Consumer complaint received 2025-08-11 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: M&T BANK CORPORATION
State: NC

Complaint narrative:
Consumer Financial Protection Bureau XXXX. XXXX XXXX XXXX XXXX XXXX XXXXXXXX Subject : Complaint Regarding Mortgage Servicers Refusal to Review Loan Under the VA Home Loan Program Reform Act of 2025 To Whom It May Concern : I am submitting this formal complaint regarding my mortgage servicers refusal to review my loan for relief under the VA Home Loan Program Reform Act of 2025 ( H.R. 1815, Public Law No. 119-31, enacted July 30, 2025 ). I am a home-bound, XXXX veteran and believe I am being denied protections, benefits, and rights that Congress expressly intended for veterans under this legislation. Background : I currently have a VA-backed mortgage.

My servicer has offered only one optiona loan modification that would extend my mortgage term to 40 years and increase my interest rate to 7.25 %.

This modification would dramatically raise my lifetime interest costs, is financially unsustainable, and would push me further into hardship.

The VA Home Loan Program Reform Act of 2025 was enacted to prevent exactly this type of outcome for veterans. It : Mandates loss mitigation review before foreclosure or modification : The Secretary shall prescribe loss mitigation procedures requiring the holder of a loan to offer loss mitigation options ( including an option to enter into a partial claim
agreement ) before taking other actions. 38 U.S.C. 3732 ( d ) ( as amended ) Authorizes VA payments to avoid foreclosure : The Secretary may pay the holder of a loan guaranteed under this chapter an amount necessary to avoid the foreclosure of such loan 38 U.S.C. 3732 ( a ) ( as amended ) Establishes a partial claim program : The Secretary shall carry out a program under which the Secretary may make a partial claim the amount may not exceed 25 percent of the unpaid principal balance 38 U.S.C. 3737 ( b ) ( as added ) The Act also ensures that veterans have the same loss mitigation tools as FHA borrowers, including the Partial Claim Program, which Congress reauthorized specifically to protect veterans from foreclosure and unnecessary financial harm.

Servicers Non-Compliance : Despite my repeated requests, my servicer has refused to review my loan under the VAs updated waterfall process and partial claim program. Instead, they have continued to pressure me toward an unaffordable modification and have issued repeated foreclosure threats. This refusal appears to violate the VAs amended statutory requirements, the spirit of the Reform Act, and established servicing guidelines.

Impact : The servicers refusal to comply with the new law places
me at immediate risk of losing my home. As a XXXX veteran, displacement would cause severe physical and emotional hardship. This is especially unjust considering that non-veterans with FHA loans are being offered similar relief, while I am being denied that same opportunity despite my service to this country.

Requested Resolution : Require my mortgage servicer to immediately review my loan under the VA Home Loan Program Reform Act of 2025 and 38 U.S.C. 3732, 3737 as amended.

Ensure I am considered for all available options under the VAs revised waterfall process, including the partial claim program.

Halt all foreclosure proceedings until this review is completed in good faith and in compliance with federal law.

I respectfully request the CFPBs urgent intervention to ensure my rights under the law are enforced and that I am treated with the fairness and dignity veterans deserve.

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