FLAGSTAR BANK, FSB
Consumer Complaints
There are over 2652 complaints on file for FLAGSTAR BANK, FSB. Dated between 2019-12-13 and 2011-12-23.
Complaints Page 23
2018-06-05
Cheverly, MD
Trouble during payment process
Mortgage: Conventional home mortgage
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-06-05
White Lake, MI
Applying for a mortgage or refinancing an existing mortgage
Mortgage: FHA mortgage
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-30
Canoga Park, CA
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with monetary relief
2018-05-27
Greensboro, NC
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Complaint: Due to unforeseen family issues we fell behind on our mortgage payments in XX/XX/XXXX. After months and months of going back and forth with Flagstar Bank we were able to get a loan modification in XX/XX/XXXX. Our first payment of {$1500.00} was due in XX/XX/XXXX and was paid on time. Everything was fine until XX/XX/XXXX when Flagstar sent us a notice that our escrow account was underfunded and that our new payment would be {$2000.00} per month starting in XX/XX/XXXX. This new payment included home owners insurance issued through Flagstar at {$180.00} per month plus the escrow shortage. We had sent them proof of insurance in XX/XX/XXXX and then again in XX/XX/XXXX but they continued to insist we needed to pay the {$180.00} per month. I have a problem with the fact that in late XX/XX/XXXX they go to all the work of a loan modification but didnt look at the escrow account to make sure that it would be properly funded and 4 months later raise our payment by 32 %.
As we tried to come to an understanding about what they thought we owed and what we thought, we continued to make our original agreed upon payments of {$1500.00} per month. At the time, we did not have the means to pay a lump sum or the extra 46 % increase due to a slow down at my job, so they sent back our XX/XX/XXXX & XX/XX/XXXX payments and started foreclosure proceedings.
In XX/XX/XXXX I sent in a completed loan modification package for their consideration. Last Tuesday, XX/XX/XXXX, we received a letter from them saying that we were denied a modification because we did not make 12 payments on our previous modification to qualify for a new one. They also stated that we had recovered from our income shortfall and no longer were qualified for a forbearance. I feel that Flagstar sent back our XX/XX/XXXX & XX/XX/XXXX payments so that they could make this claim, if the occasion ever arose.
I have recovered from my loss of income and in fact make more now than I did when we were approved for our initial loan modification, but Flagstar seems more interested in Foreclosing than working with us. I have filed a Loss Mitigation Appeal with Flagstar on XX/XX/XXXX ; they said they would give us an answer in 30 days. We need someone other than ourselves to step in and help Flagstar Bank do the right thing and not try and take a home we have been in for a long time.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-26
Bloomington, MN
Trouble during payment process
Mortgage: FHA mortgage
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-25
Laurel, MD
Trouble during payment process
Mortgage: Conventional home mortgage
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-23
Okc, OK
Struggling to pay mortgage
Mortgage: FHA mortgage
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-22
Orion Twp, MI
Managing an account
Checking or savings account: Checking account
Fee problem
Complaint: I hold 2 checking accounts with the bank which hold bounce protection.
Problem with account XXXX There is bounce protection but it does NOT pay and charges the account fees if insufficient.
Problem with both accounts is that Flagstar Bank has had online banking unavailable several times since XX/XX/XXXX which allows no access to accounts and transfers between. When transfers are unable to go between accounts they all hit WITH the fees which are up to 5 at a time.
I have had {$640.00} in Overdraft fees for 2018, the fees in XXXX never pay the bounce protection and XXXX account delays transactions which allow no time to deposit to avoid fees.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-18
GA
Struggling to pay mortgage
Mortgage: FHA mortgage
Complaint: Regarding Flagstar Bank and XXXX XXXX XXXX - as of XX/XX/XXXX In XX/XX/XXXX, our area was hit by XXXX XXXX. Although our property sustained no damage, we were forced to relocate for approximately one week and incurred unexpected expenses with travel, lodging, food, etc. We missed work during this time and returned to find all our perishable food had been ruined due to power outages. Knowing we would be late on our mortgage payment by about two weeks, I called and the loss mitigation department at XXXX XXXX XXXX ( the company Flagstar obtained our mortgage from ) who told me that due to the hurricane, we would be allowed to skip three payments without penalty. We did so and resumed our regular mortgage payments of {$1300.00} in XX/XX/XXXX. During that time we provided documentation for loss mitigation as asked. XXXX XXXX repeatedly misplaced bank statements and other information we sent in causing our loss mitigation process to drag on for months. I had to continually keep re-sending documents and sending in new information after they would inexplicably lose what I sent in. XXXX XXXX finally approved us for loss mitigation and we were to begin paying our mortgage amount of {$1300.00}. In XX/XX/XXXX, we were again hit by Hurricane Irma in our area and this caused my husband to miss work hours and we again incurred expenses from loss of food and housing costs as we had to relocate for a week. We again applied for loss mitigation and were told since this area was once again declared a disaster area by FEMA that we would automatically get a three month reprieve from our mortgage payments and could resume them with NO ADDITIONAL LOSS MITIGATION forms necessary. In XX/XX/XXXX, I attempted to resume payments once again and was told by XXXX XXXX to apply for another loss mitigation package. I immediately began to do so, only to find they sold my mortgage to Flagstar Bank. I called Flagstar before they even contacted me to see how to begin paying my mortgage and was told that the company did not know my mortgage amount and when they received my package from the previous mortgage company, that they would likely honor my loss mitigation amount of {$1300.00} and I could resume payments. I checked in often and waited for paperwork to arrive and even contacted XXXX XXXX to try to expedite the process. Once the paperwork arrived from XXXX XXXX to Flagstar, Flagstar had me re-apply for loss mitigation and would not honor the mortgage amount I had been approved to pay. Flagstar begin to lose documents, forcing me to re-send information and causing a delay. On XX/XX/XXXX, I received a letter stating that my loss mitigation had been denied and foreclosure would be forthcoming. The letter was dated XX/XX/XXXX, but arrived XX/XX/XXXX and stated that any appeal must be made by XX/XX/XXXX.
My credit has been affected by both companies ' incompetence, and now I am facing the potential loss of my home due to their mistakes.
Because of these circumstances I am unable to pay the missed payments that have accrued, but I am able to begin paying my mortgage amount of {$1300.00} immediately. I ask for any assistance you can offer, as I want to continue paying my mortgage and do not want to foreclose on my house.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-17
TX
Applying for a mortgage or refinancing an existing mortgage
Mortgage: Conventional home mortgage
Complaint: XX/XX/XXXX I am in the process of doing a loan modification which had a deadline XX/XX/XXXX.I sent in all the documents and was told by an agent on XX/XX/XXXX, that all they needed was a Profit and loss signed and dated by me.I immediately mailed it by XXXX XXXX on XX/XX/XXXX expecting that that was all they needed I also uploaded all the documents on their website .I then get a letter on XX/XX/XXXX that the file has been closed because they did not receive my Business Bank Statements and my XX/XX/XXXX Tax returns by XXXX Agent # XXXX.I was told in the beginning that all they needed were my personal Bank Statements and XX/XX/XXXX and XX/XX/XXXX Tax returns which I already sent .This is total neglect, unfair and inefficient.
You cant tell a client you received all his documents except the P & L and then close the application, because you did not receive other documents.
I am fighting tooth and nail to keep my house and I am dealing with people that make you feel like you are a mouse being held by their tail, in front of a hungry cat.Please make sure Flagstar rectifies their situation in dealing with me.I am going to send them the other documents by email and mail, they requested, but please make sure the application is reopened and I am treated fairly and justly in my application in this loan modification.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-11
Laurel, MD
Trouble during payment process
Mortgage: Conventional home mortgage
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-10
Detroit, MI
Managing an account
Checking or savings account: Checking account
Banking errors
Complaint: I believe I have a victim of identity theft. My account was charged without my authorization. XXXX XXXX has billed for the unauthorized charges.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-09
Incorrect information on your report
Credit reporting, credit repair services, or other personal consumer reports: Credit reporting
Account information incorrect
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-09
Jackson, MI
Trouble during payment process
Mortgage: Other type of mortgage
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-08
Tarzana, CA
Trouble during payment process
Mortgage: Conventional home mortgage
Complaint: I purchased my home on XX/XX/XXXX. I purchased a primary residence with a 20 % down payment and my fico score was a XXXX at the time of the purchase. I received the financing through Flagstar Bank. I contacted Flagstar via telephone on XX/XX/XXXX to ask them for instructions on how to recast my loan because I was going to make large principal payments. I was told I needed to send an email to XXXX. I sent an email on the same day requesting instructions on how to recast my loan if I make large principal reductions. I received the following response, " Please contact the Special Loans department with your loan number and property address so that the loan can be reviewed for eligibility within the next 30 days. This information can be provided to the Special Loans Department at XXXX or submit a re-amortization eligibility request form available on the Flagstar Bank website. '' When I received this response I replied immediately with the information requested. I then received the following message the next day from Flagstar, " The loan can not be reviewed for eligibility for a re-amortization at this time. In order for the loan to be reviewed to determine eligibility for a re-amortization, the following requirement must be met. The Special Loans Department must liaison with another department in order to evaluate your loan. This is a procedure that must be completed due to the fact that your loan was recently set up in our servicing system.Please contact the Special Loans department with your loan number and property address so that the loan can be reviewed for eligibility within the next 30 days. ".
I waited over 30 days as instructed and then on XX/XX/XXXX I sent another email to XXXX explaining I had made large principal payments and that I wanted to recast my loan. On the same day I received a response stating my loan was still not eligible for review. I immediately called the representative 's information that was at the bottom of the email, XXXX XXXX. I talked to her and I asked her why my loan was still not eligible for review. She told me the loan had not been placed with an investor which is why Flagstar could not tell me if my loan was eligible for the recast because it depends which investor Flagstar placed it with. I asked XXXX to please send an email to the manager of the department that sends the loans to the investors to make sure my loan was sent to an investor that will allow the recast. I advised her to please bring to the department 's attention that I have a XXXX fico and that I put a 20 % down payment for my purchase. As a result, Flagstar should have no problem placing my loan with the best investor that would allow me to recast. She said she will send the request. A couple weeks passed and I called XXXX once again to follow up with my request. I left her a message and she called me back the same day. She told me that my loan had not been placed with an investor yet and I asked her once again to contact the manager in that department to make sure my loan gets placed with the correct investor that will allow me to recast. Then on XX/XX/XXXX I received an email from XXXX stating my loan was placed with an investor that does not allow loans to be re-amortized. I called XXXX immediately and I asked her if she had sent the requests I asked her to send and she said yes but unfortunately my loan was still placed with an investor that did not allow a recast. I then asked her to escalate this to another manager and I sent her an email stating my frustration and concern. She forwarded my email to her managers but she called me back after a few days and said there is nothing that can be done. I believe Flagstar was only concerned with selling my loan to an investor that was the highest bidder and they did, and in the process completely disregarded my request and did not do what was best for their customer and his family. I was in communication with Flagstar very early in the process to make sure I would be able to recast my loan but I was overlooked and disregarded because I am sure Flagstar was only focused on making as much profit on my loan as they could possibly make. My original loan amount was {$610000.00} and I have now paid the balance down to {$460000.00}. Now due to the restriction Flagstar has placed on my loan I can not lower my payment with a recast, which would benefit my family financially, and Flagstar has put me in a very bad position. Now the only way I can lower my payment is by refinancing but this puts me at a disadvantage as a consumer because I will lose my interest rate of 3.875 % and I will have to pay approximately {$3500.00} to refinance my loan. The new interest rate I will be forced to get to lower my payment through a refinance will be approximately 4.5 % to 4.875 %. This is unfair and unjust for me an my family. My family and I work very hard to pay down the principal of the loan to allow us to lower our mortgage payment to relieve the financial pressure of making a large mortgage payment every month. I get paid with 100 % commissions and the reason we need to recast whenever we lower the balance is because we prepare for any seasons where my business may slow down. If the payments are too high during my slow season we are at risk of having to fall behind on the mortgage payments.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-07
Ocoee, FL
Incorrect information on your report
Mortgage: FHA mortgage
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-07
Sarasota, FL
Trouble during payment process
Mortgage: Conventional home mortgage
Complaint: We live on XXXX XXXX in the XXXX XXXX XXXX. Our home was damaged during Hurricane Irma on XX/XX/XXXX and declared a presidential disaster area. Our home is insured through the XXXX XXXX XXXX company sponsored by XXXX. After seven months we received our homeowner 's insurance settlement from XXXX an insurance a check of {$290000.00}. We had to send the insurance check to the loss draft department at Flagstar Bank and it was received onXX/XX/XXXX as per policy.
Flagstar Bank loss draft department disperses our insurance proceeds based the amount of repairs accomplished. We have complied with every condition and submitted supporting documents requested by Flagstar. Contractor 's license, insurance, XXXX and all supporting invoices of materials and labor costs.The costs were all approved by our insurance company XXXX.
Because our home is on an island 1400 miles from XXXX our replacement and building materials must be purchased in the US mainland and exported to XXXX XXXX before repairs can begin. The insurance estimate for materials was {$120000.00}. Flagstar 's loss draft department dispensed {$76000.00} onXX/XX/XXXX a shortfall of {$51000.00}. It is impossible for us to complete purchase of needed materials on account of this shortfall.Until this shortfall is corrected and all materials are paid in full they can not be exported to the XXXX XXXX and leave the USA to start repairs. The Flagstar policy can not be applied to mortgagees homes not in the continental United States.
After many emails, documents, and phone calls Flagstar 's loss draft processors will not disperse the funds needed to purchase all the materials to repair our home. Repairs can not be started until the materials arrive.We have a freight forwarder in XXXX where all replacement materials are being consolidated and then will be shipped once purchases are complete.All replacement and building materials estimated at {$120000.00} will fill one shipping container which will be exported to begin repairs on arrival. The balance of {$170000.00} is projected for all labor costs.Once repairs begin contractor invoices can be submitted for labor payment. Flagstar underwrites mortgages in the US Territories but has no understanding of the difficulties in obtaining materials or that all materials must be fully paid and invoiced as paid to be exported.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-04
Key Biscayne, FL
Trouble during payment process
Mortgage: Conventional home mortgage
Complaint: Under Florida law, extrinsic fraud constitute fraud upon the court. XXXX v XXXX, XXXX XXXX XXXX ( Fla. XXXX ), superseded by rule on the grounds as stated in XXXX v XXXX, XXXX XXXX XXXX, XXXX XXXX ( Fla. XXXX DCA XXXX ) . In XXXX v XXXX, XXXX XXXX XXXX ( Fla. XXXX ), the Florida Supreme Court relied upon XXXX to distinguish extrinsic fraud from intrinsic fraud, emplaning that extrinsic fraud occurs where a defendant has somehow been prevented from participating in a cause.
Extrinsic fraud involves conduct which is collateral to the issues tried in the case. Moreover, the courts defined Extrinsic fraud as the prevention of an unsuccessful party from presenting his case, by fraud or deception practiced by the adversary ; keeping the opponent away from the court.
XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX Florida, is the debt collector for Flagstar Bank. A foreclosure action was filed and we responded to the court by requesting additional time to respond to the compliant. When a defendant files a motion for enlargement of time, tow things may occur, 1. The court may set the hearing date of just enter an order either granting the time. 2. The plaintiff may also set the hearing date, however under Florida Civil procedures, plaintiff must serve defendants with notice of hearing, without you can not expect the defendant to show up when not receiving notice. The debt collector for Flagstar has engaged in unlawful civil practices such as Extrinsic fraud by not serving us with the notice of hearing seeking the court to enter default against us. We want to make the CFPB aware that Flagstar Bank has taken this unlawful fraud upon the court in retaliation of the two open complaint referenced under No. XXXX, and complaint no. XXXX
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-05-01
MI
Trouble during payment process
Mortgage: Conventional home mortgage
Complaint: Lender refuses to honor my request to remove PMI from my mortgage. In reviewing the Homeownes Protection Act of XXXX I meet two qualifications for removal 1. The signed PMI disclosure for my loan contains XX/XX/XXXX, as the anticipated 80 % LTV date.
2. An appraisal conducted on XX/XX/XXXX, by the lender showed a 80.1 % value. The value is now less than 80 % LTV based on this valuation and principal payments made since the apprasial Lender responded to my written request with a denial letter stating investor guidelines require 75 % LTV before PMI requirements are removed from my loan ; this is contrary to the signed PMI discusure. Multiple requests for additional information from the lender have failed to produce a copy of this guideline. Further, CFPB bulletin XXXX states that the HPA prohibits lenders from applying investor guidelines that restrict a borrowers ability to request removal of PMI when 80 % LTV is actually achieved or at time the estimated 80 % LTV date in the PMI disclosure is reached.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-04-27
Key Biscayne, FL
Written notification about debt
Debt collection: Mortgage debt
Didn't receive enough information to verify debt
Complaint: Pursuant to Fla. Statute- 673.3081- A defendant may denied in specific the authenticity of any document presented as the original promissory note and any possible signatures contained in the complaint.
On XX/XX/XXXX, we submitted a written request under section 6 of the Real Estate Settlement Procedures Act. On XX/XX/XXXX, we received a response from XXXX XXXX on behalf of Flagstar Bank, however XXXX XXXX failed to respond to the questions that was asked and instead claims that it is unclear from our correspondence what we are requesting or disputing. The written request is very clear and to the point. The note reveals an endorsement by XXXX XXXX XXXX senior vice president, flagstar Bank. XXXX XXXX provided a copy of the note reflecting the same endorsement naming XXXX XXXX XXXX therefore he knows too well what we are asking and is refusing to respond. We ask, if XXXX XXXX XXXX was ever employed by Flagstar, we also ask if XXXX XXXX XXXX holds the office of Vice Presidient of Flagstar, we ask when XXXX XXXX XXXX employment started with Flagstar and when it end. Pursuant to the Florida Statute, a debtor has ever right to question the authenticity of any signatures on the note. The record reveals that XXXX XXXX has knowledge of the questions being ask because he himself provided a copy of the note reflecting the name of XXXX XXXX XXXX. Therefore if he already provided this information it does not make any sense that he would not answer to the questions when he clearly knows too well that the question is very clear and he knows the subject matter. By providing a copy of the note reflecting the name of XXXX XXXX XXXX, XXXX XXXX has placed himself in a contradictory position claiming he knows nothing or that does not understand the question, XXXX XXXX has provided a poor excuse that not even him believes. In the Court of Appeals State of Arizona, in : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, as Trustee ; Flagstar. The summary judgment was reverse by the appellate court in specific due to a False recording claim surrounding the endorsement of XXXX XXXX XXXX. The appellate court agreed with the defendant that the endorsement of XXXX XXXX XXXX was false and that there was no proof she was an actual employee of Flagstar. We have enough information to be believe that the endorsement placed on the note by XXXX XXXX XXXX is false and we demand that flagtar bank respond to the written request under RESPA 6 of the Real Estate Procedures Act. The CFPB has jurisdiction over the matter and we ask that you act according to the law. Pursuant to the Fla. Statute and RESPA we have every right to demand an answer and therefore we ask the CFPB to enforce every statute mention in this complaint.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-04-26
Glendale, CA
Trouble during payment process
Mortgage: Conventional home mortgage
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-04-26
Applying for a mortgage or refinancing an existing mortgage
Mortgage: Home equity loan or line of credit (HELOC)
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-04-25
Key Biscayne, FL
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Complaint: In XX/XX/XXXX, in response to the nationwide foreclosure crisis, the Treasury Department introduced the HAMP.
In XX/XX/XXXX, XXXX XXXX announced the Second lien Modification Program and therefore the Treasury Department implemented the following Rules : According to the HAMP Rules described in the MHA Handbook v5.1, " When a borrower first lien is modified under the HAMP or a qualifying GSE Standard Modification the servicer must do either of the following : 1. modify loan or extinguish the second lien according to the steps outlined in Section 5. Also it is required that the first lien be permanently modified prior to XX/XX/XXXX.
Thus, the Rules are very clear in that if the first lien is modified prior toXX/XX/XXXX the servicer must dismiss any outstanding foreclosure action.
Flagstar bank is one of the many servicer 's that enter into the Tarp agreement with Department of Treasury and therefore must comply.
On XX/XX/XXXX, we executed a permanent loan modification agreement with the first Servicer, XXXX XXXX XXXX. Because the agreement was executed on XX/XX/XXXX and reported to XXXX XXXX XXXX XXXX XXXX XXXX, prior to XX/XX/XXXX, we meet all HAMP Rules regarding the Second Lien.
Pursuant to the HAMP Rules Flagstar was to : either modify or extinguish the debt. Instead Flagstar engaged in unlawful and deceptive banking practices by ignoring the Federal Rules and providing consent to a third party file a foreclosure action.
As per Federal Rules Flagstar and its accomplices are prohibited from filling a foreclosure action when the first lien has been permanently modified under the HAMP prior to XX/XX/XXXX.
The Treasury Rules were meant to be enforce not just to look at. I ask the Consumer Financial Protection take this complaint seriously. A copy of this complaint will be furnished to the Office of the Internal General. We want to make sure pour complaint is not ignored by the CFPB.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-04-25
NY
Trouble during payment process
Mortgage: Conventional home mortgage
Complaint: We purchased a condo XX/XX/XXXX, sent the mortgage company all the XXXX and flood insurance details before closing as requested. In XX/XX/XXXX we started to get notices from Flagstar bank that they required proof of insurance which we provided several times and our HOA, XXXX and XXXX also provided to them. The condo is fully insured and we pay this through our HOA. We also maintain a separate XXXX policy as they required. The unit is on the 7th floor in a concrete and steel building unit is well insured. We received a notice from Flagstar that they were not going to accept these policies and we would be required to take out another policy for an additional {$180000.00} and they will place their own forced policy on our mortgage.
The following is an email from the insurance broker to Flagstar who handles our HOA policy and has been trying to settle this for us : -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- " XXXX, Thank you for the number. I spoke with XXXX and her supervisor XXXX in the Insurance Services department. They have advised me that your company will not update the excess flood policy limits in your system even though we have provided documentation in the form of a policy and certificate of insurance showing coverage in the amount of {>= $1,000,000} simply because it is a second flood policy. Although this is not my area of expertise it was my understanding that per Consumer Financial Protection Bureau ( CFPB ) regulation 1024.37 a lender could not force place insurance unless the lender has a reasonable basis to believe that the borrower has failed to comply with the mortgage loan contracts requirement. I understand that since XXXX XXXX loan closed after XXXX he is required to maintain a separate XXXX and stand-alone flood policy to meet his loan requirements. Where we part ways is that you acknowledge/approve the excess coverage we provide via the master association but refuse to apply this flood coverage in the amount of {>= $1,000,000}. XXXX XXXX is covered by all the master flood policies and pays for them in his HOA dues. Using your calculations below XXXX XXXX is required to provide {$250000.00} in flood coverage to meet his loan requirements. If you choose to apply the full master policy flood coverages of {>= $1,000,000} then divide by 74 units he has {$160000.00} currently in place leaving him deficient {$80000.00} which he could purchase on his own. Instead you are only applying the {>= $1,000,000} leaving him more significantly deficient {$180000.00} and threatening force placement. Im sure he will be in contact with you regarding this matter.
Thank you, XXXX XXXX CISR | Insurance Support Manager | Commercial Insurance XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NC XXXX XXXX : ( XXXX ) XXXX | Fax : ( XXXX ) XXXX XXXX '' -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Flagstar is still insisting on charging us for another policy even though we have provided all documentation they asked for. Essentially, they are having us pay thousands of dollars for a second policy which is valueless. From what I have read, the National Flood Insurance Program will not pay twice for a loss in a condominium, even if that loss is insured by the complex 's policy and a policy covering individual units.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The following is another email from XXXX to us advising us to contact you regarding this matter which I am doing.
" Personally I would file a complaint with the CFPB online and look into refinancing if you can do so. I sent you the email earlier because I wanted you to have documented proof of what was occurring with Flagstaff. I have had my issues with lenders before and usually it is that they simply do not understand the coverage. Once you get someone on the phone and review everything its resolved. Flagstaff was a completely different scenario and you werent kidding about the maze to get to the flood group. They kept putting me in hold queues but they didnt realize I had all the time in the world to hold while I worked on other accounts. They did exactly what the link you sent me described. They sent forms and we filled those out but in the end they just say that they wont update the coverage. In the meantime to avoid force placement you may want to contact the agency who handles your XXXX and see if they can get you a XXXX policy that includes flood. Some brokers will do that as you are located on the 7th floor. If you purchase a regular flood policy then refinance with another bank that does not require this additional policy XXXX will not allow you to cancel it. On the other hand if they are backdating this force placement then they will charge you regardless of what you put in place.
XXXX XXXX XXXX XXXX Insurance Support Manager | Commercial Insurance '' -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I feel that we are being scammed by Flagstar when the condo is sufficiently insured by having us pay thousands more to them that I shouldnt have to for a duplicate policy
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation
2018-04-24
Federal Way, WA
Struggling to pay mortgage
Mortgage: VA mortgage
Complaint: OnXX/XX/XXXX i refinanced my home with Flagstar bank. It is a VA loan. Right at that time the VA who i get XXXX payment from withheld multipke months of payments which caused me to become delinquent pn my loan. I started working with a rep at the company XXXX XXXX. I filled out loan modification packets, sent letters of explanation, bank statements, pay stubs etc. I have sent over 5 packets. Last XXXX they said i would be approved finally. They said my payment would go up by XXXX ( XXXX to XXXX ) my interest rate by 1 % and principle by 20k+. I questioned the rate and the rebp XXXX XXXX at this time said he would check. I never heard anything back so i called on XX/XX/XXXX. At that time XXXX said the loan mod was denied. Said the loan had to have 12 months of payments for the va to approve. I contacted XXXX XXXX at the VA who informed me that flagatar just needed to submit to VA and they would approve. Which she tried to contact the company and didnt hear back from them. I wrote an appeal letter immediately and sent the form plus another loan mod application in. Once again didnt here anythimg foe awhile. Finally when i called they said it was approved but at the higher rate and payment. They also said i haf 14 judgements in the property all in someone else 's name. They are still trying to figure that out. The housr was built in XXXX and i bought it in XXXX. There was only 1 other person that owned the home for like 6 months and that peraon was a female with a name not even close to mine. I got in touch with someone at the presidents office XXXX XXXX. He said he would look into it. He said he was going to run a title search. I asked why that would not have been done when i refinanced. Couldnt give me an answer. How could i have bought the hime and refinanced twice and this issue hasnt come up. I have NO judgements against me. I did not have a problem paying my mortgage before. Thr VA is now paying my full XXXX % XXXX payment. I talked to XXXX XXXX again a week ago. He said he wouldnt do anythi g about the rate. He tried to blame the va for my increased interest rate. When i asked why it has taken months to process my loan modification he said that i hadnt turned in complete packets. 2 outright lies. That is what is so upettting is that they have delayed ao long it is impossible to pay the delinquent payments. I was told when i started my payments would ramp up when approved. None of which is happening. I feel they have delayed the process so long and to increase my paymwnt right off the bat with less than a month to pay is rediculous. They are making money off of this misfortune. I have sent them EVERYTHING they have asked for. I have been in constant contact with XXXX XXXX ( XXXX ). I have emailed all of my packets, letters, bank statements, pay stubs so i have all the documentation.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation