Consumer complaint received 2025-01-13 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: PA

Complaint narrative:
1. Violation of Regulation Z ( Truth in Lending Act ) : Flagstar Bank has failed to comply with key provisions of Regulation Z ( 12 C.F.R. 1026 ) : The bank failed to provide accurate disclosures regarding the status and terms of my loan. 
It applied undisclosed and unauthorized fees after the discharge of my bankruptcy, violating 12 C.F.R. 1026.36 ( c ), which prohibits servicers from engaging in unfair billing practices. 
Relevant Case Law : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
2. Violation of Bankruptcy Discharge Protections ( 11 U.S.C. 524 ( a ) ) : Flagstar Bank engaged in post-discharge collection activities on a debt discharged under my XXXX XXXX XXXX  ] case on [ XX/XX/XXXX ]. This includes correspondence, billing statements, and other demands for payment in direct contravention of federal law. 
Relevant Case Law : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, which underscores that creditors may not act with impunity in disregard of discharge injunctions. 
3. Improper Handling of Promissory Note : I provided Flagstar Bank with a valid promissory note that constitutes lawful tender and fulfills the debt obligation. Despite this, Flagstar Bank has failed to : Acknowledge receipt of the note.

Act in honor by discharging or offsetting the alleged debt as required under Uniform Commercial Code ( UCC ) Articles 3 and 9. 
Properly document how the promissory note was applied, creating an atmosphere of non-transparency and dishonor. 
This action violates the principles outlined in their SEC filings and prospectus, where they claim to comply with financial industry standards, including lawful handling of obligations and financial instruments. 
4. Non-Compliance with SEC Filings and Prospectus Representations : Flagstar Bank, as a publicly traded entity, is subject to the Securities Act of 1933 and must adhere to its representations made in SEC filings. These include obligations to : Act in good faith when managing financial instruments such as promissory notes.

Ensure accurate and transparent handling of loan obligations in compliance with federal law.

The banks failure to process the promissory note and provide detailed account reconciliations contradicts these representations. This could constitute a violation of the Securities and Exchange Commission 's ( SEC ) regulations under 17 C.F.R. 240.10b-5, which prohibits deceptive practices.

________________________________________ Legal and Regulatory References Statutes and Regulations : 1. 12 C.F.R. 1026 ( Regulation Z ) Governing loan servicing and consumer protections under TILA.

2. 11 U.S.C. 524 ( a ) Establishing bankruptcy discharge protections.

3. 15 U.S.C. 77q ( Securities Act of 1933 ) Prohibiting fraud in the sale and handling of securities, including obligations reflected in SEC filings.

4. 17 C.F.R. 240.10b-5 Prohibiting misleading practices in connection with the purchase or sale of any security.

Case Law : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Affirming strict compliance with TILA disclosures. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Holding creditors accountable for violating bankruptcy discharge injunctions. 
XXXX. In re XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Establishing that creditors must act in good faith in recognizing lawful debt satisfaction instruments. 
________________________________________ ________________________________________ Conclusion Flagstar Banks actions demonstrate systemic dishonor and disregard for legal and regulatory obligations. I trust the CFPB will thoroughly investigate these matters and take enforcement action to ensure compliance and protect consumers from further harm. Should additional information or documentation be required, please do not hesitate to contact me Thank you for your immediate attention to this critical matter.

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