Thursday, October 2, 2014

Why you can’t get a Loan Modification from Flagstar

If you couldn’t get a loan modification from Flagstar you are not alone.  Flagstar is a big bank.  Their website and filing with the Securities Exchange Commission, says that that have nearly 10 Billion dollars of assets and are one of the top ten savings banks in the United States.
In September the Consumer Financial Protection Bureau (CFPB) fined Flagstar Ten Million Dollars for failing to property modify home mortgages serviced by Flagstar.  How bad were things at Flagstar.  At Flagstar they had 13,000 files in which a homeowner had applied for loan modification.  Those 13,000 files were assigned to just 25 staff members.  That is more than 500 files per staffer. 
Flagstar was also cited for:
  • 25 Minute Average Hold Time
  • 50% Call Abandonment.   ( Call where Flagstar hung up on the borrower, the borrower got lost in a maze of voice prompts, or the borrower just gave up trying to reach a human).
  • Failure to Alert Borrowers of Incomplete Applications.
  • Failure to timely convert trial modifications to permanent modifications.
Flagstar has agreed to not only pay a ten million dollar fine they will pay twenty-seven million dollars of restitution to loan modification victims.  For complete details from the CFPB website click here.
If you live in Florida and Flagstar failed to respond to your loss mitigation package submitted after January 1, 2014, Shuster & Saben, LLC is available to file suit on your behalf against Flagstar on a pure contingence fee basis.  Our firm not only defends homeowners in foreclosure, we regularly sue banks, loan servicers, and bill collectors for violating consumer protection laws.

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