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.