Consumer complaint received 2024-01-27 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: WEBSTER BANK, NATIONAL ASSOCIATION
State: CT

Complaint narrative:
In XXXX of XXXX I took advantage of the deferred payment option because of covid. 
I am a self employed XXXX XXXX and Covid forced myself and clients to cancel many projects. Thus work that I was able to do was sparse. I signed a loan modification for deferred payments on XX/XX/XXXX of XXXX. Document XXXX. 
Then on XX/XX/XXXX. XXXX I got a letter referring to the modification signed XX/XX/XXXX. XXXX saying any amounts payed in excess of the billed amount would be applied to the deferred payments balance or " fees '' as the letter referenced them. On the previous statements they were under the designation of other. I just took this blindly a start of the modification but now I wonder if it was legal, It was not in the signed agreement ( this will be explained later ). 
My statements always showed the principle Balance, the principle due, interest due, Fees/escrow ( which the deferred Payments balance was under ) and the total due which included the Fees/escrow amount. Then underneath was a breakdown that showed the previous payment amount the interest and principle applied and a designation called other which is where I always saw what any excess payment was. I could easily see the principle and deferred payment balances balance out. 
Through the summer of XXXX my statements came later each month until finally in XXXX. I did not receive one. I called the bank was told they were going through a transition which AGAIN I blindly took as transitioning to a new accounting system. I was told by the gentleman I was speaking with that he would e-mail me the statement. A week or so later I received it from some other bank employee. This was not an actual statement but a rendition of one. It had no appropriations and absolutely no information regarding the deferred payments. I called the bank and was told by the same gentleman that it would take a few days to get this information. It never materialized. Then I decided to start a spreadsheet to try and decipher principle and excess payments. I was paying an excess of XXXX XXXXXXXX. from XXXX XXXX and all was good until XXXX XXXX. I found that the excess was paid to the principle in XXXX, to the deferred payments in XXXX and XXXX, then in XXXX the interest due dropped from {$150.00} in XXXX to {$73.00} and the amount applied to the principle was what was due plus the excess which obviously was more. I called the bank about this and inquired again about the deferred information and got no answers. So I left a message for XXXX XXXX. No response. When I paid the XXXX statement I tried to get the teller to apply the excess to the deferred payments because I thought it would be defaulting according to the XX/XX/XXXX letter. She said she could not but would try to find out how.On XXXX bill the interest went back to {$150.00}. When I paid this I got the same teller and she told me she had talked the loan dept. and they wanted a XXXX XXXX  I said I had no idea what that was or is. Meaning what the number is or what it is for. I asked her to write it on my receipt so I would remember what to ask for when I talked the the bank AGAIN. 
I have e- mails to show this. Then my XXXX bill came. I paid this bill on XX/XX/XXXX but this time I went inside because the teller had said she would have an answer about the XXXX XXXX  by then. I met with XXXX XXXX She did not have info about a XXXX XXXX I asked about the appropriations and the deferred information and she had nothing. So that evening I e-mailed XXXX XXXX  and he also did not know what a XXXX XXXX was. He still had not resolved the issue of supplying borrowers with the deferred balances or appropriations which we had discussed in length months before and he had told me it would be a few days. I had follow-up conversations and phone calls back and forth with both people to no avail. Except that XXXX had handed me XXXX sheets of screen shots of my account-non of which had any information about the deferred payments. I did not get a chance to look at these until after XXXX XXXX that evening, when i was shocked. I asked XXXXXXXX XXXX explicitly before i left if she had found out what a XXXX XXXX was and she told me nobody knows. Well when I looked at the first XXXX pages of what she provided the XXXX XXXX  was obvious. I can't understand that she found this information, decided what to capture took screenshots then went through them trying to explain them without letting me see what was on them and did not see what I saw in XXXX seconds. Well, then I got my XX/XX/XXXX statement. According to the principle balance on this statement the amount applied to the principle from the XXXX payment was approximately {$300.00} short. 
I have been dealing with this now for XXXX months and obviously have contacted the bank in various ways numerous times and also have been very patient-giving them way more than ample time to comply with my requests. Something is drastically wrong here. This can not be isolated as I'm sure hundreds, possibly XXXX  of borrowers had to take advantage of the federal mandated deferral program. If all of the excess payment amounts were going to principle instead of deferred payments the principle balance and the interest would both go down which would amount to a shipload of money the bank is questionably collecting. Not to mention the odd appropriations, interest changes and missing money paid in XXXX. 
I have a lot of documentation to provide but you say not to submit Names or account # s. How am I supposed to do that? I would have to sit and block them all out. If I can't figure out a way i will copt this and paste it in a page to save an d call the CFPB Monday.

Company response to consumer: Closed with explanation