is : 1. NYCB illegally sent a letter on XX/XX/XXXX requesting the discharged HELOC be paid in full.
2. NYCB has taken punitive steps to punish us because we filed a complaint with the Consumer Protection Board. All pressure to payoff the discharged HELOC, misinformation, payoff put on 'hold ', and lies happened after we filed our first complaint.
3. NYCB has an illegal policy to place 'all payments received by EFT ' on a 10 day hold ( clearly stated by NYCB supervisor in the attached XXXX XXXX ... ) 4. NYCB representatives are rude and mean to customers ( attached XXXX XXXX ... )

Company response to consumer: Closed with explanation