Consumer complaint received 2022-07-12
Company: Flagstar Bank, N.A.
State: MA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Re : Escrow Account and Real Estate Taxes for Loan # XXXX - Flagstar Bank On XX/XX/XXXX, as instructed by Flagstar, I emailed : XXXX, referencing Case # XXXX, a copy of the XXXX XXXX  XXXX XXXX indicating the tax apportionment for Unit XXXX of XXXX XXXX XXXX, XXXX, MA XXXX. Flagstar informed me that this action would be sufficient to ensure that Flagstar would abide by its obligation to use my funds placed in escrow to pay this tax bill. However, Flagstar failed to make a timely payment. Consequently, I was forced to pay the XXXX XXXX XXXX XXXX and XXXX dollars and XXXX XXXX  ( {$1800.00} ) out of my own personal funds in order to avoid incurring additional charges and liability to the city. 

On XX/XX/XXXX, through my attorney, I sent a letter to Flagstars Tax Department located at XXXX XXXX XXXX, XXXX, XXXX, MI XXXX. This letter put Flagstar on notice of my formal request for the immediate reimbursement of funds to myself from the escrow account and to make future timely payments of taxes out of the escrow account. 

After Flagstar failed to issue a refund and to render payment to the XXXX XXXX XXXX, I, subsequently contacted Flagstar on XX/XX/XXXX, opening Case # XXXX. In opening this case, once again I requested that I should be immediately reimbursed and that payment for the taxes for the fourth quarter be immediately made to avoid late payment penalties. Flagstar closed this case without resolving either issue. On XX/XX/XXXX, I opened XXXX # XXXX, in which I made the same requests. Flagstar closed this case without any actual resolution of the issues. On XX/XX/XXXX, I opened XXXX # XXXX, in which I made the same requests. Flagstar again closed this case without resolving any of the issues. Once again I was forced to pay the fourth quarter taxes, totaling XXXX XXXX XXXX XXXX and XXXX dollars and XXXX XXXX ( {$1800.00} ), out of my personal funds due to Flagstars negligence and failure to respond to repeated requests to honor its duties to me, as my agent. 

Despite repeated requests, Flagstar has failed both to reimburse me and to make timely payment of the taxes for the fourth quarter. This is a serious breach of Flagstars fiduciary duties to myself. 

All the requests made were provided with the documents from the XXXX of XXXX indicating my portion of the taxes for each quarter, that were Flasgtar 's responsabilities in making the payments. It never happened. 

Now I have the bill for the first quarter for the City Taxes of XXXX and I don't even know if Flagstar will make the payment. 

As of today, my XXXX account has {$6400.00}. 

Something needs to be done because the money is available for the payments, but Flagstar keeps insisting on keeping the money and not issue any payments. I'm not even mentioning the absolute headache every time I have to call Flagstar and wait for more than 1 hour to be helped.

At this point I'm expecting Flagstar to immediately reimburse my payments of both the third and fourth quarter taxes of XXXX totaling XXXX XXXX XXXX XXXX and XXXX dollars and XXXX XXXX ( {$3600.00} ), and to make any and all future payments regarding the taxes with the money availabe on my XXXX account. 

Thank you very much for your help.

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