Consumer complaint received 2024-02-23
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: NEW YORK COMMUNITY BANCORP INC (CO)

XXXX  - We purchase our home at XXXX XXXX XXXX, XXXX XXXX, CO, financing it with XXXX XXXX XXXX We register our mailing address with the mortgage company as XXXX XXXX XXXX, XXXX, CO XXXX. 

XX/XX/XXXX - We are informed our mortgage is sold to flagstar bank. 

XX/XX/XXXX - Payment for our XXXX mortgage payment ( principal + interest ) is received by flagstar. flagstar refuses to accept payment, although we are not aware of it at this time. 

XX/XX/XXXX - We receive usps mail at XXXX XXXX XXXX. notifying us that flagstar bank has purchased force placed insurance on our home. This is the first time we have received any correspondence from flagstar at this address. 

XX/XX/XXXX - I speak with agent at flagstar bank by phone. I inform her we never received notice of flagstars intent to place force based insurance on our home. Had flagstar had inquired we could have easily provided proof of insurance with XXXX. 

XX/XX/XXXX - I submit a qualified written request ( QWR ) to flagstar informing the mortgage servicer that we had continuous insurance on the property since we closed on it in XX/XX/XXXX. I provide insurance policy information and contact details for XXXX. I request that flagstar refund and/or reverse all fees and charges related to the force place insurance policy pursuant to 12 CFR 1024.37 XX/XX/XXXX - I receive email response from flagstar stating, " Thank you! Your insurance information has been reviewed and updated using the details provided. No further action is required at this time. '' XX/XX/XXXX - I receive voicemail from flagstar stating I am delinquent in payment on my mortgage. I call flagstar and speak with with XXXX in flagstar insurance team. XXXX informs me that although escrow should be reversed at some point they will not accept my XX/XX/XXXX principal and interest payment because escrow payment for the force placed insurance must be paid first. In the meantime late fees have applied to my account due to the payment not being processed. XXXX informs me that my best course of action is to pay the outstanding $ XXXX escrow and late fee, and that it should eventually be refunded. XXXX admitted that flagstar has my mailing address on file but did not send mail to that address. I have an audio recording of this call. 

Here is my complaint : I never failed to keep up my side of the deal : We have made every mortgage payment on time. 
flagstar claims they sent inquires about our homeowner 's insurance via usps to an address they knew we do not receive mail at, then they claim they bought force placed insurance on the home because we didn't respond to mail we never received. 
After flagstar was notified of their problem and provided with documentation to clear up the erroneous escrow account, they continue to accept payment we made and they have in their possession, in the meantime assessing " late fees '' for payment they have in hand. 
flagstar is holding the threat of damage to my credit over my head, demanding payments for late fees and escrow I was never responsible for