Consumer complaint received 2018-03-11 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — 
Company: Flagstar Bank, National Association
State: MD

Complaint narrative:
NYCB and XXXX gave conflicting information about my balance during the transfer process and thwarted RESPA Mortgage Guidelines. As a result, I suffered damages, distress and my good credit and peace-of-mind was damaged. 
-- -- - See letter to NYCB and XXXX below I am writing to pay my balance and to express my continuing dissatisfaction in your handling of my HELOC during the transfer process. Frankly, I am amazed by the seeming intent to destroy my good credit. Acting on the advice of counsel, a copy of this letter along with a complaint will be forwarded to the Consumer Financial Protection Bureau ( CFPB ) and Florida Office of Financial Regulations and all the credit agencies. Here is another attempt to ( a ) pay my loan balance and ( b ) to request that all derogatory information reported by your institutions be removed from my credit reports. 

Payoff Loan Balance Here is a check for {$9500.00} sent to XXXX to apply to my balance. Because of the conflicting, misleading and false information presented by your institutions expressed in the background below, I have lost confidence in your ability and desire to follow state and federal guidelines. 

At the end of XXXX, my loan balance was {$10000.00}. The historical minimum payment was {$50.00} before NYCB decided to close the HELOC. Since then, I have made several electronic payments. Two were rejected by NYCB with a request for me to pay the full amount. Subsequently, four payments, including attempts to pay the full balance were made to XXXX totaling {$11000.00}. Two were rejected and two accepted. While that is happening, I received two default letters to pay a minimum due of {$75.00} or face foreclosure. Despite over 10 calls, I am no closer to understanding why over {$1200.00} of my payment remained unapplied while I am asked to pay {$75.00} to avoid foreclosure. Because, I had the audacity to demand to speak with a supervisor, I was told to shut up or my call would be terminated. No supervisor returned my call despite multiple promises that one would. In addition, I was told that I had called to express relief for financial hardship. I never did. When I suggested that the representative may be confusing my file with someone else, the representative was adamant that she could prove it since my calls were recorded. All my calls to your institutions were made from XXXX. Please preserve those records for possible discovery. 




Remove Derogatory Information The below background will illustrate why any derogatory information on my credit report were caused by NYCB and XXXX confusion during the Loan transfer process. 

Background XXXX : XXXX XXXXXXXX XXXX opened HELOC XXXX : XXXX XXXX  closed line of credit. I subequely paid off the balance a year later with no adverse effect to my credit. 
XXXX : I refinanced my fist mortgage loan ( not related to this issue ). That loan was sold to NYCB. ( NYCB acquired XXXX XXXX XXXX ). 
XXXX : NYCB underwrote new HELOC. It is unclear to me why NYCB instead reopened the XXXX HELOC previously closed in XXXX by XXXXXXXX XXXX. 
XXXX : NYCB closed HELOC while all payments were current. Relying on the precedent set in XXXX, I increased payments to payoff balance ( {$500.00} instead of {$50.00} minimum ). 
XX/XX/XXXX : NYCB transferred both mortgages HELOC and my first mortgage. First mortgage was to XXXX XXXX ( not an issue in this case ) and HELOC to XXXX XXXX XXXX ( XXXX   ). [ XX/XX/XXXX : NYCB accepted payments and forwarded payment to XXXX XXXX ] XX/XX/XXXX : NYCB rejected two payments for {$500.00} to pay down my HELOC. 
XX/XX/XXXX : NYCB provided XXXX loan document as evidence of HELOC opened in XXXX. 
XX/XX/XXXX : I made provision to pay off the HELOC. 
XX/XX/XXXX : NYCB wrote to say the HELOC was transferred to XXXX. 
XX/XX/XXXX : Several calls made to XXXX. Account not viewable online. 
XX/XX/XXXX : two payments made to XXXX ( XXXX and XXXX {$630.00} and {$630.00} ). 
XX/XX/XXXX : XXXX wrote to confirm transfer from NYCB. 
XX/XX/XXXX : XXXX wrote to indicate that credit line was frozen and no additional draw was possible. 
XX/XX/XXXX : XXXX  wrote notice of default and intent to foreclosure for minimum due of {$75.00}. 
XX/XX/XXXX : Multiple calls to XXXX. Obtained confirmation payments received and applied and loan current. 
XX/XX/XXXX : XXXX received and rejected online payment of {$630.00}. 
XX/XX/XXXX : XXXX  received and rejected online payment imputed to pay off Balance of {$9200.00}.

Company response to consumer: Closed with explanation