Consumer complaint received 2024-12-31 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: FIRST MERCHANTS CORPORATION
State: IN

Complaint narrative:
Nature of the Complaint I am submitting this complaint to report significant violations of federal laws, consumer protection regulations, and fiduciary responsibilities by First Merchants Bank in connection with my mortgage loan. These violations include fraud, tax evasion, failure to disclose critical information, and procedural misconduct during foreclosure proceedings. 

Allegations Fraudulent Separation of Note and Mortgage First Merchants Bank unlawfully separated the promissory note from the mortgage and securitized the note. This action invalidates the enforceability of the mortgage under XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ), and violates Truth in Lending Act ( TILA ) disclosure requirements. 

The forensic audit completed by a certified expert witness confirms these actions, demonstrating systemic misconduct in securitization practices. 

Failure to File Required XXXX Documents First Merchants Bank failed to file necessary IRS forms, including : SEC XXXX XXXX : Required for valid foreclosure actions. 

XXXX XXXXXXXX XXXX XXXX XXXX : Mandated for federally insured mortgages under Title 12 U.S.C. 3701 and 3705. 

XXXX XXXX XXXX : Necessary for cash transactions exceeding {$10000.00}. 

Additionally, the bank falsely submitted a XXXX to the IRS, claiming abandonment of my property. This action is not only untrue but also constitutes tax fraud under Title 26 U.S.C. 7201 and 7206.

Lack of Full Disclosure First Merchants Bank failed to disclose critical information related to escrow accounts and securitization. Residential mortgages involve XXXX escrow accounts ( debt, asset, and investment ), and the bank failed to disclose the XXXX escrow account ( asset ) belonging to me as the creditor. 

These actions violate the Real Estate Settlement Procedures Act ( RESPA ) and Title 5 U.S.C. 556D, which require full disclosure of financial terms and practices. 

Improper Accounting Practices The forensic audit revealed that the bank engaged in accounting practices that violate Generally Accepted Accounting Principles ( GAAP ). These practices involved changing the accounting without my consent and failing to disclose these changes, in violation of consumer protection laws. 

Unlawful Foreclosure Actions The bank initiated foreclosure proceedings without validating the debt or providing a full accounting, as required by TILA and RESPA.

The failure to file required documents and disclose critical information undermines the validity of the foreclosure and constitutes procedural misconduct. 

Unauthorized Practice of Law ( UPL ) First Merchants Bank engaged in activities constituting the unauthorized practice of law ( UPL ) by allowing non-lawyers to provide legal advice, including guidance on signing documents, without proper licensure to practice law in their jurisdiction. This is a violation of state bar rules and regulations governing legal practice. This violation affected the Loss Mitigation process and First Merchants denied my application twice stating I didn't turn in the required documents when I have an email thread showing dates when any information needed was received. 

I am attaching a letter that provides evidence of this unauthorized activity. 

Supporting Evidence Forensic Audit Report completed by a certified expert witness. 

Correspondence with First Merchants Bank regarding debt validation and accounting requests. 

Evidence of the fraudulent XXXX submission and failure to file SEC Form XXXX and HUD Form 3005 ( See Forensic Audit Investigative Analysis Report ). 

Documentation of harm caused, including credit reports and financial statements. 

Letter evidencing unauthorized practice of law by First Merchants Bank representatives. 

Dates required documents were sent to First Merchants Bank & First Merchants BankXXXX via email : XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX. 

All correspondence mentioned above included documents that First Merchants Bank said I was missing, following up on the Loss Mitigation Process ( phone calls follow ups as well ), request for debt validation, and request to discharge debt based on the information listed in this complaint. Any information requesting proof I can provide or will be attached to this complaint. 

Violation of Due Process and Right to a Fair Trial My constitutional rights under the Fifth and Fourteenth Amendments were violated when the court granted the attorney for First Merchants Bank a praecipe for sheriffs sale before my statutory XXXX period to appeal had expired. This action disregarded the fraudulent activity I presented, including evidence from my forensic audit, and denied me a fair opportunity to challenge the foreclosure judgment. 

By advancing the foreclosure process despite pending motions addressing fraud, the court acted in violation of due process protections guaranteed under XXXX XXXX XXXX XXXX XXXX XXXX and Indiana XXXX XXXX XXXX XXXX XXXX 

CFPBs Fiduciary Responsibility to Uphold Consumer Rights As the regulatory body responsible for enforcing federal consumer protection laws, the CFPB has a fiduciary duty to uphold the rights of consumers and ensure compliance with applicable laws. First Merchants Banks actions constitute clear violations of statutes such as TILA, RESPA, and federal tax laws. It is imperative that the CFPB takes swift action to investigate these violations and protect the integrity of the financial system. 

By addressing these issues, the CFPB can uphold its mission to ensure fairness and transparency in the marketplace and prevent further harm to me and other consumers impacted by such practices. 

Violation of Consumer Rights First Merchants Banks actions have caused significant harm, including damage to my credit score, emotional distress, and financial losses. These actions represent gross negligence and willful disregard for my rights as a borrower. 

Conclusion First Merchants Banks actions represent a pattern of systemic fraud, tax evasion, and procedural violations that undermine consumer rights and the integrity of financial practices. I urge the CFPB to hold the bank accountable and ensure compliance with federal laws to protect me and other consumers from further harm. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation