Consumer complaint received 2022-05-27
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Flagstar Bank, N.A. (NY)

Summary ======= I submitted a refi app to Flagstar, having just been denied financing by XXXX, due to a restriction on the percentage of ownership for a single entity. In my initial conversation with Flagstar, I was very clear that I had just been denied financing and I explained the reason for the denial. The loan agent assured me that Flagstar would take care of it, but a month-and-a-half later, it was denied for that very reason. The loan agent denied that I had told him about it. I requested that they at least make me whole for the money wasted on a doomed attempt at financing, but he simply doubled down on denying that he was made aware of this issue at the outset. I did not hear from his manager, as I would expect, when one of my people fails so miserably. 

The initial lock-in rate was ~3 %, but by the time Flagstar was done fumbling tis loan, the rates were approaching 5 %. 

XXXX. Initial call XXXX. In XXXX, I applied for al loan with XXXX XXXX. The loan was denied, based on the XXXX XXXX rule that requires that no single entity may own more than XXXX XXXX of a condo, and their inability to provide an alternative, XXXX. On or about XX/XX/XXXX, I initiated a refinance application on the Flagstar web site XXXX. Thu, XX/XX/XXXX, XXXX AM, I received an email from XXXX XXXX ( NMLS # XXXX ), XXXX XXXX  Home Lending Manager at Flagstar, in which he requested that we speak. 
4. XX/XX/XXXX XXXX PM XXXX XXXX XXXX XXXX Incoming, XXXX XXXX XXXX I spoke with XXXX XXXX XXXX. I was very clear about the single-owner issue that had scuttled my XXXX loan. 
2. I explained that, since my last financing, the rules at XXXX XXXX in this regard had changed and that XXXX had not been able to provide a viable alternative 3. I distinctly recall XXXX XXXX jovially-laughing and assuring me that I was in good hands. 
5. Pay for appraisal {$500.00} ( CONFIRM ) 6. Pay {$250.00} for Condo insurance info 7. On XX/XX/XXXX, I reviewed the loan estimate documents 1. I saw that the closing costs were exorbitant ( ~ $ XXXX ), and I emailed XXXX XXXX for an explanation, as estimated closing costs in the past, and for the XXXX loan had been significantly under $ XXXX XXXX. " His response to that email, which follows, shocked me More concerning is the condo association itself. 
The forms we just received back show the sponsor still owns XXXX of the XXXX units. 
We are trying to confirm this to be accurate.If it is, we have a problem. 
Will advise. '' XXXX. He apparently had not understood, simply forgotten, or just ignored my admonition regarding the single-owner percentage cap, which i had very clearly described in our first conversation ( can we go to the tapes? ) 8. On XX/XX/XXXX, He responded, as follows : 1. " Unfortunately I have exhausted all avenues and can not get the approval on this unit. 
Underwriting will decision the loan and you will receive written confirmation in your portal. 
Im sorry we could not accommodate your request. 
If you should choose to move at any point I would be happy to help with the financing. '' 9. In response, also on XX/XX/XXXX, I wrote : 1. " I have to say that I am seriously disappointed. When I initiated this loan, I was very clear that the reason I was talking to you was that XXXX was unable to handle this exact situation. 
Several XXXX dollars and several months later, we are exactly where I was with XXXX when I came to you. 
I would appreciate your making arrangements to make me whole on my wasted efforts, Including the {$250.00} I had to pay my condo association and any other costs that I have incurred. '' XXXX. XXXX XXXX denied that we spoken about this very issue and referred me to his manager, XXXX XXXX at XXXX.