Consumer complaint received 2015-04-10 00:00:00
Product: Mortgage — VA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Flagstar Bank, N.A.
State: VA

Complaint narrative:
My mortgage company Flagstar has illegally withdrawn close to {$10000.00} from my bank account in the last 4 months, has mismanaged by loan and lost sensitive paperwork pertaining to my account access, has refused to acknowledge legal, signed paperwork and refuses to fully refund me. Counting the legit mortgage payments and the illegal withdrawals Flagstar made from my bank account in the last XXXX months, I am now missing nearly {$18000.00} and have nothing left in my bank account. XXXX since I bought my house 2 years ago, I 've tried to add my wife as an authorized user on the mortgage account multiple times. This requires a notarized faxed form. We have filed it multiple times to Flagstar 's " research '' department with confirmation of receipt, and even called and received verbal authorization that my wife is a user on the account. Yet, sometimes we have a problem with our mortgage, my wife is still barred from accessing the account and the agent will tell her they have no record of her information. How can my wife 's personal information, like her SS number, only " sometimes '' be recorded on the account? There is clearly a major mismanagement of paperwork. XXXX, this XXXX, we filed a form to make a XXXX mortgage payment. We had clearly checked the box indicating it was a " principle '' only payment. Despite our signatures on the paper, XXXX decided that my wife and I " must have made a mistake '' and overrode our directions to file the XXXX payment as a regular mortgage payment. We received no notification this had happened and happened to notice it on a later statement. Getting this reversed took an hour long phone conversation. Our XXXX problem came when we elected to pay biweekly payments rather than a single monthly payment. The paperwork was filed and the biweekly payments began, and we received verbal confirmation that the full monthly payment debit from our bank account was cancelled. We were told that due to the XXXX up with the XXXX principle-only payment in XXXX, we 'd have to make a few " catch-up '' full payments, so we were expecting a few extra deductions. After XXXX months and suddenly realizing there was no money in any of our bank accounts, we pulled our bank records and realized that Flagstar has taken as many as XXXX MORTGAGE PAYMENTS some months, XXXX biweekly and full monthly payments, resulting in the unauthorized removal of thousands of dollars from our bank account. In XXXX months, a total of $ XXXX has been removed. We called and Flagstar immediately told my wife again she was not authorized to access the account and they had no record of her. Flagstar now is refusing to process me a full refund of the nearly {$10000.00} citing " regulatory reasons '' - despite the fact I now have no money in my bank account. Counting the legit mortgage payments and the illegal withdrawals, I am now missing {$18000.00} in XXXX months. This is utterly outrageous and a clear sign of a bank that needs a lot more regulatory oversight than it currently has.

Company response to consumer: Closed with explanation