Dallas, Texas
Not resolved

We refinanced our condo with Flagstar 1/2010. In December 2010, after submitting insurance documentation many times, they force-placed flood insurance on our condo and added the premium to our monthly mortgage payment.

If i do not pay the "additional premium" part of the payment, they send me to a collection agency, then send us information on foreclosure.

There are 76 condos in our building and every other mortgage company has accepted the HOA flood insurance coverage. Flagstar is the only bank that has not accepted the coverage. They are a total ripoff!!! They will not tell me what i need in writing, but insist that i call a toll free number.

I get a different "receptionist" every time who has no idea what Flagstar is requesting. The president of our property management company and the insurance agent for the HOA flood policy have no idea why Flagstar will not accept our coverage either.

I have also spoken with our regular bank staff and USAA insurance--no one understands why Flagstar will not accept our coverage.

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They have done the same to me. I think we need to start a class action suit. Does anyone know how to do this?

Woodway, Texas, United States #314588

I'm also in the middle of a 7 month nightmare with Flagstar due to flood insurance issues. Just prior to closing they said I had to have flood insurance and they had a carrier that they recommended.

I was refinancing and even with the flood insurance it was still financially beneficial to me so I agreed even though I never had flood insurance on my previous mortgage of 9 plus years with a different mortgage company.

The flood policy they recommended was written for a reduced amount and I was told the anual premium would be an additional $900 per year for full mortgage amount coverage within a month after closing. I went to a local insurance agent and got a NFIP policy that met all of Flagstars criteria for deductibales etc..... Flagstar called my insurance agent and told her she would have to cancel that policy because there was already a flood policy on the property. My agent called me and ask if I wanted to cancel the policy or I would never have known.

Flagstar is still saying they are going to buy another policy and charge my escrow $1500 even though I have insurance. They insist that I pay the additional $900 and keep the company that origianlly issued the flood poicy.

They say it would be cheaper for me to pay the $900 than them buy a supplimental poicy for $1500. It really has been a nightmare dealing with Flagstar.


Call local & Major news centers you must tell your story, the best news people is "60-Minutes", they will corner these rRaTs and expose them, but remember tell your story, don't run away with your tale between your legs. FlagStar Bank employee's are rude or just play the "ssSTUPIDdd Game with you, common sence means nothing to them, there answer is thats why you have an escrow account as if No One Is Paying It!

You tell me now is that not the "ssSTUPIDdd Game" or what, how did these "EMPLOYEE'S" get there jobs? Good Luck but Remember I Tell You This Know One Will Help You There!


Hello, I read your post on a complaint about Flagstar Bank's deceptive business practices. We refinanced last year and were told that we would need additional insurance for total loss on our home.

Our loan amount is 106,000 and the property was appraised at 155,000. We were told there would have to be an additional 200,000 dollar policy as well as our 160,000 dollar policy! The amount for their policy is $3,000 on a $200,000 policy. Ours from Loyds is for $160,000 for $995.00 a year which will pay up to 150% on total loss claim.

We were never notified of the amount of money their policy cost per year and assumed that the additional $60 a month they added to the mortgage payment was covering it. Now they just sent us a notice that we owe $5,000.00 in escrow and that our new payment will be $1,475.00 a month up from $850.00! The eight fifty is for the mortgage, tax, and our loyds insurance, plus what we thought was their insurance payment as well. They will not let us make a payment unless we pay the amount with the escrow included!

I highly doubt they will work something out with us and as of tomorrow we are contacting the state attorney generals office for deceptive business practices.

We live in Philadelphia PA. Any help would be much appreciated as my wife suffers from severe clinical depression along with many other ailments which I fear will cause her to become suicidal.


That is 100% what I am dealing with also on a condo I purchased on February of 2010. They refuse to give me any information as to why the exisiting policy is not acceptable - even though every other lender in our community accepts it.


It appears the may be getting a rebate on part of the premium and/or take kick-backs on the lack of losses from the private carrier they place the insurance with. They are the only company not accepting private flood insurances at the moment.

It would be an interesting scam since they don't pay any of the premium, it's simply taken out of your escrow.

One quick solution is to get a NFIP direct policy from an individual agent yourself and simply name them as an additional insured until you can refinance your loan through a better company.

In the meantime, you at least get a lower premium and you can get you personal contents covered for flood at the same time.


I am an attorney looking into potentially fraudulent practices of FlagStar Bank, including those you mention in your post.

Please feel free to contact me at povers@hfesq.com to discuss further.


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