Consumer complaint received 2021-10-20
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Flagstar Bank, N.A. (MA)

Flagstar my mortgage company is in violation of section 6 under the RESPA act. I have made all respective mortgage payments on time and in excess of the required amount. My flood insurance policy was up for renewal on XX/XX/XXXX, per my loan agreement the bank is required to pay my insurance company. I even called 3-days ( XX/XX/XXXX ) before payment was due to verify the schedule payment. The policy was renewed 6 days late ( XX/XX/XXXX ), as the Bank failed to pay on time ( payment was made on XX/XX/XXXX ). In addition, the Bank failed to request and upload proper documentation to their servers. I was only made aware of this, after i contacted them ( on XX/XX/XXXX ) in regards to the late insurance payment. I asked them if they would like me to forward the insurance jacket ; they refused this and informed me that they would reach out to the provider directly. I called again 7 days later ( XX/XX/XXXX ) as a new escrow escrow payment was being required, however, this amount was incorrect as the wrong escrow start balance and incorrect end estimates were utilized. This resulted in ~ {$190.00} a month increase because they were now requiring the escrow be over two months worth of payments and it wasnt being evenly spread/calculated over 12 months, but rather during the months when all of my insurance/tax payments, etc. came due because a lower escrow balance would be reflected. I asked them to recalculate my escrow balance based on actuals not incorrect estimates, which didnt align with the escrow schedule. Furthermore, this led to additional struggles with my insurance. As a result of the new escrow calculation, the late flood insurance payment from escrow, and their inability to file the renewed policy onto their internal filing system, my account was placed into forced flood, which caused my escrow deficit to increase by {$2000.00} on top of the {$390.00} shortage ( which was incorrect ). I have since emailed and called the Bank a multitude of times after originally contacting them back at the start of XX/XX/XXXX. XXXX contact dates : XX/XX/XXXX ( 2 calls ; 1 - 10 minutes, 2- 34 minutes ; plus an email )- received an email it was resolved ( it wasnt ), XX/XX/XXXX ( 1 call - 21 minutes ), and XX/XX/XXXX ( 1 call - 35 minutes, uploaded insurance jacket because the rep finally allowed me to after crying on the phone and explaining the issue as she was incorrectly under the impression I didnt have the right amount of coverage ; she sent me an email with the link for upload ; 1 email sent ). Multiple times the Bank informed this was resolved, but every time I followed-up it was not and the issue seemed to have deteriorated even more since I last spoke with the prior representative. Today ( XX/XX/XXXX ) they still have my account as placed in forced flood insurance. I received a letter today dated XX/XX/XXXX stating thats this is my second final notice and that I require flood insurance. No first notice was ever sent or received, and I have the updated insurance ( as stated above ) which they paid for ( late on XX/XX/XXXX ) and my escrow remains incorrectly calculated as result ( inflated by {$2300.00} ). I am at an emotional breaking point I have tried tirelessly to work with them to resolve these issues to no avail. I need to seek legal action. I do not a confidence in this company.