Consumer complaint received 2024-03-15
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: NEW YORK COMMUNITY BANCORP INC (TN)

2nd Letter I sent to Flagstar. 

Dear Flagstar Bank Customer Service, I am writing to express my extreme dissatisfaction with the recent handling of my mortgage account. Flagstar purchased my loan from my original lender, thus interrupted the communication chain I had established with my homeowners insurance carrier, As a customer who did not voluntarily choose Flagstar as my mortgage servicer, I find it unacceptable that I am now burdened with unnecessary fees and poor service.. As a known non-escrowed mortgage holder, I expected better communication and proactive measures from your institution. Unfortunately, your failure to notify me promptly when my insurance company sent you the renewal and you failed to notify me until cancellation. Your failure to act has resulted in significant financial consequences and now you have engaged in Predatory force placed insurance for the gap in which your company caused. 
1. Onboarding Failure : When Flagstar acquired my loan from another lender, the onboarding process was severely mishandled. My homeowner insurance setup was disrupted due to a breakdown in communication, which should have been a straightforward transition. Having worked in the mortgage service industry for over a decade, I know that proper onboarding is critical to avoiding issues down the line. 
2. Third-Party Outsourcing : It has come to my attention that Flagstar outsources property tax and homeowners insurance verification processes to third-party companies, likely XXXX  and XXXX. The conflict of interest arises because XXXX, responsible for insurance verification, also serves as the Forced Place insurance provider. This dual role raises serious concerns about transparency and fairness. 
3. Assurants Troubled History : XXXX has faced legal challenges in the past due to predatory lending practices. It baffles me why Flagstar would partner with a company that tarnishes its reputation. A simple internet search reveals countless complaints about Flagstars service quality. 
4. Force Place Insurance Fee : I demand the immediate removal of the Force Place Insurance fee of {$1200.00}. Upon receiving the Forced Place letter from XXXX, I promptly contacted my insurance carrier to restore coverage. Flagstars failure to act on the renewal letter, despite knowing my account was non-escrowed, is a clear red flag indicating deeper issues with the onboarding process. 
5. I intend to file an official complaint with the Consumer Financial Protection Bureau ( CFPB ) regarding this matter. Flagstars negligence in handling third-party insurance coverage is unacceptable. This is a blatant example of Predatory 3rd Party Insurance fraud. Flagstar received the renewal notification and failed to engage me, but rather waited until cancellation notices was sent. At this time, after cancelation XXXX send me notice of non-insurance. I immediately restored coverage, yet XXXX added a {$1200.00} gap fee. This is PREDATOR GAP INSURANCE fraud. 
6. Legal Action : If these fees are not reversed promptly, I will seek counsel to investigate potential legal action against Flagstar. I am confident that a law firm will shred your loan acquisition process and will be thoroughly scrutinized. 
7. Contacting Regulatory Authorities : Additionally, I will report this matter to the Consumer Financial Protection Bureau ( CFPB ) and other relevant authorities. Customers deserve better treatment, especially when their financial well-being is at stake. I will also send this letter and all copies of your responses to XXXX XXXX, CEO, the entire board of directors and the entire executive staff. 

At the end of the day, you need to ask yourselves is this worth the expense and negative brand exposure. I expect a timely response addressing my concerns. Do not send me another automated reply ; I demand a personalized resolution. Please confirm in writing that the Force Place Insurance fee has been removed from my account. 

Thank you for your immediate attention to this matter. I trust that Flagstar will rectify these issues promptly to restore my confidence in your institution. 


XXXX XXXX Dear Flagstar Mortgage,