Flagstar Bank Mortgage Rates

Don't ever go with Flagstar Bank for your mortgage; they will sell your loan without your knowledge. The new company will change your due date, have zero leniency, and then could negatively impact your credit! HORRIBLE company!

Very disappointed with Flagstar Bank. I was told my mortgage payment, the May 1 payment made on April 10, was made "too early," which makes no sense. They applied the payment to my principal and refuse to apply it to the May bill after multiple calls and letters. Penalizing responsible financial behavior is unacceptable. Refusing to work with me on this one occasion in good faith tells me a lot about Flagstar.

This is the worst company. They commit fraud and steal money. They have no customer service, so you cannot resolve problems, which are many. Do not do business with these people. Buyer beware.

Terrible customer service. If you don't mind speaking with representatives who are at home with barking dogs in the background, they might be the right bank for you. Flagstar purchased my mortgage from another lender and proceeded to automatically deduct my payments for four months, then stopped, causing me to miss a payment. When I asked them to correct my credit report, they refused, saying it was my fault. I made multiple calls to representatives working from home, but I could never talk to someone in an actual bank. If you end up with Flagstar, I suggest looking for alternatives immediately.

Horrible company! I've been trying to appeal a late mortgage payment report that went to the credit bureau when I, in fact, made the payment. Their automated system applied it toward my principal because it was made in the same month as my previous payment, so they counted it LATE, when it was, in fact, early. They sent me to collections, then wouldn't talk to me about it for a month because my loan was sold to Mr. Cooper. Four months and two appeals, countless phone calls, and no reversal or fix because the AUTOMATED SYSTEM applied my payment incorrectly. This is wrong. 27 years with zero late payments on a mortgage and this caused my credit score to drop 100 points. Zero stars, two thumbs way down. I do not recommend at all. And if you are sold to them, refinance and get out ASAP.

Customer Service is essential, especially regarding your mortgage. I've been misdirected twice in consecutive months, causing a delay in payment. Other than that, I was informed the representative would be counseled. On the website login, my account did not show that the payment was unsuccessful. After repeating the action, I was reassured that my account information was confirmed and updated. Calling back with the second month repeated action happened,Supervisor Mitia was not productive, lacked competence, and was adamant that she was in charge, talking over my concerns. You cannot fix or address a concern without knowing what is happening. The service was poor, and no mortgage company should conduct business in a way that results in the loss of customers.

I've had a similar situation to one of the previous comments. I have a VA loan with Flagstar, and the account has been transferred between two other companies prior. Shortly after we purchased our home, we had a huge increase (nearly double) in insurance and taxes. My insurance agent couldn't tell me why there was such a huge increase, and I was not made aware of some of the benefits I had when it came to taxes, such as homestead and so on. Nevertheless, our mortgage payments had a huge increase because of this. By the time I figured out how to lower the insurance and taxes, we were already behind, and I mean barely a month behind. I contacted Flagstar to see what my options were and was told that as long as a payment is set up by the 15th, I would be fine until things could get settled and back on track. However, that wasn't the case as I later discovered, and I've been accruing late fees on a regular basis (up to nearly a grand now). I've contacted customer service a few times and spoken to different people, and they claim to have zero options for getting back on track, offered little to no help, and were honestly quite unpleasant to talk to. After mentioning the conversation with the first representative when this whole thing started, the response was "Well, this is how it works" and "You signed a contract," which to me is starting to feel a bit like a predatory lender. Everyone I've spoken to seems to think that everything in the customer's life always goes according to plan and that nothing can ever go wrong, and if it does, then it's probably the customer's fault. There is such an unwillingness to work with customers that it makes me wonder how they are still thriving. The last thing I spoke to the "supervisor" about was how things would work if I changed mortgage companies, to which he explained that they would get the money anyway, to which I asked how they can keep customers if that's the attitude. He then informed me that Flagstar is transferring its mortgages to yet another company in a couple of months, so it really didn't matter. Either way, housing in the US is pretty grim these days and there's a lot of people, especially in younger generations, that are most likely going to miss out on owning a home, and companies like this aren't doing anything to improve that.
On another point, our original lender had a beautifully laid out app for payments, a well-designed website, and very understandable and helpful customer service representatives. Every time we have been forced to change lenders, they've gotten worse.

If I could give them zero stars, I would. They purchased my mortgage about nine months ago, and I refinanced in December. During the process, they provided an inaccurate payoff statement, and now they expect me to pay an additional $5,400 to cover the amount they failed to include. Prior to this, they lowered my mortgage payment without properly collecting the correct amount for taxes, resulting in a $2,400 bill during the refinance. They take no accountability for their mistakes, yet if my payment were late, they would certainly hold me accountable.

Flagstar, also known as Lakeview, found a shortage in my escrow, which I presume is due to property tax increases, though they never explained it. They recalculated my payment to be $400 more a month, following a 20% increase in insurance due to Florida's weather conditions. When I requested assistance, they responded, "the investor will not allow spreading payments over more than 24 months," implying a mortgage company can't extend payments beyond this period. This represents a 15% increase in mortgage payments during a recession, which is staggering. After being shuttled between the escrow and collections departments for days, they finally stated there was "nothing they can do, sorry." It's astounding that I could lose my house because my mortgage company sold my debt to unscrupulous buyers.

The business notes that the shortage is $2,624.66, which is apparently divided over 24 months, resulting in my mortgage payment becoming $2,924.76.

However, my original mortgage payment was $2,629.55. $2,624 divided by 24 is $109; this added to $2,629.55 equals $2,738.55, certainly not $2,900 or $3,000.

To illustrate, $2,924 minus $2,629 equals $295. This amount spread over 24 months would total $7,080.

5/28/2024: Home and vehicle damage caused by a severe storm
6/5/2024: FEMA declared disaster area (Kaufman County)
6/6-7/30/2024: Due to out of pocket expenses caused by damages, I had to use all my available finances on repairs which cause difficulty paying mortgage. I filed for FEMA assistance.
In July 2024, Flagstar places a notification on my account that if I live in a declared disaster area, I qualify for their 90-day Disaster Relief Program - that includes no late payment credit reporting through November 2024. I called Flagstar and opted-in to the program. And they told me to submit a hardship application online when I am ready to see what I will qualify for in regards to any past due payments (forbearance, modification, etc)
On 8/3/2024, I submit a hardship application online for July and August payments that I was not able to make. Flagstar’s application process is supposed to be 30 days.
In mid September, I called Flagstar to ask about my hardship application. Flagstar told me that they were still processing it, and to give them more time.
On 10/13/2024, I called Flagstar again requesting a status on my hardship application. They inform me that they haven't processed it at all, and since it had been longer than 30 days, I'd have to submit another application. Flagstar also informs me that it's possible my late payments could reflect on my credit report, in November, if I do not get approved in time, which an approval would extend my credit protection, or I'd have to make those payments by the end of October.
On 10/14/2024, I submit another hardship application via fax. I was not able to submit another application online because the other one is still pending to this very day.
On 10/30/2024, I called Flagstar to request an application status. I was told that they're working on it, but the application would not be approved by November. I've worked very hard on my credit report, and it was very important to me that my credit remains in good standing. I finally had a 700 credit score after years of working on it. I got desperate, and I reached out to family members to loan me the 2 past due payments. They did, and I brought my mortgage current by November 1st.
On 11/13/2024, I get the approval letter in the mail, but the wording was vague to me and their math didn't make sense. They were offering $188 off my monthly mortgage payment but didn't say for how long, or if they were deferring any months to the end of my loan, and the credit reporting verbiage wasn't clear. For example, they would phrase sentences with "possibly" and "could". I called Flagstar right away with questions. I spoke to several people in Loss Mitigation, and they all told me something different regarding credit reporting, the duration of the monthly modification, and deferments. For example, one representative told me that the modification was only good for 36 months, another told me it was permanent; my credit wouldn't be reported late, another said it would; no months of deferment, another said November & December would be deferred.
On 11/14/2024, I submit a hardship approval appeal stating that I was confused about the approval offer and that I was being told different information by the loss mitigation. I also informed them that a modification wasn't needed; I only needed 2 months of payment deferment and credit protection.
On 11/15/2024, I spoke with a representative on their Escalation Team, in the Loss Mitigation Department. He informs me that I was approved for a 3 month payment trial plan starting January - March. He said that November & December would be deferred and for me not to pay those months. My monthly payment modification would lower by $188 for the duration of the loan, and my first payment would be due on January 1st, 2025. And that my credit would be protected unless I didn't make the trail payments within the month that they are due. I thought it was perfect so based off his information, I rescind my appeal and opt-in to the offer.
At the end of November, I even called Flagstar again to double verify that my credit report was protected. The lady in Loss Mitigation told me the exact same thing as the previous guy I spoke to in the Escalation Department. If there was an inconsistency, I would have borrowed money from family again to make November's payment in order to avoid damaging my credit.
On December 13th, as I am sitting next to my dying grandmother on hospice, saying my goodbyes, I get a credit alert that Flagstar has reported a late payment. I couldn't address it at that moment, but I calmed my nerves by thinking it's a mistake that Flagstar will fix. NOPE!
From December 14th, and every day since, I have reached out to Flagstar regarding the late payment on my credit report, but all they will tell me is that they never promised to protect my credit. Flagstar will not correct it! I have even reached out to the President's office, but they refuse to correct their mistake and basically call me a liar. I have requested more detail in writing regarding my approval offer because if the credit reporting was misinformation, then I must assume that everything else I was told is misinformation too. The approval offer is too vague, and Flagstar has only provided misinformation. I have not received details or any information on my approval offer. I have also requested a phone call from someone at Flagstar that can provide true and accurate information, but I am being ignored! I have submitted another appeal, but it is after the appeal time frame.
From my original hardship application not being processed at all, to the multiple representatives providing misinformation, Flagstar has caused me more financial hardship and stress! During Christmas, I had to borrow 2 more payments from family to cover November and December. And worst of all, my credit is ruined!
I am currently still in active loss mitigation with an approval offer that's not comprehendible and no assistance whatsoever from Flagstar. Flagstar is extremely unethical!