Consumer complaint received 2022-10-10
Company: Flagstar Bank, N.A.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I have paid my mortgage to Flagstar Bank, XXXX, MI, of {$1900.00} every month since closing in XXXX, XXXX. On my XXXX or XXXX, XXXX statement, I noticed that my payment was escrowed for homeowners insurance. I promptly called Customer Service to inquire about this since I never signed up for escrow and pay my insurance and taxes directly. I had my insurer send the appropriate documentation confirming that the insurance was paid up to date. A Flagstar Bank 's Customer Service rep confirmed in a later call that it was up to date and my mortgage would be put in order, Escrow account would be closed. Every single subsequent call with this Bank 's service people confirmed by the end of our call that everything would be corrected and put in order ; the error would be corrected. Throughout this period, my payments have been continued every month automatically from my bank. A late fee was waived due to their error in XXXX, XXXX. 
Every single month since XXXX or XXXX, I have gotten calls, and now letters, from their Loan Mitigation Department ( Collections. ) According to my records, I have called on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, early XX/XX/XXXX and XX/XX/XXXX. On XX/XX/XXXX, I even sent a Registered Letter to the Loss Mitigation Department and copied by Registered Mail, XXXX XXXX XXXX, Flagstar Bank 's Head of Servicing, to explain ( again ) the problem and requested that they move the funds from the Escrow and suspense accounts, which I have been told since the XXXX call would be closed, applied to my principal and interest. I received absolutely no reply to this letter. 
I followed up again on XX/XX/XXXX with " XXXX '' in the Escrow Department which was very promising. She totally understood the problem, made the appropriate computer notations and instructions to escrow/suspense account personnel, and said it would take 3-5 days to make the corrections and apply the escrow and suspense to my P & I. Today, XX/XX/XXXX, I received yet another letter from XXXX XXXX dated XX/XX/XXXX, to " consider your options. '' In my entire career in the mortgage securities business as an XXXX in the XXXX XXXX divisions of major reputable corporations, I have never seen nor been victimized by such egregious incompetence. With a 2.75 % mortgage at stake, I almost understand it, but they signed a contract to service my loan and I will continue to pay it. 
However, inasmuch as there may be harassment and/or fraud involved ( perhaps??? ), I request that my case be reviewed by the CFPB. I have followed up monthly and diligently with Flagstar Bank since XXXX or XXXX. It is now almost 6 months where their employees have said that they have resolved this issue, yet their Collections Department continues to call, send letters and apparently no one, including XXXX XXXX, EVP and XXXX XXXX XXXX has resolved the issue on my outstanding loan of $ XXXX. 
I have documented all calls, and can send documentation, letters, notations of the calls, and statements, etc.

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