Flagstar Bank Arvostelua 

Flagstar’s servicer repeatedly reversed my loan payments without notice, drafted automatic payments from my checking account after my HELOC was already paid in full, charged me a late fee for a delinquency its own errors created, told me I still owed monthly payments on a zero-balance paid-off loan, and issued refunds that then caused the account to show a new principal balance owed. The account has been reversed and reapplied so many times that even a careful review cannot clearly state what I owe or am owed—and the servicer’s June 10, 2026 letter floats the possibility that one of its refunds “may have been issued in error.” My written inquiries through the servicer’s online system went unanswered and my request to escalate was refused. The account remains open and continues to accrue interest.
Background
My husband and I opened a HELOC with Flagstar to fund repairs to our home. To obtain a reduction in the interest rate, I was required to open a Flagstar checking account and enroll in automatic payments drafted from that account.
What happened (chronology)
1. Throughout the life of the loan, my principal payments were repeatedly posted, then reversed, then re-posted — frequently without any notice to me. When I called about it, representatives told me they did not know what to do with the payments. I let it go at the time, but it was clearly not right.
2. On or about March 11, 2026, I paid the loan in full. The payment overpaid the balance by approximately $51.80. On March 12, 2026, a $2.98 principal adjustment reduced that credit to approximately $48.82.
3. On April 1, 2026, the servicer drafted another $100 automatic payment from my checking account even though the loan was already paid off. That payment was later reversed.
4. On April 10, 2026, the servicer ran a series of reversals and re-applications around a $148.82 amount.
5. On April 15, 2026, the servicer drafted yet another $100 from my checking account although I owed nothing. It was held as “unapplied funds.”
6. I called and a representative agreed to reverse the erroneous $100, and told me she had to place a three-way call to Flagstar in order to do it. Weeks passed and nothing was reversed. When I called again, a different representative told me a check had simply been mailed — no one had notified me, even though I had been told it would be reversed. (I note the servicer could not promptly reverse a charge to me, yet had no trouble reversing my payments repeatedly.)
7. Per the servicer’s June 10, 2026 letter, two refunds were issued: $100.00 on April 16, 2026, and $148.00 on April 27, 2026. I deposited both checks.
8. After the refunds, my account then showed a new $100 principal balance owed. A representative tried to tell me that even though the loan was paid off, I still had to make my monthly payments — something I have never heard of and could not make sense of. Out of concern about owing money, I paid $100 on or about May 29, 2026. That payment left a $0.63 balance.
9. I was then assessed a late-payment charge for a delinquency that the servicer’s own errors created. A representative said it would be reversed, but not immediately.
10. The June 10, 2026 letter states my unpaid principal balance is $0.63 with $0.47 in accrued interest, states the servicer is “unable to apply the $100.00 refund,” and states the $148.00 refund “may have been issued in error.” The same letter states that my line of credit remains open and available for future draws.
11. I sent multiple written messages through the servicer’s online system and received no replies. When I asked for the matter to be escalated, I was told nothing could be done.

Obtained Home equity line of credit through Flagstar. After getting loan this bank has TERRIBLE customer service. Unable to speak to a person. Documents and communication via the ONLY communication portal on their website disappear. ie documents and messages I sent disappear and cannot be found. Thus if there is some time-critical communication, it is difficult to document as Flagstar either removes or deletes, messages that you send. This back obtained homeowners insurance and charged me for it RETROACTIVELY. ie they obtained insurance on my property for a time period that had passed, in which no claims, or damage had occurred to my home (documented via a homeowners insurance inspection). The worst experience I have ever had with a lender. NEVER will I use this bank again!

The Strongsville location is where I bank and it’s the best bank I’ve ever had

Great bank - never had a bank that cared so much

This is the worst bank in the US. Every few days their app doesn’t work so you can’t transfer money. Then when it does and you do it says you don’t know have enough money in your account. I got stuck for 30 min trying to get gas and had to call a friend to come get me. Absolutely pathetic bank, never bank here. Their customer service is a joke they need to cease to be a company and the world would be a better place

I am amending my review. After almost 4 years and multiple attempts to get satisfaction, I am happy to say that Shiela, the manager of my home branch, figured a way that allowed the bank to release the balance of my father's VA account. It was settled this past Saturday. As my Dad would say, "the squeaky wheel gets the grease." If you have an issue with this bank, and I can see that many do, keep trying. It worked for me. Dad is smiling down from heaven.

This is an online bank with limited service and terrible customer service. I opened the account because it stated it had a physical location near a place we often visit. However, it was only an ATM. In trying to close the account, customer service was awful and they made the process difficult. I would not recommend using this bank. I wrote the letter to close and included the documents they requested, only to be asked for more documentation of my address, even though it is the address on record. Just not a good experience overall.

Do not use them. It is a mess. I can't get hold of anyone, I am getting wrong names on statement, and 1098.

The automated robot is infuriating!!! The reps dont send the info you requested. I spent 5 hours being transferred and told the info I need is available in my online account. If it was available on there I wouldn't have wasted 5 hours arguing with a robot or customer service!!! Im honestly glad my loan was transferred but Mr. Cooper ain't much better.

This bank is a joke. The service is unprofessional—reps respond to my questions with “I think,” with zero certainty.

My external transfers are blocked 100% of the time, and any issue requires waiting 24 hours for a manager callback.

Every rep I’ve spoken to is from an overseas call center and doesn’t seem to have real knowledge of the system.

On hold 30 minutes to talk to person, explained that another name was on my mortgage document, told they were aware of situation when asked why not informed they said aware and hung up.

Minus 25 milion stars. I have spent 5 hours today trying to get a 1098 for 2025 for my mortgage. They sold my loan to another bank in 2025, but I paid Flagstar January and February 2025 payments via autopay. You can't get anyone on the phone. I tried every number I could find and all I get is an automated menu and AI saying my 1098 can be accessed online via my account (it's not there) and that my loan is paid. No option to speak with a person at all.
Found the chat for assistance. The person in chat said the 1098s were mailed 1/31/26 and I would receive by 2/15/26. I asked why I can access my 1098 for 2024 online and can't access the 2025 online. She didn't respond. I then asked then they transferred my loan as I was concerned they had not generated a 1098. She checked and said they had transferred my loan in Nov 2024. I said, then there is no 1098? and she confirmed. She apologized.
I then called my new loan servicing bank and spoke with a person! They confirmed they did not get the loan until March 2025. I checked my bank account and found the automatic payments to Flagstar through February 2026. Got back on chat at Flagstar with someone else (hard to even find the chat link. It's no in my online account). The person said they requested a correction while I was on with them and that it would be generated in 7-10 days and then mailed to me. But they wouldn't confirm if one was ever originally generated. Just kept saying, I apologize, without answering the question. They said I could contact them if I don't receive it. Right? It's a nightmare to try to reach someone and they won't give any answers. They did give me a phone number where they said I could speak with a person. I called that number. After waiting in the queue for 20 minutes, the person said that the 1098s were mailed 1/31/26. Same canned message. I asked them to check and see if one was ever generated for my account. They asked for my account number. While I was looking it up on my computer screen (literally less than 5 seconds), they hung up on me.

I did not choose this lender. My original loan was transferred to them. I would never do business with this mortgage company or their bank. They are not transparent and make it difficult to get any information from them. Run!

Sold my house almost 2 years ago. Flagstar won't close my HELOC no matter how hard I try. I had a first and the HELOC with them. Title paid off both. Paid all fees. The first was paid and it's closed. The HELOC is not. For almost the last 2 years I keep getting the run around I have 5 "Research references" and nothing. Numerous tickets and nothing. I keep getting automated calls because "I don't have insurance on file for the collateral". They didn't even reduce my available credit until I ordered new checks for the HELOC and threatened to use them.

Either close the HELOC or let me use it. Next stop is a lawyer.

Worst bank ever. Not getting the $300.00 bonus because I did not maintain a certain balance from 7/1/2025 to 9/30/2025 and my account was opened in August, so how could I do that. It was first 90 days. Now the app, website does not work all weekend.

All I can say about this bank is that their only intent is to lock up your money no matter what. They don't have any limits on incoming funds into the accounts—they accept hundreds of thousands very easily, but when you need the money, you can only transfer up to $40,000 in a month. So, you are better off closing the account with them. However, they have these complicated and malfunctioning processes intentionally put in place so that they can keep the money for longer periods. The account closure also may take some random amount of time, mostly not less than 15 days. They say you can transfer $10,000 on a daily basis, but that is also impeded by their ineffective and dishonest process. When you submit a transfer, they send an email to you at a random time later, not while you do the transfer. And they expect you to verify the email within an hour or so, or your transfer will be canceled. That means, you need to be constantly checking your email. That email can also go into your junk/spam folder, and you may not even notice it. Moreover, once the transfer is canceled, the money won't be credited back to your account for about 3 days, at least. Then your next transfer will be blocked because you may have reached the limit. It doesn't matter even if a transfer is canceled; it will still count towards your limit until it is deposited back into your account. Only people with dishonest intention can design such a process!

Please stay away from this bank! This bank doesn't even deserve a one-star rating, but I guess I have to give at least one star to provide feedback.

Would give it negative stars if possible. Borderline criminal activity. Will no let me pay off my quote without a wire transfer, but they take all my payments online just fine. To pay off the loan but keep it open is $121 less than to pay it off and close the loan. Do not engage - there are WAY better institutions out there. Go by a credit union - don't give your money away to these crooks. Where is the law any more?

Borderline criminal banking institution. They will lie and lie and lie on recorded phone calls. They even lie in their BBB response despite the fact that they know that I recorded the phone calls. Jessica from the office of the president is as bad as the rest of the customer service representatives. I was repeatedly lied to on recorded phone calls, kept from my money and locked out of the app. I am considering a lawsuit against this bank. I might even join in on a class action suit! It sounds like we should all get together and Sue! Let’s do this!

In the meantime, do not bank with this bank! They’re committing fraud at the very least.

I love flagstar, their app, website, and branches!