Consumer complaint received 2016-11-14
Company: Flagstar Bank, N.A.
State: TX
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Application, originator, mortgage broker

Complaint:
My husband and I contacted our Mortgage company ( Flagstar ) XX/XX/2016 to inquire on rates and possibility of refinancing our loan with a better rate and a lower term.. My interaction was with a loan specialist by the name of XXXX XXXX . In our conversation with him, he informed us of a 20 year term refinance rate of 3.37 and provided us approximate figures of how much our payment would be at that rate, and gave us an approx. figure of {$3000.00} that we could roll into the loan. He informed us that out of pocket is generally a little over {$500.00} to pay for an appraisal. XXXX at that time informed me that the appraisal they had on file was at {$390000.00}. However confident that it would have increased by the year and a half that we already had been in the home.XXXX informed us of a portal that would be set up online for us to be able to submit the required documentation and signatures to begin the refinance process. 
This is when the nightmare experience began with this bank. The experience to say the least has been very time consuming, and was requiring more efforts from us as the consumer versus the bank. We awaited quite a long period of time, for the loan to go through underwriting process, and we consistenly were reaching out to inquire on why it was taking so long. 
Our other major concern after reviewing the appraisal was that the appraiser used XXXX homes that were still under construction, and not sold, and another home which was over XXXX miles away and also not sold. XXXX informed us of our option to dispute the appraisal. We followed their instructions and provided Flagstar with XXXX-XXXX comps listings.My husband and myself contacted XXXX and via phone he told us the following : Flagstar bank is requesting us to provide new comps within a XXXX mile radius of our home, and within a 9 month sale timeframe. We were disgusted and upset at the response we were provided. My husband informed XXXX that the bank needs to realize that 1 ) Our neighborhood consists of Estate Size lots in a rural area, which are each XXXX acre and half each. It was impossible to give a XXXX mile radius of homes that sold. 2 ) We provided Flagstar bank, with property comps that comprised of a XXXX mile radius and all were sold properties within a 9 month time frame!! 
The comparison that was done by the paid appraisal did n't even follow the guidelines they were expecting, however because that appraisal fell in the favor of us paying money out of pocket, that appraisal was ok to use??? XXXX simple response to us was " Do n't shoot the messenger ''. 
What we did get all of a sudden were decline letters from Flagstar all of sudden singing a different tune stating we are not approved for a refinance now. 
Wow, what a whirlind, time consuming experience! 
At this point we are looking for a fair honest review of our refinance application and a decision as to how Flagstar can make this right! 
If that can not occur, we are immediately seeking a refund of the money we paid for on shotty appraisal that was completed. Mortgage processer never addressed the questions we kept asking for in reference to how closing costs jumped all over the place from XXXX to XXXX, only informing us that home did not appraise. 
This process in itself is considered " bait and switch '' Inconsistent paperwork with different figures- We received XXXX different cost estimates for our loan for closing We should not keep having to do the homework of an appraiser that did n't do his job correct the first time around. It 's very deceptive that Flagstar was willing to take an appraisal that used comps that have not even sold yet, and within XXXX mile radius of our home. UDAAP-Unfair, Deceptive or Abusive Acts or Practices

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