Consumer complaint received 2017-02-22
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Flagstar Bank, National Association (LA)

I made a conventional loan with NYCB for my home in XXXX 2012 ( # XXXX ) Since that time I have unfortunately had damage to my home. Because of this NYCB had to endorse the insurance payments. NYCB 's Loss draft Department is a 3rd party company that is so difficult to work with and unfairly holds your check and refused sign them. I have done everything required of me according to my loan documents. I notified them of my loss at the end of XXXX and requested them to come inspect so they could start to distribute my funds and it took 6 months of fighting them just to get the first inspection. The first check I sent them was for XXXX. This was an advance and was supposed to help me get temporary shelter since I was homeless. they had no right to hold this check but they did anyway. This left me with no money to do anything and I was left with nothing to help me live. I have muiltiple other properties and I have had no other issues with their loss departments. 
After complaining over and over about not receiving my funds I was finally told NYCB changed the company that handles that and my check was still at the other company so they had to get it from them. because of this I faced a rough few weeks after the floods. Because of their history of mishandling peoples checks I asked them to come inspect my property but they refused and requested a bunch of documents that was not my responsibility to send. They also started making demands on who can or can not fix my home. They stated they had that right by law and I had to use who they said. I contacted an attorney and was advised that there was no such law. Then they said the state requires me to be licence and insured and that I could not fix my home myself. I argued that there is no such state mandate. In my state you only have to have those credentials if you are hired be someone else. It does not apply to fixing your own home. I owe just over $ 68k and the house is valued at over $ 200k. They are now holding on to a $ XXXX check and refusing to endorse it. They offered to send the amount over what I owe and 30 % because that is what the inspector said I had already fixed. I asked them how am I supposed to continue to work on my home with out any more funds and they told me I need to just hire a contractor that is willing to work with no money down and just get paid after the work is complete. Well this is not XXXX. I live in XXXX. Contractors here are very expensive. much higher than most places in the country. and they all want money up front..They dont care. I would incourage no one to ever do any buisness with this company who does not follow the rules and terms of the loan and always has an excuse on why they have the right to hold your money. Im all for them experssing their right to protect their interest but they are taking it to far. They are causing more damage than helping ... As of today I have had enough. I am going to Wire the money to pay off the loan in full. So they will have no reason to hold that check anymore. Lets see how long it takes to get it back to me.