Consumer complaint received 2017-11-23
Company: Flagstar Bank, N.A.
State: RI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX We reached 80 % loan-to-value on our original purchase price and mailed a PMI Cancellation Request to Flagstar Bank with a check for {$120.00} so that they could perform the Brokers Price Opinion. When I called them previously to ask about this, they said they would mail the decision to us in about 4 weeks. 

XX/XX/XXXX I Called Flagstar Bank ( XXXX ) XXXX They said they never received the check. They advised to place a stop payment on the check and mail a new check. Paid {$30.00} to place stop payment on {$120.00} check. 

XX/XX/XXXX Mailed new check with PMI cancellation request and a check for {$120.00}. 

XX/XX/XXXX A bank representative came to our house and performed appraisal. 

XX/XX/XXXX Flagstar Bank sent a decision on the PMI waiver request and the results of the Appraisal. Documentation they sent us states the BPO produced a value of {$360000.00} and in order to cancel PMI we need to pay down your principal balance by {$15000.00} to bring your loan-to-value to 80 %. 

XX/XX/XXXX I Called Flagstar Bank to ask some questions about disputing the results of the B.P.O. In the end we decided not to fight the B.P.O and to pay the {$15000.00} to bring the new loan-to-value to 80 %. 

XX/XX/XXXX The documentation Flagstar Bank sent us states : If you would like to pursue this option, please send a cashiers check and a copy of this letter to the following address : Flagstar Bank Attn : PMI Department XXXX XXXX XXXX XXXX XXXX, MI XXXX My wife got a cashiers check from her bank, for {$15000.00} and mailed the cashiers check along with the PMI letter to the address above. 

XX/XX/XXXX I Called Flagstar Bank. Asked why the check had not been posted to our account. They said they havent received the check yet. Told them I know the check arrived on XX/XX/XXXX and provided them with the USPS tracking information. I gave them my email and they said they would get back to me via email in 3-5 business days. I never heard back from them. 

XX/XX/XXXX I Called Flagstar Bank in the evening. Spoke to XXXX. Explained the situation. During call, she said that she was sending the case to the PMI department. She provided me with the Flagstar Bank Case number. She said if I dont here from them to call back Tuesday-Wednesday before XXXX so that a supervisor could be spoken to. 

XX/XX/XXXX I Called Flagstar Bank. Spoke to XXXX again. XXXX said there was a new note on the account dated XX/XX/XXXX reading, Borrower paid down to 80 % loan to value, sending PMI waiver to management for approval. I asked her why my cashiers check had not shown up on my principal balance. I explained to her my concerns that it is a live check with certified money and that means money is no longer in my account. She spoke with a supervisor and called the PMI department. She said they thought the check went to another department and they should find it within 3-5 business days and they would call me once the problem was resolved. We never heard back. 


XX/XX/XXXX I called Flagstar Bank. Spoke to XXXX. He contacted an agent in the mail room. He said they are reviewing the case. He said no one signed for it. I re-iterated my concerns about it being a cashiers check and this being the second piece of mail they have lost ( see XX/XX/XXXX ). He said he would call me back today to get the matter of the checks location resolved. XXXX called me back within 15 minutes and stated Flagstar Bank had lost the check. He said he notated the account with this information and said I needed to cancel the cashiers check. Once I cancelled the check and got my money back I could pay down the {$15000.00} over the online payment system. He said this would have to be done in two separate payments, since the maximum principal payment per day is {$15000.00}. I responded I would begin this cancellation process and get back to them. He said once the process is done the PMI department would reimburse the additional PMI payments I had paid since the check was lost. 

XX/XX/XXXX After some back and forth with our personal bank, beginning on XX/XX/XXXX, to determine the process to cancel a cashiers check, our personal bank said in order for them to get us our money back in a timely fashion, Flagstar Bank would need to fill out, sign and notarize an affidavit saying the check was lost by them, FlagstarBank. Our personal bank sent the affidavit via email to us to send to FlagstarBank. 

XX/XX/XXXX I Called Flagstar Bank. Spoke to XXXX. I sent the affidavit via e-mail to Flagstar Bank during the phone conversation. XXXX received it and attached it to our account. She said we should here back by tomorrow. I reiterated my concerns about the check being lost and my concerns about them not getting back to me. We never heard back. 

XX/XX/XXXX ICalled Flagstar Bank. Spoke to XXXX. I stated we had not heard back from them and we need the affidavit signed, notarized and sent to our personal bank or us. They have already determined they lost the check ( See XX/XX/XXXX ). XXXX put me on the phone with a supervisor. I told him my concerns and he stated it would be 5 to 15 business days before they could handle the request. He said the research center will sign and return the form. I told him my concerns about the missing money. 

1. Im paying interest on {$15000.00} that they lost on XX/XX/XXXX. 
2. Im still paying PMI. 

He said I would be able to do a reimbursement request to get my additional interest paid back. He said I will have to perform this calculation and they would review it and approve it. He also said the PMI Dept. would reimburse me for the additional PMI payments I have paid. 

XX/XX/XXXX I Called Flagstar Bank. Spoke to XXXX. Asked her about the status of the affidavit. She stated it was with the Research Center but has now been sent to the cashier for evaluation as the research center will not sign it. Spoke to supervisor, XXXX. He stated the person who is dealing with the case was in a meeting, but that he would get back to me today ( XX/XX/XXXX ) with an answer as to where things stand. We have not heard back. 

XX/XX/XXXX Wrote and Submitted this complaint.Note that I have attached two attachments : 3 and 7. I  have 8 total attachments but I did not include them all since they contain personal information. Please contact me if you need this information.

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