Consumer complaint received 2022-09-07
Company: Flagstar Bank, N.A.
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
MISHANDLING/MISUSE OF FUNDS - THEFT - FRAUD - NEGLECT - LOSS OF USE - FLAGSTAR BANK My home caught on fire on XX/XX/2022, due to no fault of my own. My insurance ( XXXX XXXX XXXX XXXX XXXX XXXX company did due diligence by submitting payment ( {$140000.00} ) for rebuild on XX/XX/2022, in a check made payable to myself, my public adjusters ( the company representing me during my Peril ( Fire ) process ), and my mortgage company - Flagstar Bank. Flagstar 's role, having security interest in my property is to hold funds in escrow and disburse quickly, according to their disbursement schedule. They even told me that because of my good account standing/status, that my funds disbursements would NOT have to undergo their more stringent monitoring and disbursement practices. 

Prior to the first disbursement they ( Flagstar Loss Drafts ) required three things : 1 ) A signed Repair Affidavit ( this is a form drafted by Flagstar, signed by me, essentially stating that I promise to use the funds disbursed from escrow to rebuild my home ), 2 ) The Blue Prints for the rebuild ( said blue print was drafted, created, reviewed by a licensed XXXX and licensed XXXX ; then further fully approved ( in XX/XX/2022 ) by the Department XXXX XXXX and XXXX XXXX for rebuild. 
XXXX ) My XXXX 's Rebuild Estimate. 

During the months of XXXX thru XX/XX/2022, as they became available, each item required was submitted to Flagstar Loss Drafts department. Each item subsequently had to be submitted several times during the months of XXXX thru to XX/XX/2022, as each time my representative inquired on the status of Flagstar 's receipt, there was a constant discrepancy of recording on their part. For the first couple months Flagstar was miraculously unable to locate the several attempts of us/my representative sending off required documents. They kept saying that they had no record of anything being received, even though we had verification of transmittal on our side ( via email and fax ). Eventually in XX/XX/2022 when we were certain that Flagstar should have received all three items, they acknowledged receipt of one item, stating they were still pending receipt of the other two items. Each time we called to follow-up status of their receipt, one day they would say they have an item, the next day they would state that same item is missing again and documents still pending. We have been sending copies of all three items at minimum, once a week for months now to the email/fax addresses that they provided ( Email : XXXX and Fax XXXX XXXX XXXX ). We have asked that the case be escalated and that a supervisor return our call on several occasions, they have only done so once, of which they were supposed to call back which has not happened. Each time myself or representative has attempted to contact them by phone, we have been on hold for 30 minutes, an hour, and even a hour and a half. [ P.S. I have a full record/transcript of specific dates, times, names of all forms of communication made to date ]. 

Please note that we did also send all required documents via certified mail which they received and signed for on XX/XX/2022. Even via this method from the one package, they stated items were missing. Weeks after the certified mail, Flagstar finally admitted and acknowledged to having all three required documents and said the docs were in review. Our last conversation ( after waiting for a hour and a half again ) occured on XX/XX/2022 at XXXX with their representative K*n***t*. She stated that the review of my Floor Plan was denied for the following reasons : - While they acknowledged that each room of the house indicated its square footage on the floor plan, they did not see an indication of the gross square footage of the home.

And for this reason the floor plan was rejected.

A floor plan that was created by a licensed Architect, license Contractor, and fully approved by an accredited Licencing governing body, was denied by a mortgage company ( Flagstar Bank XXXX, whose sole purpose is to hold funds in temporary escrow and to release funds quickly so that I can rebuild my home, to protect it from further damage. 

End of XXXX, and the months of XXXX and early XX/XX/2022 had frequent heavy rain storms. Some of the temporary protection to my home collapsed, MOLD formed quickly thanks to the breakthru rain water and summer heat ( I did not have have any mold issues from the first mediation because we mediated quickly and the fire occurred during winter ). I have since had to have another emergency, temporary mediation to save my home from further damage. It is now XX/XX/2022, we are moving into the fall season and before you know it agin will be winter. Due to the negligence and deliberate withholding of funds by Flagstar Bank, I have still yet to receive a disbursement to start permanent rebuild to my home, and so that I can prevent further damages and unnecessary, preventable temporary mediation expenses. 

Flagstar 's mishandling and/or misuse of my insurance claim disbursements have cause me further loss of use, damages to my property, pain and suffering, lots of wasted time and additional expenses. 

My patience has ran out and I have since sent a FINAL demand for immediate release of funds before litigation. Verified their receipt of said correspondence on XX/XX/2022.

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