We closed on our home loan just over a year ago and went thru 4 months of hassle trying to set up a military allotment to pay the loan. We set up the allotment to begin the month prior to the first payment so we wouldn't have to "double up" the first month, a no brainer.
The problems started because Flagstar failed to tell us that the exact amount of the loan had to come from a single source. We had combined funds from my husband's and my paychecks and we rounded up to the next dollar. They returned the funds back to the military without telling us and by the time we found out, we had creditors calling us as well as numerous threatening letters from the bank.
We ended up in a catch-22 because when allotment funds are returned, they go to the military until the first of the next month when the money is added back into our paychecks. So we were always a month behind until we finally connected with the one person with military experience that works at FS.
Oh, the only reason we finally connected was because we finally had to refuse to talk with their customer service reps who know nothing. It took an act of God to get someone who would listen and had the authority to fix the problem.
For 10 months, we had no more problems...until they increased the escrow payment amount due to tax increases. No problem, right??? WRONG! I increased the automatic allotment (again rounded up) to cover the increase, but they "returned the payment for insufficient funds". HUH???? This notice came after my monthly statement arrived telling me that the payment had been received!
It took 3 phone calls by me because everytime I spoke with customer service, the rep would tell me that it would take some research and they would call me back. On the 4th call I would not let the rep talk until I walked thru the whole process of how military allotments work. I spent 2 hours on the phone while they put me on hold to talk to the Auto Debit dept (they won't let you talk to them personally).
Guess what...they had the money the whole time! It was sitting in their "holding account" and they couldn't disperse it until I faxed them a letter stating that I had overpaid them and the additional was supposed to go to principal! There was never insufficient funds, just people too *** to figure out that the additional $.77 shouldn't hold up the payment!!! At the end of the conversation I was given a reference number and was told it would be fixed and not to worry.
Two days later I got 3 phone calls from FS (2 by humans (maybe) and 1 by computer) telling me that my loan payment was overdue and I now owe an additional $200 in late fees!!!!!!!
I called one more time and was "informed" by the rep that the harassing phone calls and letters would stop. I must own ocean front property!
The bottom line is that Flagstar Bank is not customer friendly, is not empowering it's representatives to fix things, is not teaching them about routine bank services, and is definitely NOT the bank for military members.