Date Received: 2016-06-14
Issue: Settlement process and costs
Subissue:
Consumer Complaint: In 2007, I applied for a reverse mortgage loan secured by my personal residence from XXXX XXXX Bank, who has since merged with M & T Bank. The purpose of the loan was to cover catastrophic healthcare medical costs for my daughter, who had a XXXX that make me incurred in medical expenses in excess of {$9000.00} a month. After being told that I was approved, I executed multiple loan documents that the Bank communicated were to document the reverse mortgage loan. In reality, the Bank has instead given me a commercial line of credit that was made to look similar to a reverse mortgage and that allowed them to draw on such line of credit and have agents of the Bank invest on the drawn funds. The funds so invested were wiped out and the loan fell into default. The original Loan amount was {>= $1,000,000} and the Initial draw 's monthly amount was {$10000.00}. From this amount {$6500.00} was used to pay first the interest on the mortgage, and I would receive the remaining {$3500.00} The Bank has now threatened to initiate foreclosure actions against me for defaulting on a loan that was doomed to fail from the very beginning. I relied on the Bank representations that they were going to invest the loan proceeds and that through their financial savvy I was going to have income for life. I did not have the capacity to understand the complex commercial transaction that the Bank induced me to sign. The commercial line of credit that they induced me to sign for allowed the Bank to invest all of the loan proceeds in the stock market ; and to my detriment, they lost more than {$400000.00}.
Company Response:
State: VA
Zip: 22102
Submitted Via: Web
Date Sent: 2016-06-14
Company Response to Consumer: Closed
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-06-12
Issue: Loan modification,collection,foreclosure
Subissue:
Consumer Complaint: *********PART 1********* To whom it may concern, We feel that our current mortgage servicer M & T Bank ( MT ) has placed our loan into imminent danger of going into foreclosure. Our troubles appear to have begun back in XXXX when our family had suffered an extreme reduction of income. MT, offered a loan modification on XXXX XXXX, XXXX which appeared only on the surface to be a satisfying way for bringing my loan current. Unfortunately this offer is predatory in nature and offered no long-term net tenable benefit to our family for years to come. The teaser rate of 4 % literally baited our family into acceptance, only to later adjust to and reset back to a cap rate of 6.375 %. These figures equate to an increase in payment of {$100.00} each year, for up to 8 years, taking our payments from {$2300.00} to {$3100.00}. Once the final adjustment occurs our loan payment will push my debt to income ( DTI ) ratio upwards to 40 % which is completely unaffordable. At the time of acceptance my DTI was under 30 %. Furthermore, this same loan modification never actually brought my mortgage loan balance current, in fact I have been carrying a rolling 30 day late payment since MT allegedly modified our mortgage. This error has placed our family under further financial duress, as well as accumulated excessive late fees in the amount of {$4200.00}. We feel that the sole purpose of communicating that our family sought relief in XXXX, by way of modification would bring our loan current which would in turn help to correct our credit profiles. The fact of the matter is our loan was never brought completely current and our credit reports reflect negatively as a result of MT 's negligence. We feel that they have violated the Fair Credit Reporting Act ( FCRA ) as a result of their negligence. This predatory loan carries adjustable rates within which exceed my origination rate of 6 %. To further support my claim it is a violation of the Real Estate Settlement Procedures Act ( RESPA ), for any national loan mortgage bank to place consumers into loans which carry no tangible net benefit to the consumer. From the beginning of our acceptance of the above mentioned loan modification we have slowly been forced back into delinquency by MT. MT, also extended my loan to a 40 year term, in essence they have set themselves up to collect an additional .375 % over and extra 10 years. To make matters worse we purchased our home and made a down payment of {$100000.00} on top of these additional increases. Take a look at just a snap shot of how MT, is benefiting from my acceptance of this last offer : *Using the same loan amount of {$560000.00} and a term of 30 years at a 4 % rate FIXED, my principle and interest payment would have been {$2600.00}. Total interest paid over 30 years would have been {$400000.00}. *However, the interest paid over 40 years this number increases dramatically to {$560000.00}, not to mention the rate increase and cap at .375 % which is almost a full 1 % higher than my starting rate prior to the loan modification. The bank will make approximately XXXX, in interest just by slightly increasing my rate over the new 40 year term. This loan modification offer is quite predatory in the sense that I 'm paying back double the interest and the payments have increasingly strained my budget since the loan modifications conception date in XXXX. Finally after foreseeing and realizing the situation that we are facing, we approached MT, with a request to modify the loan to avoid the increase in payments in XXXX. MT, refused our regular payment during the modification review period.
Company Response:
State: CA
Zip: 91745
Submitted Via: Web
Date Sent: 2016-06-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-06-11
Issue: Application, originator, mortgage broker
Subissue:
Consumer Complaint: Two years ago XXXX, we applied for the XXXX XXXX XXXX savings program through M & T and were subsequently approved by the representative we worked with ( who is no longer an M & T employee ). Since then, we have successfully completed the program, making the monthly payments on time, and have completed the required counseling sessions. At this point, we have met with our loan officer several times, had all of our documentation in order, and successfully procured a mortgage loan. We were informed yesterday of a condition of the XXXX XXXX XXXX program that would have disqualified us from being accepted into the program ( I was a XXXX within 6 months of XXXX ), yet M & T approved us anyway. The person we met with checked all of the criteria for the program off for us without confirming with us that is that met the criteria, and only had us look at and sign page XXXX of a document. As a result, we did not receive the XXXX that would give us an additional {$7500.00} toward closing costs. We were told by M & T that they would do nothing to right this, despite the mistake being theirs.
Company Response:
State: NY
Zip: 14580
Submitted Via: Web
Date Sent: 2016-06-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-06-10
Issue: Loan servicing, payments, escrow account
Subissue:
Consumer Complaint: Account Number - XXXX To whom it may concern, This is a " qualified written request '' under Section 6 of the Real Estate Settlement Procedures Act ( RESPA ). I am writing you today as I disagree with the past due payments you are reporting on my credit reports. They do not line up with my records and I believe that my payments may have been misapplied. The particular lates referred to are : 120 days past due as of XXXX XXXX 90 days past due as of XXXX XXXX, XXXX XXXX 60 days past due as of XXXX XXXX to XXXX XXXX 30 days past due as of XXXX XXXX, XXXX XXXX, XXXX XXXX to XXXX XXXX, XXXX XXXX, XXXX XXXX to XXXX XXXX
Company Response:
State: IN
Zip: 467XX
Submitted Via: Web
Date Sent: 2016-06-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-06-11
Issue: Application, originator, mortgage broker
Subissue:
Consumer Complaint: Two years ago XXXX, we applied for the First Home Club savings program through M & T and were subsequently approved by the representative we worked with ( who is no longer an M & T employee ). Since then, we have successfully completed the program, making the monthly payments on time, and have completed the required counseling sessions. At this point, we have met with our loan officer several times, had all of our documentation in order, and successfully procured a mortgage loan. We were informed yesterday of a condition of the First Home Club program that would have disqualified us from being accepted into the program ( One of us was a XXXX within 6 months of enrolling ), yet M & T approved us anyway. We were never shown or had access to a document that listed this condition, yet the representative that we worked with, filled it out for us, marking that we met this condition, without confirming with us if that was accurate. He had us sign what turned out to be the XXXX page of that document, and never showed us or had us initial the XXXX page. As a result, now that we 're ready to move forward with our mortgage, we were told by M & T that it was very unlikely that FHC would approve us for the grant that would give us an additional {$8000.00} toward closing costs. We were told by M & T that there was little they could do, despite the mistake being theirs.
Company Response:
State: NY
Zip: 14534
Submitted Via: Web
Date Sent: 2016-06-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-06-08
Issue: Loan servicing, payments, escrow account
Subissue:
Consumer Complaint: My Chapter XXXX XXXX filing was discharged 6 years ago. I included XXXX mortgages in the XXXX which have XXXX been paid on time for the past 6 years since the discharge. However, I am not getting credit for either mortgage on my credit bureaus. I have contacted all XXXX agencies as well as XXXX servicers to resolve multiple times. Both agency and servicer are suggesting that the other is at fault. This situation is impacting my credit score and in turn my lending options. Being at a loss I decided to contact the CFPB to see if they could be of assistance in this matter
Company Response:
State: OH
Zip: 44139
Submitted Via: Web
Date Sent: 2016-06-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-06-08
Issue: Loan servicing, payments, escrow account
Subissue:
Consumer Complaint: There is a mortgage loan with M & T bank. Payments are due once a month. I have been making principal prepayments, and M & T banks is applying interest charges towards these prepayment amounts.
Company Response:
State: NJ
Zip: 08757
Submitted Via: Web
Date Sent: 2016-06-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-06-06
Issue: Managing the loan or lease
Subissue:
Consumer Complaint: We purchased a boat, trailer and motor, in XX/XX/XXXX it was paid in full in XXXX 2016. I then sold the boat in XX/XX/XXXX. When the purchaser went to register the boat and trailer he was told there was still a lien on the trailer. I made numerous phone calls to the bank and nobody could seem to help me resolve this. After being sick for the last 5 days about this including the weekend I finally went online and found with no difficulty that there was indeed an electronic lien despite the multiple times I was told it was released in XX/XX/XXXX. I finally faxed a copy of my last registration to their bank and it is now being released. I am sure this is not how customers are supposed to be treated. I understand they are a large bank but had I been in the wrong and not paid my bill they would have contacted me in a moment. I know the problem is resolved for me after much distress but maybe if somebody is educated about this way of managing loans it will prevent the next person from having to go through what we had to endure
Company Response:
State: MA
Zip: 027XX
Submitted Via: Web
Date Sent: 2016-06-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-05-25
Issue: Problems caused by my funds being low
Subissue:
Consumer Complaint: I have multiple checking accounts with M & T bank and have had accounts there since I first opened an account with a local bank as a child. The bank was bought several times and has been M & T for many years at this point. I am aware that they have an excessive fee structure, so I take painstaking steps to avoid any kind of possible fees including keeping the bulk of my funds in credit unions and online accounts such as XXXX XXXX in order to avoid their extensive ATM fees and lousy savings account interest rates. I have even opened up lines of credit for almost every checking account I have with them in order to avoid overdraft fees. I basically only deposit enough money in my M & T account to pay my monthly bills via web bill pay and checks. Their web bill pay is the only financial service of value to me. Their rates and service for loans, credit cards, etc are so poor that I never even consider them when shopping for other financial products such as a vehicle loan. This week I happened to overdraft my account by {$1.00}. Fortunately I have a line of credit attached to the account so they did me a huge favor of transferring {$1.00} from that line instead of charging me the typical $ XXXX dollars for an overdraft. I watch my accounts constantly via XXXX so, seeing the transfer, I logged on the following day and transferred some money from XXXX of my other accounts ( I had over {$1000.00} on deposit with the institution at the time ) and then transferred the {$1.00} back to the line. For the service of providing me the {$1.00} for less than XXXX hrs, they decided to charge me {$12.00}. I work next to an M & T and have a great relationship with the manager, but as I 've learned from previous experience, the branches have no control over fees associated with the automated system, so I figured I would just call their customer service line and discuss this with someone there since they have effectively removed customer service from the branches. I discussed the situation with the customer service person who also had no ability to do anything at all. I understand the policy, I know what the fee is, and honestly I would care less about paying {$12.00} if they had to advance even {$50.00} on my behalf. But to have no money at all of their own at risk and to charge 833 % percent does not seem at all reasonable. I know it is within their rights per the agreement of use or whatever miscellaneous fine print I had to agree to in order to use web banking, overdraft lines of credit etc, but this is extremely usurious and many of their clients do n't have the means to absorb these kinds of fees routinely. If I could find an institution with equal web banking capabilities, I would close all of my accounts tomorrow.
Company Response:
State: PA
Zip: 173XX
Submitted Via: Web
Date Sent: 2016-05-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No
Date Received: 2016-05-24
Issue: Loan servicing, payments, escrow account
Subissue:
Consumer Complaint: During our Chapter XXXX Bankruptcy, XXXX XXXX XXXX offered us a Trial Modification, we accepted. After the first modification payment our loan was sold to M & T Bank/XXXX XXXX XXXX. It came to our attention that there is an error on the Loan Modification Agreement. We contacted M & T Bank regarding the additional {$21000.00} that was added to the modication and we received a letter stating how they came up with the figure. ( See Attached ) During our Chapter XXXX bankruptcy, we were paying XXXX XXXX XXXX Arrearage, the amount paid to them was {$10000.00}. On a previous letter sent to me regarding my request for explanation of mortgage account it states the balance of the loan as of XXXX XXXX, XXXX was XXXX and the total amount due in your loan as of XXXX XXXX, XXXX is {$290000.00}. M & T was not the servicer on our loan in XXXX. We are concerned why the additional {$21000.00} was added to the loan modification.I have also included a document from XXXX stating that my balance on the loan as of XXXX/XXXX/XXXX was {$270000.00}.
Company Response:
State: CA
Zip: 94591
Submitted Via: Web
Date Sent: 2016-05-24
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: No