Consumer complaint received 2026-04-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: FIRST INTERSTATE BANCSYSTEM, INC.
State: ID

Complaint narrative:
We are XXXX XXXX XXXX and XXXX XXXX XXXX, the borrowers on a mortgage loan serviced by First Interstate Bank ( XXXX ), loan number ending in XXXX, secured by our property at XXXX XXXX XXXX XXXX, XXXX, Idaho XXXX. Our construction loan originated with XXXX on XX/XX/XXXX in the amount of {$710000.00}. The loan converted from construction to permanent financing in approximately XXXX or XX/XX/XXXX. We have made every scheduled monthly payment since conversion. On XX/XX/XXXX, we discovered XXXX serious problems in XXXX XXXX servicing of our loan, both documented on XXXX XXXX own records. First, our scheduled XX/XX/XXXX payment of {$4900.00} was received by XXXX on XX/XX/XXXX and posted on XX/XX/XXXX, but XXXX did not apply any portion of that payment to our loan. XXXX XXXX own online payment history screen shows : Principal {$0.00}, Interest {$0.00}, Escrow {$0.00}, Late Fee {$0.00}, and " Partial Payment ( Unapplied ) : {$4900.00}. '' The full scheduled payment is sitting in an unapplied/suspense bucket. Under the Real Estate Settlement Procedures Act ( RESPA ), 12 U.S.C. 2605 ( b ), a servicer must credit a periodic payment as of the date of receipt. XXXX did not do so. Second, XXXX XXXX amortization schedule for our loan lists " Payment XXXX '' as due XX/XX/XXXX, with a XXXX amortization running from that date and a starting principal balance of {$700000.00}. This is inconsistent with the actual facts of our loan. The loan converted from construction to permanent in XXXX or XX/XX/XXXX, and we have been paying on it for approximately XXXX years. Our XX/XX/XXXX FIB mortgage statement confirms a then-current principal balance of {$710000.00} and a monthly payment of {$5300.00} proving that the loan was active and amortizing well before XX/XX/XXXX. By dating XXXX XXXX as XX/XX/XXXX, XXXX XXXX servicing system has effectively re-aged our loan by approximately XXXX to XXXX years, adding XXXX or more scheduled monthly payments beyond what our Loan Documents authorize roughly {$60000.00} in additional payments that are not in any signed agreement. Third, our monthly payment amount changed at some point from {$5300.00} ( XX/XX/XXXX ) to {$4900.00} ( XX/XX/XXXX ). We do not recall receiving any Regulation Z payment-change notice, any Regulation X escrow analysis, or any other written servicing communication explaining this change. Under TILA and RESPA, changes to a closed-end mortgage payment amount require advance written notice to the borrower. We have no record of receiving that notice. We are also concerned that we have been unable to locate a written loan modification agreement that properly documents the construction-to-permanent conversion, including the XXXX fixed term, the applicable interest rate, the monthly payment amount, and the maturity date. We are actively searching our records. If no such modification exists, or if it exists but does not contain these essential terms, XXXX has been servicing our loan under terms that are not in any signed agreement. On the same day we are filing this complaint, we are mailing First Interstate Bank a formal Qualified Written Request under XXXX U.S.C. XXXX and XXXX C.F.R. XXXX and XXXX ( certified mail, return receipt requested, to XXXX Mortgage XXXX, XXXX. XXXX XXXX, XXXX, WA XXXX ). That letter identifies the same errors and requests the full coded payment history, the construction-to-permanent conversion documents, the operative amortization schedule, and a current payoff quote. We request that the CFPB : ( a ) forward this complaint to First Interstate Bank 's regulatory-response division for a written response ; ( b ) track whether FIB timely responds to both this complaint and the Qualified Written Request within the deadlines required under Regulation XXXX ; and ( c ) retain this complaint in the public consumer-complaint database. We note that the XX/XX/XXXX settlement between XXXX and ourselves resolving an earlier lawsuit expressly reserves our right to file complaints with the CFPB and other regulators. Section XXXX of that settlement states that no part of the release " will be construed as consideration for any agreement to remain silent, refrain from cooperating with regulators, or withhold information from any governmental authority. '' This complaint is filed pursuant to that reserved right. Thank you.

Company response to consumer: Closed with explanation