I own a settlement service company ( hereinafter " Settlement Agent '' ). Prior to XXXX XXXX, mortgage loan consumers of Flagstar Bank ( " Flagstar '' ) used Settlement Agent services without incident. Since XXXX XXXX, on XXXX occasions, Flagstar required consumers using Settlement Agent 's services to terminate relationship with Settlement Agent and hire a different Settlement Agent to close the transaction. Flagstar tells consumer that Settlement Agent is ineligible to do business with Flagstar. Flagstar refuses to provide explanation or to reconsider its decision. Consumer typically is not informed until towards the end of the transaction when loan documents are ready to be released. In a XXXX XXXX escrow, Flagstar gave notice to the consumer on the day escrow was to close. In a XXXX XXXX escrow, the consumer made a written request to Flagstar to allow Settlement Agent to close the transaction. ( Exhibit XXXX. ) Flagstar did not change its position and still refused to provide an explanation. As a consequence of Flagstar 's conduct, consumers were left with no choice but to change settlement agent late in the transaction. As such, consumers and everyone in the transaction were distraught. Consumers and all other parties in the transaction have to restart the process all over again with a new settlement agent. This causes the consumer to incur additional costs, and the delay puts the consumer at risk of breaching conditions of sale, cancellation of the transaction, and incurring penalties, interest and costs. 
Settlement Agent believes Flagstar refuses to do business with Settlement Agent because Settlement Agent in XXXX XXXX refused to provide private consumer information to Flagstar. In an email dated XXXX/XXXX/XXXX Flagstar advised that it was auditing a loan transaction and demanded documents in Settlement Agent 's possession. Flagstar expressly advised that failure to respond to the request would " result in an evaluation of your business relationship with Flagstar Bank, up to, and including possible termination of said relationship. '' ( Exhibit XXXX. ) Besides documents relevant to Flagstar 's borrowers, Flagstar 's requested private information about the seller in the transaction who was not a customer of Flagstar and who did not authorize disclosure to Flagstar. Settlement Agent provided documents to Flagstar, but refused to provide non-public personal information ( NPPI ) about the seller. ( Exhibit XXXX. ) Settlement Agent advised Flagstar that it will require parties ' consent in order to produce the NPPI requested by Flagstar. Flagstar, in an email dated XXXX/XXXX/XXXX, responded that it will require all the documents requested be produced, and again warned, " If your company does not comply with this request and/or future requests, our business relationship with your company can be re-evaluated. '' ( Exhibit XXXX. ) Settlement Agent had its attorney send a letter dated XXXX/XXXX/XXXX to Flagstar citing legal authority, including the XXXX XXXX, to explain its position. ( Exhibit XXXX. ) On XXXX/XXXX/XXXX Settlement Agent learned that Flagstar placed Settlement Agent on its " ineligible '' list when it refused to produce loan documents on a transaction serviced by Settlement Agent. The borrower was told the loan would not be made unless a different Settlement Agent handled the transaction. In a letter to the president of Flagstar dated XXXX/XXXX/XXXX Settlement Agent requested an explanation from Flagstar and requested that it reconsider its position. ( Exhibit XXXX. ) Flagstar did not respond. In XXXX XXXX, Flagstar again refused to fund a loan for a transaction serviced by Settlement Agent and the consumer 's loan officer requested explanation from Flagstar and reconsideration of its decision, but Flagstar refused to explain or change its decision again. ( Exhibit XXXX. ) Flagstar has done this to other settlement agents as well.