Flagstar BankConsumerAffairs Unaccredited Brand
We Bought a house and our mortgage was sold to Flagstar Bank. Then we sold our old house and wanted to make a large principal payment to eliminate PMI and save over 2k a month on interest and bring the large monthly payments down through reamortization. We had to get our 1st mortgage company to help us get Flagstar to even start the process and they stalled another 2 weeks then Flagstar would not let us make the payment before paying our large mortgage payment with excess interest fees one more time. Then we paid the principal down well beyond the "80% Loan to Value Ratio" after owning the house for only 3 months but Flagstar did not remove the PMI. Loan to Value Ration needs to reach 80% to remove PMI. Our LTV is at .076 (between 7 and 8%) (10 times the requirement).
Flagstar is still stalling after 3 months saying we have to get a "Broker Price Opinion" which we have to pay another $250 for to prove our house hasn't lost more than 90% of its value in the 1st 3 months! They also would not let us reamortize without a lengthy process all the while making us pay very large monthly payments. It seems to us that Flagstar engages in unethical if not illegal practices. Customer service is terrible but I don't blame the people who are bound by their company's practices. The one huge exception was a very helpful and professional woman in "special loans" who helped us reamortize, but it was a process to get to her but once we did it was like dealing with another company and a true blessing!
The website and customer service make it almost impossible to get help with any of these processes that would stop the company from collecting monies that you have met all requirements for. This should be illegal!!! We have had mortgages before and also paid them off very early. None of our past mortgage companies worked this way. They all removed PMI as soon as we met the 80% requirement without making us pay or jump through hoops, filling out forms and waiting months.
Flagstar claims the reason for all this pushback is the early payment but in both previous homes we also paid off the 30 yr mortgage in 10 to 15 years and met PMI long before that so their excuse doesn't hold water. They say this is a Fannie Mae requirement but our very last mortgage was also backed by Fannie Mae. They also said we could not manage our own Escrows which is one more way they differ from other companies. We will have to cover the escrow shortages they are setting us up for. It is a nightmare having them as a mortgage company.
I work for an insurance company and have my policy with my company. When Flagstar was contacted 2/20/2018, they requested my insurance to see if I had any. I had had a policy since we purchased in 1/3/2017. I gave them both since it is a wrap around with fire (CFP) and Farmers. No problem. Paid CFP myself. They just needed to pay Farmers. My policy almost expired. This is in my escrow account but would not pay it. Then I found out that last year I had an escrow check, which was sent to wrong address so it went back to Flagstar. I contacted them and they told me that since it came back to them it was added back in to my escrow account yet I received from my tax the 1099 saying I received money. No I did not. And no I cannot get it back.
Now today Brandon from Flagstar was asked about other accounts and brought mine up when he was not even asked about it. As he is talking to another Farmers' branch and bringing up my account. Of course they called me!!! I believe that is a confidential type of situation that is not right. Who else is he talking to about my account? Look at your accounts. You might be charged a MIP which is their insurance. It is illegal to pay for insurance and then be charged by the mortgagee MIP also.
We have been with Flagstar Bank for years, my son bought an item online for $4.95. The online business is scam. They end up charging us $89.95 for S&H. We called the card dispute at Flagstar Bank. After 3 months waiting for the dispute they decided to pay the online business. Because of the terms & conditions on the 10th Paragraph/page in a very fine print says they will charge us the $89.99 for S&H if we don't contact them within 15 days. Well we did email the company and they never responded, their email system works within their webpage, so we have no record that we sent the email and when we tried to call them it is all automated and no one answers the call.
On top of that Flagstar low and unfair customer service don't see anything wrong with that. Same situation happened with my other son. Fortunately we used CHASE Bank card, they credit my account within days with very professional and polite customer service, then I received a letter noted I will not see this charge from that company on my account again (They blocked them). Flagstar needs a lot to learn on how to protect their customers from Scams and return their calls. They have no issue to let online scammers and crooks take advantage of you. If you bank with Flagstar you are on your own. No protection from Crooks and scams. On top of that Christy at the Card dispute department was very rude and it took her days to return my call that was after I left her few massages. By the way our accounts will closed ASAP.
Old, clunky, slow, hard to work with. This is a company that refuses to use technology. Try updating information, paying more, or just simply getting any level of help from them. Impossible. They can only operate via fax or mail and that is on their best day. The internet scares this company, but they love a good call center with lots of hold music and no one who can help.
545% increase in Hazard Ins. Coverage cover their mistake! I refinanced 3 rentals and my personal property through a broker & Flagstar bought my mortgages. The same mortgage broker handled all loans; three were closed on the same day; 12/1/16. All monies to pay taxes and hazard insurance were escrowed. Seven months after the close (July 2017), I received a letter from Flagstar that they've just uncovered that one of the properties did not have hazard coverage and that unless I produced evidence of coverage from the date they bought the loan package (12/16/16 was what they claimed was the date they did this). My insurer sent a letter requesting payment from them from escrow on 11/16/16 (they provided a copy to me--with the correct Flagstar address). Until I provided evidence of this, they had claimed they had never received a request from Nationwide.
I quickly responded to Flagstar and got everyone's contact information to each other and they agreed to handle it. I had several more calls to them (long waits) and their head of mortgage servicing told me she'd call me when all was settled. In February 2017, I received an Annual Escrow Summary which list previous year and current year projected escrow costs. They showed that they had debited my escrow account for $2728.09 for external insurance coverage for 9 months that they had serviced this loan (previous cost of coverage was $678.00 for 12 months). I called them up and the head of mortgage servicing told me "This was the result of a legal requirement that hazard insurance must be placed on the property during the servicing of the loan" and that they did not benefit in any way. She stated since they had done anything wrong; no mistakes on their part, I would have to pay for this.
This would also result in an increase in my future monthly payments. The insurer said they'd also sent them a copy of the cancellation notice on November 29. I had been receiving said notice copies but my mortgage broker indicated that since we would close on 12/1/16 and since no cancellation would occur on the current policy until 12/12/16, not to worry about it. The bank would receive escrow monies on 12/1/16 closing. Flagstar kept insisting they did not receive any request for payment from the insurance company even after the date they determined they owned the loan, conveniently 12/16/16. It is still an issue but there are so many issues to this that are anti-consumer including the placement of a high priced insurance policy on a property within months of being covered for 20% of the cost.
In addition, this policy was placed retroactively after being left uncovered for 8 months of their servicing the policy through sheer oversight and malfeasance on the part of Flagstar. If the property had gone up in flames, would they be responsible for its replacement? How do you retroactively insure risk that has passed? And for 5 times more than it has in its recent history with no claims in its history and full records of upkeep? This is on-going but it is a travesty in the manner banks and mortgage companies are allowed to operate at the peril of the consumer. Wells Fargo just settled a huge lawsuit for placing this kind of exorbitant insurance coverage on homes they serviced. I am looking for action and a possible class action on this.
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This company is so annoying. I am a vet that was given an opportunity to lower my interest rate. But to tell you what if I had read reviews with this company I would have not done it. I was already shady bout starting a new mortgage with a new company. And these people showed me why. They call me every month after I asked them not to call. To ask me when I’m gonna pay my mortgage if it’s not in by 1st of each month. That’s right there gets on my nerves. I have had to damn near cuss people out every month. Then the lady got the nerve to say, "It would be annoying if we got you with a late charge every month." Look here first I have to be late to get a late charge which I am never late. So why call me, "Oh we won’t call if you just go online and set up a future payment." I know that... Stop calling me!!!
There is a rule for FHA loan regarding PMI. When I signed up for a Mortgage Flagstar didn't explain that at all. When I later inquired about dropping PMI, I was told that there was a rule that one has to keep PMI for at least five years. I contemplated refinancing as my equity was such that I would not need PMI. Interest rates were still around the lowest point in decades. I kept my business with Flagstar. Now the five years have expired and I am being told that there is another rule and it has to do with reaching a certain level of equity. Somewhere around the 20% range. My equity is between 45% and 50%. Another rule: It has to based on an assessment from five years ago. Bottom-line: Deal with a lender who gives you full and honest answers and that is not Flagstar.
I received a notice that my rent would increase due to my escrow account going up. I explained that I was not able to afford the entire increase and would be $78 short. I was told that was unacceptable and they would not accept my payment. I was then transferred to 3 different people and when asked to speak with a supervisor she was VERY rude and threaten me with a late fee and reporting to the credit bureau. No one tried to help me nor understand my situation this one time. I will be refinancing ASAP and will not refer ANYONE to this company.
On 11/16/17 I sent in the full payoff provided to me by the payoff department at Flagstar. After about a month, I contacted the bank because I had not received my title. At that time I was told that because I did not send the payoff by certified check that I had to pay an additional $105 in interest and fees. Of course they took the payment that they received on 11/16. When I asked why I should pay the extra fees I was told because their system processes the payment differently. Flagstar received and accepted the full payoff within the payoff period. Because their system processes it incorrectly I am penalized?? That should be illegal!!
The main issue I've had with Flagstar over the past two years that I've had a mortgage with them is their lack of clear communication. The paperwork they insist on sending in the mail, their website, and information given to me over the phone never match up. This has been an issue since day one. It has become a more dire situation since my house flooded during Hurricane Harvey. I took the 3 month deferment on paying my mortgage. At the end of the 3 months I arranged to pay the arrears payments over a 6-month period.
When I called to make the first of the 6 payments, I was told that I had been dropped from the 6-month repayment plan. I was told over the phone that an FHA loan was not allowed to be paid back over 6 months - I had only 3 months. I would never be able to make those payments. I was told that I had to complete a form to have the 3 payments moved to the end of my mortgage term. But I never received that form.
One week later, over the phone I was told that I had been reinstated into the 6-month repayment plan but I had to make a steep payment for month one. I was not able to make this payment. Meanwhile, the website reflects incorrect information. And I continue to receive letters in the mail from Flagstar with yet different repayment terms. I was not given an explanation for why I was reinstated into the 6-month repayment plan - and when they transfer me to a supervisor the call is always dropped before the voice mail picks up. This company is not recommended. They are not transparent and they do not communicate effectively or clearly. They make it difficult when disaster occurs.
This company should have -5 (minus 5) stars They have an auto-dialing system and are located in Michigan. I am two hours behind, Mountain Time. They will call my number 15 minutes after my time, so needless to say you can't speak to anyone because they are closed. This is senseless and annoying and they say they can't do anything about it. This is the worst company I have ever dealt with and they continue to be impossible.
I used to like this mortgage company and then today, two days after cancelling an online payment on their website in which I also received a confirmation number, they charged my bank for a second mortgage and overdrew my account. I called the company and all I got was demands about what I had to do to get my money back. Not even an apology. Then, when I asked to speak with a supervisor, he was condescending, arrogant and rude and continued to try to talk over me. Kinda one of those guys with a man bun and skinny jeans sitting at his computer playing Call of Duty and then claiming to be a veteran kinda guy. You know the type I mean but I digress. This company sucks in my opinion and all it took was one unlawful withdraw from my checking account, one smartass customer service rep and an egotistical supervisor for me to change my mind and post this.
I had a major flood in my house. My insurance adjuster came out review everything and approved funding. Of course the $$ was released to both my name and Flagstar which I endorsed over. The unfortunate part is my mortgage company sold my loan to Flagstar who REFUSED to release $$ to me and insisted on releasing $15000 to a contractor that has NOT STARTED work on my property yet! Anyone in the right mind would NEVER release large amount of $$. Not only was the supervisor Andrew ** rude and arrogant, he blatantly said he would not speak to a client because he has 700+ employees. He was RUDE and obnoxious to me but to my insurance company too! I tried to contact his supervisor which one could never find in that bank. DO NOT do business with Flagstar, worst service you’ll ever get!
Andrew talks about contractor putting lien on my place! Tons of contractors use subcontractors and raw material companies, what if those companies put a lien on my home and the contractor disappears? His staff Susan has more sense and compassion than this man therefore showing Flagstar HAS NO COMPASSION TO THEIR CLIENTS!
Flagstar would NOT work with me on my payments when I flooded (Harvey). This next part belongs on another review board but I have to write it here too. When I refinanced my home in December the Mortgage Broker took it upon himself to NOT add my flood insurance back onto the escrow so I was without flood insurance because I made the mistake of trusting him. This Broker also chose my loan to go to Flagstar! Double whammy! I can't make this stuff up.
I applied on August 3rd for a mortgage with Flagstar Bank. I met with a man, Caz, who said I was pre-approved, no problems. I specifically said, "I got out of the military in Sept 2015 and haven't worked for 2 years. I have only been working 2 months" and he said, "Your salary paid! That's no problem at all". I signed the contract with my house, paid for an inspection, and appraisal and spent countless hours filling out forms and dealing with this process. On Sept 8 my mortgage was "approved with conditions". I was excited and expected to be able to move in within a week.
On a Thursday evening I received an automatic email from Flagstar saying I should contact my loan officer and that my loan process had been stopped. I had been trying to contact him all day with no response. He calls at 6 pm to say they wanted 6 months work history not 2. I had disclosed this since DAY ONE. Caz said everything should be fine and he'd call me the next morning.. Caz never called.
Here I am, two days away from losing my EMD on my house and a week away from thinking I had a home to live in, and my mortgage officer will not answer my calls. I am a 26 year old woman and was working all day, but my mom got involved and had time to go to the bank and see what was going on. Sure enough Caz was just sitting there. Ignoring all of my calls. He told my mom I had been denied for the loan, but no one told me. And her name isn't even on the loan, it is illegal for them to have spoken to her. Caz waited until literally 5:01 pm, a minute after banking hours, to tell me I was denied. Because I didn't have the 6 months work history. How did they not realize this August 3rd? This happened on Sept. 16. And now I'm in the process of losing this amazing home and everything I've invested. What are my legal rights here? I am a veteran, and can't believe how terribly I have been treated and lied to in this process.
I wish this review site had a negative 100 review because I feel a 1 is way too high for my opinion of this bank. My sweet 90 year old dad was going to switch bank accounts and so opened a checking account at Flagstar. He opened it with an initial deposit of $5 because had to go his other bank to draw out funds and put in this account. The rep at Flagstar told him his checks would be free for the new checking account as part of the promotion. Imagine my dad's surprise when he opened his first bank statement from Flagstar and found they had charged him a hefty fee for the checks and on TOP of that charged him a ridiculous OVERDRAFT FEE because he didn't yet have funds in the account to cover an expense he was told would be free!!! He showed this statement to me and was very upset and confused on why he was getting these charges he should have never incurred!!!
I was infuriated at the bank and told him what I suspected the reason to be. But by then was after their business hours and I work full time so was at work the next business day so couldn't go with him. He still drives so went into the bank himself and at that time they did reimburse him for the supposedly "FREE" :P checks and the OVERDRAFT FEE he shouldn't have EVER RECEIVED. All he received from the teller for their major mistake was a lame "sorry." I feel they owed him add'l compensation for their mistake!!! Thank GOD he opened his statement right away because I know some people don't do that and they would have been out all that money because the BANK sure didn't contact him about their mistake and I am SURE that would have NEVER happened had he not caught it.
I called and spoke to the teller who had handled this and she said everything was good because they had reimbursed him his money that they took from him in error and thought everything was all good. She felt they did not owe him anything for the worry and aggravation to a sweet little 90 year old man because of THEIR MISTAKE!! I WILL NEVER EVER BANK AT THIS ESTABLISHMENT BECAUSE OF THEIR SLOPPY AND INEPT BUSINESS PRACTICES AND RUDE TREATMENT OF CUSTOMERS AND ESPECIALLY SENIOR CITIZENS!!!
We refinanced our loan and received a lower rate but they were so sneaky. In tiny print the loan was extended from a 30 to a 40 year mortgage and we did not catch this until it was too late. Also, We are at the loan to value ration where the PMI insurance should come off automatically. They want us to pay $125 to have someone come to the house and determine the value. I have even sent them paperwork showing that we have invested over $20,000 into the home and we have paid off more than that amount. They are a deceitful company and I would not recommend them to anyone.
I applied for Flagstar's fresh start program after my car insurance tried pulling numerous times and causing major OD fees, which makes no sense in itself, why does flagstar get to charge you OD fees if money wasn't taken out? Anyway, I spoke to the useless cust rep in the fresh start program and she went through everything pretty clearly, or so I thought. I have another account with this useless bank. So after agreeing to everything and only understanding what she explained to me, I was under the impression that they would contact me with first due date in two days, and then it would be monthly until paid.
Nothing else was said or even hinted at. I check today my other account and bam, it has a zero balance, much to my surprise this corrupt bank steals money from other open accounts to offset the overdraft of the account just closed, THEY DO NOT TELL YOU THIS PRIOR TO STEALING IT. So they stole almost 200.00 from the mouths of my children because literally I was going to get groceries and that's when I seen the illegal practice they have of stealing funds without your permission, without even your knowledge of it. Now they will call and expect an actual payment in a month... I DONT THINK SO! I am closing my account, unpaid because they can wait until I want to pay them.
Warning. Empty any other accounts with this dirty bank before agreeing to anything. They worship their shekels. Don't let them con you like they did me. If you don't have an account with this horrible bank I strongly suggest you RUN from them. We all make mistakes, this bank doesn't, it literally lies to you, then steals money from you, then lies even more to keep their shekels. I hate flagstar of Michigan. Stay away, go to Chase or pnc. I have been a customer with this bank for 8 years... And this is how they treat me, imagine you're new... Sad and despicable.
Be careful when talking to Flagstar about a VA Refi. The stated, and documented, VA Funding fee for the first time use is 2.15% as shown here: **. In my case, I wanted to refinance an existing FHA mortgage, which is considered a Cash-Out Refi, for VA purposes. The principal outstanding on my existing mortgage was $118,500, roughly. Taking that amount times the LEGAL 0.0215 = roughly $2,500. On my loan application, line g, the Funding Fee is shown as $4,075. That amount was added into the loan amount, which I was fine with. The issue arose on line n, where the $4,075 was added in a second time, thereby increasing the loan amount. My warning is this. Beware that the funding fee, and the percentage used for the calculation, is a FIXED variable. So you can do the math yourself and according to VA Benefit specialists I spoke to at the VA, it should only be added in ONE time, not TWO.
I obtained this mortgage through a broker who I assumed knew what he was doing. Mistake #1 of our home buying experience. My valuable advice to you: NEVER let a broker choose your bank and NEVER EVER use Flagstar for anything. They were an absolute nightmare from day one and even after the house sold. Our experience is basically the same as the rest of these complaints. Raised our rate on closing day, jacked our payment up to an uncomfortable amount when we no longer had the ability to back out of the sale. Lost paperwork, refused modification, tried not to let a short sale go through but I had a very good aggressive realtor who hounded them and documented everything until the sale was final. Flagstar even "accidentally" sold my house at sheriff's auction while my short sale was pending and we made them rescind that and continue with our buyers which wasn't easy. It become our full time job for months.
You will waste many hours of your life on the phone with these morons. I don't think the people who send the letters are even real because when you try to call them they are never once available. Not once. Then when we finally think we will never have to deal with them again, we go to get another mortgage months later and discover Flagstar had not reported our short sale correctly so that halted our next purchase. Thankfully we did our homework and very carefully chose our new mortgage company so they promptly took care of the issue for us and we are happily in our new home. DO NOT give up and accept foreclosure and/or bankruptcy, keep on them every single day until they accept your modification or short sale.
They will not accept it UNTIL you have an offer from a buyer. They don't even tell you that little tidbit of helpful info. I wish I had just googled Flagstar right in the beginning. Would have saved years of trouble. Lesson learned. This bank should be shut down, I don't know how they can keep getting fined for fraud and still allowed to stay in business! Google it! It's disturbing!
Flagstar have worked with me when my financial situation was at the worst possible state. They've avoided me from losing my home on. My only issue with Flagstar have and continues to be the finance options.
We had a tornado damage our home. Our insurance company was out within 2 weeks and gave us a check. Considering all of the homes damaged we felt this was quick. Because Flagstar holds my mortgage their name had to be on the check and this is where the problems begin. I called them to get the information they would require and how to get them to release the check to me. I was installing a ceiling fan at my home when I called them. They placed me on hold. I drove to a home improvement store and returned, and was half-way finished installing the fan by the time they came on the line... well over an hour.
I mailed the check with the appropriate paperwork and Flagstar returned a check for less than 1/2 of the amount from my insurance carrier made payable to me and my contractor. Of course I sent my check to Flagstar overnight because this is extremely important to me, and over a month later I got the check for less than half returned via regular mail in a handwritten envelope. They will not give me a check in full until all repairs are complete. That is aggravating but I understand they need to protect their interest.
I called them and this time had a very short wait so I was pleased. However, the agent was of no use to me. I asked them to send me a check for the $7200 I was out-of-pocket for removing the trees from my house and yard, and the fence I had repaired already. They said I would have to provide receipts. I explained they had it in the information from the insurance carrier and he dug through his paperwork and found it. However, he told me he could not give me anything until the contractors were paid and they would not give me the money owed me until all contractors are paid in full.
Basically he told me he didn't care about me or my family being out $7,200. I have never experienced a company who cared less about their customers. I went to my insurance agent and he told me I was the 3rd person with a horror story about Flagstar from this storm. If you are buying a house or refinancing you need to understand the company holding your mortgage really matters.
This company will say anything to get your business and will say anything to get out of a rate lock if it suits them. I locked a rate with Flagstar on 10/4/16 which was guaranteed until 12/5/16. There was no visible activity on my loan application that I did not have to call and cause to happen. The Senior Mortgage Consultant Jeff and the Underwriting Processor Alaina appear to work for different companies as they do not communicate with each other. The only thing they have in common is their incompetence. The mortgage lock was extended to 1/5/17 due to the lack of progress on the loan.
In the meantime, the rates changed drastically. Jeff then began the backpedaling process to escape the commitment they had made and along the way charged me $551 for a BAD appraisal that used no comps in my neighborhood. Prior to the "attempted" refinance, my loan to value using the bad appraisal was 68.4% and the new loan to value was 70% which Jeff said was not good enough and with the rate change it didn't make sense to refinance anymore even though I was shortening my loan term. Do yourself a favor and do not subject yourself to dealing with this company. Horrible!
I've had many loans throughout my life, and I have to say without a shadow of a doubt that dealing with Flagstar has been the absolute worse experience by far. Here are just a few of my complaints. They want you to show proof of insurance every year (which is normal) but they don't work with your insurance agent, they make you prove it to them by faxing or email in the form to them every year and charge you if you don't. If you want a payoff amount, they charge you $30 for them to fax you your payoff. They will not give you a payoff amount over the phone.
In 10 years with them I incurred one $30 charge and I asked them to kindly remove the charge due to my 10 years of paying on time, and they refused. The customer service agent was rude to me when I misspoke and gave her my mailing address instead of the property address when verifying my identity. For 10+ years I have been a perfect debtor, paying on time, rarely asking them for anything, and if they treat me this bad when things are good, I can only imagine how they will treat me when things are bad. In my opinion, IF YOU HAVE A CHOICE, PLEASE STAY CLEAR OF THIS COMPANY.
I had an escrow overage I didn't even know about since I never got my escrow statement. So I called end of October. "Don't worry about it we will take care of and you will get a check next week." Called 10 days later, no check. Nothing was ever done. Now I have to wait again. There is a holiday coming and they refuse to FedEx the check to me. They have the most incompetent people working the phones and they don't care about you as a customer at all. As soon as I get my check I am refinancing to go somewhere else. Worst mortgage lender ever.
Flagstar's 'customer service' is horrific!!! If you have another choice, any choice, I implore you to go with them. If I would have read a review like this before I signed my mortgage with them I could have saved myself from immeasurable pain and headaches. On top of not caring about their customers, making them wait FOREVER on the phone and being rude, they are completely inept at their job. TAKE YOUR BUSINESS ELSEWHERE!!
After experiencing financial difficulties we requested a loan modification and after spending all required documents we were denied time and time again. After being served foreclosure papers our only option was to file chapter 13 bankruptcy in order to save our home. Fast forward two years later and our home was a total loss in a fire. We paid Flagstar in full $90,000 and never received one piece of paper from them.
5 years later we call Five Star to try to get a title release on our land and they tell us it was paid in full in 2011 and foreclosed on in 2013. No one at Flagstar seems to know what is going on or how long it will take to fix it. So here we are still trying to get a clean title on land that's been paid in full for over 5 years and nobody can give us any answers. We have retained an attorney and are going to be seeking damages for slander of title with Flagstar Bank.
Our loan began to increase due to property tax increase so when I lost my job of 7 years we filed for hardship modification. Never having messages returned. Always something not completed then paperwork lost, money returned. Foreclosure their goal. So we hired a lawyer and paid him the money. After being granted a affordable payment and lower percentage rate nothing was adjusted as far as the endless fines and late fees. However we were assured it was put to back of loan. Months later I was informed our payment doubled due to escrow. A payment higher than ever that now has us back on their list for foreclosure. I discovered when I opened my statement to mail my payment they had returned my last two money orders refusing payment. So I shall seek further legal representation and warn everyone this company is not what they claim to be. Beware!
I bought a second home in Naples, FL a little over two years ago. All documents including evidence of all required certificates of insurance were provided and deemed satisfactory. In April of 2016 force placed flood insurance premium was added to my loan escrow charging me an additional 2452.39 annually. When I realized the problem I contacted the broker and property management company. The insurance agent sent additional certificates to the bank which they said "were under review". In July they replied this wasn't an acceptable flood insurance. However it was exactly what was acceptable when I bought the home and the only coverage available to the public through the FEMA program.
After being threatened with damage to my credit and late fees being assessed to my account and hours of phone calls and emails the Flagstar Bank insurance department decides the insurance is acceptable. I get a letter saying we have canceled the flood insurance for one of three reasons. 1) we sold your loan, I WISH !!!, 2) you paid it off 3) evidence of insurance was adequate The insurance dept is set up to do nothing more than steal from the customer. The persons in the dept making the decisions about adequate insurance are not available to talk to a client, even when presented with what they asked for but are failing to understand on any basic level. I own an insurance agency and was able to understand how to help myself. Most consumers would be taken advantage of here and not know it. Flagstar needs some serious attention and not in a good way. Maybe take a lesson from Wells Fargo!
Sent letter saying refinance application was approved. Then they collected my 500.00 for appraisal. Then they came back and wanted a bank account showing at least 5,000.00 in it. They should have stated that in the beginning. What a waste of my time and money. Will not ever refer anyone to Flagstar Bank for anything. Credit score went from 626 to 525 after they pulled my credit three times and after I spent two days working with credit bureaus trying to get a dispute status cleared up. My accounts are current but status dispute is why they said application denied after four months of all this crap.
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