Consumer complaint received 2021-11-24
Company: Flagstar Bank, N.A.
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I bought my parents ' house from them on XX/XX/XXXX and my parents bought a house to move to at the same time. We went through XXXX XXXX Mortgage Co but immediately after closing, our mortgages were sold to Flagstar Bank. When I purchased the house, I also got a XXXX homeowners ' insurance policy. When it came time to renew for this next year, I noticed that on XX/XX/XXXX, Flagstar had made a payment out of my Escrow account for {$1200.00} to a XXXX policy. I knew this was wrong so I double checked and my insurance was, in fact, with XXXX with a completely different policy number and the renewal amount should've been {$860.00}. As it turns out, that payment was to my father 's homeowners ' insurance despite them also making an identical payment out of his escrow. Despite us being related and having similar names, to put it simply, XXXX took money out of my escrow to pay someone else 's insurance policy and not mine. Over the past month and a half, I've made countless phone calls and spent hours on the phone with the insurance agency XXXX XXXX XXXX XXXX XXXX XXXX ) and with Flagstar bank. Flagstar bank at first tried to tell me that it was my fault for not cancelling the XXXX policy ( despite it never being mine to begin with ). Then Flagstar told me I needed to call XXXX and ask them for a refund ( despite me not having any relationship with XXXX and this being their mistake ). Then I was told it would be escalated and I'd get a call back. Of course I never got a call back so I spoke to the insurance agency and Flagstar together and was told they would put a stop payment on the check and would call me back. Not long after that call, I was called by Flagstar to be told it was a wire transfer that was already gone and they wouldn't do anything. At the end of that call I was promised another call back that, as you can expect, never came. Later my dad checked and saw that his insurance was XXXX  paid ( we didn't know until this point that it was his policy that my escrow had paid, Flagstar thought it was my dad 's old policy on the house I bought from him ). Not only that, but a refund check had already been issued to Flagstar bank on XX/XX/XXXX. After learning this, I called the insurance agency again who said they would speak to Flagstar. After a few days I followed up with the insurance agency and was told that the check was either going to come to me or my dad and I would need to pay my insurance myself and deposit the rest of the check in to my escrow. I was fine with this and paid my homeowners ' insurance myself on XX/XX/XXXX. After this, my dad double checked with XXXX since the check was nearly a month old and saw that the payee on the check was Flagstar bank and it was sent to a XXXX XXXX XXXX theirs. I logged in to check on my escrow to see if maybe it had been deposited on my behalf and it of course hadn't been. Not only that, but on my account, Flagstar was notifying me of an escrow shortage that I would need to pay them for by XX/XX/XXXX or they would be increasing my mortgage payment to make up for it. On XX/XX/XXXX, I called Flagstar bank and was told I could not be credited for their mistake and that they wouldn't do anything. Also, they STILL had XXXX listed as my insurance company after all this. After some time speaking to the representative, she said she corrected my information to show XXXX as my insurance ( they already had the documents which had been sent to them multiple times ) and she called XXXX with me on the line. The representative from XXXX said she couldn't talk to me because it wasn't my policy and that they wouldn't send a check to Flagstar. Despite them refusing to believe that the check would've been sent to Flagstar and saying my father didn't check anything with XXXX, I will attached a picture my dad took from XXXX 's website showing this information. My dad says he will call XXXX and ask about it but really, this is completely ridiculous. What if it was some stranger 's policy that had been paid, would I need to track down that stranger and ask them to help me?

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