Consumer complaint received 2021-12-31
Company: Flagstar Bank, N.A.
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Closing on my primary mortgage occurred on XX/XX/XXXX. The conventional mortgage, which is still in place, is serviced by Flagstar Bank and owned by XXXX XXXX. Since XXXX, the equity in my home has gone up significantly due to 1 ) a substantial increase in home values and 2 ) completion of several high-ROI renovation projects. Per guidelines issued by XXXX XXXX, I submitted a request for PMI Removal to Flagstar Bank on XX/XX/XXXX. I have completed every requirement necessary to qualify for PMI Removal ; however as of XX/XX/XXXX, this request has not been granted and Flagstar Bank has been uncooperative in rectifying this matter. The relevant history of this issue is as follows : XX/XX/XXXX - Official application for PMI removal submitted to Flagstar Bank via email as requested. 

XX/XX/XXXX - Received email acknowledgment from Flagstar Bank that my request had been received. 

XX/XX/XXXX - No further correspondence or communication was received from Flagstar Bank, so I called to inquire about the status of the request. During this call a customer support representative emailed me a letter detailing instructions for PMI Removal, including a requirement for a full appraisal at a cost of {$460.00}. Check for {$460.00} was mailed to Flagstar Bank. 

XX/XX/XXXX- XX/XX/XXXX- Despite confirmation that payment for the appraisal was received by Flagstar Bank, I was not contacted by a local appraiser as they had promised. I made several calls to Flagstar Bank to inquire about appraisal status. I was told 1 ) the appraisal had been ordered according to Flagstar 's notes, but they did not have visibility into the process beyond that and 2 ) I would need to continue to await contact from a local appraiser. 

XX/XX/XXXX- I called Flagstar Bank to inform them that I still had not been contacted by an appraiser. I also shared with them XXXX XXXX guidelines which require that the appraisal for PMI removal be completed within 120 days of the original request. That deadline of XX/XX/XXXX was fast approaching. 

XX/XX/XXXX - Received a call from Flagstar Bank requesting an additional {$260.00} to cover the increased cost of the appraisal. I promptly paid this amount by telephone. When I once again inquired about status, the representative from Flagstar Bank told me that XXXX XXXX, rather than Flagstar, processes PMI removal requests. 

XX/XX/XXXX - I contacted XXXX XXXX for clarification on this process. I was informed that the Flagstar rep was incorrect and that Flagstar Bank as the servicer was required to handle all PMI removal requests per XXXX XXXX guidelines. 

XX/XX/XXXX - Received a call from XXXX XXXX informing me they had opened a case against Flagstar Bank for further investigation of the issues with my request. 

XX/XX/XXXX - Appraiser visited my home to perform the required site visit. 

XX/XX/XXXX - Contacted Flagstar Bank again to inquire about status of my PMI removal request. I was informed that the appraisal had been received ; however, Flagstar would take up to 30 more days to process the removal. I responded that the timeline to complete this process was already well outside of XXXX XXXX guidelines. I was then told that Flagstar had submitted my PMI removal request to XXXX XXXX with supporting documentation, and Flagstar did not have the authority to approve the request and only XXXX XXXX could grant the approval. 

XX/XX/XXXX - Contacted XXXX XXXX once again for clarification on the seemingly misleading information received from Flagstar Bank. XXXX XXXX representative informed me that 1 ) Flagstar Bank has the full authority to remove the PMI and 2 ) XXXX XXXX is never involved in this process. 

Currently, I'm still paying PMI monthly, despite successfully fulfilling each of the requirements for PMI removal as dictated by Flagstar Bank 's requirements. Flagstar Bank continues to stonewall and mislead me about the process.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation