Flagstar Bank Reviews

Flagstar sent me HELOC pay down instructions with wire numbers. I followed the wire instructions and expected to continue to have a credit line open. Instead, Flagstar closed the loan. Multiple calls and customer support chats haven't helped to resolve the issue. I was told I authorized payoff which is clearly not the case. I am going to complain to regulatory bodies / BBB / Trustpilot until someone authorized to resolve this can contact me. This is a huge inconvenience. I've attached the letter from Flagstar saying that credit line will remain open.

It's not the best bank account for mortgage. They 1755 fee to waive escrow amount...when I try to raise point that It my loan and I have flexibility to pay way it works for me they didn't care. Bank has lot hidden fee and focus is on taking money from you rather than working with you.

We've been with Flagstar for years. Since this buyout/takeover it stinks. It's time to move to another bank. Even the online banking...it's terrible. It just circles and circles and ends up nowhere. I'm tired of playing their games. Maybe they no longer have the employees they once had. All I know is the stock is in the toilet and so is the service.

One of the unfortunate to have their mortgage sold off to Flagstar. Our home had major hail damage which required Flagstar to be on the insurance claim check. We’ve had several issues with them that I would write off as irritating but the real problem arose now that all the work is done, we requested our final inspection to receive our money. They refuse to schedule said inspection after several attempts by myself to contact them, I keep getting responses asking for another 24-48 hours. It’s been 2.5 weeks. They refuse the put me in contact with someone who can help with the matter. After being transferred to “resolutions,” who was the rudest person I’ve had yet, I’m now told they’ll resubmit a request for an inspection and that will be another 5 business days at best and I shouldn’t contact them again until they contact me. So while they sit and earn interest on MY money, I’ve got a contractor I now have to pay out of my own pocket.

Do not use this bank for your mortgage company. I have been battling an issue on my account for months now and it is still not fixed. They are taking extra money from my mortgage payments for PMI insurance, but the amount they are taking is way over the amount I actually owe. And I don’t even need to be paying PMI insurance anymore. I am looking for the path I need to take to file something on this company. It’s ridiculous that they cannot manage accounts.

Updated on 08/02/2024: After many unpleasant exchanges, for me at least, Flagstar has finally updated my records correctly. I think I must recognize the effort and offer them another couple of stars.

Flagstar's mortgage payment system has an inconsistent delay after submitting your payment and that money is taken out of your bank account. I've had mortgages in two other states with two other companies and have never had this issue. I've communicated this issue and concern numerous times and the customer service downplays it and acts like they aren't at fault with anything. Furthermore, I had 1 single late payment due to this delay and Flagstar immediately reports me and my wife for delinquent payment on our credit, which affects our lives for anything credit-wise. I submitted a complaint via fax to ask for a human with a heart to reconsider directly impacting my families credit report, very quickly I was sent back a letter saying "after consideration we have decided not to make any changes to this credit dispute."

Upon my wife and myself closing our safe deposit box, we were charged for an additional year of use. We wrote and called Flagstar local and corporate offices to complain and have our money returned. The bank manager said that’s the way the bank systems works and corporate just out-right denied our request for a refund. Hence we will be closing our joint checking and 2 savings account with them on July 1st. Poor management and poor business practices.

Worst mortgage company EVER!! My account was sold to Flagstar by Rocket, and it has been a nightmare ever since. I had hail damage that left me with many leaks in my roof. My insurance covered the damages, but now Flagstar is holding my funds for weeks and telling me they will only release 25% until the work is complete. They then send out an inspector before releasing the rest of the funds. This means they expect me to pay out of pocket for all the work and then wait over a month to get reimbursed. Crooked to the core! In this economy, forcing people to use their own funds or take out loans to cover damages their insurance already paid for is beyond ridiculous! They have no care that we are sitting here daily dealing with water damage that is only getting worse! Stay far away from this lender!!

I had a concerning conversation with Flagstar regarding my next billing statement. Due to concerns with my online account not reflecting the terms of my recent loan modification and the fact that I did not yet receive a billing statement for June (my next/second payment), I called up Flagstar to see if there were any issues. There were. Apparently, I submitted the payment too early. The loan modification document return instructions said to submit the first payment "by May 01," so I submitted my payment on April 27. According to them "by May 01," means in the month of May and within the 15-day grace period. Since I submitted my payment prior to May 01 and prior to the month of May, their system applied my payment to my pre-modified loan balance. This is after I already received a copy of the fully executed loan modification agreement.

Run now! My old mortgage company was bought out by Flagstar over 2 years ago. FLAGSTAR IS HORRIBLE to deal with. Trying to pay online or by phone is impossible when their dumb system won't recognize you. Limited customer service hours and incompetent contacts 2 out of 3 times necessary to talk to them and I have autodraft paid by 28th for next month. Last company I never had to talk to them. That is what I like and pay for in my mind. Their IT dept to help were zot zombies....it gets no better. DO NOT willingly chose Flagstar as you will be sorry for your choice.

Flagstar is a joke. They lowered my mortgage because there was additional funds for supplemental taxes. What happens next year. I do not have enough money in my escrow account. Their customer service is awful and not understanding. They also won’t allow for the monthly payment to take out additional money for the escrow account. If you’re a new homebuyer and don’t notice this, you can easily get in some big financial trouble. Flagstar, do better.

DO NOT EVER VOLUNTARILY USE THIS BANK FOR YOUR MORTGAGE. These people will scam you that they sent you notices that you never receive and they have no proof that you did, then tell you all the fees that you have incurred because you should've known... Keep in mind that their online platform never tells you there is an issue that needs to be address that way they can lie and say they sent you a letter so they can charge you for it later... Thanks for buying my mortgage so I have the displeasure of dealing with another set of criminals... Shady business conducted by shady people should be their slogan. If I could leave 0 stars I would.

The Flagstar Bank has a group of scammers working together, they lie, cheat, scam people. I was cheated since the 1st Day then wasted months to fight with them, then filed complaint to Fed. This Bank from the President to Salesmen, all greedy, dishonest, liars, scammers! They promised a high interest rate to lure you in then, make all possible excuses to NOT pay you the dividend they promised (signed on paper!)!

If I could give a -100 score, I would. They were utterly incompetent or willfully obstinate in refusing to close my HELOC account. I paid off my bill after paying for a $30 email to get the exact amount, and I was told they would only close it in the first 8 days of the month. After requesting the account to be permanently closed, they kept it open and wouldn't close it. It's like they wanted to keep the lien on my property so I couldn't get better service elsewhere.

Flagstar Bank has been nothing but a nightmare from day one. After four years with them they send my replacement debit card after the initial card expired to the wrong address. I never received a second card and was told a very different story why each time I called back. After the fifth call they blamed me and then refused to expedite a new card after I haven’t had access to my money for over two weeks. NEVER choose Flagstar Bank. Anything else would be better.

I thought the grace period was the 16th of the month to pay mortgage premium. I am not behind in payments. I do realize today is the 10th. I went online to pay, and the portal reflects March and April mortgage due. The old platform was not reflecting two months if I paid on the third. Is this a state specific thing?? I am in Georgia. I was in love with Flagstar and almost had a fit last year because I thought my mortgage was transferring. I have been referring buyers left and right. I don't know now.

I bought a condo in 2019 and Flagstar Bank offered competitive rates, and I decided on a mortgage with them. I ultimately ended up having a lien on my condo because the bank didn't pay my property tax on time, even though I had requested to make sure my address is updated in the system, since the escrow company I worked with was negligent. I did my utmost to correct the issue but was met with attitude when I called, dismissing my concern. So the penalty I had to pay to the tax collector was taken from my escrow account, even though it wasn't my mistake. There was also a penalty, a fee, and another charge to remove the lien from my condo, which I had to fight for to get reimbursed for. The penalty of $114.00 I am still waiting for, and since it has been over a year looks like I won't get reimbursed.

Some banks treat you like a number, Flagstar manages to not even do that. With service so bad, apathetic, and unresponsive you leave with elevated blood pressure. Run as far as you can from this bank and, if you have

Run away from Flagstar Bank!! Thank me later... They will close your bank account with one letter with no explanation out of the blue. Instead of scrambling last minute to move your banking somewhere else, do your banking with some big-name bank, not this shady institution. Save yourself time and aggravation. We had a checking account with our old bank 20 years, and after Flagstar took over, account gets closed for no reason... Don't be next. Many other customers at my branch got the same treatment.

Rating: If I Could Give Zero Stars, I Would. My experience with Flagstar Bank has been nothing short of a nightmare, revealing a blatant disregard for customer respect and an appalling level of manipulation. They falsely assured me that my January mortgage payment had been processed, only to later reveal, amidst a confusing and stressful situation, that my mortgage was being transferred to another bank. This misinformation cost me hours on the phone across multiple days, trying to resolve a problem that, as it turned out, was a fabrication on their part. When I sought clarity, Flagstar Bank’s explanation only deepened my frustration. They claimed a payment request had been made and then denied by my bank – a claim my bank outright denied ever happening. This lie was not just a simple mistake; it was a deliberate attempt to mislead and deflect responsibility.

I am the owner of 2 businesses, one of which is a property company, in addition to being a busy wife and mother. We are in the middle of a remodel and I made the mistake of not having transferred the money into the right account in time. I called Flagstar on a Saturday afternoon and within a short, very pleasant few minutes Flagstar had resolved my issues. Reena C. was my customer service representative and I cannot say enough great things about her professionalism and knowledge. I deal with a variety of financial institutions frequently. Flagstar has a great user friendly website which I wish some of the other businesses could employ and when I needed to talk with someone they were incredibly responsive and helpful. I have had them as a mortgage company for some time. I would highly recommend this company for anyone needing a mortgage.

PLEASE DO NOT USE THIS BANK, NEVER APPLY FOR A LOAN HERE. on November 1st, 2022 I received approval from Flagstar Bank and entered into an agreement to have a HELOC, or home equity line, of $43,000 at 11%, this is a secured line of credit using my home, which is worth more than $43,000 plus the original mortgage of $49,000, I have only used $18,000 of these funds for home improvements, including assessments to my condo, even if I use it for a vacation around the world, it doesn't matter, it is secured, and in only a year and a month, Flagstar Bank decided to freeze this line of credit, and block me from using it.

My loan was purchased by these jabronis. Communication is horrible. It doesn't matter what you do on their site, it doesn't register, they will ask you to do it again, and tell you they didn't get it. They can not provide accurate or timely information about anything, and their support/IT people also have no information. When you call/talk to them, they provide you with nothing but more hoops to jump through, again. I'm sure they are trained to never give out info, because what they have is wrong and/or illegal. Fortunately, all my payments have been made on time, but I expect them to drop the ball eventually, even though I have auto pay set up. It has been set up three (3) times, and turned off by Flagstar systems three (3) times.

Talk the talk but don't walk the walk. This "Bank" is where greed and ineptitude combine. Non stop addendums to requests for more information. 6 weeks now and still playing games. The worst is the "Assumption" Dept. Each dept. works as a stand alone entity with no communication or shared file between them and on top of that all the employees are working from home.

Our mortgage was sold to Flagstar Bank. At first, I had issues with their services and the hiccups in the transfer, but were resolved and customer service was good and helpful in remediating the situation. In the past year, everything has gone downhill. The MyLoans online account information is completely inaccurate all the time, never updates payments and says your account is up to date when it is not. When you make a payment, they do not put it through to your bank until two weeks later. Because of a returned payment (my mistake, I acknowledge), they told me I was only able to make payments through Western Union for the next 6 months.

DO NOT DO BUSINESS WITH FLAGSTAR BANK!!! I set up an automatic payment through FlagStar and Zelle. 9 months later, after receiving an email that my “auto-payment plan had been completed” I let the recipient know that he had received the last payment. The recipient proceeded to let me know he had not received a payment in 6 months. After looking back through my emails, I received an email every month from FlagStar Bank stating “your automatic payment to the recipient had been made”.

My mortgage loan was bought out by Flagstar with the transfer date 9/1/23. On 9/6 I mailed my payment with the loan number on the check as well as documentation that was sent to me by Flagstar. About 10 days later I signed onto my account at Flagstar and found that my payment was not posted. Called Flagstar, and the person spoke with informed me that they did not receive it and blamed it on the USPS. Waited several more days, no payment posted.

My loan was sold Flagstar Bank in September 23. I have attempted to pay my mortgage thru Chase and three times it has gotten returned. The representatives that I talked to have given me different answers each time I talked to them. The management team was no help and didn’t understand my frustration over this. In between the payment rejections, the collection unit called me and asked me why I haven’t made my payment. I’m so angry at this bank. I didn’t asked to be with this company. I’ve had them before and they mismanaged my impound account, but they wouldn’t let me take it over. I was glad to refinance to get rid of them. But now, I’m stuck with them again. I’ll be sending my 4th attempt next week, when the money get posted back in my account.

ZERO STARS!!! My home loan was recently sold to Flagstar Bank. I received a letter from Flagstar with specific instructions on making my first payment to them. Well, I followed those instructions to a T, and made my payment through Chase online banking. Three times!!! My payment has been returned to Chase by Flagstar three times! I've talked to clueless customer service representatives twice. Today will be my third. Are they running some kind of scam to destroy my credit???