Consumer complaint received 2024-10-20 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: NEW YORK COMMUNITY BANCORP INC
State: CO

Complaint narrative:
I sold my home on XX/XX/scrub> 2024. The buyers assumed my home mortgage loan from Flagstar Bank on this date. The title company and my realtor stated that I would receive a check in the mail 4-6 weeks after the closing date for an XXXX XXXX. That time has passed and I opened a case with the mortgage company on XX/XX/XXXX to see when my check would arrive. 

Flagstar Bank admitted to sending the check to the property that was sold on XX/XX/XXXX, instead of my new residence. They stated my new address was not on the paper work to send the check to, which is incorrect. They have my new address and I know this because I received the loan assumption and release of liability notice/document nearly two weeks after the sale closed. 

Flagstar opened a case to investigate this matter and they told me the issue would be resolved with a new check sent out to no later than XX/XX/year>2024. 

On XX/XX/scrub> 2024, I received an email from Flagstar Bank regarding my case and that it had been closed. The email did not contain the resolution, so I called them to find out. The representative that I spoke with stated my check was being sent to my new address that day and I should receive it in 3-5 business days. That time goes by and I call them again on XX/XX/year>2024 and asked where my check was. They stated that I should expect it in the mail no later than Friday XX/XX/year>, due to the bank holiday that prior Monday. 

That time and went again, so I called Flagstar and they told me that the check was sent to the sold property on XX/XX/year>2024 and it was cashed by the buyers of the property. Flagstar stated that the check was sent in the buyer 's name and not mine to the property address. The buyer called Flagstar and opened a case on XX/XX/year>2024 and asked what the check was for. A Flagstar representative told them it was a surplus check and they could cash it. 

On my end, no notice was sent to me regarding this cashing of the check. Flagstar willingly told the buyer that they could have this escrow refund. Then two different representatives of Flagstar told me I would receive my check in the mail ( NOTE : they do not send checks with a tracking number either ).

I spoke with a new Flagstar representative and their customer service management on XX/XX/year>2024 who stated that they need to check with the assumptions department to find out what happened and see how I can get my escrow refund. They did not give me a timeline as to when OR if this issue will be resolved. 

In summary, Flagstar Bank sent my Escrow Refund check to the buyer of my previous home, in their name. That buyer cashed that check with Flagstar 's approval. Flagstar told me twice that I would receive a new check at my new address and in my name. Flagstar then told me the new check was never sent, as the first was cashed by the buyer of the home.

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