Consumer complaint received 2024-04-09 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: FIFTH THIRD FINANCIAL CORPORATION
State: GA

Complaint narrative:
WARNING TO FIFTH THIRD : THIS IS NOT A DUPLICATE COMPLAINT. 

FIFTH THIRD HAS A HABIT OF MARKING MY COMPLAINTS AS DUPLICATES WHEN THEY IN FACT ARE NOT ENTIRELY DUPLICATES. SO I AM REQUESTING A DIRECT RESPONSE TO THIS COMPLAINT. 

On XX/XX/XXXX I was forced by Fifth Third Bank ( 53 ) to file personal XXXX  XXXX bankruptcy to stop an illegal XX/XX/XXXX foreclosure WHILE a XXXX hardship application was in process which is a violation of dual tracking discussed below. In addition, after filing personal bankruptcy, I decided to look into some additional reasons why the foreclosure was illegal and the most recent are LACK OF STANDING ( see item XXXX below ) and multiple consumer federal and state violations regarding late fees and junk fees ( see items XXXX - XXXX below )... 

Fifth Third 's bad faith actions noted below have driven me to unfairly seek bankruptcy protection to stop an illegal foreclosure that should never have been pursued. 
I lost my 30 year-old manufacturing company with XXXX employees to XXXX and closed the doors XX/XX/XXXX. This hardship resulted in delinquency on our Fifth Third mortgages and after filing multiple hardship applications on the primary mortgage and home equity line of credit ( HLOC ), Fifth Third ( 53 ) initiated foreclosure on XX/XX/XXXX. After multiple attempts to meet and confer failed, I decided to file XXXX XXXX to stop the illegal foreclosure. This foreclosure is illegal for these reasons : 1 ) It is important to note that our hardship application was for the primary mortgage ( in both names ) and home equity line of credit ( in my ex-wifes name ), 2 ) The home has approx. {$300000.00} in equity, 3 ) As a result of XXXX, we filed for XXXX  in XX/XX/XXXX, 4 ) FORBEARANCE  ( PRIMARY MORTGAGE see correspondence from Fifth Third dated XX/XX/XXXX ) - we filed our first covid hardship application in XX/XX/XXXX, then again in XX/XX/XXXX and again in XX/XX/XXXX, and Fifth Third never disclosed ( required by regulation ) the XXXX  XXXX XXXX XXXX XXXX XXXX  program, a crucial loss mitigation option, that could have prevented our hardships from getting significantly worse because it offered a more flexible and affordable mortgage assistance program for those impacted by XXXX. The reason the multiple forbearance assistance was not the best option is because any amount you were excused from paying during forbearance is added back into the total you owe and factored into the new payment structure after the forbearance period is up. During this 2 year period, our mortgage payment ended up being higher thereby making our hardship worse leading to the need to file for more hardship assistance with XXXX but this time we became delinquent on the HLOC ( item XXXX below ). 
5 ) TODAY WE ARE CURRENT ON THE PRIMARY MORTGAGE but it does no excuse 53s negligence and violation of regulations by failing to disclose the GMA  as a loss mitigation option. Fifth Third is required by the Consumer Financial Reporting Bureau ( CFPB ) regulations to disclose all loss mitigation options including GMA. 
6 ) ADDITIONAL HARDSHIP APPLICATIONS ( XXXX XXXX XXXX  ) - we became delinquent in XX/XX/XXXX while XXXX was still at its height... Since our hardships became much worse, we filed multiple Hardship applications for assistance but it was the hardship application filed in XX/XX/XXXX where Fifth Thirds mishandling and poor duty of care made our hardship much worse... the XX/XX/XXXX application took 9 months to process and resulted in a higher payment due to skyrocketing interest rates. This long process took away our rights to refinance at the lower rates in effect around XX/XX/XXXX. I did not take the payment offer because it was higher and again it would have made our hardship much worse. Due to 53s negligence in taking its time processing During the 9 months, 2-3 months went by with no replies to emails or phone calls. Due to the shoddy prolonged hardship application processing and poor duty of care, my ex-wife became frustrated and saw no hope in refinancing to get her name off of both mortgages so she could purchase her own home. 
7 ) REFINANCE : On numerous occasions, Fifth Third told us the only way to remove my ex-wifes name from both mortgages was to refinance but due to the shoddy prolonged processing of our applications while rates were skyrocketing, the refinance option was basically taken away by 53 from us because if I was to refinance at the higher rates, the payments would be higher which would make the hardship even worse, 8 ) So I filed another XXXX hardship application in XX/XX/XXXX and this one, while still in process/underwriting as of XX/XX/XXXX going on 8 months, is when the bank initiated the foreclosure which is a violation of dual tracking regulations at both the federal and state levels. This application was handled by different processors all asking for different information, requests for the same documentation and confusion over who ( me or my ex-wife ) should file the application... as an example, we re-filed at least XXXX applications during this 8 month period. 
9 ) LATE FEES CHARGED DURING BOTH PROLONGED HARDSHIP APPLICATIONS : these unconscionable and unreasonable extended periods to process routine hardship applications demonstrate that Fifth Third has taken control of our mortgage accounts to pump up fee income and the related interest income. Fifth Third unconscionably charged late fees ( with interest tacked on ) while they took their sweet time processing the XX/XX/XXXX and XX/XX/XXXX hardship applications that took 9 months and 8 months, respectively, and the latter is still in process even after I was forced to file bankruptcy to stop the XX/XX/XXXX foreclosure. There is no way this is legal. I am 100 % positive and can back up the fact that we did not contribute in any way whatsoever to any of the delays during the prolonged processing of these hardship applications. Whatever documents they needed or questions needing answers were provided promptly, The late fees charged by Fifth Third were excessive and unjustifiable, and are subject to various regulations at both the federal and state levels. Here are some common regulations that Fifth Third is required to comply with : Regulation Z ( Truth in Lending Act ) : Under Regulation Z, lenders are required to disclose late fees associated with consumer credit transactions, including mortgages, in the loan agreement or disclosure statement provided to borrowers. These fees must be reasonable and can not exceed certain limits set by law. 
State Usury Laws : Many states have usury laws that govern the maximum interest rates and fees that lenders can charge on loans. These laws often include provisions related to late fees, such as caps on the amount that can be charged or requirements for reasonableness. I am still researching the application of XXXX  XXXX XXXX XXXX  regarding late fees. But at a minimum it appears that charging legal fees during prolonged periods of hardship applications are not a reasonable practice by a mortgage servicer. The impact of this questionable practice spread over all of the Fifth Thirds customers falls into the category of bad faith actions that generate significant revenue for Fifth Third. 
Fair Debt Collection Practices Act ( FDCPA ) : The FDCPA prohibits debt collectors, including lenders, from using abusive, unfair, or deceptive practices in collecting debts. This may include restrictions on the imposition of excessive late fees or fees that were not properly disclosed to the borrower. 
Mortgage Servicing Rules ( RESPA ) : The Real Estate Settlement Procedures Act ( RESPA ) imposes various requirements on mortgage servicers, including rules related to the assessment and handling of late fees. These rules may include provisions for reasonable fees and requirements for notice to borrowers. 
State Consumer Protection Laws : Many states have consumer protection laws that govern the terms and conditions of loans, including late fees. These laws may impose additional requirements or restrictions on lenders beyond those required by federal law.

10 ) LEGAL FEES CHARGED DURING BOTH PROLONGED HARDSHIP APPLICATIONS As part of the foreclosure notices, Fifth Third sent us a payment history and it shows over {$45000.00} in legal fees charged to my payment history during the prolonged processing of our XX/XX/XXXX and XX/XX/XXXX hardship applications ; this appears to be an extremely sneaky way to suction money out of any sales proceeds from the planned foreclosure. Again we had no control over prolonged delays in processing these applications and no legal actions were ever disclosed to us, 11 ) JUNK FFES CHARGED DURING BOTH PROLONGED HARDSHIP APPLICATIONS multiple indecipherable junk fees were charged throught the life of the home equity line of credit and they were never disclosed to us in advance or when they were charged, 12 ) SUCCESSOR OF INTEREST - I made attempts to make payments on the HLOC delinquency to cure the default but 53 refused the payments because my name was not on the HLOC note but the 53 never disclosed the Successor of Interest form until XX/XX/XXXX. If they had disclosed this form around the XX/XX/XXXX divorce time frame, my ex-wife would have signed it and the Fifth Third could have confirmed me as the successor of interest and my payments would have been accepted. Ironically, Fifth Third asked my ex-wife to sign a quit claim deed and we did ( Court stamped on XX/XX/XXXX ) but the bank did nothing with it ; this should have prompted the bank to disclose the Successor of Interest form. So we did not find out about this form until over 3 years later. Fifth Third apologized for not letting us know about his form while initiating the foreclosure. Despite this crucial oversight, the bank first required me to sign the Successor of Interest form for the HLOC but several days later, apologized again, and said my ex-wife was supposed to sign it and that was on XX/XX/XXXX... so we wasted more time with our hardship application still in underwriting even as of XX/XX/XXXX. 
13 ) I pleaded with 53 to mediate and stop the foreclosure and the bank said they can not stop it and did not want to discuss alternatives. With 30 days before foreclosure, the first reason for refusing to mediate was there was not enough time but I kept pressing the bank for a reason why there was not enough time and then the reason was changed to Attorney Client privilege! 
XXXX ) we have more than enough income to make the payments, XXXX ) XXXX DAUGHTER : I am also the XXXX XXXX of my XXXX  XXXX daughter and I think the foreclosure is a violation of the fair housing act for the XXXX. 53 asked for a copy of XXXX XXXX XXXX ordered legal guardianship and conservatorship documentation but did nothing with it as evidenced by the planned foreclosure. 
16 ) The banks negligent actions and unwillingness to stop harming us has made our life miserable, 17 ) Since I can not afford a lawyer, I decided to sue the bank as a pro-se litigant. Several of my defenses to prove to the court that the planned foreclosure include : a. Lack of Standing : I asked 53 many times to disclose loan transfer date to new owner but no reply. Without knowing these details on the new owner ( GNB Realty ) of the HLOC, there is no proof that 53 has the legal right to initiate foreclosure. 
b. Dual Tracking ( item 6 above ) : it is illegal to initiate foreclosure while a hardship application is in process. 
c. Negligently prolonging the processing of hardship applications : When a lender negligently prolongs the processing of hardship applications, several laws and regulations may be violated, including Real Estate Settlement Procedures Act ( RESPA ), Consumer Financial Protection Bureau ( CFPB ) Mortgage Servicing Rules, State laws and regulations, Truth in Lending Act ( TILA ), Fair Debt Collection Practices Act ( FDCPA ), Dodd-Frank Wall Street Reform and Consumer Protection Act, and State consumer protection laws. This negligence includes unresponsiveness and inadequate communication. Throughout these 8 months of the current XXXX hardshp application ( in underwriting as of XX/XX/XXXX ), the defendant demanded that we submit both new and resubmitted documentation, along with updated applications. We diligently and promptly fulfilled application rework. 
d. Robosigning : it appears that one of the reasons for the prolonged hardship application processing is due all of these requirements without hesitation, and it's crucial to note that none of the rework was due to any fault on our part and I am 110 % positive that we did not contribute to any of the XXXX hardship documents being robosigned meaning no one is reviewing the documents e. Illegally charging late fees and junk fees during 2 prolonged XXXX hardship applications of XXXX and XXXX  months respectively. 
f. Failure to disclose all loss mitigation options g. Failure to disclose the Successor of Interest form h. Failure to disclose in advance changes in interest rates on adjustable rate mortages i. Robosigning j. Discriminatory Practices : possible violation of the fair housing act for the XXXX. 
18 ) There are many other crucial failures demonstrated by Fifth Thirds lack of good faith with fair dealings After this experience with Fifth Third bank, I believe there are many homeowners who illegally lost their home to foreclosure due to prolonged shoddy application processing, negligence, incompetence, indifference, unethical conduct and bad faith actions. I suggest a federal investigation into this banks poor duty of care and I am sure many people have had their homes illegally foreclosed on. I dont believe there are many homeowners are as relentless and resourceful as I am to fight back including filing a pro se lawsuit. 

One would think that Fifth Third, one of the 25 largest banks in the country, would have given our XXXX hardship application a higher level of priority. 

CONCLUSION I purchased my sportswear manufacturing business in XXXX with a {$400000.00} deposit from my life savings and a {$1.00} XXXX XXXX loan and then losing it due to XXXX, I applied for XXXX hardship assistance with Fifth Third bank and in all cases my modified payments on both the primary mortgage and the HLOC increased and the current application is still in process after 8 months and the previous one took 9 months... 2 hardship applications taking almost 2 years to process and then 53 has the nerve to attempt foreclosure- this is an absolute outrage from a large bank and you can not make this up. Our hardship is now much worse and despite this lack of duty of care, 53 someone finds a way to justify foreclosure despite multiple violations of federal and state regulations. It is my belief that there are many homeowners who have lost their homes to illegal foreclosure and some are still facing illegal foreclosure and unfortunately many of these homeowners are not determined enough or resourceful enough to fight back like I am attempting to do but it has come at a heavy cost of having to file bankruptcy to stop an illegal foreclosure. 

In item 13 ) above, I pleaded with 53 to mediate and stop the foreclosure and the bank said they can not stop it and did not want to discuss alternatives ; here are some reasons why 53 is motivated to continue with illegal foreclosures : 1 ) Financial Incentive ( Ramp up fee income ) : often come with associated fees ( i.e., legal fees discussed in item 10 above ) and costs that the bank can charge to the borrower. This financial incentive may motivate banks to pursue foreclosure on properties with substantial equity, as it can result in higher fees and potential profits for the bank. The problem here is that it also appears that one can argue that 53 intentionally prolonged the processing of the hardship applications to generate fees to help meet the banks XXXX XXXX rosy profit projections 2 ) Recovery of Debt : Foreclosing on a home with substantial equity allows the bank to recover the outstanding debt owed by the borrower more effectively. The sale of the property can help the bank recoup its losses, including the outstanding loan balance and any associated fees. 
3 ) Fractional Reserve Banking : Fractional reserve banking, a system where banks are legally required to hold a fraction of customer deposits as reserves and lend out the rest, can influence their decisions in several ways : a. Lending Practices : When banks engage in aggressive lending practices that could result in borrowers defaulting on their loans, banks may resort to foreclosure to recover their funds and protect their assets. 
b. Risk Management : Fractional reserve banking exposes banks to liquidity risk, as they may not have enough reserves to cover deposit withdrawals in times of financial stress. To mitigate this risk, banks may prioritize assets that can be quickly liquidated, such as real estate through foreclosure, to ensure they can meet their obligations to depositors.

c. Profit Maximization : Foreclosure can be a profitable endeavor for banks, as they can recoup outstanding loan balances, fees, and penalties associated with ALL delinquent loans. In cases where borrowers have significant equity in their homes, foreclosure may offer an attractive opportunity for banks to recover their funds and potentially generate additional profits. Substantial equity may present a more attractive option for foreclosure from a financial perspective.

d. Regulatory Pressure : Banks operate within a regulatory framework that requires them to maintain certain levels of capital reserves to ensure financial stability. In situations where banks face capital shortages due to loan defaults or other financial challenges, regulators

may exert pressure on banks to strengthen their balance sheets by recovering bad debts, including through foreclosure. Fractional reserve banking incentivizes banks to foreclose on homes by contributing to a lending environment where banks may b
e more inclined to pursue foreclosure as a means to bad management ( e.g., recoup losses due to bad portfolio risks management ), need to maximize profits, and meeting regulatory requirements I would appreciate any help your news organization can provide to resolve this matter.

Company response to consumer: Closed with explanation