Consumer complaint received 2024-03-06 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: NEW YORK COMMUNITY BANCORP INC
State: NY

Complaint narrative:
Dear Sir/Madam, I am writing to express my grave concerns and file a formal complaint against Flagstar Bank regarding the handling of my mortgage. This situation is characterized by egregious actions, mismanagement of crucial documents, including the inappropriate use of a blank instrument in violation of our reinstatement agreement, and the improper initiation of foreclosure proceedings contrary to FHA loan regulations. 

After months of negotiations and being under review by Flagstar Bank, I received a reinstatement agreement in XX/XX/XXXX, which outlined a clear contract aimed at resolving the pending issues with my mortgage. This agreement represented a significant step towards rectifying the prolonged uncertainty and stress caused by the bank 's mismanagement. 

However, the path towards resolution was compromised by several alarming actions by Flagstar Bank : 1. In XX/XX/XXXX, I submitted the required package to Flagstar Bank as part of the reinstatement process. Flagstar Bank acknowledged receipt and completion of these documents in XX/XX/XXXX. 

2. Despite assurances from a supervisor in XX/XX/XXXX that submissions mailed before XX/XX/XXXX would be acknowledged based on the mailing date, I was later informed of issues attributed to the bank 's records department mismanagement. 

3. On XX/XX/XXXX, Flagstar Bank erroneously informed me that my documents had not been received. This was directly contradicted by further communications on XX/XX/XXXX and XXXX, XXXX, which confirmed the receipt of my documents and the processing of a payment made on XX/XX/XXXX. 

4. Most alarmingly, as part of our reinstatement agreement, Flagstar Bank sent me a blank instrument, which was later completed without my consent, listing XXXX XXXX  and another party. This instrument was subsequently utilized as evidence in filing a summons and complaint to assert their purported interest in the property. 

5. Despite my loan being a FHA loan, which necessitates a lender-initiated face-to-face meeting with the borrower before foreclosure, Flagstar Bank has failed to comply with this requirement, opting instead to advance foreclosure proceedings without honoring our prior agreement.

I was never served with any summons and complaints and instead had to find out through mailed advertisements that included an index number. 

These actions by Flagstar Bank not only demonstrate a clear pattern of negligence and bad faith but also likely contravene legal standards and principles governing financial transactions and mortgage agreements. Therefore, I respectfully request that the New York XXXX Department XXXX XXXX XXXX conduct a thorough investigation into these practices and take appropriate action against Flagstar Bank. 

I am prepared to provide any necessary documentation, including the reinstatement agreement, communications with Flagstar Bank, payment confirmations, and other pertinent information to support my claims. Your prompt attention to this matter and intervention would be profoundly appreciated.

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