Consumer complaint received 2021-04-05
Company: Flagstar Bank, N.A.
State: MI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I purchased my current residency in XXXX of XXXX. Around the start of XXXX, my mortgage servicer was changed from XXXX to Flagstar bank. In XXXX of XXXX, I received a " Notice of Assessment, Taxable Valuation, and Property Classification '' from my local municipality that informed me that the taxable value of my home had gone down since I had purchased it and my XXXX tax values would be reduced to a calculation based on the new taxable value. 

In early XXXX of XXXX, I contacted Flagstar bank via telephone to inquire if I could get my ESCROW with-holding amounts adjusted based on the new property value. They informed me to send in the new value to XXXX. I emailed the documentation to that address and received no email response. The next week, I called Flagstar bank to see if they received my request and what I needed to do to get my ESCROW amounts re-calculated based on the new taxable amount. They informed me that they needed more details as to how the tax amount was calculated based on the taxable value of the domicile and that I should send them the estimated tax amount based on the home assessment. 

On XX/XX/XXXX of XXXX, I emailed XXXX with the calculated taxable value based on the new assessed value of my home ( SEV ). I also linked Flagstar bank to the property tax estimator on the Michigan government website as well as the official XXXX county tax rate tables where they could double check the calculations. I did not receive a response to this email. 

On XX/XX/XXXX of XXXX, I called Flagstar bank to inquire as to if they had received my email and if they could re-calculate and adjust my escrow amount. Flagstar bank informed me that since I had performed the calculation of estimated tax they could not accept it. I asked if they had received the documentation of the millage tables and assessment and they confirmed. I asked them if they could double check the calculation or come up with their own estimate of property taxes based on the Michigan Millage rate table and assessed value. They refused. According to their customer service, because the assessment did not include the math done for them to calculate the tax estimate they would not do it. I asked to talk to a supervisor at the bank. The supervisor informed me that regardless of 12 CFR Part 1024 they would not re-calculate my escrow amount, even if they were with-holding more then 1/6th of the yearly estimated ESCROW amount in cushion. He informed me that because the assessment only included the taxable value and not the entire calculation for taxes that they would not look at it. I informed the supervisor that holding more then 1/6th of my escrow account in cushion was against the law and requested he re-consider. He told me it was bank policy and there was nothing I could do about it even if it was stated in the law. I asked the supervisor if he would respond to my emails with a written statement on why they would not adjust my escrow amounts and he refused. I asked if I could take a voice recorded statement if he did not want to make a written statement and he refused. The bank supervisor then proceeded to tell me he was disconnecting the call and that I can feel free to contact a lawyer. 

I have since put in a request to my City to see if they can send my bank an official letter with the calculated value, so hopefully things get resolved from that. The taxable value of my home has went down by almost 20 %, so my taxes for a year should be going down by ~ {$1500.00} or more. This reduction in my monthly payment would greatly help myself and my family.

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