Consumer complaint received 2022-08-31 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Closing on a mortgage — 
Company: Flagstar Bank, N.A.
State: AZ

Complaint narrative:
We started a construction loan with Flagstar XX/XX/2022 at that time we were told that if the city would approve our build they would finance it. That was a lie we were in the process and told we were closing XX/XX/2022 and them the trouble began. The loan stopped because the loan officer didn't file the proper paperwork to have an exception to be able to build our houses. My son was emailing and calling and finally the boss of our loan officer stepped in to investigate emails from my son and XXXX XXXX and came to the conclusion that XXXX XXXX did mislead us and didn't follow protocol for the loan. XXXX XXXX and XXXX XXXX told my son at that time he would see what he could do to help us. XXXX found a resolution for us and started us on a new loan he had risk management go over our plans and we updated them and the approved them for the exception to build what we were wanting to do. XX/XX/XXXX we paid for our second appraisal and the XXXX one still hadn't been done. We were submitting everything in a timely manner as this company was dragging their feet. We had a conditional approval XX/XX/XXXX and then we got noticed that the appraisal was getting ordered when the loan was already delayed due to Flagstar and they knew we needed to get the loan closed so the building cost wouldn't go up. They kept reassuring us that we would close but no appraisal came in and when it finally came in it wasn't even for the property that we had plans approved by the risk management team. But we kept asking to see the appraisal and they kept telling us we couldn't have a copy as they were telling the our appraiser he needed to changed it and telling us we had to go back and change the building plans to something that wasn't near what we needed or wanted. Because of all the delays and problems with the loan team not doing their jobs properly we ended up having our building cost go up {$180000.00} an amount that we could only afford to finance 1 house and casita and lose one house in the build. Interest went up because of delays. I paid vehicle loan and personal loan in the amount of {$40000.00} because that was a condition to close on the loan but the loan never closed because of the mistakes and problems caused by Flagstar 's employees. My son filed a complaint 2 times with you. The second time your referred him to an attorney. XXXX the boss of the loan agent also told my son if this project didn't get funded we would have a law suit. We had 3 families that were going to occupy the houses and casita so we were all displaced and have lost several thousands of dollars because we couldn't get a refund {$20000.00} from the builder. We have emails that back up this story and this is just the base of what we had to deal with. We had to go rent houses because our money was lost and tied up in the property which at this time we are having a hard time to sell. I would like to know if you have another referral of an attorney who has dealt with this type of situation and also a number to Flagstar Bond Department and Bond number so we can try and resolve our losses. From XX/XX/2022 through XX/XX/2022 with this loan that they said if we can permit it they would fund it now problem!!!! We can provide you with all the emails if you need them. I feel that when you send this to Flagstar they don't really look at all the situation and make a proper call on this issue we went this route 2 times but I am trying one more time for a resolution before I call the attorney back to proceed

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