Consumer complaint received 2018-11-16
Company: Flagstar Bank, N.A.
State: AZ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
XXXX XXXX XXXX XXXX sold my Loan to Flagstar Bank in XXXX. XXXX informed me that Flagstar would be getting in contact within 30 days of the sale of the loan to let me know where I would be sending in payments, any changes to the loan agreement, and new loan number. In the past, when my loans were transferred from one company to the next it took 15-days for them to get back with me. I waited for the response and not came. Therefore, when it came closer to my XX/XX/XXXX billing date, I decided to send a partial payment to XXXX XXXX XXXX XXXX, knowing that they would transfer any money being paid to them to the new loan manager. I sent that payment in on XX/XX/2018. The payment was for {$420.00}. I did this through my XXXX online checking services. XXXX normally puts a partial payment into a suspense account to the full amount is paid. 

I continued to wait for a notice from Flagstar. It still did not come in and it was 11 days past my XX/XX/XXXX billing date. I was getting nervous. So, I decided to pay the rest and sent it to XXXX XXXX XXXX XXXX thinking that it would get transferred to Flagstar right away. On XX/XX/2018, I send {$1400.00} to XXXX XXXX XXXX XXXX. I am thinking I should be in the clear because that mortgage payment should reach Flagstar. 

I finally get a correspondence letter from Flagstar, stating that they are now the servicer of my mortgage and I need to send payments to them, etc and that my first mortgage payment should have been done on XX/XX/2018. Well, I was thinking that was kind of funny since this correspondence was dated the XX/XX/XXXX, XXXX. Not thinking anything of it, since I had already sent my XXXX Mortgage payment to XXXX and they should transfer those funds over to Flagstar. A few days go by and I started being bombarded with phone calls from XXXX. Not thinking anything of it, I did not answer any of the calls. Around three or four days of this, I finally decided to check my voice messages. It was Flagstar with an important business matter that needed to be taking care of. I call Flagstar and they tell me I am late with XXXX payment. I went on to explain the situation and they tell me not to worry about it that XXXX has 60-days to transfer over all things related to the loan that was sold to them. I hang up with the Loan Specialist. I continue to get the calls and then I get my statement telling me I am still behind on my XXXX payment. Feeling a little perturbed, I call Flagstar back to see whats going on ( this is around XX/XX/2018 ). They tell me that they have {$420.00} dollars sitting in a suspense account that was sent over to them from XXXX, but they have yet to receive the {$1400.00}. The Flagstar loan counselor tells me not to worry about it. If I paid XXXX, then they have to transfer all funds related to the loan that was transferred to Flagstar. Im like okay. I ask about the XXXX payment and they tell me I should hold off to see if the XXXX payment has arrived first or the XXXX payment will go towards the XXXX payment and then you will be behind on the XXXX payment. She then tells me not to be overly stressed about it because you will not have any negative effects on your credit for 60 days or late payment fees. However, we are now going on 16 days that my mortgage has been passed due which in fact should not be, since I have paid this payment. I decide to call XXXX to find out what is going on and they tell me they have transferred everything having to do with the loan. They tell me I should send a proof of payment from my bank showing that I paid the bill. I call back to Flagstar and  they tell me that is not necessary and that technically XXXX has 60 days for this to happen. I keep telling them that XXXX has transferred everything. In the meantime, dont worry about it. 

I keep getting phone calls from Flagstar for the next couple of weeks and I ignore it. Then I get a notice in the mail from Flagstar dated XX/XX/2018. This notice refers to potential foreclosure counseling and such. I really start to worry. I call back to Flagstar referring to the letters and constant phone calls. They tell me not to worry about it because these are done automatically. I tell them I am worried about it and I tell them that I paid the {$1400.00} owed to mortgage. They keep telling me they havent received it yet. I am getting perturbed because the {$1400.00} cleared my banking account along with the {$420.00} to cover my mortgage payment. They tell me they still have not received the second part that I owe. The thought that I paid {$1400.00}, it cleared my bank, and it was out there in limbo was making me very angry. In addition, Flagstar was technically accusing me of not paying my Mortgage payment on time. Which I did. I request that they contact XXXX for me to find out where my payment went. They tell me they could do that, but XXXX would not give out certain information about a loan from a Third Party. In my head, I am thinking you are not a Third Party anymore. You own the darn loan. I hang up with Flagstar hoping that they get in contact with XXXX. A few days past and my XXXX payment is due, so I pay that. I send {$1800.00} to Flagstar through my online checking services from my bank to make sure that is on time. It ends up clearing my bank. I do not receive any phone calls from Flagstar for a couple of days. Then I receive another one. Now they tell me, I still owe {$1300.00} for my XXXX payment. So, I call again. I get the same ole run around. The conversation goes in circles. I am frustrated so, I call XXXX again to find out what the XXXX  is going on. They sent my {$420.00} payment, which was in Flagstars suspense count. I say I know this but what happened to the {$1400.00} dollars that I sent to them that was supposed to be transferred. They do a little digging and they tell me that the {$1400.00} dollars was received and cashed on XX/XX/2018. Three days after I sent it to them. I ask them then why hasnt it been transferred? The loan counselor tells me it normally takes two to three weeks to transfer and that it should have showed up on their end. She then tells me that sometimes when payments are broken up they tend to put some of the money towards the principle of the loan because they do not know if the payment was for the principle or the actual Mortgage payment. She tells me to call Flagstar back and find out if this happened and ask them to refund it from the principle and place it where it belongs which is the Mortgage payment. I take the advice I call Flagstar and to come to find out they received {$1400.00} from XXXX that they applied to my principle versus my mortgage. I ask them to do what the counselor at  XXXX XXXX XXXX XXXX told me to do. The Loan Counselor from Flagstar says she is going to take care of it and apologizes. This all happens on XX/XX/2018. Two days later, I get a phone call from Flagstar again. They tell me to give them a call that it is important. I call them back and they tell me that the money that I sent for XXXX mortgage payment was applied for XXXX and I still owe {$1300.00} for XXXX. I lose it. I tell them that was taken care of on Tuesday the XX/XX/XXXX and I go on to explain again. This conversation lasts for close to 20 minutes. I keep tell him that my frustration is intended for him, but he would feel the say way if someone kept telling you that you didnt pay and in fact you did, but everybody keeps telling you didnt or they did not know where it is. I know for a fact that if it was on the other foot the person I was talking to would be upset because {$1400.00} of your money is nowhere to be found, but then it is found and then they are telling you that was not the case. He then tells me he is going to put me on hold. I am put on hold for another 10 minutes. In the process of waiting on hold, I am disconnected. I call back right away. I get a different counselor. I am overly frustrated at this point because I am going to have to go over the situation again. I explain to her it would be easier for me to talk to the original person I was talking too before I was disconnected. She puts me on hold and to try and get the counselor back on the phone. She then returns to tell me that she found the person and that he would call me back. He never called me back..It is yet to be resolved and I have until XX/XX/XXXX to get it resolved before negative effects start to occur.

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