Flagstar Bank
Reviews and Complaints

Flagstar Bank was negligent in the course of refinancing my mortgage with them. I began the process in December, 2021 and at one point had a locked fixed rate at 3.25% I filed several complaints with the Consumer Financial Protection Bureau, but it seems that process has no teeth. In any event, Flagstar Bank admitted that "...a delay occurred when a revised closing disclosure was sent to you." The reality is that I asked them what the rate on a Jumbo mortgage would be, but specifically told them I did not want to delay my closing and was just curious, but they reopened my loan and lost the rate lock and by the time they could get it back together my rate was 4%. I figure I will pay approximately $125,000 extra interest over the life of the loan. Based on my expereince and because they refused to make it right, I would avoid using them if you can.

I am filing a complaint very similar to others I have seen on here. I had a loss of my home due to fire in late December 2021. Flagstar has had my insurance check since mid-June 2022 and now it is the end of July and they still will not turn over the funds to me. Every time I call I'm given the runaround. They haven't received my documents (not true), they haven't reviewed them (not true), a supervisor needs to talk to me (there are no supervisors!) ask for supervisor call back, never get one. My mortgage is for less than half of the amount of the insurance check and they are holding about $250K of MY MONEY which is illegal! I can't get anyone to help me. Some of the reps are nice and TRY to help but most of them are rude and do nothing. Every time I call I get a different answer. How many times do I need to FedEx, upload or email documents which have already been confirmed as received? And what does that have to do with them keeping my funds that belong to ME!?! I can't get my home rebuilt until I get the money they are keeping of MINE. I did not choose this bank as my mortgagor, they received my file last year as a transfer and I didn't think anything of it until now. I would NEVER EVER willingly do business with this company. They are holding my money hostage, I have never in my life dealt with an organization this outdated, this rude, this unethical, this disorganized in my life! Oh and when I try to log into my account to check status, I can no longer get in. I've been shut out. This is super fishy to me and I need my money and can't figure out how to get it.

I discovered on 6-23-22 that my loan payment had increased. I called Flagstar and was told that Texas Windstorm was taken out for insurance protection against wind damage. I was told that when my insurance company showed proof of wind protection coverage the Texas Windstorm policy would be dropped. I spoke with my agent and was told that was not true. They provide wind protection coverage and I have full coverage. My agent called 6-24-22 and was told that the Texas Windstorm policy was not on my account. As I checked my account online, the policy was still there. On 6-27 my agent and myself called and spoke with A at Flagstar. He checked and it was discovered that the policy should not be on my account because 1) my insurance has me fully covered and 2) Texas Windstorm does not provide coverage where I live. I was told to give it 7 days and check the status as it's a process that you have to go through to have it removed. Well, I checked my account on 7-1 and Texas Windstorm policy was removed (so I have no policy number to reference when speaking to an agent), but the money used to pay them was not credited back to my account. My escrow was still showing that I did not have enough money and my loan payment was still increased to coverage the shortage in escrow. On 7-6 my agent and myself spoke with S at Flagstar. I was on the phone for nearly 3 hrs and nothing about fixing my escrow was accomplished. Basically it was acknowledged that I didn't need the Texas Windstorm policy because 1) they don't provide coverage where I live and 2) my insurance has and always has from day 1 had me fully covered. A bad debt request was filed by S at Flagstar. I kept asking when my escrow would be fixed. No one could tell me. I was transferred to another lady who told me it's a process. They only review escrow once a year and if any extra money is paid, it will eventually go back to my escrow. On 7-7-22 I called Texas Windstorm to see about this policy that was paid with money out of my escrow. An agent named V called me and said there was no policy under my name and they don't provide coverage where I lived. I'm supposed to call Flagstar in 10 days (7-20) to check in the status of this. It has been proven by my agent, Texas Windstorm, and Flagstar that I don't and shouldn't have a policy with Texas Windstorm. Why can't my escrow be credited the amount that was taken and my loan payment put back to the original amount before this shortage occurred? I understand that mistakes happen so own up Flagstar and fix this. In my opinion, Flagstar stole money from me and refuses to fix their mistake. By raising my loan payment, they make it where I can't pay extra on my principal. This is shameful that a bank would have a consumer call so many times and stay on the phone for so long and blame them (said I should cancel the policy) and then say eventually if any extra money is paid it will go into my escrow. Just as I would be held accountable for not paying my loan, they should be held accountable for taking money from my account without notifying me why and who the money went to.

I sent my check overnight it was signed for by the front desk six days ago every time i call I’m getting a speech about 5-7 business days .

I call the system says my check still has not been received i spent 68.00 to have the check returned back to me overnight. (After asking the representative if it’s best she assured me. The check would be sent right back !

All I’m getting is this department out that department didn’t get to it yet .. blah blah blah .

I ask for a supervisor several times and still have not gotten a phone call or an explanation. It’s bad enough i had to wait for the insurance to process the claim and waiting additionally for Flagstar bank is unexpectable .

This exchange is totally nerve wrecking

So my nightmare started when my mortgage was sold to the worst mortgage company i have ever deal with, Flagstar Bank.

Flagstar began to send me letters about an extra charge on my insurance policy telling me that i needed to pay the extra money out of pocket (my insurance gets pay thru my escrow account). I called the insurance to make sure they had all the information from the new mortgage company but i guess it was some type of disconnection/miscommunication in between the 2 that i was supposed to fix..? the time came that my policy was due for renewal but still the insurance company and the mortgage company were not communicated and my property ended up being without insurance coverage for 2 months (Mid Feb to mid Apr). Now (6/23) Flagstar is charging me with and insurance policy to cover those 2 months with the outraging amount of almost $500 (my annual policy is not even $1000) because apparently i was supposed to do their job and notified the insurance company (which i did, but i guess didn't work). AVOID FLAGSTAR BANK at all cost, it will cost you time, extra money and some headaches if you have your mortgage with them! They are thieves in disguise!

I waited over a year with many calls for multiple hours for a loan modification. In the middle they transferred me to Community loans to complete the modification, which they did and I made two payments (with proof from bank, which have been submitted to them) just to get transferred back to Flagstar for them to say we cant see the payments made to community. When transfer first went through I called Flagstar to verify they could see the payments which they said they could but it would take up to 60 days to reflect properly on my loans, now magically they can't see the payments and community loans who Flagstar transferred me is out of business conveniently. Flagstars customer service has been terrrible and rude. I have been on hold for hours at a time trying to clear up their mess up and no one knows how or who to speak with to correct this. I am starting to believe this whole modification was a scam on Flagstars part and will be reporting to all avenues possible.

Mr. Matthew Carlos, Branch Manager is on the Board of the Victor Valley Community Services Council.

1. He is using Desert Community Bank letterhead to address his Victor Valley Community Services Council Board activities.

2. He took retaliatory action against the sitting Board President because she refuses to support the Victor Valley Community Services Council's terminating Executive Director's request to:

a. Request a salary increase from approximately $ 4,480 per month to $6,000.00 per month and work remotely from over 229 miles away.

b. No contract with hours of specific availability or termination of the agreement.

3. He attempted to oust the President, without written cause or an opportunity to resign or post and/or remain on the Board.

4. The sitting President is a senior citizen with every right to be on the premises because the Victor Valley Community Services Council receives grant monies from San Bernardino County to provide services to senior citizens.

5. The President did resign and serve Matthew Carlos with a Cease and Desist notification.

The dealership finance department signed us up with Flagstar Bank for our boat loan. We checked on insurance before purchasing the boat and lined everything out like we always do before a big purchase. We were requested by Flagstar Bank to provide an insurance binder. We did comply and sent our insurance binder in, declaration in, asked the agency to send one in, everything. After repeated request from them saying we have not complied by providing insurance on the boat and multiple documents sent to them and from our insurance agency they somehow have decided to add their own insurance to my loan and adjust my monthly payment! This should be against the law. We have provided everything they have asked for multiple times. We have communicated over and over only to get this notification in the mail. I have statements for the insurance monthly bill, binder of coverage, declaration, and my insurance agent as proof.

We applied for a loan modification, signed documents but we decided to sell our house and we didn't go through the modification. A week before our sale closing, we found out there is about $28,000 lien against our property for the modification we didn't finalize.

After talking to several reps for a week trying to find out what is going on, we find out they did it by mistake. In order to fix the mistake, we were told it could take 30-45 days. We requested at least to give us something in writing to let the title company know you are removing, and they refused.

First, they said we should be able to do this and days later they are giving us run around.

It looks like they don't want us to close and pay off the mortgage. They want to force this house to go to foreclosure. The reps, the supervisors nor the managers know what is going on. They all tell you different things. What a nightmare.

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Under 'Desired Outcome' you ask for lien waiver or letter stating it should be remove.

Ayele Sessi

1343 Dale Street N,

Saint Paul MN 55117

Friday 3/18/2022

It was about 2 pm and I went to the Flagstar at 1000 E. Dupont and ask to see a banker. The teller said they were with other customers. About 20 min later a woman came in and said she had an appointment with certain banker. He came directly out, so he was not with customer. Another 5 min. a lady maybe manager steps out says I could make an appointment or wait on other banker to come from lunch. I tell her no thank you and leave.

Today 3/22/2022

I try a different Flagstar at 5525 St Joe Rd. The bank teller took care of connecting my checking and savings in lest 10 minutes.

Why is there such a difference in one bank valuing this customer and the other who did not.

This bank is so unethical it is frightening. They should do business in North Korea or Venezuela, not the United States.

They bought three mortgages of mine. I set up all three for auto pay. One did not go through.

They did not tell me but sent me a letter asking if I wanted forebeareance. They keep asking that *because they want to give forebearance so there will be a default.*

I paid over the phone. Then I attempted again to set up autopay. Nope.

I tried a wire. They rejected it.

I then sent a check and again paid over the phone. They took all those payments but kept asking if I wanted forebearance.

They REFUSED to let me set up autopay.

Now they refuse ANY payment but they want me to take forebearance, again so they can take the property.

I have done everything I can to pay these people and they now say I must pay in cash or they will issue a default.

For real. DO NOT DO BUSINESS WITH THIS BANK. Corrupt does not begin to describe therm.

Flagstar bought our original loan in 2018 and recently we wanted to pay-off or paydown the mortgage. This the last week of January we asked for a payoff on the loan to be sent by mail for February 7, 2022, otherwise their ridiculous policy now supposedly states they must charge $30 to provide this via e-mail or over the phone. I called again on the 7th as we did not receive anything via mail and they stated it must be the postal service or slow delivery.

I also sent a large sum of $185K to pay down the loan that was delivered from my normal bank on February 2, 2022. First they said it must be in the mail, then the next customer service lady stated that they cannot accept any funds over $30K even though it was a bank to bank transfer? Thus, the morning of February 7th, I spoke to a customer service rep who stated the only way they will accept a large paydown amount was via wire transfer. They still would not provide me a payoff despite not receiving the original request. On February 7 I had my bank wire a large paydown amount which covered all but approximately 4K of the loan balance. After speaking with 2 representatives, including a lengthy hold on the phone, Flagstar agreed to e-mail wire instructions and we also were very clear on amount that would be sent and that this was a paydown. This was also note in the actual wire from my bank.

On February 8th I found Flagstar still had not posted and said it takes several days to process? A wire transfer that was taken out of my account on the 7th - seems ridiculous. Then on February 8th, Flagstar customer service said after finally seeing the deposit sitting in their system, stated that they may likely send it back because it's too close to the payoff amount. I then spoke to a supervisor named Anicia, who told me it was under review. I told her I followed all procedures and that they will be responsible for any interest if posting is different from the 7th and if rejected, all bank fees and interest due to the frivolous banking policies to discourage loan payoff's.

This so-called bank and their frivolous policies and practices should not be in business. They give the respectable banking institutions a bad name.

To whom this may concern,

the series of events that have taken place with my insurance claim with flagstar has been the most despairing experiences in my entire history of being a customer to any professional establishment.

Please pull all records of calls on my account as i will be turning over to an attorney in the coming days.

1. I have been displaced from my home since july 30th 2021 due to major and consistent negligence on behalf of flagstar banks insurance claims department. Employees who answer these calls are untrained, afraid to make any movements on claims without a supervisor with fear ofbeing reprimanded. As was just told by a representative on 1/5/2022 at 3:13pm central time i had been on one call with flagstar for 1-hour 10-minutes. The call started at

2. I have been displaced from my home since july 30th 2021 after filing a claim after storm damage in may 2021 that made my home inhabitable.

3. Due to flagstar bank holding my insurance company money and poorly trained advisors who work in this department, my home has been sitting for 4 months with little to no work being done at all as of january 5th 2022.

4. My home was deemed inhabitable due to damage since may 10, 2021.This was the day i made my first call to flagstar asking them what to do. I was poorly misiinformed to mail only the initial adjuster report and the check and that they would endorse it for repairs the full amount since it was under 40k. Pull call record for details.

5. The check was then randomly mailed back to me on july 7th 2021 with no notice, stating that i had not endorsed the check and resulting that i was misadvised by the representtive on may 10th.

6. I was then told that there were many more items that i needed to send in and not just the adjuster report and the check. This did not happen until i called in again in mid july. This process was very different from what i was told initially over 45 days into the claim process.

7. Juy 29th i sent the check back endorsed along with all affidavits that were requested. I them had to move out of my after fighting with flagstar week after week since august of 2021, the only amount that has been gven to complete my damaged homes repairs as of today is $17k out of a $69k in approved repairs from my insurance company, of which flagstar holds the check for while i pay out of pocket daily for hotels and pet living expenses during the holidays and winter weather while having to move from one hotelto the next based on affordability. This is unacceptable.

8. I had to pay $5k out of pocket and was reimbursed that amount.

9. From august -december of 2021 flagstar has sent inspectors out 4 times only to get the same inspector report of which they have not been willing to share with me the customer. Each time stating that the results were under the percentage of repairs needed to release the rest of the amount to continue repairs.

10. The inspector comes out and says that repairs must be 80% complete. Not one of the flagstar represenatives have been able to explain the details of what that truly means after over 20 phone calls.

11. The answer they give me is that its based on adjuster report of which no one has been able to break down.

12. Each time i call, after over 30 p]hone calls to flagstar i reach another inexperienced representative who is afraid to make any move with out speaking to a supervisor.

13. There is only one occurance out of over 30 calls that an actual managaer or supervisor has ever been availble.

14. In order to speak to a supervisor in the insurance claims department (one of the most important departments within a mortgage company) the customer must make a request and wait 2-3 days for a return call. So called supetvisors are the only individuals that remotely understand what they are doing fully and return calls all times of the night. I have received call backs at 8pm-9pm on a saturday night.

15. They do not leave messages.

16. The supervisors promise that they will be your contact person and to reach out if you need anything and not one time has anyone of them been able to give a direct phone number. They are not reachable by extension. They are not reachable by the 800-number. They also send emails that have not contact informaton and is not once been responded to since july 2021. I have record of every single email that i have received no response from in any way.

17. I have recently incurred daily expenses living olutside my home at the fault of flagstar. My insurance company has been a pleasure to work with but flagstars negligence has me out on the street. I will be getting an attorney for these expenses being wrongly caused because you guys are just now tellng me on december 20th that your representtives overlooked very important information after 0ver 30 calls, 5 months and 20 or more supervisor call backs.

18. I was informed by a supervisor sharanda johnson that no one had ever asked for the full adjuster report or mentioned that they did not see it in the file or that none of the numbers matched. These folks were basing my entire claim on one part of the claim which was the roof only that was sent to them in the beginningm of may. No one was knowledgable enough to see that they were basing an inspection for an entire house off of an adjuster's report that was only for a roof!

19. Flagstar must release the rest of my funds to complete repairs on my home and reimburse any and all expenses incurred living outside my home for the time period that they have held my insurance money.

20. Flagstar currently has $30, 000 of my insurance money that they have yet to release and i am still out of my home because of no funds to complete the repairs!

FG is my current mtg holder. Not by choice. I decided to do a refi through FG assuming it would be quick and easy considering they already hold my loan. It took them 3 mos to close. They would ask for a document. I would immediately give it to them and then a week would go by and then they would ask for another doc and so on. Then because they were taking so long, the documents would expire and I would have to resubmit. Finally they close me and on Monday they make an appt with me for a signing on to be done on Thursday at my home at 2pm. Nobody showed up. Apparently they were trying to call to cancel with me because they needed an updated ins dec page on the day of the signing. They did not try to leave a message with one of my 32 employees for them to tell me. So the next day after sending the dec page, they want to me to sign which was last Fri and I was putting on a holiday party for my ee's and then had a family party. They wanted me to meet the notary at 6pm. I couldn't. So yesterday they tell me ALL my documents will have to be resubmitted because they expired. They waited til the last day to try to sign me. I asked for the list yesterday because unlike them I can submit documents in minutes. All of their emails have come back undeliverable so I have not received the list to proceed. Also they had instructed me not to make my current mortgage payment because I was closing. Well now I haven't signed, can't get a hold of them, and just made my first late mortgage payment ever. DO NOT REFI WITH THEM. Worst Customer service ever! I'd fire my whole office staff and get new people if they ever treated one of my customers like this. Once this is done, I will go to a local bank. These people are inconsiderate and shameful!

I had never heard of Flagstar until Better Mortgage sold my loan to them. Flagstar has horrible customer service. The loss draft department is the worst. They are inhumane, inconsiderate and lack people skills. I paid to send my insurance check next day with delivery confirmation. They held the check for : days when I know Michael signed for it. I sent my insurance summary the only information I received from the insurance company which took me 90 days to get. This is not sufficient enough for Flagstar. They put two letters in my portal. One saying validated everything and check in the amount sent will be endorsed and returned to me. I get check back with a letter unendorsed insufficient insurance information. Which is it Flagstar. I tried to speak with a supervisor. I'm not important enough to get past the rude customer service representatives. I have spent half of what the check is having my roof replaced. I offered to send pictures and receipts. Nope not what they want. Hurricane IDA as aggressive and disrespectful as she was has nothing on Flagstar Loss Draft Department. When this is done. I will be refinancing with a local bank in my community that doesn't sell loans.

We have been trying to refinance for months and we kept getting
conflicting information about what FG needed from us to process
our application - we went through the whole thing twice. I posted
a BBB complaint and got a number to call which was just a
generic CS number, and no one ever called us back. Now they
denied our refinance application and send a debt collector to our
door on a Saturday - we're refinancing with someone else, and
we've been on the mortgage deferral program, so we owe them
nothing

We refinanced our mortgage through Flagstar Bank in December 2020. Our homeowners insurance policy was not affected with the refi and proof of hazard insurance was provided to Flagstar during the closing in December.
Fast forward to May when we received a letter stating our hazard insurance lapsed from December 2020 through April 2021. Flagstar required proof of insurance or else they would purchase a policy for us. After several hours on the phone with Flagstar during a phone call on May 13, 2021, Customer Service Rep Melissa informed me she was able to verify with Homesite (our insurance provider) that we did have active insurance.
Imagine my shock and disbelief when I received a letter today stating Flagstar charged me $818.50 for hazard insurance for a lapse in coverage from December 2020 through April 2021. Their actions are not only incompetent, their also criminal. They allowed a security breach sending my personal information including my social security number to be accessed on the dark web and all I got was a "Gee, we're sorry. Here's some credit monitoring for free". This joke of a bank needs to be shut down!

I am in the process of doing a home refinance with Flagstar. My current loan is not with Flagstar. I started the process at the end of October and it is still not ready to close on. I have friends who refinanced with another company and they closed in 60 days. This is ridiculous, a refinance should not take this long. Also, the communication is terrible.
Colleen Vogel
[protected]

I've been a customer at flagstar for over ten years and this last year has been hell! I moved to a new neighborhood and the branch by my new house was the branch in Eastpointe mi. I've had so many problems at this branch but this last straw was they went back from a deposit I had months ago and told me it couldn't go in my account. I was told by the branch manager that I had until Thursday to get it all straightened out and they placed a hold on my account . I check my online banking and they have sent all my money from my account back to the senders. I've got bills and other things coming out of this account they didn't care. I've got checks that are directly deposited that didn't matter. This is the worst bank ever! The branch I use to go to I never had any problems that's why I've been with them so long. Needless to say they closed my account and won't give me the money that's left in my account. HORRIBLE HORRIBLE SERVICE!