Consumer complaint received 2021-06-28 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Flagstar Bank, N.A.
State: FL

Complaint narrative:
My Mortgage was sold to a new lender. New lender, Flag Star bank stated I must carry flood insurance for my property as it was in a SFHA. All FEMA maps indicated the home was in a low risk flood area. Lender purchased and force-placed a flood insurance policy for the XXXX year at the cost of approximately {$2700.00}. I have been forced to repay this money which resulted in a shortage in my escrow account. Due to COVID restrictions I was not able to have my land surveyed until XXXX. I paid {$400.00} out of pocket for a surveyor and finally I obtained a Letter of Map Amendment in XXXX of XXXX stating that my home is in Flood zone XXXX I submitted this document to the mortgage company and while I was told I no longer had to carry flood insurance I was also told that I would not be refunded the money I was having to pay back for the lender-placed flood policy. FEMA suggested I contact the insurance company directly and pursue reimbursement through cancellation code 19. When I contacted Flag Star to obtain the policy information for the policy they purchased for XXXX I was first given information for a policy that didnt exist. I was then given information for a policy from XXXX and told that I had to call a specific XXXX number and that I should not call the company directly. When I called the number I was given and stated that I, per FEMA, needed a refund based on cancellation code 19, I was told that I needed to speak to Flag Star directly and was transferred back to Flag Stars call center. The call center again told me that I was not entitled to any refund. I then contacted FEMA again who expressed concerns that it appeared I was being forced to retroactively pay for a flood policy that never existed. FEMA also stated that they had no evidence of any flood policy in existence for the property during the XXXX year. When I called Flag Star again and requested information on the supposed flood insurance policy I was told that the policy was through Flag Star and that if I called the insurance company about it directly they would have no record of it and wouldnt know anything about it. When I expressed confusion and concern over the fact that I appeared to be paying retroactively for a policy that had never existed and asked bluntly what I was paying for and where the money was going I was told that I was, paying into my escrow account. I have been dealing with this issue since the summer of XXXX. I have spent close to 40 hours total on the phone attempting to rectify this issue. I have asked to speak to supervisors and have never been allowed to speak to a supervisor directly. On multiple occasions I have been told that the issue was being escalated and have been promised that the problem would be resolved. During my most recent phone call with FEMA I was advised to file a complaint with the state department and told that it appeared the bank was fraudulently taking my money.

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