Mortgage -- Trouble during payment process -- Complaint #5065330
Complaint Overview
Complaint ID: 5065330
Company: Flagstar Bank, N.A.
Product: Mortgage
Sub-Product: Conventional home mortgage
Issue: Trouble during payment process
State: California
ZIP Code: 91001
Date Received: 2022-01-03T12:00:00-05:00
Date Sent to Company: 2022-01-03T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Tags: Older American
Consumer Narrative
Nearing the end of Covid related forbearance I applied for a modification long before the final months of forbearance. Modification was quickly approved. I made 3 trial period payments ; each on-time. I was informed by Flagstar I could not set up auto pay until the modification was finalized. I then made a 4th payment, again, on-time. I then received documentation that the modification was finalized and logged on to set-up auto pay. I learned then, XX/XX/XXXX that Flagstar had included an escrow for property taxes and homeowners insurance on the new mortgage when there had never been one previously. I contacted Flagstar customer service on XX/XX/XXXX and was told many modifications department personnel had been hired just to process the flood of modifications and many new loans were being set up incorrectly. I was promised new loan documents, reflecting the proper payment amount without an escrow for taxes and insurance would be mailed to be by XX/XX/XXXX. I have, since XX/XX/XXXX spent more than 10 hours on the phone with various customer service personnel in both Flagstar 's escrow and modification departments. Modification keeps closing escrow resolve case numbers saying the modification department says the modification is done... It is now XX/XX/XXXX. I have yet another mortgage payment due no and the amount of the payment continues to be over XXXX dollars a month more than it should be. I was not informed an escrow account had been added to my existing mortgage during the modification so I already made my property tax payment in full. Now today, after 4 long calls with Flagstar, a modification department supervisor says it is a XXXX XXXXinvestor requirement that escrow accounts be on all modifications. Strange that today is the first and only time anyone at Flagstar has claimed this requirement or ever advised me of it. Now I am told Flagstar will analyze the escrow amount once a year and return any excess ... even though the amount they are holding is clearly well in excess of amounts needed for taxes and insurance.
Frequently Asked Questions
What is Complaint #5065330 about?
Complaint #5065330 was filed against Flagstar Bank, N.A. regarding Mortgage specifically about Trouble during payment process. It was received by the CFPB on 2022-01-03T12:00:00-05:00.
How did Flagstar Bank, N.A. respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Mortgage) and describe your issue in detail.
Can I see other complaints against Flagstar Bank, N.A.?
Yes, visit the Flagstar Bank, N.A. company profile at readthecomplaint.com/company/flagstar-bank-n-a to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.