Consumer complaint received 2017-09-26 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: Flagstar Bank, N.A.
State: NY

Complaint narrative:
FLAGSTAR BANK VIOLATIONS ( despite Consent Order lifted in XX/XX/XXXX - Flagstar Bank still VIOLATED OCC consent order when filing the foreclosure summons against me back in XX/XX/XXXX ). 

In the Foreclosure Summons of XX/XX/XXXX ( Index # XXXX in XXXX, NY ) - Three Mortgage Assignments/Transfers are fraudulent. They list both XXXX XXXX and XXXX XXXX XXXX as being XXXX " assistant secretaries '' - when in fact they are each Assistant Vice Presidents of XXXX XXXX! This also includes NOTARY FRAUD - as the notary out of XXXX, Florida has fraudulently represented these " XXXX '' assistant secretaries. I found evidence of an authentic " XXXX XXXX '' that I included in the attachments provided, which is also proof of notary signature fraud as well. Below is a breakdown of further violations highlighting the attachments I provided as proof, 1 ) Mortgage Assignments/Transfers are fraudulent ( Attachments 1 and 2 ) [ violates New York Executive Law 63 ( 12 ) and General Business Law 349 ] as well as [ NY UCC Section 3-201 ] also the bank was under a CONSENT ORDER by the CFPB/OCC during the time they continued to put together fraudulent documents. The people who signed the Assignments have nothing to do with XXXX and they are NOT secretaries. They are Assistant Vice Presidents at XXXX XXXX. XXXX XXXX no longer services Flagstar Bank loans as well. 

2 ) Mortgage Assignments/Transfers have forged notary signatures ( Attachments 1 and 2 ) [ violates New York Executive Law 63 ( 12 ) and General Business Law 349 ] as well as [ NY UCC Section 3-201 ] ( Attachments 1 and 2, as well as Attachment 3 inserted in new loan documents ) ; The fake people of XXXX who stood before a notary have now also committed NOTARY FRAUD. I was able to locate an authentic signature ( See attachment 1.5 ) for the same notary and it is remarkably different. 

3 ) One major XX/XX/XXXX Mortgage Assignment/Transfer placed in the summons as unrecorded in XX/XX/XXXX remains unrecorded [ violates New York Law : Real Property Law {$270.00} ( 3 ) - An assignment must be in writing and recorded ; as well as violates Executive Law 63 ( 12 ) and General Business Law 349 ] and also violates [ NY Consolidated Laws, Real Property Law RPP {$410.00} ] ( Attachment 1 ) 4 ) I was never notified of the three mortgage assignments/transfers listed in foreclosure summons, which all happen to be fraudulent in the first place [ violating RESPA 12 U.S.C. Section 2601 et seq ] 5 ) Did Not answer or respond to major portions of my QWR [ Violating 12 CFR 1024.36 and 12 U.S.C. {$2600.00} ( e ) ( 2 ) C ] 6 ) Did not answer within 10 days of the QWR regarding the location of the note. 
[ Violating 12 U.S.C. {$2600.00} ( k ) ( 1 ) ; 12 CFR 1024.36 ( d ) ( 2 ) ; 12 CFR 1024.35 ( e ) ( 3 ) ] 7 ) Interjected a statement as an answer to the QWR ( paragraph 3 of the banks XX/XX/XXXX letter that was erroneous and inappropriate as I didnt mention anything at all about my signature so that response extremely frivolous. [ Violating 12 USC {$2600.00} ( e ) ( 1 ) ( B ). ] 8 ) QWR says foreclosure started XX/XX/XXXX but banks own website detailing my account online and default letters show that the mortgage did not default until XX/XX/XXXX therefore this QWR statement is in conflict or erroneous. 

9 ) Tried to deny an Error that I pointed out in the QWR/Notice of Error regarding attaching a XX/XX/XXXX Homestead Finance document to a XXXX XXXX XXXX. title page in the foreclosure summons by trying to rationalize why they were included, when in fact this was a sloppy and egregious error, as they didnt include the XXXX XXXX XXXX XXXX documents of which Flagstar Bank acquired the loan from at all!!! [ Violating 12 USC {$2600.00} ( e ) ( 1 ) ( B ). ] 10 ) Continues to send DEFAULT notices, despite the discharged debt. 
[ Violating The Fair Debt Collection Practices Act ( FDCPA ) : 15 U.S. Code {$1600.00}, et seq. I have received over 12 of these letters at least 6 of them were sent via Certified mail ; despite the  informational purposes clause in regards to filing bankruptcy, the continued letters are illegal and served absolutely no purpose at all during the settlement conference phase as the letters included brochures with the headline : Save your Home Tips to Avoid Foreclosure ]. I kept the letters as proof of entitlement to at least {$1000.00} per letter. 

11 ) The DEFAULT notices also violate the Chapter XXXX Bankruptcy Discharge injunction : [ despite the informational purposes clause in regards to filing bankruptcy, the continued letters serve absolutely no purpose at all, especially during the settlement conference phase as the letters included brochures with the headline : Save your Home Tips to Avoid Foreclosure and violate the Chapter XXXX Bankruptcy Discharge Injunction : 11 U.S.C. Section 524 ( a ) ( 2 ) ] 12 ) Bank not honoring IRS rules for HAMP principle reduction ( documentary evidence ) ; my home officially appraised at {$130000.00} and with the home discharged in bankruptcy, I also qualify for the 115 % loan to value HAMP PRA [ Flagstar Bank never offered PRA just kept saying I wasnt eligible another deceptive practice see Attachment 7 proof of appraisal ] 13 ) Bank ignored repeated requests for a Deed in Lieu [ Attachment 8 ] 14 ) Bank ignored letter that we had moved out hoping for the FHA moving expenses and Deed in Lieu and copy of Lease [ Attachment 9 ].
15 ) My ANSWER to Foreclosure Summons included Unclean Hands and Lack of Standing throughout. Being Pro Se at the time, I didnt know about bringing up the opportunity to file a motion to formerly address. Thought at settlement conference Judge would address it but instead, I was handed bank forms for a loan modification and urged to work with a housing counselor. 

16 ) Flagstar Bank was previously under a Consent Order by the CFPB to avoid fraud and shoddy mortgage servicing with the issues above they violated the Consent Order. 

17 ) Bank took two years to serve foreclosure summons, on top of ignoring requests for a Deed in Lieu prior to the Chapter XXXX filing, and ignoring our notifying them of our moving out of the home as well. SO We MOVED BACK IN. 

18 ) I am asking the CFPB to award me monetary damages, and my case is currently on the table for DISMISSAL with prejudice as bank continues to avoid negotiating in GOOD FAITH IGNORING my cries about the fraudulent mortgage assignments and notary fraud. The stress of dealing with this bank and having them make me go through the application process twice because I refused to also sign the first loan modification documents due to the fraud. THE FRAUD HAS BEEN IGNORED!!! The stress has been horrible for me!! 

Statutory Damages of {$2000.00} for each QWR violation is requested ( 12 U.S.C. {$2600.00} ( f ) ; Actual ( compensatory ) damages suffered for not responding or correcting the errors questioned in the QWR is in the amount of {$10000.00}. 
19. I filed ( PRO SE ) A motion to dismiss for Failure to Negotiate in Good Faith. Flagstar Bank only sends me documents to sign and theres been no negotiation at allperiod. Judge is keeping my dismissal on the table as he agrees with me. They are in violation of the following : New Yorks Civil Procedure Laws & Rules 3408 ( Rule 3408 ) requires parties to a residential foreclosure action to negotiate in good faith to reach a mutually agreeable resolution at a mandatory settlement conference, which is to take place within sixty days of the filing of the summons and complaint. The new law amends Rule 3408 to define what it means to negotiate, or fail to negotiate, in good faith, and authorizes the court to impose sanctions if either party fails to meet the obligation to negotiate in good faith. 
NEGOTIATE IN GOOD FAITH Compliance with the obligation to negotiate in good faith shall be measured by the totality of the circumstances, including but not limited to the following factors : i. Compliance with the requirements of Rule 3408 and applicable court rules, orders, and directives by the court or its designee pertaining to the settlement conference process ; ii. Compliance with applicable mortgage servicing laws, rules, regulations, investor directives, and loss mitigation standards or options concerning loan modifications, short sales, and deeds in lieu of foreclosure ; and iii. Whether the parties have conducted themselves in a manner consistent with efforts to reach a mutually agreeable resolution, including, but not limited to : ( a ) not causing undue and unreasonable delay ; ( b ) appearing at the settlement conference with authority to fully dispose of the case ; ( c ) avoiding prosecution of foreclosure proceedings while loss mitigation applications are pending ; and ( d ) providing accurate information to the court and parties. ( Flagstar Bank has been FRAUDULENT and deceptive as evidenced in items 1 through 12 above ). 
PENALTIES A plaintiffs failure to negotiate in good faith will result in a tolling of the accumulation and collection of interest, costs, and fees. Where appropriate, the court may take one or more of the following steps : i. compel production of any documents requested by the court or the court 's designee during the settlement conference ; ii. impose a civil penalty payable to the state that is sufficient to deter repetition of the conduct and in an amount not to exceed XXXX XXXX dollars ; iii. award actual damages, fees, including attorney fees and expenses to the defendant as a result of plaintiff 's failure to negotiate in good faith ; or iv. award any other relief that the court deems just and proper.A defendants failure to negotiate in good faith will result in removal of the case from the conference calendar.

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