Consumer complaint received 2019-04-17
Company: Flagstar Bank, N.A.
State: CO
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX COLORADO USA XXXX Direct : XXXX XXXX XXXX - Purchase of subject property : XXXX XXXX XXXX XXXX, XXXX, CO XXXX - Purchased on : XX/XX/XXXX - Purchase Contract Dated : XX/XX/XXXX [ per warranty deed copy ] - Subject Property Not listed on MLS prior to XX/XX/XXXX [ page1 of appraisal report ] - Subject Property was in C3 Condition with no upgrades from original build date of XXXX - Subject Property was subject to completion at the time of the appraisal certification date [ XX/XX/XXXX ] with No Final 442 Subject Property Appraisal * Subject to Completions** - Mishandling of the servicing and transferring of mortgage loan originated XX/XX/XXXX - Subject Property serviced by Servicing Company XXXX, with Loan # XXXX XXXX - XXXX XXXX XXXX Mortgage Payments from first payment date of XX/XX/XXXX XX/XX/XXXX, Under Borrowers Obligation Security Instrument Note/DEED, Not on RECORD with the XXXX County Tax Accessors office, No Original, or Copy of a recorded Note or Deed with a valid FHA case number assigned by original Lender XXXX XXXX XXXX currently exist in XXXX XXXX County , Colorado records department under reception number XXXX XX/XX/XXXX, see Title Commitment file # XXXX - Mortgage Payment on XXXX XXXX # XXXX XXXX in the amount of XXXX - XXXX XXXX   Payment EFT XXXX XXXX Acct # XXXX o [ Borrowers Personal Checking Account ( XXXX XXXX XXXX ) - FCRA XXXX did not report accurately or in entirety during while servicing the FHA Loan through XX/XX/XXXX XXXX XXXX Transfer LN XXXX on XX/XX/XXXX, with no communication to Borrower via USPS, or any other form of communication to Borrower during this time period. 
- Auto EFT MTG Payment from Borrowers Financial Institution ACC # XXXX to XXXX  after transfer date XX/XX/XXXX, MTG Payment for XX/XX/XXXX, EFT out of borrowers XXXX XXXX checking acc # XXXX by XXXX on XX/XX/XXXX, not applied to borrowers mortgage account ending acc # XXXX with XXXX, The Mortgage Servicer on this FHA Loan, XXXX, failed to notify the borrower with regulatory compliance of servicing, of the borrowers escrow account, and misapplied mortgage payments, Borrowers Mortgage Payments have fluctuated above the allowable threshold regulations per state law and compliance for an FHA Loan. The inconsistent fluctuation of mortgage payments, the unaccounted-for mortgage payments/funds and misuse of misapplied escrow funds, over collection and force-placed insurance, while Borrower was insured under active hazard insurance issued by XXXX/XXXX XXXX paid the premium of {$1400.00} to XXXX XXXX. 
- XXXX  canceled Borrowers Hazard Insurance on XX/XX/XXXX, by calling XXXX/XXXX Insurance, and the premium paid by borrower XX/XX/XXXX of {$1400.00}, was directly sent to XXXX, see Mortgage Statements XX/XX/XXXX * This reflects XXXX received a premium of {$1400.00} from XXXX XXXX on enforced policy. 
- XXXX the force-placed property insurance as of XX/XX/XXXX, at twice the annual premium, see mortgage statements XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX. The borrower in receipt of a letter of communication from XXXX to Borrower XX/XX/XXXX, XXXX, reflective of this transaction. XXXX retained Borrowers premium refund of insurance policy, and still sorted the escrow account of events and copy of refunded policy premium of {$1400.00} on XX/XX/XXXX, from XXXX XXXX XXXX.to Borrower by XXXX XXXX on XX/XX/XXXX in the amount of {$1400.00}, received via USPS, and verbal verification of this performed by Borrower and Sr. Loan FHA Underwriter Full refund of XXXX  policy # XXXX to Borrower in the amount of {$1400.00} premium 5 days after XX/XX/XXXX. 
- The dated material received from XXXX to Borrower, while borrower provides evidence of insurance with cross dates and coverage periods. to Flagstar Bank, new mortgage account number of xxXXXX was issued per delinquent statement received XXXX, via USPS. 
- The statement received on XX/XX/XXXX, was the first time the borrower had any correspondence from Flagstar Bank. The borrowers credit was now reporting delinquent on his mortgage greater than 90 days reporting late, not paid, per credit report pulled XX/XX/XXXX. The borrower is unable to obtain credit for the downgrade of a car with XXXX, and for ECOA Delinquent Mortgage, code. 
- CREDIT REPORT dated XX/XX/XXXX FCRA. The Flagstar Bank Mortgage Statements from XX/XX/XXXX, acc # XXXX and the XXXX Servicing Statements and Escrow Account # XXXX overlap reflective of unapplied and misapplied payments, as well as reversal of payments by Flagstar Bank dated XX/XX/XXXX, while the mortgage statement for XX/XX/XXXX with FLAGSTAR acc # XXXX was reflecting the Borrower is now past due reflective of last communication mortgage statement dated XX/XX/XXXX, while the county taxes reflect disbursed from escrow statement with Flagstar $ ( XXXX ) date XX/XX/XXXX, the county taxes are not yet paid or disbursed as of the XXXX County Tax Assessors office statement dated XX/XX/XXXX - Flagstar dated XX/XX/XXXX CK # XXXX [ ] XXXX MISAPPLICATION REVERSAL ] ***See unapplied escrows, the allowable RESPA increase to Borrowers MIP is over RESPA Compliance, ML XXXX-XXXX. FHA Handbook 4000.3 - The force placed insurance by XXXX on XX/XX/XXXX, while ( borrower held 2 policies, was forced placed insurance by XXXX see XXXX Binder coverage period is through XX/XX/XXXX to XX/XX/XXXX with policy number # XXXX. Cenlar communication sent to borrower By XXXX dated XXXX XXXX. HUD/FHA sent communication dated XX/XX/XXXX MIP Refund due to Borrower of {$2600.00}. Copy of certified mailing with return receipt is attached Borrower also was requested to verify his SSN,  Name address and Phone number on additional communication dated XX/XX/XXXX from HUD/FHA.  Additional communication received by from XXXX Borrower to reverify his SSN FORM NUMBER and a XXXX to verify his TIN. In addition, his XXXX Mortgage Interest Statement was received CORRECTED, from XXXX, and NO XXXX Mortgage Interest statement has been received by Borrower reflecting the remaining months XXXX and XX/XX/XXXX. 
- Borrower listed the subject Property XX/XX/XXXX and received a cash offer for his home on XX/XX/XXXX XXXX  XXXX Contract enclosed. Borrowers Name is spelled incorrectly on the contract ; therefore, the contract is not executed. The borrower has not been able to set up any online mortgage account with Flagstar Bank as of XX/XX/XXXX, online, attempted 3 times, Flagstar Bank does not recognize the Borrowers SSN or Loan Number Assigned per mortgage statements received by Flagstar Bank dated XX/XX/XXXX. The borrower also attempted to order a payoff from Flagstar bank when attempted to create a login and account with Flagstar Bank, on XX/XX/XXXX. The borrower is unable to proceed with the sale of his home. Unable to obtain a payoff from Flagstar, and not able to establish account ownership with SSN and Account number with Flagstar Bank online portal, see print outs and feedback on this attempt by Borrower, time date and stamped. XX/XX/XXXX. 
- The borrower has supplied additional bank statements online print outs from XXXX XXXX, His personal financial institution, checking account number ending XXXX. This is an FHA Loan. With FHA Case number per DOCS in the file when Loan Originated with Universal Lending XX/XX/XXXX. Conditional Approval Only* No XXXX Completed or signed. 
- Borrower received communication from XXXX, dated XX/XX/XXXX, from Department of HUD, FHA, identifying themselves as XXXX, referencing Lender ID number XXXX, and this communication is for the direct endorsement of a MIP refund on a case number, not assigned as of 18months after the origination of this FHA Loan by XXXX XXXX, transferred to Agent XXXX XXXX, per Agent transfer letter and POA executed, in file by Seller XXXX, and XXXX XXXX, on XX/XX/XXXX. 
- No FHA case number has been assigned, because there has been no approval on this loan, was ever issued, there is a conditional approval upon acceptance compliance doc in file with disclosures from the origination of this loan by XXXX, closing instructions, and prelim title work, sellers statement, a bill of sale to our Borrower for {$10.00}, and XXXX then paying themselves off again. The XXXX, has not been endorsed by the XXXX XXXX   Underwriter. And the loan clearly doesnt meet lending guidelines, or with compliance or within guidelines. 
- The MIP refund document has been sent certified mail back to XXXX by Borrower, and so has the 3rd Party Borrowers Authorization to Flagstar Bank by USPS certified return receipt mail as of XX/XX/XXXX. 3rd party Authorization received from certified mail from Flagstar. 

The Following Citations are prevalent : - FHA 4155.1 Chapter 1 Section B item 3.c - 4155.1 Chapter 4. Section C. Item 2.k - 4155.1 Chapter 1. Section B. Item 3.d - 4155.1. Chapter 5 Section A items 1.a - HUD 4330.1 Rev -5 - HMDA Regulation B - 5-A-2. Assumption/ Secondary Marketing - 4155.1 Chapter 5. Section A Item 2. C - # 10 ( 92900LT ) Release of Assumption

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