Flagstar Bank
Reviews and Complaints

Flagstar Mortgage Loan Review

Our two mortgage loans with Flagstar were a six-month nightmare to process.

Our first big mistake with Flagstar was falling for their Bait and Switch from their Loan Officer, Laurie Buzewski July 2nd 2020.

In June we were already in the process of two loans with Caliber Bank. Laurie at Flagstar went down the Caliber loan docs and she told me she could save us $1,300 in closing costs on each loan.

Her assurance of a $2,600 savings on the two loans convinced us to cancel our Caliber loans in process and switch to Flagstar. This proved to be a big mistake. Six months later with delay after delay our closing approached and the estimated closing costs docs that were provided showed higher closing costs then the original Caliber loan. I again sent her the Caliber closing docs to compare and noted all the Flagstar closing fees were higher and there were no savings.

She responded with a confusing email which basically said both lenders had the same closing costs.

- Flagstar also required title insurance which should not be necessary for a refinance.

- We have a $1million IRA and a net worth that leaves the bank with no loan exposure. Both properties appraised for over $400,000 and the investment property cash flowed positive with tenants. (50 and 70% of home value mortgages) 825 Credit Rating

- The first Loan Processer Laura Boykins, was so incompetent and unorganized that I think she quit or was finally fired. She requested the same documents two and three times.

She left emails of the requested documents unopened in her box for days. The underwriters were not much better. They requested documents unrelated to the loan and missed explanations to their questions that were right on the bank statements. They also requested documents that had already been sent because they were too lazy to look through the huge load of documents already supplied.

They ask for so much unrelated documentation that even they cant organize and analyze all the documents.

Three months into the process and after many calls with Laura Boykins to complain about all the mistakes and delays I requested to speak with her manager. She advised that I could not speak with her manager and I needed to contact Laurie Buzewski and speak with her manager about any problems. I sent messages to Laurie requesting to speak to her manager as Laura advised and she did not respond. Finally, I had to call the Flagstar main number and transfer my way to a mortgage department manager.

He brought in a manger, Donna Moser, who reviewed many of the problems with us. She took over the loan from Laura for a month or so fixing some things and then passing us over to Nancy Cox, loan processer. It is now December 20th six months after the start of this process and we still have problems with one of the loans.

-Cindi did not set up the investment property docs in the name of the trust as instructed. Now after all the closing paperwork is completed, we have the deed in the trust name and the mortgage in our personal names.

Now they want us to sign paperwork to fix their mistakes and put the deed in our names which is not what we instructed.

-Flagstar also agreed to pay the appraisal fees on the investment property loan. As the December closing got closer Laurie confirmed that the final paperwork would show these costs charged to Flagstar. Closing came and the Flagstar paperwork charged all the appraisal fees to us. We signed/paid the fees and expected assured refunds.

Weeks have gone by and notes from and the title company advises that Flagstar systems rep says this can not be done unless at the start of the loan. Laurie writes separately How can we fix this? This has been my experience with the whole Flagstar organization. No problem solvers, just pass the buck and drop the ball.

Slow to answer inquiries or just do not respond. They operate like bureaucrats with no authority to make common sense decisions. Extreme overkill in document requests.

-Flagstars poor website design times you out before you can read the docs. They want you to use the site for documents to be uploaded to transfer but has limited memory.

I sent too many docs for it to handle on the first submission and it did not notify me that I was over its capacity and it did not transfer the docs.

Too many other problems to list. You do not want to do business with Flagstar Bank.

They cost us a lot of money in fees and mortgage payments that should not have to been made. We hope they sell our loans.

Our home flooded in February of 2021, it is now the end of April and they have been holding our insurance check. Now it is "lost in the mail" they are FRAUDS!

Due to financial hardship as my husband is on hospice they would like to make a house payment for me and you will not take a credit card so they need a copy of the W9 faxed to them so they can proceed with us

I was looking to refinance with them as rates dropped in January. They couldn't match so I shopped around.

The bank I was working with asked for a payoff quote; Flagstar charged me $30. Flagstar sent 2 more payoff quotes to the same bank; same number, and charged me two more times.

$90 for 3 payoff statements to the same bank in a month. They wouldn't work with me.

A loan officer took it upon himself to process a refinance application in my name without my permission.

MISSED 1 PAYMENT DUE TO CANCER SITUATION. THEN COVID19.

THIS BANK COULD HAVE CARED LESS. DUE TO NO EXCEPTION ALLOWED, I COULD NOT GET THEM TO REMOVE 1 LATE PAYMENT TO RESTRUCTURE MY FINANCES TO KEEP FROM DISTROYING MY CREDIT HISTORY. THEY DIDNT CARE AND NOW I AM IN A FINANCE COLLAPSE DUE TO THEIR BUSINESS PRACTICES.

1 MISSED PAQYMENT AFTER SEVERAL YEARS.

JUST SHAMEFUL. WOULD NOT RECOMMEND THEM TO ANYONE!

If you are planning on going to this 2 class company dont. I have my mortgage with then at present.

Wanted to refi and get lower rate thought would be easier to go to them because they have my mortgage now. What a joke. Worst mistake I made this place has the worst customer service the people handling the loan have no ideal what they are doing.

They pulled my credit 2 time took them almost 6 months to finally run me off. They must buy their mortgages in a bundle because its for sure they cant get them on their on.

As a current customer of Flagstar Bank with excellent credit as well as a record showing I am repaying mortgage early, I foolishly assumed all that would be helpful.

I was guaranteed a rate but after expenditure for appraisal as well as other costs, the rate lock period is approaching and I am warned will end. The loan process proceeded smoothly until closing approached and then all communication ceased. Nothing is completed and it is well over a month since the Flagstar projected closing date.

I would never recommend this company.

Flagstar purchased my mortgage from another bank in December of 2019. In March of 2020, Flagstar bank paid the previous owner's insurance company $5062 out of our escrow account then informed us that we had a deficit in our escrow balance and increased our monthly payments $455/month.

We have made several calls over the last 5 months now to clear this up with them and they still have not refunded the $5062 they paid in error and I am still having to pay the added $455/month to make up an escrow deficit cause by their error.

I have been a homeowner for over 30 years and this is by far the worst bank I have ever had to deal with. They do not know the meaning of customer service.

I am staying in Hawaii for a week but my card is decline

Really in these economically hardship times This bank [Flagstar] CANNOT put forbearance repayments onto the back end of the loan? HOW VERY GREEDY!

Worst to deal with for insurance claims. The received the insurance check on Friday afternoon, and will send it back on Tuesday after a Monday holiday if I don't call them.

My husband was due to get paid on Friday, July 3. His payroll dept usually does deposits on Wednesdays.

When this happens, you can usually see the PENDING deposit in our online banking. This time was different. No pending deposit, and here it is, Friday at 2 am, no check in the account. We verified with his employer that the checks had been sent out, AND he has an electronic check stub to prove its with the same bank and same routing n account number.

Something fishy going on!! On a sidenote- I paid a bill a telephone bill and it didn't go thru even though I had over 800 dollars in my account! Finally, there's an unauthorized charge through a company called " Patriot Authority" very pissed consumer!

TERRIBLE bank!! Will be switching soon!!

Hi! I went to a online work from home site promising to send fliers for you to mail from home.I have so far received 1 email on9/11/20 the day I applied and 1 on 9/12/20 to do a whole bunch of signing up on a site for freebies, I attempted all of that without success, still have not received anything else from them.

I emailed them to put the money back to my card and did not get a response. Please see what you can do.Thank you in advance.

Flagstar Bank somehow got our mortgage from Umpqua Bank in Sept 2019. In our 30 plus years of dealing with mortgage companies, we have had 10 times more issues with Flagstar in the 6 months with them than we did over the prior 30 years with multiple banks.

Their customer service personnel appear to have no training, and are not allowed to access your account to make changes, such as minimal requests to add an auto pay setup. Then, the computer system they use has multiple date limits that are not visible, so if you set up an auto pay, then it may not happen due to the fact the date window voids your request. You may not know your request did not work until your payment is past due. If you call to talk to the customer service bank, they will tell you they don't know why it did not go through because they can not "see" your request for auto pay.

They tell you to try again, when you do you will find out you can't set up an autopay if your payment was late last time, so you have to wait until the next month and try it again. We did this multiple times. The second time this happened we were travellng for 3 weeks and did not track if the payment went through. We received a call that the payment was late (never happened in our prior 30 year record) but they called after the $138 fine for a late payment was already assessed.

When we talked to the customer service person about this, she said the late fee would be refunded. We decided to refinance, but on the closing statement from Flagstar they put the 3 month old late payment fee.

When I called to state that fee was supposed to be erased, they said when a closing statement is generated, no changes can be made. When I asked to talk to a supervisor, they transferred me to hold for a supervisor...the first time I waited 30 minutes and no one picked up and the second time has been about 20 minutes and no one has picked up.