Consumer complaint received 2025-11-28 00:00:00
Product: Mortgage — FHA 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: NEW YORK COMMUNITY BANCORP INC
State: GA

Complaint narrative:
We are requesting immediate CFPB intervention to stop a wrongful foreclosure scheduled for XX/XX/XXXX. Our servicer ( XXXX XXXX ) mishandled our loss-mitigation application, failed to send required notices, withheld insurance repair funds for over XXXX years, and placed us in foreclosure while we were actively told we were in loss-mitigation review. We have repeatedly tried to resolve this with the servicer. We had been told we were in loss mitigation for quite sometime due to the insurance claim but there were delays on the merge of XXXX XXXX and Flagstar so that was the reason we hadn't received the updated loss mitigation documents.On XX/XX/XXXX, we sent a formal hardship letter and demand for release of insurance funds to multiple departments, including Loss Mitigation, XXXX XXXX, and Executive Escalation. Despite this, no response has been received. 

Violations & Summary of Issues : Failure to Send Required Mortgage Statements & Notices ( 12 C.F.R. 1026.41 ) We have not received ANY mortgage statements or foreclosure notices because the servicer repeatedly mailed documents to a vacant property, despite being notified many times that the property was uninhabitable. We provided our rental address and my mothers permanent address ( XXXX residence ), but they continued using the wrong address. They admitted notices were returned undeliverable yet still proceeded with foreclosure. 

Dual Tracking Foreclosing While Loss-Mitigation Was Active ( 12 C.F.R. 1024.41 ( f ), ( g ) ) We were told multiple times we were already in loss mitigation and waiting for documents to be mailed. No documents ever arrived. Instead, we were suddenly informed by third parties that our home was set for foreclosure. When we called, we were again told we were in active loss mitigation review, yet foreclosure activity continued. 

Failure to Provide Loss-Mitigation Documents Within Required Timeframes ( 12 C.F.R. 1024.41 ( b ) ( 2 ) ) Every prior loss-mitigation package they sent had a XXXX deadline and required multiple signatures and notarization. They knowingly sent them to the vacant property, causing us to miss deadlines and lose beneficial terms. We repeatedly requested documents to be sent to my mothers verified address, and they agreed, but still continued sending to the wrong location. 

Forced to Sign Loan Modification Under Duress The only modification they allowed us to sign was during a prior foreclosure where we had only XXXX days before the sale. We were told we would lose the home if we did not sign immediately. The terms were extremely unfavorable : Increased our monthly payment amount, Interest rate increased from approx. 4.5 % to 7.5 %, Loan term increased to XXXX years, added Corporate advances, legal fees, and attorney fees. We requested information to what the corporate advances, legal fees and attorney fees were added and never received any information regarding it. We also requested the XXXX be terminated as we had to show equity over principal to have it removed. Never received an update for that either. 
We were told loan mods are meant to make payments affordablenot worse. We were also promised the release of the insurance funds upon signature, but that has yet to happen. We had requested the terms prior to this one that were lowering the payment, interest rate and term but were denied with no reasoning. 

Failure to Release Insurance Repair Funds ( Loss Draft Funds ) for XXXX Years ( 12 C.F.R. 1024.17 ) Our home suffered an insured loss. XXXX XXXX approved the claim but partially paid. We signed an affidavit committing to repair the home. 
Flagstar/XXXX XXXXXXXX has STILL not released repair funds because : they continue demanding work match the scopes 100 % that are outdated ( XXXX old ) and written by a contractor who was fired, they refuse to accept the updated public adjuster/contractors scope, they insist on inspections but repeatedly schedule them without showing up knowing that no additional work had been completed since the last inspection. 

The " inspector '' that comes out doesn't speak XXXX and isn't the person who actually writes the inspection report. We were told, they just look at the photos taken to write the report. We asked how someone would be able to see the significant amount of work completed just by the photos with no explanation. 

Because they withheld funds, we were unable to repair the home, unable to move back in, and forced to continue paying rent. This directly caused the default and we have explained this multiple times that we can not afford rent plus mortgage. 

XXXX ( XXXX ) XXXX ( 12 C.F.R. 1024.37 ) Because the home can not be repaired any further without funds the servicer is holding, we can not obtain outside insurance. The servicer placed extremely expensive force-placed insurance, further increasing our payments and worsening hardship and doesn't cover anything such as personal belongings. Due to the servicer holding funds for over 3 years, our property has sat vacant and has been subjected to burglarization and damage. 

Failure to Maintain Accurate Contact Information Despite updating our phone number and email for over 9 months, they keep using an old number and an incorrect email. We could not regain access to the loan portal or receive verification codes due to their failure to update our contact info. This prevented us from submitting documents and accessing our account. 

XXXX XXXX Formerly Penalized by CFPB for Almost IDENTICAL Conduct In XXXX the CFPB fined Flagstar {$37.00} XXXX for mishandling loss-mitigation, dual-tracking, and failing to send documents. 
The exact same conduct is occurring here.

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