Consumer complaint received 2021-01-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Flagstar Bank, N.A.
State: CA

Complaint narrative:
I asked Flagstar Bank for a " payoff '' amount on my home 's mortgage on XX/XX/XXXX. 
They sent me an email giving me the amount and I paid {$11000.00}. On XX/XX/XXXX Flagstar Bank posted the credit to my account. However, instead of closing the account they now say I should have sent in a certified check for the same amount. Now the bank says I owe over {$5500.00}. 

This is unfair gouging. The mortgage was paid off in full and I should be released from any further payments. Below is the payoff email : Flagstar Bank , Fsb XXXX XXXX XXXX Attention : XX/XX/XXXXXXXX XXXX, MI XXXX XXXX STATEMENT AS OF XXXX AND GOOD TO XXXX AMOUNT DUE TO PAYOFF {$12000.00} XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX CA XXXX Loan No : XXXX Loan Type : CONV W/O PMI FHA/VA/PMI No : Property Address : XXXX XXXX XXXX XXXX XXXX DUE TO PAYOFF AS OF XXXX {$12000.00} PAYOFF AMOUNT BREAKDOWN : Unpaid Principal Balance Due as of XXXX XXXX Interest Due 2.99000 % from XXXX to XXXX XXXX Fax/Email Fee XXXX Recording Fee XXXX Document Prep Fee XXXX PAYOFF INFORMATION AND INSTRUCTIONS : Payoff figures are good to XXXX. Funds received after XXXX XX/XX/XXXX., XXXX may be credited the following business day. Funds credited after XXXX will require an additional {$1.00} per Day. 
If the funds will be remitted after XX/XX/XXXX request an updated payoff statement to ensure your final remittance is sufficient. 
If applicable, we reserve the right to adjust any portion of this statement due to changing balances such as principal, escrow, fees, advances, expenses, and/or interest rates on this loan. Any shortage of the payoff funds received will delay processing and may cause additional fees and/or interest accrue. Payoff funds must be wired or certified and must reflect all information stated below. 
WIRE FUNDS TO : MAIL CERTIFIED FUNDS TO : Beneficiary Bank : Flagstar Bank Cash Operations/XXXX XXXX Routing Number : XXXX XXXX XXXX XXXX Beneficiary Acct Name : Cashiering Loan Servicing XXXX, MI XXXX Account Number : XXXX Reference : Loan Number XXXX XXXX XXXX XXXX ( SO Page 1 of 2 A/L XXXX ESCROW ACCOUNT INFORMATION : Date last tax paid : XXXX Date last insurance paid : XXXX The loan currently has an escrow balance of {$1100.00}. 
You have the option to have the escrow balance credited to the payoff of the loan. If you decide to have this balance used towards the payoff, the amount due to payoff on XX/XX/XXXX will be {$11000.00}. 
Funds may be deducted from escrow if the payoff amount received is not the full amount due. 

With each payoff statement requested, an escrow disbursement stop is placed on the loan to prevent the payment of taxes and/or insurance prior to the payoff statement expiration date. As a result, the payment of tax and/or insurance installments may be delayed and penalties and/or interest added to the amount due. 

Funds in excess of the amount due to payoff, along with any remaining funds in the escrow account, will be mailed within 20 business days after the loan is paid in full. 
PAYMENT INFORMATION : The next payment is due on XXXX. If applicable, a late charge of {$34.00} may be assessed 15 days after the payment due date and must be added to the payoff amount if it is remitted after that date. 

If you have an automated payment scheduled, it is your responsibility to discontinue the service. Do not place a stop on any recent payments made as the payment may be reflected in the payoff calculation. Any payments that are returned unpaid are required to be repaid in addition to any applicable fees that are assessed as a result. 

ADDITIONAL INFORMATION : After the loan has been paid in full we will complete the release of lien. 
The annual tax and

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation