Consumer complaint received 2022-05-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Flagstar Bank, N.A.
State: IL

Complaint narrative:
Flagstar staff just can't get proper information and documentation together. I called a few weeks ago today is XX/XX/XXXX about removing PMI since they resolve the issue they caused for not payment deferral to the back of the loan including escrow. I already escalated this to XXXX XXXX and now that issue is resolved. 

So with that issue of Covid Forbearance and the end process they falsely provided me information the entire time of that process and messed up my restarting payments. I am glad they fixed that issue but yet again another escalation that they just can't seem to read their own documents they received from previous loan providers that sold them my loan. 

I called to get rid of PMI since my loan to value is over 40 % and I can remove PMI. XXXX XXXX  states the following for people that went through Covid Forbearance For XXXX XXXX loans, when looking at whether you have an acceptable payment record, the loan servicer can't consider any payment that's 30 or more days past due in the last 12 months or 60 or more days past due over the previous 24 months that's attributable to a COVID-19 financial hardship and if the servicer provided you with : a COVID-19 related forbearance plan, repayment plan, or trial period plan, and you complied with the terms of the plan a payment deferral, or a COVID-19 payment deferral and you made three consecutive monthly payments after completing the payment deferral. 
But you have to be current on the mortgage loan when you request the PMI termination. 

I was called on XX/XX/XXXX at XXXX to discuss that my PMI request was denied due to delinquent payment history. I have never been late in my life on any mortgage I have ever had. Also I have a great credit history and was never delinquent on accounts. 

Information she shared- I was delinquent in XXXX and XXXX of XXXX - I was in Covid Forbearance and told them the letter I proved that from XXXX mortgage and the representative found that letter and escalated. 

Then I get a letter dated XX/XX/XXXX but the call was on the XXXX. Because I have lost faith in Flagstar entirely I called today XX/XX/XXXX at XXXX XXXX  and asked about the process to make sure that the representative did properly escalate it. 

The representative I spoke with proceeded to read the notes and it was that it was denied and then proceeded to say someone messed up the process anyway because you sent in a {$150.00} payment and usually you only send that in if the PMI evaluation was approved. So another misleading information provided to me by Flagstar when I called in XXXX to get PMI removed they gave me the address, some suite number and what to write on the envelope and send a {$150.00} check which I did. I am shocked how misleading and misinformed their own staff is on providing accurate information to their customers. I shouldn't have to keep experiencing this on every phone call. 

The Only person that has been great is XXXX- she actually took the time to help resolve the issue with escrow. 

So then the representative proceeded to state that I have to make certain number of payments after deferral to be qualified. Here is the issue for me- I am current and I followed the plan and I have made payments since XXXX for this deferral and they messed that up the entire process hence the other compliant on have on record they resolved. 

So they finally processed the deferral and I have made plenty of payments that would fulfill this requirement. 

I need this resolved it is becoming useless to work with their representatives. I shouldn't have to continue to go through all this stress just for an account that is being poorly mismanaged. Mortgage records and communication needs to be accurate or it becomes a violation.

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