Consumer complaint received 2022-02-27 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Flagstar Bank, N.A.
State: TX

Complaint narrative:
I just recently completed the reinstatement process with Flagstar. Covid 19 was the only factor that led to me being behind on mortgage payments. On XX/XX/XXXX Flagstar Loss Mitigation sent me the initial documents for my review and approval. After reviewing I contacted Flagstar and requested an escrow review on XX/XX/XXXX. Escrow amount in the partial claim was {$5300.00} ( Attach. XXXX ). As of this writing, I have not received notification that the requested review was completed. I returned the signed and notarized documents. After rejecting the documents Flagstar Loss Mitigation, completed another set of documents for my review and approval. After having the up documents rejected yet again, Flagstar set up an electronic signature session with one of their employees. Escrow for the documents signed in XX/XX/XXXX, was {$6200.00}. I made my XXXX payment on XX/XX/XXXX in the amount of {$680.00} per the XX/XX/XXXX documents. 
On XX/XX/XXXX Flagstar issued an escrow analysis detailing a balance of {$1400.00} and a shortage of {$680.00}. A Partial Claim, when completed correctly should include arrearages as well as any anticipated shortages. 
On XX/XX/XXXX XXXX issued another escrow analysis detailing a balance of {$1800.00} and a shortage of {$0.00} On XX/XX/XXXX Flagstar generated a mortgage statement for XXXX and XX/XX/XXXX payment. The payment amount is {$680.00}. The statement reflects the {$680.00} paid by me however it is listed as a " Partial Payment '' Unapplied to my account. Flagstar explained to me that the additional {$4.00} was for Escrow Shortage. 
On XX/XX/XXXX Flagstar issued another mortgage statement with an amount due of {$12000.00}. The breakdown of the XXXX shown on the XX/XX/XXXX mortgage statement is as follows- {$12.00}, XXXX ( total advances/partial claim amount ) plus {$680.00} ( regular monthly payment ). 
Additionally, in my account page on Flagstar 's website under the " XXXX '' section it details an escrow shortage of {$680.00}. Flagstar has two options, pay the full amount of escrow shortage by XX/XX/XXXX and continue making my payment of {$720.00} or have the shortage spread over the year increasing my monthly payment to {$780.00}. 

All statements/documents mentioned above are attached. So what do I do now? I am positive come the beginning of for that matter the end of XX/XX/XXXX I will not have {$12000.00} to make that payment. In fact I am going to state that the amount is egregiously wrong. I have ZERO confidence in Flagstar 's ability to manage my mortgage much less anyone else 's. Despite what the documents that I recently signed indicating that my monthly mortgage payment was {$680.00}, it has become abundantly clear that my payment could range from {$680.00} to {$12.00}, XXXX just depends who at Flagstar is minding the store at the time. 

Why is is that its acceptable for Flagstar to not follow the directives of HUD/FHA ? How come in the XX/XX/XXXX documents it was explained to me that the Escrow amount included anticipated shortages and the XX/XX/XXXX XXXX amount did not? At a minimum, Flagstar missed the escrow by some {$50.00}. I'm not even sure either one of the shortages or non shortage depending on which analysis you read if one exists.

It appears Flagstar is in such a rush to complete these reinstatements, that errors are being made and leaving people such as myself having to file complaints etc. to figure it out. 

In a XXXX video titled, " Forbearance and The CARES Act with XXXX XXXX '' live streamed 11 months ago, its clear from watching that Flagstar has its own approach to the Covid protections offered by HUD. For example, people in general treating the Covid protections as a " '' free insurance policy ''. No deferrals if you more than 7 month 's behind. 

Since the complaint process here is skewed to the bank, I plan on bringing my concerns up to FHA as well as HUD before Flagstar starts the foreclosure process because i cant make a {$13000.00} payment in 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