SCAM ALERT: The Federal Savings Bank FNMA Scam Letter

So you probably received an official-looking mailing from a mortgage company called The Federal Savings Bank.  It looked something like this:

This is not any government notice — it’s an advertisement.  A fraudulent one designed to make you think that it’s an important notice “for your records”.   Welcome to The Federal Savings Bank — a company that appears to tread the line of legality in order to separate you from your money.  Among the flashing red lights found in this dubious notice are:

  • An NMLS ID and NOTICE NUMBER.   These suggest to the reader that you already have some business relationship with the sender.  The truth is that you don’t.
  • The ad is called an “FNMA Enhancement Notice” leading the reader to believe that FNMA (Fannie Mae) has sent this letter to you.  The truth is that it hasn’t.
  • It refers to “aggressive enhancements made to Fannie Mae eligibility as of January 2016”.   First off, enhancements are made to Fannie Mae rules constantly — over 30 of them in 2016 alone.   But in January 2016, there were no significant eligibility changes.    However, in January 2016,  Fannie Mae did issue a fact sheet on its HomeReady mortgage.   This is a mortgage geared to creditworthy low-to moderate-income borrowers with expanded eligibility for financing homes in low-income communities.

You can save yourself the phone call to The Federal Savings Bank by reading the one-page Fannie Mae fact sheet here.

Whatever you do, you don’t want to call The Federal Savings Bank.  This misleading advertisement gives you a taste of what to expect if you were to do business with it.  It may bear knowing that this “bank”  has been repeatedly sued by Citibank for questionable activities.  It also sells reverse mortgages, which are probably the worst kind of mortgage that exists in the marketplace.

Our major beef with The Federal Savings Bank is that they are attracting customers with a deceptive advertisement that borders on a scam. That’s why we don’t recommend that you bother with this company. And if you do apply for one of their loans, you will have given this company some personal information about you that they will undoubtedly sell to other questionable marketers.

We aren’t alone in our skepticism of this company.   Check out the 37 complaints filed with the Chicago Better Business Bureau.  But you don’t have to take anyone’s word for it.   Just read this “Notice” ad and decide whether you want to do business with a company that tries to fool its customers.   Our advice:  there’s no need to do business with The Federal Savings Bank.  We wish they’d been more honest with the consumers that they are targeting and their rates, while competitive, aren’t blowing us away.  For more information about how to refinance your mortgage, check out our article here.

22 replies
  1. PJO
    PJO says:

    I just received what looks like a duplicate to that form letter from Federal Savings Bank. To my knowledge an FSB is a regulated type of bank and should have a name preceding the FSB. My mailer didn’t have any name, address, or website associated…just the phony numbers and a telephone number. You would think that some ambitious regulator would run a sting on this scam outfit.

  2. Sam
    Sam says:

    So we got a letter exactly the same format as this except the company was for JFQ Lending, Inc.
    Word for word the same except additional information stating: “Some benefits could include a shortened payment term or a lower monthly payment of $1,014.06. Payment amount based on 30-year Fixed Rate at 2.375%/2.689% APR.” This is such a scam and total waste of our time. At the bottom of the letter in the tiniest print it says “This letter is an advertisement. “It gives the wrong address to JFQ Lending, Inc and phone number.

    • Bruce
      Bruce says:

      Yeah got the same JFQ SCAM LETTER. Gonna call them and be as vile as possible for them taking advantage of the covid disaster

  3. Morgan Freeman
    Morgan Freeman says:

    Thanks for the article. Just received something similar. Smelled fishy, appears to BE fishy. As Forest Gump would say, “Fishy is, as Fishy does.”

  4. Walt
    Walt says:

    My father’s been receiving these for months. I finally called to try to get them to stop mailing, and was first hung up on, then put on hold for awhile before suddenly getting some sort of voicemail box, then was refused for not being my father and hung up on, and finally chewed out for being “rude” for daring to suggest that I want him off their list as they’re trying to scam him.

  5. Sheila Springs
    Sheila Springs says:

    My husband has been receiving these letters from The Federal Savings Bank and before seeing this alert, I called them. When I suggested that I was suspicious and insisted on knowing how they came to know his name and address and whether they were trying to get us to refinance our loan, they threatened to hang up on ME! So I hung up on them, but I continue to receive their letters every 2 weeks.

    They made an inquiry into his credit report and I’m working to get that removed. There is another bogus inquiry in his credit file credit file by Loan Depot LLC in San Diego. Have no idea who they are but writing Equifax about that too. I suspect these are the result of either the Anthem and/or Equifax data breach

  6. Chris
    Chris says:

    I received 4 of these letter and finally contacted them today to tell them to remove me from their mailing list. I did this because my neighbor kept bringing my junk mail over because they were sending it to the wrong address! Legitimate business… no way!

  7. Eliza
    Eliza says:

    I got a letter like this as well. I really hate that it says “final notice” right in the window on the front of the envelope. Makes it look like I’m long overdue on a bill. It talks about veterans affairs and needing to call within five days. The year 2019 is written in font that makes it look like a tax form. How is this not illegal?

    • Vicky Griffin
      Vicky Griffin says:

      I had a VA Loan through another lender and I’ve been receiving the same type of letter at least once a week for several months. I’ve called and been put on hold and left on hold. I called again today and was hung up on. I then called back and spoke to someone who wasn’t willing to own up to the fact that they’re trying to scam people. I actually believe they’re obtaining their contact list by searching the public land records, updating their list of borrowers and then using their list for their solicitations. Finally today I signed up for the opt out list hoping that will stop these solicitations. If not, I’m going to take further action. These people need to be stopped. It’s a scam and harassment.

  8. jamie b.
    jamie b. says:

    I’ve been getting these sort of letters form “the Federal Savings Bank” at least once/week for the past year(!) Mine all involve informing me of some “waiting period” that has expired, allowing me to access “certain benefits.” I always suspected that it was a scam, but finally bothered to look into it. Thanks for confirming my suspicion.

  9. Betty
    Betty says:

    I received a letter from this company last week. Formatted differently, as an Expiration Notice. It informs me that my required waiting period is up and I can now access the equity in my home. It does not have my mortgage company name, but gives an amount and tells me to contact my TFSB rep. Who know I had one. It had no real info about itself, which made me curious and I almost called, but I decided to bing the federal savings bank instead. Thank you so much for the info you provided.

    • Dee
      Dee says:

      I received this type also and today, another type. It has my wrong lender as well. The first time, I called them and the guy didn’t know what he was doing so I told him I would discuss it with my lender and get back to him. I took it in and they told me it was a scam and they see a lot of these.

  10. Jill
    Jill says:

    Just received this letter yesterday (3/6/19). I could tell by the way it was addressed that I was on some mailing list. The proposed lender was Crestline Funding Corporation. In the small print it says the third party offer was from Crestline. Figured it was another b.s. scam. The letter is getting ripped up and thrown into the recycling bin.

  11. Zues
    Zues says:

    Rec’d letter exactly as shown above on 9/5/2017 but with “Proposed Lender: Michigan Mutual, Inc. NMLS ID # 12901”
    Thank you for the heads up.

  12. Jennifer Renee
    Jennifer Renee says:

    Just received this”Important, must respond within 15 days FNMA” letter in the mail today. Figured I’d better see what I can find out first before calling. Too could to be true??, stay away from it!!!!!
    Thanks for your info!!!

  13. Lisa
    Lisa says:

    Received this letter yesterday and decided to google it— thank you for the warning! So sick of scams coming in every other day— a lot of desperate people out there! Major thanks again.

  14. ann hallman
    ann hallman says:

    Received the letter made a phone call before reading this and left my number….thank you for the heads up.

  15. Chrisrne
    Chrisrne says:

    I received one of these letters. It identifies my current lender as Wells Fargo which is not the case at all. I can see they expect to get lucky since some people will have Wells Fargo.
    However I wonder if this is something Wells Fargo should know their name is being used for fraudulent purposes, or if there is a place to report this. Would this be considered mail fraud?

  16. Jim Thompson
    Jim Thompson says:

    Yeah, I got this ad in the mail and it looked fishy. Thanks so much for confirming my suspicions. Don’t wanna do business with any company that does this kind of s**t.


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