Consumer complaint received 2022-09-22 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Flagstar Bank, N.A.
State: MO

Complaint narrative:
On XX/XX/XXXX I called FlagStar Bank, my mortgage company, to resolve an issue regarding my payments. My husband and I have been getting calls and letters for the last few months saying that we are behind but I wasnt sure how since I was seeing the mortgage payments leave my bank account. Up until this point, each time they had reached me or I called, the representatives had advised that it was probably a timing error. On the day I called ( XX/XX/XXXX ) I got a very knowledgeable rep who was finally able to identify the issue. They had taken two of our payments and put them towards the principal only and not towards the loan balance. We had been making two payments per month that equaled the total amount of the full amount due since XXXX in order to spread out the amount we were paying each month. My husbands hours were cut during the winter so our cash flow changed. Instead of using the auto pay from their website we began paying via bill pay from our bank on the XXXX and last day of the month. A rep told us that we could do this when I inquired about it back in XXXX and that other people did this and there was no issue with it as long as the full amount was received by the due date. 

On XX/XX/XXXX the rep identified the issue and also found support that I was told this was ok to do. She then proceeded to tell me she couldnt fix it in the system because it was past 90 days since the payments had been applied. She said she would have to put in a request to the cashiers department to request it be corrected given the circumstances. On XX/XX/XXXX they called and advised that they were denying my request but gave no reason outside of the fact that 90 days had passed since the payments had been received. I was not understanding because I was doing what I was told was ok by the representatives at the company and there was proof of that in a recording or transcript of a conversation I had with a rep! Technically I am paid through XX/XX/XXXX on my mortgage. They have more payments that actually are due at this time BUT they applied them wrong and now will not correct them after they said they gave me incorrect information all because its past their 90 day rule that I also had absolutely NO KNOWLEDGE of! I was making payments in a way I was told was completely fine and given no explanation about how payments were applied when received. I called back on XX/XX/XXXX and spoke to a supervisor in customer service who told me they can do nothing because the decision was up to the cashiers department. She said I could submit a request for reconsideration to the errors and omissions department, so I have since written a letter to them and mailed it. I have no idea how long that will take. I will attach it to this request. I also emailed the CEO of FlagStar ( XXXX XXXX ) but am not sure the contact info is good and havent received a response. I want a prompt resolution because they are holding approximately {$1200.00} of my payments and not applying them to my loan. Additionally they are claiming I am late with current payments, which of course isnt correct either because of the way they applied the payments.

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