Mortgage -- Trouble during payment process -- Complaint #5203615
Complaint Overview
Complaint ID: 5203615
Company: Flagstar Bank, N.A.
Product: Mortgage
Sub-Product: Conventional home mortgage
Issue: Trouble during payment process
State: Colorado
ZIP Code: 805XX
Date Received: 2022-02-09T12:00:00-05:00
Date Sent to Company: 2022-02-09T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
Flagstar advertises and allows " Bi-weekly '' Payments, and under their terms and conditions listed on their website, any payment deducted from the payment account is credited to your loan : " When we receive Payment Instructions, you authorize us to electronically withdraw the authorized payment ( s ) from your Payment Account and credit the payment to your loan account. '' However, these truly AREN'T Bi-weekly Payments as they hold funds " in suspense '' until full payment can be made. This defeats the purpose of bi-weekly payments as the purpose is to lower the amount of interest that is compounding on interest. To state that payments get 'Credit ( ed ) to the loan ' when they are withdrawn and to not actually credit the loan until a full payment amount is withdrawn is unethical and directly conflicts with the terms and conditions listed on their website : https : //www.flagstar.com/myloans/info/terms-conditions. This could also be a violation of my loan 's terms and prepayment options.
Frequently Asked Questions
What is Complaint #5203615 about?
Complaint #5203615 was filed against Flagstar Bank, N.A. regarding Mortgage specifically about Trouble during payment process. It was received by the CFPB on 2022-02-09T12:00:00-05:00.
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.