Consumer complaint received 2022-06-11
Company: Flagstar Bank, N.A.
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Flagstar Bank is stalling and refusing to remove the PMI insurance from my mortgage/monthly payment. 

XX/XX/XXXX : I called to start the process to remove PMI insurance and Flagstar would send a letter with instruction on how to get it removed and I followed the steps. 

XX/XX/XXXX : Since I did not receive any feedback or letter informing of the status of the application to have the PMI removed I called for an update. I was informed that for some reason the application/process had been cancelled and they did not know why. At this point they reopened the process/application and I received a case #. All was back on schedule to proceed with the application. 

XX/XX/XXXX : Two weeks later on XX/XX/XXXX I called to inquire the status of the application since I was supposed to received a letter on the status of the application. During this call I was informed that the letter was sent but I informed them no letter arrived. During my call with Flagstar they emailed me the letter of denial and to start a process to get the house appraised by sending them a payment for the appraisal process. 
XX/XX/XXXX I sent the check to Flagstar ( certified mail ) to start the appraisal process of the home. 

XX/XX/XXXX : I called to get another update on the appraisal process and they informed me that the check was received and cashed out and they were hiring an appraisal company. They informed me that the appraisal company would contact me in about 7 days to start the appraisal oh my home. I never received the call therefore on XXXX I called to to get another update. It feels like they have taken my money to get the house appraised but its not being done. 

XXXX : During this call I was told that they had not started the appraisal process because the check was short {$25.00}. The original check was made out in the amount I was given by Flagstar. At no point was I ever contacted to be alerted that additional funds needed to be sent. It has taken action on my part to constantly request updates instead of Flagstar just chasing my check and not communicating with me. All they told me was sorry and appraisal company wouldnt take the appraisal because of the {$25.00} discrepancy it should not be the case because I sent the amount I was told to send originally. If find were short they should of 1. Notified me or 2 return the check. At his moment the supposed solution was to send the {$25.00} which I did and paid the {$25.00} via the call. The next step I was to follow was to call in 7 days if the appraisal company didnt reach out with in 7 days now that the funds for the appraisal was paid in full. 

XXXX : I was patient enough and give the process of appraisal almost a month to ensure all funds were good and no other issues would arise. I called XXXX and Flagstar informed me that they had paid the appraisal company and that I would receive a call with in 7 days to set up the appraisal. 

XX/XX/XXXX : 7 days have passed and no call l, email nor letter from the mortgage company nor the appraisal company has occurred. I am extremely frustrated as no effor in communication from Flagstaff has been attempted. I called and requested a update and for the process and all I was told is that the appraisal company has the funds and rudely told me IT IS NO LONGER FLAGSTARS ISSUE. That they have done their part and its on the appraisal. I however believe since Flagstar contracted them they should be responsible for their contractors timely communication. I requested contact information for the appraisal company and she rudely told me she didnt have any information to provide. At this point I am extremely frustrated and feel like Im being taken advantage as the fund have been chased since XXXX ( the final {$25.00} payment ) and no services are being provided.

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