FLAGSTAR BANK, FSB

2017-05-16

Sarasota, FL

Problem with a credit reporting company's investigation into an existing problem

Credit reporting, credit repair services, or other personal consumer reports: Credit reporting

Difficulty submitting a dispute or getting information about a dispute over the phone
Complaint: Please see the following message I sent to the compan y, Flagstar Ban k. For 2 years I had autopay set up, but that was somehow turned off due to an error on their website they do n't claim responsibility for. There was no reason I would use autopay fo r 24 paym ents in a row, then disable it. Once I was made aware of the late payment, I checked my account which was still showing everything was fine and payment should have been extracted. Lett er sent to Flagstar Bank : To Whom It May Concern : Thank you for taking the time out of your day to read this letter. This afternoon I had my credit report pulled and discovered that a late payment was reported in XXXX XXXX for my account with Flagstar Loan # XXXX I want to first start off by saying that in over 2 years of holding my mortgage with you, I was never late on a single payment. In fact, I was pre-paying the principal down {$150.00} per month and making extra payments on the account. Here are my payment details : XXXX XXXX XXXX , payment is pulled out on XXXX of every month XXXX XXXX XXXX , payment is pulled out on XXXX of every month XXXX XXXX XXXX , payment is pulled out on XXXX of every month including multiple double payments as my loan kept showing that my schedule payments were not being processed even though autopay was there, it kept showing balances owed and I was in fear of my account payment being late. There was clearly an error with something in the system that was out of my control but I was logging on and trying to supplement it the best that I could. I felt paying extra would secure me from any late payments. At some point in XXXX , something happened on my account but no one can tell me why the auto draft was turned off. I had setup auto draft during the entire stint of my loan, but in XXXX XXXX XXXX it was turned off. I am unsure if this was an error on my part or an error on the Flagstar websit e. What we concluded was that on XXXX XXXX XXXX my mortgage payment was charged {$1400.00}. On XXXX XXXX XXXX , a new figure was added and a charge of {$1400.00} was assessed. I am assuming the error came in that this was supposed to be the new auto-draft payment, but was entered in as a one-time payment. I never knowingly, or would never intentionally, turn off my auto-draft and elect to pay monthly by logging into the account. I believe it was either made in error, or, there was an error on t he Flagstar website . The website is thoroughly outdated and not very simple in electing payment options. It very well could be that this was my mistake, but no one has been able to tell me that I logged on my computer and decided to cancel it. Its highly likely I replaced my auto-pay with a one-time payment, but I was never called or warned about that move. I feel that after 2 years of doing auto-pay, it should have been noted as out of the ordinary that such an event would take place. This is where I feel that any human that is looking at my account must understand there was miscommunication on the website with payment instructions and something odd was going on. Around that same time, I was in the midst of traveling to Virginia to be with my father, XXXX XXXX , who XXXX XXXX on XXXX XXXX XXXX from his second battle of XXXX XXXX . In that time period, you can certainly understand that checking the mortgage payment auto-draft was the least of my worries. In the coming months, we prepared his XXXX , had to sell his home, and take care of his final wishes and expenses. The other issue I had was that during this whole ordeal, I was also refinancing my home to save on a lower interest rate. In XXXX XXXX , XXXX XXXX , and XXXX XXXX a total of XXXX payoff requests were sent to finalize my loan. There were struggles there which pushed back the loan process and ultimately led to my loan carrying on months longer than it should have. There is no one to blame, but in all of those moves, not one menti on was made that my account had not been making its monthly mortgage payments. In this mix-up, I feel it was possible there was miscommunication on both ends. I wasnt receiving notices, I was checking my account and seeing that a balance wasnt owed every, so I had thought my account stood in good order. Everything appeared fine. I believe this was even the case XXXX came along, because I do not recall any representative calling or any notice to say that I was on the edge of missing my payment. In fact, I had a conversation with Flagstar and XXXX on XXXX XXXX XXXX and I was told my account was in perfect order. I was told at the time that no payment was due and I had a month where payment was submitted late. It breaks my heart to kn ow that if someone took the time to work with me as a client, maybe this could have been avoided. It wasnt until after the payment was already late that in XXXX I received noticed. I thought right away this must be a mistake and calle d Flagstar to see what the issue was. I was told that at some point, my auto-pay was cut off and that I was 6 days late on my payment but no one could tell me how or why it was cut off ; the assumption just was that it was my fault. I went right away and while still on the phone, I paid my bill. In talking to the representative still, he understood it was nothing more than a technological error and he told me there would be no penalty to my credit and he was happy to waive the fee that was going to be assessed. He said since it was caught so soon and taken care of right away, he could tell by my fair intentions and that there was money in escrow - on top of the fact that I submitted payment right then and there on the phone - there wouldnt be a hit on my credit score an d everything would be fine. The representative assured me of that. I didnt document this anywhere because I took his word for it, and now it hurts me to see that in the end that he failed to own up to his end of the bargain. I do ha ve one other proble m in that it seems there was an error with my payment and escrow amounts being much higher than normal. I received an escrow refund of almost {$3000.00} after my tax bill was paid and this money couldve easily been taken from my escrow to pay the balance owed. This error wasnt because of financial difficulties in meeting my obligations but 100 % based on a lot of things going on in my life and the errors made on my part with the payment structure of the Flagstar MyLoan syste m. I realize I made a mistake in failing to be completely thorough but I do feel I was let down by technology of the payment website and the overcomplicated system. My payment history should speak for itself as I worked exclusively with auto-pay and made additional principal with you had been spotless. Mistakes do happen but when the company truly cares for you, that should be taken care of as part of the cost of doing business wit h Flagstar over ano ther firm. In fact, there was an error with my refinanced mortgage. I had incorrectly input the account number for my draft, and when the new mortgage company tried to draft it, they could not. My first mortgage payment was going to be late! Right away I was on the phone with them and they took care of it. They wrote me back saying that they understood it was a mistake, I was brand new to the account, and they could see that the money is in my acc ount ( XXXX XXXX and XXXX XXXX ) and it was nothing more than a mistake. I feel thats the meaning of customer service and I would hope as a leader in mortgages, Flagstar would b e willing to treat me with that same respect. I 'm not only embarrassed by thi s black mark on m y record, but it 's now hurting my ability to buy a new home for me and my Fianc , XXXX . In completing loan paperwork today, I was crushed to find out my credit score was dropped to under XXXX ; XXXX to be exact. That is a very harsh penalty for missing a payment by 6 days, especially when it was nothing more than a mistake at most and highly possible it was an error in technology. This was the first time in over 2 years in working with Flagstar t hat I had any such issue, and I would hope that the relationship we had and you wanting to serve your customers best that you would have it in you r heart to reverse t he credit reporting late payment on my mortgage account. I would be extremely grateful if you could honor this request to remove the late payment entry from my credit report. It would help me immensely in securing my loan and allowing us to buy a home we have been dreaming about. I started my relationship with Flagstar as you were recommended to me by the builder of my condo. Without his referral, this would be a relationship that was never started. No one ever knows what the future may hold and there could be possible business for us together down the line. Completely shutting out a customer and leaving such a mark, especially for something so little, has equally tough implications on Flagstar just with the thought of potential business lost in the future. If rates were competitive and some of the great features of Flagstar we re still available, Id even be happy in seeking a loan with you again on my upcoming purchase. The sad, harsh truth is that without this being removed from my credit score, I will be unable to close on the house in time and we will miss out on an amazing opportunity we are so happy about. I truly am begging you to see this as a human being who can understand the situation I was in, the extreme difficulty of losing my father at an age way too young, and the simple technological mishaps that led to the late payment. If I simply didnt have the money or was unable to pay, I would understand and deserve the penalty. I am in a sound financial decision and have spent many years working to have great credit. Its a shame and honestly unfair that a 6 day late payment, which again only happened in some sort of error, could taint my record and take away something so precious to me. I am closing on a home on XXXX XXXX XXXX and I am requesting this be looked into and handled immediately. I will explore all necessary avenues to ensure that is the case. I will work diligently to get this taken care of and will continue to work every day on this to get it rectified as I tr uly believe in my heart, this is the right thing to do. If I were at fault 100 % or didnt have the funds, I wouldnt be asking for your help. I am asking out of the kindness of your heart and as a client for over 2 years, please help me out as a courtesy and remove this late payment from my credit score. It doesnt match the total body of work that I have put together over many, many years and with it being so reason on my credit score, its completely demolishing my credit score. Please contact me immediately if we can discuss this matter together. My numbe r is XXXX XXXX XXXX XXXX .
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Timely Response

2017-05-16

Bassett, CA

Closing on a mortgage

Mortgage: VA mortgage

Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Timely Response

2017-05-16

Benson, NE

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 explanation

Timely Response

2017-05-12

Grover Beach, CA

Trouble during payment process

Mortgage: Conventional home mortgage

Complaint: I was notified by mail during the second half of XXXX , 2017 that the servicing of my mortgage was being transferred to Flagstar bank, effective XXXX XXXX and that all payments thereafter ( including the one due on XXXX XXXX ) should be payed to Flagstar. I contacted Flagstar a few days before the transfer and was told that I would not be able to make a payment until after the transfer had occurred. They refused to give this to me in writing. I contacted them by email on XXXX XXXX to ask for clarification of how I could pay on time and received no response. I called on XXXX XXXX and spoke with supervisor XXXX XXXX , who told me I would not receive a statement for several more days and that I would be unable to pay my XXXX XXXX payment until XXXX XXXX , which she again refused to provide to me in writing. She started a case ( reference XXXX ). On XXXX XXXX , I logged into my Flagstar account online and was able to access my statement. The statement, however, was incorrect. It listed a statement due date o f X/X/2017 and a due date of X/X/2017 . T he amount due listed was double what I owe. In the explanation, it lists " Regular Monthly Payment {$2000.00}, Overdue Payment {$2000.00}, Total {$4100.00}. '' I called Flagstar on XXXX XXXX and spoke with XXXX ( Employee ID XXXX ) who, after speaking with his supervisor told me that the statement includes the amount due for XXXX . I pointed out that the statement clearly reads that the payment is due XXXX XXXX ( even though Flagstar refused to allow me to pay on XXXX XXXX ) and that the word " XXXX '' does not appear anywhere on the statement. I have no overdue payment ( I have a record of my XXXX payment to my previous servicer ). I told him that I would need a new statement reflecting the correct amount, or at least clarifying that the amount listed would include my XXXX payment. I told him that I needed the statement by the end of business the following day and he gave me the reference number XXXX . When I logged in on XXXX XXXX , next to the link for my monthly statement it now read " X/X/2017 XXXX XXXX '' where it had previously been blank. I assumed that since they had updated my statement after I spoke with XXXX that it would now be correct, but it was still the same incorrect statement. On XXXX XXXX at XXXX XXXX , I received an automated email from Flagstar telling me that my statement was now available on their website. I checked and it was still the same, incorrect statement. Today, XXXX XXXX , the statement is still incorrect and lists that I owe more for the XXXX XXXX date than is true and nowhere indicates that the statement includes the XXXX amount ( which it should not anyway for the XXXX statement ). Given that their record keeping is incorrect, I can not trust that the payment I make will be credited properly, as I have no overdue amount. I have asked quite simply and clearly for a statement with the correct amounts reflected with the correct dates, but Flagstar has been unable or unwilling to do so. At best, this is poor record-keeping by the bank and at worst represents fraudulent activity.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Timely Response

2017-05-12

Groveland, FL

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

Timely Response

2017-05-12

Charleston, SC

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

Timely Response

2017-05-02

Wonder Lake, IL

Struggling to pay mortgage

Mortgage: FHA mortgage

Complaint: Hello, I have emailing the bank and filed a complaint with the cfpb before. Everyone assured me the sale date was post poned and today we are showing it went foreclosure in court! If this is the case we need it reverse. I was assured multiple times that she no longer had a sale date.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Timely Response

2017-04-21

Fullerton, CA

Loan servicing, payments, escrow account

Mortgage: Conventional fixed mortgage

Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-04-18

Cedar Park, TX

Loan servicing, payments, escrow account

Mortgage: Conventional fixed mortgage

Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-04-13

Leming, TX

Loan servicing, payments, escrow account

Mortgage: Other mortgage

Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-04-12

Five Points, NC

Loan servicing, payments, escrow account

Mortgage: FHA mortgage

Complaint: **NOT A DUPLICATE COMPLAINT**ATTACHMENTS INCLUDED Starting back in XX/XX/2016, I began disputing the multiple late payments showing on credit reports from XXXX, XXXX , and XXXX. I informed them that the information is being reported inaccurately and that they needed to provide me with proof showing late payments. The first response from Flagstar Bank was that they needed additional information for proof of identity and I sent them, again, copy of my driver 's license and social security card along with a utility bill. To date, they have not investigated these inaccuracies and keep sending what I consider, " stall letters ''. They have also failed to mark on my credit reports that I am disputing these items - multiple violations of the federal law. I can send the copies of the letters I have sent to date if needed.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-04-11

North Hills, NC

Loan servicing, payments, escrow account

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

Disputed: No Timely Response

2017-04-11

Alexandria, VA

Loan servicing, payments, escrow account

Mortgage: Conventional fixed mortgage

Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-04-10

Lathrup Village, MI

Loan servicing, payments, escrow account

Mortgage: Conventional fixed mortgage

Complaint: I have a loan with flag star they will not pay my taxes. I have called several times with no answer to questions.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-04-05

Midland City, AL

Loan modification,collection,foreclosure

Mortgage: Other mortgage

Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-04-04

Long Island City, NY

Loan servicing, payments, escrow account

Mortgage: Conventional fixed mortgage

Complaint: Due to Flagstar 's mistake, I had to incur an additional {$200.00} charge. They now belatedly and incorrectly claim ( after initially basically conceding that it was their mistake ) it was my mistake. Here 's the background : we have a mortgage through Flagstar, and our property insurance is paid through escrow they collect. We purchased the property in XXXX of XXXX. In XXXX of XXXX, Flagstar accepted our property insurance policy ( in only my brother 's name ) and renewed and paid for ( out of the escrow ) our policy in XXXX ( with only my brother 's name ) and then now in XXXX they refuse to accept it/pay the renewal from escrow because my name was not also on the policy. A representative ( who was very polite ) first informed me over the phone that it appeared that they had previously made a mistake in renewing it. So, I reached out to my insurance agent to see what they got do and arrange for them to speak with Flagstar. I called Flagstar back and they informed me over the phone that they had renewed it in XXXX as a " courtesy '' but never told me they had just renewed it as a " courtesy. '' ( Nonsensically they claimed they " renewed '' it in XXXX as a courtesy as well, but that is when we first got the policy ). They then claimed that they 'd sent me three notices about this issue. Remarkably, they only mailed me a letter dated XXXX XXXX, XXXX informing me that they refused to accept the policy ; I received the letter on XXXX XXXX, XXXX, a Saturday and the very day the policy expired. The two prior letters were sent in XXXX and XXXX *prior to Flagstar 's renewing the policy with just my brother 's name*!. Now, because Flagstar refused to extend their prior " courtesy '' ( if that is even why they renewed it in XXXX ; their first customer service rep. told me it was likely renewed by mistake ) or at least notify me in a timely fashion, I had to pay an additional {$200.00} out of my pocket to extend the insurance so it could be re-submitted to Flagstar. When I tried to speak with Flagstar about what to do, they shouted at me repeatedly ( a different representative named XXXX XXXX and only recommended I buy different insurance. Remarkably, the money to buy the insurance is sitting in escrow. So, I had to pay out an additonal {$200.00} because of Flagstar 's error
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-03-29

Norwalk, CA

Loan servicing, payments, escrow account

Mortgage: Conventional fixed mortgage

Complaint: I represent a company by the name of XXXX. in XXXX Ca XXXX. We just received an email from Flagstar Bank in XXXX Michigan with the following message. Dear XXXX, Flagstar Bank has conducted a Management Review of your status as an eligible Escrow Agent. Based upon our analysis, we have made a business decision to exclude your company from our eligible list. It is Flagstar 's policy not to discuss the basis for its decisions. Thank you Flagstar XXXX Support Specialist-Funding XXXX MI XXXX All settlement agent approval docs and questions send to XXXX Call funding support assistance at XXXX, follow the prompts We are a very reputable company and we work closely with buyers and sellers in California. For a lender such as Flagstar Bank to force us to cancel an escrow that we have already completed XXXX % of the work needed is unconscionable. For the benefit of the buyer and seller on this transaction, we will cancel this escrow so they can close with another company, but this act by Flagstar Bank will damage future business. At the very least we should know why they so we have an opportunity to correct any issues, Thank You
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-03-29

Birch Run, MI

Loan modification,collection,foreclosure

Mortgage: Home equity loan or line of credit

Complaint: Our home equity loan became due, it was an interest only loan, 10 year term. Over the 10 years, we never have been late or missed a payment. Our goal was to modify this loan into a principal plus interest loan and pay it off over 20 years. We also would like a fair rate of interest. Our bank is asking for full payment, have mentioned foreclosure and in our eyes are being somewhat difficult to complete this process. We own a business and show income via or tax returns, they 're asking for a P & L from a CPA, at an additional expense of {$250.00} + to apply for this modification. Our goal has always been to keep our home and reapply for another loan.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-03-23

Ampere, NJ

Loan modification,collection,foreclosure

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

Disputed: No Timely Response

2017-03-21

Black Jack, MO

Loan modification,collection,foreclosure

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

Disputed: No Timely Response

2017-03-21

Patterson, MD

Application, originator, mortgage broker

Mortgage: Conventional fixed mortgage

Complaint: I am in foreclosure. My aunt XXXX was contacted by a lender ( XXXX ) who asked then convinced us that we needed to make repairs to our roof. The home was fully paid for without a mortgage at the time. My aunt who had no income could not take out a loan, so XXXX suggested that she transfer the title to me so that I could refinance. I only applied to take over the house to help my aunt get the repairs to the home. We only needed about {$15000.00} to make repairs, but when I applied I was told by XXXX the company she works with do n't do small refinancing loans and that I would have to borrow much more. She convinced me to borrow {$50000.00}. Then XXXX suggested and picked out the roofing company who charged me {$20000.00} to repair the roof. Two years later XXXX came by my home and convinced me that I needed to borrow another {$50000.00} to make more repairs that never got finished. off and on XXXX would come to my house saying that I needed to pay her {$300.00} for fees, she also came to my job and harassed me there. I used the XXXX loan to make payments to both the loans. Thanks to the HUD counselor I realize now that I was preyed upon and was a victim of a predator the just stripped the equity out of my home. The women that did the refinance was XXXX XXXX and told me she work for XXXX and she convinced me that I needed these loans. I did not know how refinancing or mortgages work so I was an easy target. my family has lived in the home since it was built in XXXX. This was my grandparents home, my parents home, now my home along with my aunt. I really do n't want to lose it.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-03-17

So Effingham, NH

Settlement process and costs

Mortgage: Other mortgage

Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-03-15

Long Grove, IL

Loan servicing, payments, escrow account

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

Disputed: No Timely Response

2017-03-08

Dedham, MA

Loan servicing, payments, escrow account

Mortgage: Conventional fixed mortgage

Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response

2017-03-08

Orion Twp, MI

Settlement process and costs

Mortgage: VA mortgage

Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response Closed with explanation

Disputed: No Timely Response