Consumer complaint received 2021-02-19
Company: Flagstar Bank, N.A.
State: CA
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I brought it home about two years ago, I want to lower my interest rates, so I did a VA XXXX loan this loan you don't pay a mortgage for three months, and your rates are lower. Well, the three months went by. On the XXXX of the final month, I did not receive a welcome letter or anyone to pay, so I use the money to fix significant items on the home. On the XXXX of the month, I received a text from " XXXX '' mortgage saying that your loan would be in default if you did not pay by the next day. During the ( 3 ) month period, I did not receive a welcome letter or packet to prepare for the payment. I received a text a day before the loan was 30 days late. 
So, I have been paying my house note late every month for like a year ; I complained to the CEO of the XXXX  mortgage that the loan was sold to FLAGSTAR mortgage company. Know for some reason, after explaining what happens, and I did not pay any late fees on the loan. 

Then the pandemic hit the nation and the world, and interest rates have dropped, so I'm just have done a new loan with XXXX XXXX XXXX  XXXX witched dropped the 3.125 % from 3.625 %. I own a XXXX. I was told that this is are great rates because it considers income property. 
I was told not to schedule a payment for the end of XXXX at the last minute. I received a call from FLAGSTAR mortgage company ; the lady on the phone kept on wanting to verify my phone number and wanted to know if I lived at the property ; she was very rued and demanded that I pay for a payment for XXXX, which I did I schedule the payment for and their website ensure the payment would come out the next day. The amount was set up on XXXX XXXX and should have been drawn out of the account on XXXX XX/XX/2021. 

I have other bills and bills scheduled to come out the next week on XXXX XX/XX/2021. Well, to get to the point, the FLAGSTAR mortgage company did not pull the money, so all the other bills went through except that payment. The following week I signed the new loan documents on XXXX XX/XX/2021. 

Then I received a phone call from that same lady saying that I need to pay over XXXX dollars. I informed her that I just signed new loan documents and I would not be spending XXXX dollars. On XXXX XXXX, my loan major called me and said that I need you to wire XXXX to close the old loan with FLAGSTAR. 

Good morning. We have a significant problem with this one. The payoff lender returned the wire because it was short. I called Flagstar to see what the shortage was for, and I was told that the borrower 's last payment bounced. My file is now short because the payoff figures went up. I've attached the updated settlement statement, payoff demand and wire instructions. Please reach out to the borrower, asap, to wire in the shortage funds of {$2900.00}. These figures are good until XX/XX/2021. After that day, we will have to add per diem and the shortage will go up. 

If we do not receive the shortage funds from the borrower in a timely matter, we will have to unfund the new loan and return the funding wire to the new lender. 

Please keep me updated. Thank you! 


I feel that FLAGSTAR knew I was moving on with a better deal, and they should have tried to work with me, but the agreed company and even during a pandemic they have no grace for Veteran or anyone else. I fill the lady that called me was told the company not to accept the payment. The payment was XXXX that included a late charge of XXXX dollars, a difference of XXXX dollars. I also fill the Loan company prey on veterans. As soon as this process started, my phone was blowing up with phone calls from other loan companies like sharks in the water. It's disconcerting. 
I feel like a foot has been on my throat, and the lady from FLAGSTAR seems to make the transition to the new loan worst like she found something to disqualify like she had power, and I felt like I'm bending over backward to appease an agreed mortgage company. 
Im retired from the XXXX being to combat ( 3 ) times and just want to live in peace, I feel that lady from FLAGSTAR just shows corporate greed evening during a worldwide pandemic, just degusting behavior. 

XXXX " Retired '' XXXX XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX

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