I cannot even begin to express how angry I am at this bank. After having my mortgage sold to them (Without my permission, of because that's not something they have to verbally inform you about!), I've had repeated bad customer service experiences. I've probably spent hundreds of collective hours on the phone. I never have the same "agent". And if I do get an extension to call directly, they are always either NEVER in the office, or don't reply to voicemails. Forget entirely about them answering emails; they don't.
The first problem with them was when I lost my job. Immediately when I lost it I contacted them and tried to get a payment modification, so I could lower the chance I'd lose my house. I submitted all kinds of paperwork that they lost repeatedly, and it was only MONTHS later they told me I didn't qualify unless I'd already missed a payment. This is an illegal tactic under the HAMP program. Many hours of being on hold later, I was told again that actually, the reason I was being rejected is because I had obtained the loan under the FHA rebate program in 2009... I haven't checked on the legality of this claim but it sounds like BS too. I think they are just really eager to foreclose, because processing the paperwork is easier.
The second issue I have with them is similar. Every year they miraculously "lose" some part of the homeowner's insurance that our condo's agent sends them, resulting in repeated letters and eventual force-placement of insurance at an absurdly high rate. Every year it takes me and my agent hours on the phone and multiple sendings of the "missing" document to get it straightened out. I've never once managed to get them to accept the "missing" document before the force-placed insurance goes into effect. And it always goes into effect right before they recalculate my escrow for the next year. Yeah, that's not suspicious at all.
There was a lawsuit filed against them and other banks for force-placing flood insurance. It sounds like the same shady practice, just for a different kind of insurance. I'm about ready to sue these people myself. Though what I'd rather do is just move my mortgage to another bank. Too bad I have no legal right to do so.
Product or Service Mentioned: Flagstar Bank Loan Modification.
Reason of review: Problems with payment.
Flagstar Bank Cons: Unethical practices, Unethical claims handling, Home mortgage.