Indianapolis, Indiana
6 comments

We refinanced our original Flagstar mortgage with them again. About 60 days later, we recieved a notice from out homeowners insurance company that our premium hadn't been paid and would be cancelled in 30 days.

We called Flagstar, not only were they unable to tell us exactly where the money went, they basically said it was our problem. They harassed our insurance agent and gave us the run around.After a BBB and Attorney General complaints, the issue was resolved. They overnighted a check to cover the insurance. Beware!

We have bank accounts with them too and have had issues with those also.

They will basically tell you anything to get you to open the account(s)i.e.free money, free checks, etc. But you have to fight to get what you were promised.

Product or Service Mentioned: Flagstar Bank Mortgage.

Monetary Loss: $1300.

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Anonymous
#374637

Try the Office of the Comptroller of the Currency. They deal with fraudulent and bad faith business practices. Worked for us, in just 10 days.

Anonymous
#222043

@None

That's true, but they cannot change the amount of required insurance AFTER the loan is funded. Bank of America only requires 10% HO-6 endorsement. They had my original loan. Flagstar did my FHA streamline refi, has signed the escrow papers saying that what I gave them is cool, and *now* they are saying they want 20%? AFTER the loan's been funded and I've been making payments? I would have never agreed to the loan if I'd known.

I'm getting a real estate attorney and fighting it.

Anonymous
#72970

we did a refi with flagstar they failed to pay our insurance and taxes , they told us they didnt know where the escrow money was ,and it was our problem.after several phone calls and several hours on the phone, someone found the escrow and overnighted it to our insurance company and paid the taxes :upset

Anonymous
#71470

Flagstar Bank is slow on making there escrow payments! You here the same old storie over and over again, just read all the blogs, just be carefull there is flag star personel waitig to cut you up for saying bad things about there bank. The problem is they drag there feet, and they don't help you were it counts, customer satifaction.

Anonymous
#68402

Your master policy from the HOA does not cover the interior structure of your condo. This means the interior walls (including room dividers), fixtures, upgrades or replacements.

The insurance is called HO-6. I have a condo. I have this insurance. If your condo burns to the ground, the master policy will only pay for the shell of the building to be rebuilt.

I work for a lender and I have seen cases like this. Additionally, it is not only Flagstar requiring it. Go to efanniemae.com.

You will find that they require this insurance. To qualify, the HO-6 endorsement must be equal to at least 20% of the appraised value of your unit.

Anonymous
#63239

Flagstar insurance agents/managers are completely incompetent. The ask for insurance which covers for inside coverage.

I provide them with evidence that my HOA insurance which I pay through my premiums cover inside/outside damage.

Per my insurance agent this is more than sufficient to cover for the insurance request that they ask for yet they still require me to purchase additional insurance. After such they tell me I don't have enough coverage. I have them covered via HOA inside/outside insurance and my personal insurance as well. I now need to purchase more personal insurance to cover their loss?

That is a load of crock. I'm never doing business with Flagstar again.

Poor customer service, insuffient explanations and tons of headache. Stay away from Flagstar Bank!!!

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