Consumer complaint received 2016-01-11 00:00:00
Product: Mortgage — FHA mortgage
Issue: Loan modification,collection,foreclosure — 
Company: Flagstar Bank, N.A.
State: PA

Complaint narrative:
The matter of XXXX Versus Flagstar Bank XXXX ; and XXXX Mortgage XXXX XXXX, servicing agent for XXXX ; and XXXX. 
GENERAL BACKGROUND 1. This is an action for rescission of an illegal and void Mortgage and Note to certain real estate owned by Plaintiff and located at XXXX ( the " Property '' ). The improper Mortgage and Note individually, and in conjunction with the actions taken by Defendants, constitute unfair trade practices and predatory lending practices. 
2. On or about XXXX XXXX, XXXX, in consideration for a loan originated from XXXX XXXX Mortgage XXXX XXXX XXXX " XXXX '' XXXX, Plaintiff executed a Mortgage and Note for what Plaintiff was led to believe by XXXX was an FHA Loan. 
3. On numerous occasions prior to and at the time of the loan closing, Plaintiff explicitly made known to the representatives of XXXX, that Plaintiff was seeking an FHA loan. 
4. At the time of the execution of the Note and Mortgage, the documentation clearly included language that the Note and Mortgage were FHA approved ( the " FHA Mortgage '' ). 
5. Upon information and belief, at the time the FHA Mortgage was originally executed, the Plaintiff was required to pay monthly payments for FHA Mortgage insurance, which were paid. 
6. On or about XXXX XXXX, XXXX, the Mortgage and Note were sold and assigned by XXXX to Flagstar XXXX XXXX XXXX XXXX Flagstar Bank ( " Flagstar '' ). 
7. Plaintiff was made aware of the transfer of the FHA Mortgage to Flagstar by letter dated XXXX XXXX, XXXX, which also stated that : ( i ) Flagstar was " servicing '' the loan ; and ( ii ) the " transfer of ownership is not recorded in the public records at this time. '' 8. Consistent with the direction from Flagstar in its XXXX XXXX, XXXX letter to Plaintiff, Plaintiff began remitting all payments to Flagstar at XXXX XXXX XXXX, XXXX, Michigan XXXX. 
9. Subsequently, due to adverse economic conditions, Plaintiff became delinquent on his FHA Mortgage payments beginning XXXX XXXX. 
10. On or about XXXX XXXX Plaintiff requested reinstatement of his FHA Mortgage and received on or about XXXX XXXX, XXXX a reinstatement quote of {$16000.00} from XXXX, XXXX XXXX XXXX XXXX XXXX, located at XXXX XXXX XXXX, XXXX XXXX, Mountainside, NJ XXXX, representing Flagstar, which did not address the declining property value. 
11. Plaintiff was advised by Flagstar that because the reinstatement would not address the declining property value, as supported by the XXXX XXXX, XXXX reinstatement quote, the Plaintiff would need to pursue a modification of the FHA Mortgage from Flagstar. 
12. As recommended by Flagstar, Plaintiff sought a modification and responded to Flagstar 's numerous requests for documentation regarding his financial condition and, upon complying with all requests, received notice of same on or about XXXX XXXX from Flagstar that they could proceed with the modification. 
13. Upon information and belief, when the Plaintiff went into default, a claim was made to the Mortgage insurance company and payment was received by the then holder of the Mortgage, Flagstar. 
14. During the pendency of negotiations between Plaintiff and Flagstar for a modification of the FHA Mortgage, Plaintiff was notified that the FHA Mortgage was purportedly being transferred again. 
15. By letter dated XXXX XXXX, XXXX, Flagstar, holder of the Note and Mortgage, advised the Plaintiff that the servicing of the loan was being transferred to XXXX and XXXX Mortgage XXXX XXXX, servicing agent for XXXX ( " RoundPoint '' ). 
16. The XXXX XXXX, XXXX letter also stated that : ( i ) " the terms and conditions of your Mortgage lo

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation