Consumer complaint received 2020-03-30
Company: Flagstar Bank, N.A.
State: OR
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
This complaint pertains to a mortgage which erroneously and egregiously transferred from XXXX XXXX  to Flagstar Bank. On or about XX/XX/XXXX of last year I received the notice dated XX/XX/XXXX indicating that my loan was going to transfer. On XX/XX/XXXX I went to my local branch of XXXX XXXX  and a representative contacted the mortgage department for a payoff statement. I returned to the branch later the same day with the funds needed to pay off the loan in full. My understanding was that the loan was paid off and hence would not be transferred. XXXX at my local branch of XXXX XXXX  offered superior service in facilitating the loan payoff. 

In XXXX I received a statement dated XX/XX/XXXX from Flagstar Bank stating " partial payment ( unapplied ) '' in the amount of {$84000.00}. The statement reflected the account was overdue for the month of XXXX and that payment was due for XXXX. I visited the local XXXX XXXX   where I again spoke with XXXX. She again offered superior service by promptly addressing my concerns and making a couple of phone calls to ensure my mortgage had indeed paid off. 

Payment for this loan last drew automatically from XXXX XXXX on XX/XX/XXXX with {$350.00} interest paid for that month. Prior to loan payoff, the total interest paid to XXXX XXXX  for XXXX was {$3200.00}. As reflected on the payoff statement, the outstanding principal on the loan was {$83000.00} and the payoff amount was {$84000.00}. The payoff statement shows interest of {$340.00} and a reconveyance fee of {$130.00}. In XXXX of this year I received a 1098 Form from XXXX showing {$3200.00} interest paid and a loan transferred amount of {$83000.00}. Additionally, I received a 1098 Form from Flagstar showing {$450.00} interest paid. 

The sum of interest reflected on the two 1098 Forms is {$3700.00}. Yet, the sum of the interest paid to XXXX prior to loan payoff, {$3200.00}, and the interested reflected on the loan payoff statement, {$340.00}, is {$3500.00}. The difference between the two sums is {$110.00}. Taking the reconveyance fee into consideration, there is a discrepancy of {$23.00}. 

I contacted Flagstar Bank multiple times between XX/XX/XXXX to XX/XX/XXXX to seek clarification of the discrepancy. Multiple times I explained to various representatives the discrepancy of {$23.00}. In the last conversation I had with a Flagstar representative on XX/XX/XXXX I was informed that Flagstar had not received a notice of loan payoff from XXXX The representative said records showed a deduction was made for {$23.00} but that there was not description for the deduction. Lacking a clear explanation, the representative suggested the discrepancy was for payoff fees. Due to the tax nature of my concern, the representative escalated my case to high priority. On XX/XX/XXXX I filed a complaint against XXXX XXXX  in the State of Oregon. On XX/XX/XXXX I received an email notification from Flagstar stating my case had been resolved. 

After waiting eight business days, hoping to receive corrected documentation by mail, I again contacted Flagstar on XX/XX/XXXX. After speaking with a customer service representative, it became clear that the case is still unresolved. I informed the representative that I had no other option than to file a complaint. I asked for the name of a contact I could reference regarding this complaint. The representative kindly let me know she would be unable to provide the name of anyone who " resolved '' my case. 

On XX/XX/XXXX I went into my local XXXX branch to speak with XXXX. She reached out to the mortgage department on my behalf to see if someone could look at the issue more closely. On XX/XX/XXXX I spoke with XXXX in XXXX mortgage department and she stated there had been a little glitch in the system and offered to do a little more digging. On XX/XX/XXXX XXXX contacted me to let me know that {$23.00} discrepancy was for interest from when the loan was transferring to Flagstar. When I asked for which dates the interest would have incurred she stated XX/XX/XXXX and XXXX. When questioned as to how that could be when my loan paid off on XX/XX/XXXX she stated and it did pay off didnt it? When I said I have no documentation reflecting the charge, she said Thats something youre going to have to get from Flagstar. 

I next contacted XXXX once more to request a copy of the payoff statement as I had not seen nor received a copy. As usual she provided excellent service and promptly emailed ma a copy. 

As of now I have documentation reflecting charges totaling more than paid. As this matter is financial in nature and pertains to taxes, accuracy is of paramount importance. Why was this loan transferred? Despite receiving less than 30 days notification of loan transfer from XXXX, loan was paid off in full on XX/XX/XXXX, prior to the transfer date of XX/XX/XXXX. All checks presented cleared. 

I need an accurate Form 1098 reflecting interest paid to XXXX XXXX   through XX/XX/XXXX so I can file my taxes. Flagstar Bank also needs to issue a corrected Form 1098.

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