Consumer complaint received 2021-11-08
Company: Flagstar Bank, N.A.
State: NM
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I closed on my home loan with Flagstar Bank on XX/XX/2021. On XXXX XXXX, while reviewing my bank statement, I noticed the XXXX house paymenthad increased {$300.00} ( {$470.00} to XXXX ). I didn't understand why thepayment had increased, so I called Flagstar ( XXXX XXXX ). I was connected with XXXX in the insurance service center. He told me that a lender placed policy was taken out on my home with XXXX XXXX in the amount of {$670.00}, which was paid from my escrow account. He reviewed the situation and told me that someone had examined my loan and had decided that my dwelling was not a townhouse ( it is ), but a single family dwelling. Thus, it was felt a fire policy was needed to insure the structure. He assured me this was a mistake and that my townhome policy issued at closing with XXXX was sufficient. He further explainedthat I was due a refund ( {$670.00} ) and he sent me, via email, an ACH refund request form. I completed the form and returned it via email on XXXX XXXX. XXXX told me to expect my refund in 5-7 days. ( See ACH attachments ) As a side note, on XXXX XXXX I pulled up my online account with Flagstar and while reviewing the escrow analysis, noticed that the Flagstar auditor had made an error. In his/her analysis, my taxes had been doubled ( {$2400.00} ). The correct estimated amount due for 2021 was {$1200.00}. I had to write an email to Flagstar explaining the error and asking for another analysis. It was reviewed and adjusted. ( see tax attachments ) I called Flagstar again XXXX XXXX because I had not receivedmy ACH refund as promised by XXXX. I can not recall who I spoke within the insurance service center. The person told me that what I was previously told ( by XXXX ) was incorrect.The actual reason the lender placed policy was issued was because I had not sent Flagstar a copy of the townhome master policy covering the structure. I was told two notices requesting the master policy had been sent to me with no response, thus the policy was issued. The notices were sent to my physical address ( XXXX XXXX XXXX ), not my mailing address ( XXXX XXXX XXXX ). I can not understand why Flagstar sent them to the wrong address, as I had called Flagstar shortly after closing on the loan and updated them as to the proper mailing address and phone number. I found out after closing the post office will not deliver to my home, thus requiring me to obtain a po box .Why couldn't Flagstar simply invest two minutes to call or email me before taking out a lender based policy and charging me {$670.00}? It would have certainly made for much better customer service! Also, why doesn't Flagstar request that such a copy of the policy be furnished at closing? Seems like a very poor business practice not to do so. 

Furthermore, I was told that I needed to upload a copy of the master townhome policy. I was sent a link to upload the policy : '' ihaveinsurance.com ''. On XXXX XXXX and XXXX I uploaded the XXXX policy ( XXXX XXXX. ), was well as the new XXXX policy ( XXXX XXXX ) .Each upload was confirmed.The refund was never posted to my escrow account and I once again called Flagstar on XXXX XXXX. I spoke with XXXX. She told me that there was no indication of an upload of any documents to ihaveinsurance.com. One again, I uploaded the documents on XXXX XXXX and the upload was confirmed.

Still no refund, so I again called Flagstar on XXXX. I spoke with XXXX in the insurance service center. He told me that there was no evidence of any uploads of the master townhome policies to XXXX asked me to once again send the policies through ihaveinsurance.com. This was done and he assured me, while on the phone, that he had gotten both master policies, XXXX and XXXX. XXXX put me on hold telling me that he needed to send the policies to another person for review and refund. When he came back on the line he told me that the policy information had been accepted and a refund was in the works. He told me that the refund would be credited to my escrow account in up to 15 days. 

So, after periodically checking online for the refund to my escrow account and seeing that it had not been deposited, I once again called Flagstar on XX/XX/XXXX. I spoke with XXXX in the insurance service center. She told me there was no indication anywhere in the computer system regarding any of the aforementioned ... .nothing!. XXXX told me that I needed to talk to someone in the " insurance department '' ( I was told she was in the " insurance dept. " }. She gave me the telephone number XXXX. I called the number and it was " the insurance claims center ''. The woman was very kind and told me that she could not help me, as this issue must be resolved through Flagstar 's insurance service center. At that point I had run out of patience!!!!

One additional note... .From the mishandling of this escrow refund, as well as miscalculating my tax liability, I feel that I am much more capable of properly handling my escrow than Flagstar Bank.Therefore, I applied for an Escrow Waiver on XXXX XXXX. Flagstar did not even bother to get in touch with me regarding the waiver. ( see Escrow Waiver attachments ) I will not begin to try and understand the lack of professionalism with Flagstar Bank. I have never received such poor customer service ... .anywhere! No one I've dealt with seems to know what is going on. I sincerely need someone of competence to assist me with this matter. Therefore, I am requesting two things : a. that my refund of {$670.00}. for the lender placed policy be expedited and applied to my escrow account or returned by check to me.

b. that the Escrow Waiver that was previously submitted be approved and I be allowed to handle my own insurance and tax payments I understand that I have a tax payment that is due very soon, It is ok with me if Flagstar wants to pay this and then turn the escrow over to me. I will gladly pay the {$250.00}. fee for release of the escrow. I no longer want the frustration of dealing with Flagstar regarding my escrow account. 
I look forward to hearing back regarding this matter in the near future. I am most appreciative of any help. 
Additional note : I tried to upload the ihaveinsurance.com confirmations and your system would not allow it. I can send under separate cover if necessary.

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