Flagstar Bank

Flagstar Bank seems to be a good bank to finance with and they have all the internet accessible feathers that you need to do modern banking

I am extremely disappointed in how Flagstar Bank handled my request for a simple mortgage loan (short term) modification.

I requested a temporary six month reprieve on Principal and Interest payments on my mortgage loan. I asked them to tack this amount to my loan by extending it for these six months. Again this is a temporary situation because the majority of my income is from investment accounts which are tied to the US Stock Market.

I made a simple request with all appropriate documentation on this simple request which would make a world of difference to me. However Flagstar Bank refuses to make a decision; instead they just stall. Unfortunately I find it’s extremely difficult dealing with Flagstar Bank.

Not the worst, but definitely NOT the best. They are terrible on paperwork, payments. At least they didnt loose 2 payments like Mutual of Omaha.
1. Insurance paperwork with them is a nightmare. Granted, Allstate tried to leave them out of the process, but why take that out on me. I had to send in the paperwork no less than 12 times to get them to acknowledge that they had the paperwork. The general contractor had to submit his paperwork at least that number of times. I finally had to get between them and ask EXPLICITLY, what do they want. It Still took three transmissions before they acknowledged receiving the paperwork. It took almost as long to get the contractor paid AFTER the work had been completed.
2 Their website says it takes 5 business days to get a payoff statement. I requested one and has yet to arrive on closing day. I start getting nervous so I request an electronic payoff statement they say takes 1 to 3 hours for a fee( of course). Three hours later I still do not have the payoff statement and had to call them again. Then they said they had no record of me requesting a payoff. Surprising how the payoff date was tomorrow like I requested in the paperwork.

Terrible company, avoid at all costs and pray your mortgage does not get sold to them. My previous lender sold my mortgage to Flagstar, and despite (on first notice in early July) providing my proof of flood insurance MULTIPLE TIMES and that exceeds the requirement by over $100k, they purchased additional flood insurance and charged my escrow $2,725 and increased my monthly mortgage by $580. I have called over 10 times since early July and have been told this is under review and to call back in 5 days. To date after 20+ hours of my time to resolve this, they still not have refunded $522.65 of the charge to my escrow, I have not been refunded for last month's difference in mortgage payment, and I still have an upcoming mortgage payment that is posted as $379.67 over my previous payment with my last lender. I called back today, and what do you know, it's "under review" and I was told to call back in 5 days. I'm so frustrated at this point, please try to avoid getting involved with this company. When we ask to speak to someone else you are told "there's nothing they can do" and to call back in 5 days. It is an impossible situation.

Worst mortgage company on the planet. They did NOT PAY my homeowners insurance with the money in my escrow and it ended up getting canceled. I had to pay $556 to my insurance company to have it reinstated. Myself NOR my insurance agent have not been able to get in contact with an actual human for a week now. I cannot believe this is how anyone runs a business.

Worst company I have ever dealt with. We started a construction loan
August 2021 and we were told if the city would approve the build they would finance it. Supposed to close October 2021 but the loan agent didn't file the proper paperwork for our build. Talk to her supervisor and he had risk management work with us to get the plans approved so that we could move forward. At that time they knew we were at risk of having price increases on the project and assured us they would close on time. They started a new loan and we had to submit every document over again and again. Paid for 2 appraisals and they never scheduled until the conditional approval came in. We met all conditions, paid off accounts, and they still didn't have the appraisal ordered or scheduled. We were still dealing with no appraisal in February and March 2022 and when it finally came in the appraisal team told us that it needed to be changed. We had already changed out plans to fit the risk management request and now they were wanting us to go back and change the plans again. Wouldn't provide the appraisal or tell us what the appraisal came in at. By the time the company told us the number all prices had increased over $180,000 and interest rates were through the roof so we couldn't even build the project that we had started to for our family compound. They didn't even call us to tell us we were denied they ignored our calls and in late May 2022 we finally go a denial. We have filed 2 complaints finance board with no resolution and are in process of another one if we don't get compensation for our losses due to the company negligence, false promises, and delays. Finance board referred us to an attorney and he told us that we had a case. The supervisor also told us in November if this project didn't get funded would should pursue a lawsuit. So my question to anyone here. This is just touching on the lies and the problems we had with Flagstar. Has anyone ever had any luck with a lawsuit for a case like ours.

They have the worst loan officer ever. Loan Officer gave me confusing information. Loan officer did not relay important information to my loan processor which made our notary signing day be rescheduled because my loan processor had to cram to address the issue. Loan officer also put words into my mouth, things that I did not say. Also, made me resubmit documents over and over again, when they can just check the loan documents that I uploaded. Save yourself from a headache, do business with another bank. My loan processor was very good though.

Modification- The worst experience ever. I did modification on my own home In 2012 , I put my house on the market to sale 2021 The title search came up Flagstar did second mortgage for $13k with HUD that was not due until 2043. “Seriously” which I never received statement and it never was on my credit report back then and still until this day now with the new company it was sold too. My current mortgage company ask me did I have down payment with my modification , “ I said NO” that amount should have been added to my loan when my modification was done that was the amount I was behind with Flagstar. This have gave me anxiety and depression with this situation. But, my question was “ What happen to the $13k and why second mortgage was done and where the $13k went? This have been roller coaster for me on the sale of my home. Thanks Flagstar Bank . Don’t do modification with them and I’m not done investigating this situation trust and believe me.

The absolute WORST mortgage company I've ever dealt with!! We were to close on our home 8/31 and they come back to us 24 hours before close with a laundry list of additional documentation needed to close! The seller was not willing to do an extension and so we lost the home, lost time, and lost money with this company! Stay far far away!

I find Flagstar competent, orderly and keeps me abreast of all things involved with my mortgage. This is my first and last property purchase. I like the fact that I can talk to a representative at anytime and am not just dealing with automated systems.