Consumer complaint received 2022-03-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Flagstar Bank, N.A.
State: CO

Complaint narrative:
My loan is being transferred from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Ewing, NJ To Flagstar Bank XXXX XXXX XXXX XXXX, MI XXXX I received notice from XXXX bank about the loan transfer on XX/XX/2022, in a letter dated XX/XX/2022. 
The letter states that XXXX will stop accepting payments after XX/XX/2022 and Flagstar will start accepting payments XX/XX/2022. 

I called Flagstar to pre-arrange payments on XX/XX/2022 and inquire about online payments. 
The flagstar agent told me they could not access my loan in their system ( I provided both the old and new loan numbers to them ). They told me that I could not arrange for payments until their system was updated, even though, according to the transfer letter, my loan payment is due to Flagstar on XX/XX/2022 because XXXX is no longer accepting my payments. 

XXXX had been auto-drafting payments from my checking account for the duration of my loan with them. 
Flagstar refused to help me set up auto payments prior to their indicated due dates for payments. 
Flagstar sent me a transfer letter dated XX/XX/2022 and received XX/XX/2022 and indicated that I must register and log in to their payment system to continue the auto-draft payments when they take over my loan XX/XX/2022. 
The flagstar online system ( flagstar.com/myloans ) will not allow me to register with the information that is recorded on my loan. The bank refuses to accept payments from me after the transfer date unless I mail them. 
XXXX  online payment system shows that my loan payment is scheduled to auto-draft to them on XX/XX/2022 and I am not allowed to cancel this auto-draft payment. 

Flagstar phone agent supervisor tried to assure me that there was nothing I need to do to transfer the auto-payments to Flagstar, even though the letters I received from them indicate otherwise. When asked to provide the assurance in writing, the agent refused to do so. 

I do not feel that loan servicers should be allowed to transfer my loan without advanced notice, and I do not feel that my payments should be due to the new servicer when they have refused to allow me to register in their systems. 
I also do not feel that it is legal for XXXX  to auto-draft my payment amounts AFTER the loan has been transferred to Flagstar. 
I am concerned that I will have to claw back my money from XXXX online payment/auto-draft system and it will be impossible to mail the payment to Flagstar in time for the due date that they have specified. 
If these banks are going to force consumers to do a bunch of paperwork due to a loan transfer that the consumer did not request, and did not choose, they should make the transition of online payments seamless, without causing worry or additional footwork to get the money to the right place on time. 

I have perfect payment history on my loan and I do not wish to have my credit or payment records impacted due to the negligence of Flagstar bank, who can not seem to set up their payment systems in time for customers to make payments before the due dates they're stating in their transfer notices.

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