Consumer complaint received 2024-01-09
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: NEW YORK COMMUNITY BANCORP INC (WI)

To whom it may concern at Consumer Financial Protection Bureau, I am writing to you today, XX/XX/XXXX, to submit a serious complaint about a financial service by Flagstar Bank, our mortgage company assigned to us by XXXX XXXX XXXX. Flagstar Bank has not paid our property taxes, therefore breaking a legal document signed at closing. I have spent countless hours on the phone since the beginning of XX/XX/XXXX trying to be proactive from the start due to the fact we do not trust Flagstar Bank. 
At closing on XX/XX/XXXX, we signed a legal document titled Wisconsin XXXX Escrow Option Election in which Option # XXXX was selected which states as follows : The Lender will pay the property taxes from my escrow account by XX/XX/XXXX, if the Lender has received a tax statement for the property by XX/XX/XXXX. I understand that it is my duty to forward my real estate tax bill to you no later than XX/XX/XXXX, if you are to comply with this requirement. The property taxes were in fact sent to Flagstar prior to this date. I can confirm from the XXXX XXXX Treasurers office that Flagstar Bank has NOT paid our property taxes as I write to you today XX/XX/XXXX. This contract has been broken which is fraud. 
Please review the following timeline of trying to get our property taxes paid below : XX/XX/XXXX : Contacted Flagstar on how property taxes will be paid with multiple follow up phone calls afterwards. 
XX/XX/XXXX : Property tax bill emailed from homeowner to XXXX as per Wisconsin Tax Escrow Option Election. The representative stated it will take anywhere between 7-10 business days to either be received or processed which does not make sense as it is an email with immediate correspondence capabilities. 
XX/XX/XXXX : Called Flagstar ( talked to XXXX ). Representative stated tax bill not updated on account. Stated that Flagstar sends out all payments to the county at once and that its not due until XX/XX/XXXX so there is no way they can pay it before then. I asked to speak to whoever runs the Property Tax email and she said there is no one to talk to for that suspicious. I had a 3-way call with XXXX XXXX XXXX XXXX Flagstar in which we explained we signed the aforementioned legal document that this needs to be paid by XX/XX/XXXX from the escrow account. Flagstar stated that it will still count on XXXX taxes even if its paid in XXXX which is false. Flagstar representative XXXX XXXX XXXX sent in a request to pay property taxes by XX/XX/XXXX which she stated goes to a third party before the actual tax area for payment. 
XX/XX/XXXX : Called Flagstar ( talked to XXXX ). Representative stated that the property taxes were received XX/XX/XXXX as she saw from their internal system. She stated it will be paid before XX/XX/XXXX per the request sent the day prior. Representative unsure if they pay electronic or check. 
XX/XX/XXXX : Per our online portal the correct amount of money was withdrawn from the escrow account. 
XX/XX/XXXX : Per online and call to City of XXXX Treasurer office, there has been no payment received for our property. The money was taken out of our escrow account exactly XXXX weeks ago. Homeowner called Flagstar bank asking for check #. Flagstar bank stated they do not have a check number and could not provide. Talked to XXXX ( supervisor ) which stated that 1098 form will be sent to us reflecting that the property taxes were paid in XXXX which I can not believe or trust. Is this fraud? 
We feel Flagstar Bank has broken a legal closing document, which is fraud. We also feel Flagstar Bank has stolen our money as we do not know where the money is that was removed from our escrow account. This is questionable practice with horrible customer service. Customer service representatives consistently give us the run around with no clear answers. They respond differently each time saying I dont know I cant transfer you to anyone that knows etc. 
Our resolution is that this should be paid immediately with Flagstar Bank being responsible for all late fees, if applicable. Because we do not trust Flagstar Bank, we are demanding a new amortization schedule reflecting that home insurance and property tax payments are NOT included in escrow in the future.