Mortgage -- Trouble during payment process -- Complaint #4658860

Complaint Overview

Complaint ID: 4658860

Company: Flagstar Bank, N.A.

Product: Mortgage

Sub-Product: Conventional home mortgage

Issue: Trouble during payment process

State: Colorado

ZIP Code: 80221

Date Received: 2021-08-24T12:00:00-05:00

Date Sent to Company: 2021-08-24T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

My original mortgage lender ( XXXX ) sold my loan to Flagstar Bank. Simultaneously, I started working with XXXX XXXX to refinance my loan. This is important to note that I did not choose to engage in business with Flagstar. XXXX XXXX paid of my loan on XX/XX/21. See attached documents for entire history with Flagstar. The payoff amount that was sent created a refund of XXXX, plus an escrow balance of XXXX created a total refund owed to me of {$4000.00}. I had never needed as refund before so I call Flagstar around the XXXX of XXXX and ask how it would work. They said they had 20 days to return the money and the check was scheduled to be mailed on XX/XX/XXXX. On approximately XX/XX/XXXX I received the original promissory note showing the loan paid off but no check. Per the envelope it was mail on XX/XX/XXXX. I called back around the XXXX and ask why I hadnt received the check with the note. They said the check could take the mail another 15 days. This made no sense. After having not yet received the check as of XX/XX/XXXX, I called back. A stop payment was put on the check and I was told a new check was going to be mailed out. I asked if the check could be sent XXXX with tracking, ideally overnight. XXXX manager was supposed to call me back. I did not get a call. After waiting 8 days and still no check I called back on the XX/XX/XXXX. I was told the check was created on the XX/XX/XXXX, but a manager was supposed to call me back to see if the funds could be wired. On XX/XX/XXXX, I called back and was told the check had been mailed on the XXXX. I asked for a wire to be send instead because the original check never made it to me, even after stop payment and the second check already appeared to be lost. The second check hadnt yet arrived after 5 days after the promissory note proved the mail only takes 2 days from Michigan to Colorado. The reps have lied, been deceitful, have not address the issue, are non-compliant with the regulation around refunds by mortgage lenders. They have placed the blame on the postal service and refused to seek alternative remedies such as wire transfers or XXXX with tracking. This attitude extended all the way to the most sr. manager ( that I know oversees other managers ) of the payoff department named XXXX. Honestly, I feel they are holding my funds and using excuses. Returning my funds should not be this hard and I need help. This could go on indefinitely. {$4000.00} is enough that can cause hardship when a person still has another mortgage.

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This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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