Flagstar Bank

On April 13, 2023 I began email correspondence with a Flagstar Loan officer to discuss options for reducing impact on my finances as the interest rate of my HELOC was steadily increasing and the payment was becoming too high.

On May 5, 2023, I met with a loan officer at the Monticello, IN Flagstar branch to discuss options for getting a new/different loan to pay off my HELOC as the interest jumped from 6.4% to 11/74% over the course of a few months. During this interaction we discussed various options including opening a Flagstar credit card to move other debts and reduce monthly bills. She explained that the credit limit was going to be much lower than what was needed to make any positive impact on my situation, and I told her if the limit couldn't be higher then I didn't want the credit card.

We corresponded via email a few more times over the course of the next week or so to discuss additional possible options. and on May 24, 2023 I had received two sets of loan documents, for different amounts and for different rates, and she was asking me to send one of them to her. I emailed the loan officer and expressed being frustrated and confused and asked her what these loans were and what needed sent back to her. I received no response.

On June 2, 2023 I sent a follow up emailing asking, again which papers I was supposed to sign and send back.

On June 5, 2023, she finally responded and told me both loans were denied and that she was going to continue working on it again this week. I never head anything again.

About two weeks ago, end of November 2023, I pulled a free credit report to review everything and make sure things were good. At this point, I noticed a new credit account had been opened for about $600. This account had never been used, and I could not recall what it would be. I looked deeper into it and found that this credit account was opened on May 5, 2023 and it was a Flagstar Credit card.

I went back to the emails between myself and my Loan officer discussing the credit card option. On May 11, 2023 she told me that adding my fiancé's (at the time) income would help increase the credit limit and told me I would need to cancel the credit card application on my own. I then noticed that her email to me had two additional emails under it from underwriting and in her email to underwriting on May 6, 2023 she stated, "Please do not send the cc to the customer as she thinks it has been cancelled."

I was never able to cancel the credit card because I never received one to cancel.

Now, because of this new open account, coupled with loan attempts from the same day my credit score has dropped making it impossible to get approved for any kind of loan that helps me get away from Flagstar.

I also want to add that during our correspondence, I made statements multiple times about fears of harming my credit during this process, and every time she assured me I would be okay. I had a credit score of 705 when she started her nonsense and now my score is 633.

When I spoke with the branch manager to ask if there was anything Flagstar would do to help fix this situation she assured me she would investigate the issues, I forwarded her every single email between the loan officer and myself, and currently the best I have been told is, "I likely can't do anything to help your situation, but I hope to be able to prevent other customers from experiencing this in the future."

I will NEVER bank with this awful company again. I truly feel this bank should be shut down for their long history (from what I am gathering) of seriously unethical practices and numerous consumer's rights violations.

CLAIMED LOSS - additional as it does not fit in the provided box.

These actions played a significant role in my credit not allowing me to secure an additional loan to pay off the HELOC. The HELOC interest rate increased.5% during the period of time I was communicating with the loan officer.

Currently, the interest rate of this HELOC is so high that we have had to use other credit cards to cover expenses to ensure we are financially able to cover monthly bills and other necessities for our family of 6.

And because of these issues, it will be at least another 6-12 months before I will be able to get out from under this loan and will continue to pay outrageous interest and unable to pay toward the principal of my original HELOC. This year alone, I have paid over $3800 in interest to the HELOC and not one penny has been applied to principal. I am not even sure how to calculate accurately the true impact.

DESIRED OUTCOME - additional as it does now fit in the provided box

As an additional courtesy, I also feel Flagstar should remove any activity reflected on my credit report from the year 2023 as all of this impact was a result of fraudulent/deceptive/unethical practices by their loan officer. Due to the lack of timely, honest communication, by the time the interactions ended my interest rate increased an additional.5%-further impacting my family financially and making it even more unlikely for me to do anything to stop the bleeding.