Consumer complaint received 2022-08-16 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Flagstar Bank, N.A.
State: FL

Complaint narrative:
Good Afternoon, We wanted to provide you with a detailed update regarding our continued difficulties with Flagstar Bank in regard to us seeking mortgage relief options as our family is dealing with a serious medical condition with our daughter. 

We went through the appeal process with Flagstar bank after being denied any mortgage relief options. Our appeal was also denied. I then called Flagstar and was given a different reason for why the denial was issued that was not listed on any of the letters. The supervising agent I spoke with on XX/XX/XXXX indicated that our loss mitigation was denied because our mortgage would need to be behind by 1 month in order to be considered for a loss mitigation program. This was not brought to our attention at all during the past 4 months until this phone call. On top of that the supervising agent could not guarantee that if we were to skip a payment and then re-apply if we would 100 % be given a loss mitigation option. 

On XX/XX/XXXX our application for loss mitigation was closed because Flagstar claimed that we did not provide all information. This was despite several phone calls being made and we were given confirmation that Flagstar had all information requested. 

On XX/XX/XXXX we were issued a denial letter indicating that because we were currently not receiving an income we were not eligible for any loss mitigation options. 

We completed the appeal process indicating the amount in our savings account would cover more than 2 years worth of mortgage payments so we would most certainly be able to afford a lower payment or cover deferred payments following a forbearance period. 

On XX/XX/XXXX we received a denial letter from our appeal which indicated this was a final decision and no further action was possible. 

Flagstar Bank 's website indicates mortgage relief options which include Job loss or out-of-state transfer Reduction in hours or rate of pay Illness or disability affecting you or someone in your immediate family This is how the website also defines forbearance. 

Forbearance How it works : Temporarily suspends all or a portion of your monthly payment, followed by a formal plan using another option listed here to return your account to a current status. 

Best used when : Your hardship is expected to be short term in nature, or you know that you will be able to pay a particular amount on a specific future date and continue with your payments from that point forward. 

We can not comprehend how we would not qualify for some type of assistance from Flagstar Bank. We feel like they have demonstrated false and deceptive advertisement and purposeful and intentional withholding of information imperative to the likelihood of having our loss mitigation application accepted. 

According to the Omnibus Appropriations Act of 2009 and specifically section 5 of this ACT lists examples of prohibited deceptive claims including misrepresentations about the source of an advertisement or other commercial communication and the consumer 's ability or likelihood of obtaining a refinancing or modification of a mortgage or any of its terms. This same law can be found under Title 12 - Banks and Banking Part 1014 Mortgage Acts and Practices - Advertising.

We feel that both of these examples were demonstrated by Flagstar bank during this process.

Please let us know any other additional information you may need or any suggestions for how we can proceed. 

Thank you. 

XXXX and 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