Consumer complaint received 2026-03-13 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: MIDFIRST BANK
State: FL

Complaint narrative:
I respectfully request that the Consumer Financial Protection Bureau review and investigate the mortgage servicing conduct of Midland Mortgage Company concerning the property located at XXXX XXXX XXXX XXXX XXXX XXXX. My complaint arises from a series of contradictory statements and servicing actions taken by XXXX XXXX that have prevented the proper repair of the property and created significant financial harm. Following hurricane damage to the property, insurance proceeds in the amount of approximately {$82000.00} were issued to facilitate the repair and restoration of the home. XXXX XXXX, acting as the mortgage servicer, took control of these insurance proceeds. XXXX has acknowledged that it released only a portion of the insurance funds and continues to withhold approximately {$31000.00} that was specifically intended to complete the repairs. At the same time, XXXX has stated that additional repair progress must occur before these funds can be released. This creates an unreasonable circular condition in which the funds required to complete the repairs are being withheld until the repairs are completed. Midlands own correspondence further states that property inspections reported repair completion percentages of approximately 17 %, 42 %, and later 65 %. XXXX then asserted that the repair completion percentage was subsequently corrected to 58 %, yet no explanation or documentation has been provided to justify this revision. This unexplained change is troubling because XXXX previously relied on the earlier inspection percentages when releasing portions of the insurance funds. The subsequent revision appears inconsistent with the servicing decisions XXXX had already made. In addition, XXXX determined that the property was vacant in XX/XX/year> and ordered contractors to secure the home and change the locks. I dispute the accuracy of this vacancy determination and believe XXXX conclusion was reached without adequate verification. The actions taken by XXXX contractors interfered with access to the property during the ongoing repair process. These events present several contradictions that raise serious concerns about XXXX XXXX servicing practices : 1. XXXX acknowledges holding insurance funds intended for repairs while simultaneously requiring those repairs to be completed before releasing the funds. 2. XXXX relied on inspection percentages that were later revised downward without providing any supporting documentation. XXXX. XXXX declared the property vacant while the repair process and communication regarding repairs were ongoing. These actions raise significant questions regarding XXXX XXXX compliance with federal mortgage servicing obligations under the Real Estate Settlement Procedures Act and related consumer protection standards governing the administration of insurance proceeds and mortgage servicing conduct. I respectfully request that the CFPB investigate XXXX XXXX handling of this account and require XXXX to provide the following documentation : XXXX. All property inspection reports and photographs used to determine repair completion percentages. 2. Documentation explaining the revision of the repair percentage from 65 % to 58 %. 3. The full loss-draft ledger and accounting for the insurance proceeds received. 4. Documentation supporting XXXX determination that the property was vacant. 5. Internal servicing notes related to the administration of insurance proceeds and foreclosure referral. Given the contradictions outlined above, I respectfully request that the Consumer Financial Protection Bureau review XXXX XXXX conduct and determine whether the companys servicing practices comply with federal consumer financial protection laws. If the Bureau determines that XXXX XXXX actions were improper, I respectfully request that the CFPB require XXXX to correct its servicing practices, release improperly withheld insurance proceeds, and ensure that similar conduct does not affect other consumers. Thank you for your attention to this matter and for your continued efforts to protect consumers in the mortgage servicing market. Respectfully submitted, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 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