Consumer complaint received 2017-06-01
Company: Flagstar Bank, N.A.
State: WA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
Flagstar reported my account 30 days late on XX/XX/16 before notifying me that my payment had been returned through the auto-payment system. The company claims to have a policy to not call customers if a payment is returned or past due. This policy contradicts being informed by XXXX at Flagstar that the company called me twice but the company entered my phone area code wrong, which she documented in my account. <P/>Further, Flagstar emailed me XX/XX/16 that my payment had processed. I received additional emails my statement was ready, but no email communicating an issue. I was later informed Flagstar 's email system is set up only to send payment processed confirmation emails. This is not a true statement based on my XXXX documentation. <P/>I was not notified my payment had been returned until I received a first postal mail dated XX/XX/16 which arrived two weeks later - on XX/XX/16. This first notification was too late to avoid the XX/XX/16 deadline. Despite immediately diagnosing I 'd deposited into the wrong checking account, paying,  and contacting Flagstar, I was reported as late. <P/>A week later, I received a second postal mail dated XXXX postmarked almost a week later on XX/XX/16. It arrived at my house on XX/XX/16. I emailed a photo of the letterhead and postmark to the company to  substantiate the communication delay and asked to not be reported late based on a one-time mistake, immediate fix, and company delay. <P/>I escalated to the Dispute fax at the company requesting removal of the derogatory mark, and received two conflicting postal letters - 1. that my request to overturn did not match my account records and 2. that my request to overturn was denied. <P/>I also escalated to XXXX XXXX, Office of the President. After multiple weeks I was finally told the company policy is to not call customers and that the email system which had assured me my payment was processed was unable to email anything else. The company claims my agreement to auto-pay is final. However, since I provided my email upon subscription for auto-payment and receive payment communications, I believe the system should reasonably also notify me of payment issues. Further, I was informed by XXXX the company sent a letter XX/XX/16 - I never received any such a letter. <P/>I take responsibility that I sent my first 'remote ( phone ) deposit ' of my renter 's check to the wrong checking account. It was a mistake. But since I 'd received an email that my payment had been processed and no email there was a problem, and no phone call as I would have expected with any past due amount or problem, I was not given the fair chance to act to resolve it - as I immediately did when I first learned too late on XX/XX/16. <P/>I had the funds all along and was able to prove this to Flagstar in the form of a bank letter and bank checking account ledgers. The funds continued to sit in the wrong account which I do n't monitor because all of my deposits and debits auto-draft.
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I believe Flagstar entering my phone number area code incorrectly and its qu
estionable and conflicting policy of not calling customers when a payment has not processed despite the Agent informing me I 'd been called twice, combined with sending an email my payment processed but no further emails created a false sense of security. <P/>If I had received any form of timely communication I would have been able to react in time to fix a simple mistake and protect my credit history. Instead I 've suffered a XXXX point credit score drop, a 1.6 % higher conventional mortgage APR, and denial of a jumbo loan which has jeopardized my ability to move for my job and afford to buy a home for myself and my sons in a new city.

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