Flagstar Bank Arvostelua 

My parent's had gotten a mortgage from flagstar. They were making their payments and then their house was placed under forclosure. Except they payed the mortgage. Thankfully they used bankers checks from another bank to do their mortgage. They reported them all as fraud, and turns out they were all claimed. Around 40k was magically lost, when they alerted flagstar of this. THEY SOLD THEIR MORTGAGE. GIVEN they took 40k and didnt take it off the mortgage. The other bank wants the 40k and the house is in foreclosure.

NEVER GET A MORTGAGE OR BANK WITH FLAGSTAR THEY ARE A SCUMMY AND TERRIBLE COMPANY.

The absolute worst online savings! Good luck with the outsourced customer service.

They even lie in the CFPB response, thank goodness we have the calls recorded and challenging their response.

ABSOLUTELY AWFUL BANKING INSTITUTION!

WHOA where do I begin? My husband and I bought our house in 1997. We BOTH purchased it, it was like an all day job for both of us signing paperwork with Flagstar bank. Somewhere down the line, someone in their company, took my name off the mortgage, whether accidentally or what but I caught it around 2008. Somehow Flagstar was no longer our mortgage company, they transferred it over to Lakeview, even though they are still affiliated with Flagstar. Our mortgage has always come to our address till one day in 2008, I had noticed only my husband’s name on the mortgage payment. I called Lakeview and asked them why my name is not on mortgage. They said sorry mama we can’t speak to you if you’re not on the mortgage. I was furious. My husband works aviation in states and travels to different countries and he can’t be calling while working or different time zones. This went on for years, so we did three way calls and while on phone they had to ask him if it was ok to talk to me? We were both livid, he would ask how do we get her name put back on? They kept side stepping the issue, said we can send you out this form so she can speak to us. Form was never sent. So after about 5 or more call attempts with the same outcome. I even emailed them PDF copies of BOTH our names on the mortgage. No response, so LAST FINAL call, three way once again. I told Lakeview that someone within your company took my name off illegally, and I have asked repeatedly to put it back on, with no avail.. with that I am contacting my attorney. We both decided to refinance to a company THAT DOESN’T sell mortgages. We refinanced and are very happy with the new one. A few days latter, they sold our mortgage to another lender, so what’s that say about them? That tells me A LOT about who they are..!! I’ve kept ALL documents, copies of everything, I don’t throw nothing away when it comes with important paperwork. I still want to sue, because now it’s the principal of the matter. Someone in that department needs to take accountability. They think they’ve gotten away with screwing people over. News flash! I don’t forget anyone that pulls that crap… unacceptable business practice. If there was a way to leave feedback of a (0) star i would.. because they don’t even deserve one star…

Worst bank experience ever! Not worth trying to get the opening bonus. Please save your time and money. It takes months of processing to get direct deposit set up with them compared to other banks. You can't even access your money because it takes weeks to process your signature card. You can't email directly, you have to go through their secure messaging system on their website because they have scammers using their name and getting your email quickly to scam you. Their security does not handle this well. When I went to forward the scam email to their security team, their security email address didn't even work. Customer service over the phone doesn't know what they are doing. Unprofessional all around. You can't even take your money out of an a newly open account and close your account without being charged $50 for early closure. As soon as my 6 months period is over with them, and I can avoid that fee, I am taking my money out as soon as possible before the bank closes and maybe takes all my money.

I never write reviews, especially not for banks but this one was just ridiculous. I have so much skepticism for small banks moving forward. Make sure to read reviews before you sign up for a new bank.

Avoid Flagstar at all costs.

I've been banking with flagstar for years. I like the local branch. I've always received good service and help. Their bank acct interest rates are near zero but I don't care since I have online banking and can transfer funds to banks that pay better rates. A year or so ago they were merged with community bank in Hicksville NY. The online banking experience went downhill from there. Last year I took them up on their online CD offer which was one of the highest rates around. The day it matured I went online to either renew or close the account. I found out I cannot do that. The cd converts to a post maturity account that I could not close out online. I called flagstar and the response was "you have to mail us a letter to close the account". So I ask what is the status of it now. Response - it is post maturity. Is it earning interest? yes but at our lowest rate (which he couldn't tell me because rates are different depending on where you live - but I think is it something like their savings accounts at around 0.04%)

I can not stress enough that this lender has been three years of a pure headache. Now that my three year lock in is up, I'm removing everything and going somewhere else. They have never once read what I have sent and answered the real issue. All I'm trying to do is pay on my principle balance. I'm aware I can only do this for 8 days our of the month (that alone is pure nonsense that I can not pay my bill) but when trying to do it exactly as they told me was allowed, it never works. Honestly run, just turn and run and get a better bank because this is not the move.

Scam.I had to change my phone number because they post/sell your info and I ended up receiving a ton of scam phone calls so eventually yes,I had to change it.Under no circumstances this is a legit company

This is an incredibly shady lender. They were wired the full loan balance on 5/4/2025. Coincidentally, they decided to transfer the loan to a subsidiary (Mr.Cooper) the same day. I started receiving bills from Mr.Cooper that the payment was not received and they had no proof of the wire transfer. They added tons of confusion by transferring the loan even though it was paid in full. Getting them to correct the problem has proved to be very difficult. Not to mention they are charging interest on a loan the was paid in full. They also want to charge me fees twice. Once to Flagstar and again to Mr Cooper… I would not get involved with flagstar or Mr.cooper

Warning: Avoid Flagstar Bank and Mr. Cooper for loans if you value accuracy and professionalism. I had a HELOC with Flagstar Bank, which they sold to Mr. Cooper. Flagstar promised a 'seamless and painless' transfer, but they failed to ensure the loan details were correct before handing it off. The principal amount, interest rate, and payment amounts were all wrong. I spent over an hour on the phone with Mr. Cooper’s customer service trying to fix this mess, only to encounter unprofessional and unhelpful staff. Neither company seems to care about accurate accounting or customer satisfaction. Based on this frustrating experience, I strongly recommend steering clear of both Flagstar Bank and Mr. Cooper.

I invested substantial funds in a certificate of deposit thru Charles Schwab with Flagstaff Bank and was very disappointed to hear that they DID NOT pay as scheduled on the maturity date.
I plan on working with Charles Schwab to file a claim with the FDIC insurance to reimburse my funds if they do not pay this week.

They brought my loan and then used the money that I had in my Escrow account and brought another insurance policy from the same company I had insurance with already, in which rolled my Escrow into a negative. They could've just called and made sure that loan number had a active policy. Then they sold my loan to Mr. Cooper. They completely messed up my rhythm as far as making my payments goes and I am still playing catch up. They are the worst. They buy your loan, then screw you and then they sell your loan.

WARNING WARNING!! flagstar bank they can not give me a copy of the insurance cancellation letter and a year later they notify me and fine me $7,500 and immediately sell my mortgage to Mr Cooper. They can not prove a gap one year prior.

My loan was transferred to them. Were a very difficult company to work with for the period of time they serviced loan(8 yrs). Preditory practices on multiple occassions, literally stole a few hundred & was never able to resolve. They've been sued for the same practices in the past as well. Guess some things don't change! Theives

Flagstar (aka Lakeview), found a shortage in my escrow (of which they never explained) but I am guessing is due to property tax increases. They recalculated my payment to be $400 more a month. This is after a 20% increase in insurance due to Floridas weather. When I asked for help with this they said "the investor will not allow spreading payments over more than 24 months"- a mortgage company can't spread out payments for more than 24 months? Not only is that asinine, it is a complete nightmare, $400 a month?! A 15% increase in mortgage payment, during a recession! On top of this after being transferred between the escrow and collections department for days, the finally say there "nothing they can do, sorry". It's truly unbelievable I could lose my house because my mortgage company sold my debt to a bunch of crooks!

As noted by the business, the shortage is $2,624.66 which is supposedly spread over 24 months, and resulted in my mortgage payment being $2,924.76.

However, my mortgage payment was originally $2,629.55. $2,624 divided by 24 is $109, this plus $2,629.55 is $2,738.55, NOT $2,900 or $3,000.

Put another way, $2,924-$2,629=$295.00, this spread over 24 months would be $7,080.

I have been a Flag Star Bank customer since they acquired our local branches from Wels Fargo in 2018. I noticed from the beginning that they are an outdated bank. Their phone banking system is an outdated prehistoric early 20th century piece of crap. I can not use my Apple IPhone 14 pro cell phone using it's voice-over assistive technology to access the phone banking system. I am blind, so I can not input the information into the phone banking system in the time allotted with my cell phone. I can use my home landline phone to access their phone banking system, because it is old technology like their phone banking system. When you get into their phone banking system you notice the old technology incorporated into it. When checking my transactions, each transaction is labeled as withdraw, external withdraw, deposit, external deposit along with the amounts to each transaction. This is ridiculous, because I would like to know who I am paying out to, so I know it is not some corrupt business or Flag Star Bank employee stealing my money. I have only used their online banking website page a handful of times over the years, because I can not properly navigate their website using my screen reading software on my assistive devices. I have repeatedly asked their customer service representatives to upgrade their access of services over the years, but it is of my opinion that they would rather spend their money on declining bank acquisitions and mergers to boost their asset portfolio. Then earlier this year Flag Star Bank really put the screws to my wife and I. We purchased our newest vehicle in 2019. My wife immediately after the purchase, went to the Flag Star Bank website online page and set up bill pay through our checking account to the credit union that financed our vehicle. In June 2024, we received a letter in the mail from the lawyer of the credit union demanding full payment of our vehicle loan to the credit union. We found out from the credit union that we were three payments behind on our vehicle loan and our vehicle was in the process of being repossessed. We immediately paid the credit union the three late payments, late fees, lawyer fee, and the cost to the company that was going to repossess our vehicle even though it was never repossessed. I called one of our local Flag Star Bank branches to find out what was going on with the payments that they were supposed to be paying every month. The branch manager investigated the issue and called me back. He said that in February, Flag Star Bank acquired some bank branches in New York. During the merger, they had a major computer upgrade in the transition. During the transition, some how our bill pay to our credit union vehicle loan was deleted. He asked how Flag Star Bank could make things right to my wife and I. I said that if they paid us back all the fees that we had to pay to the credit union for their mistake, get the repossession removed from our credit report, and re-establish our nearly perfect credit scores that we worked hard in life to earn. He said that i was not out of line or asking for too much for what they did to us, and would see what he could do and get back with me in the near future. Four months later, I called the local branch back to find out what was going on. They had no clue to what I was talking about. I decided to file a complaint with the FDIC, who referred me to the Consumer Financial Protection Bureau, who sent the complaint to Flag Star Bank. Recently i received a response back from Flag Star Bank through the CFPB. In the letter, Flag Star Bank apologized for the inconvenience of the mistake they done to my wife and I. Then the clown told me that it was more my fault for not checking my online banking account in the last 12 months to make sure that Flag Star Bank was making the payments to our credit union. Then the clown told me that they could not help us with the issue of the repossession or reduced credit scores, because they are not the one that reported these issues to the credit agencies. WOW, I did not realize that it was my job to babysit Flag Star Bank each month to make sure they are doing what I had asked them to do for the last five years without any issues! My wife frequents her profile on her Flag Star Bank website page. She checks balances of our accounts, transfers money between accounts, but did not notice that our vehicle loan was not being paid each month. Should I expect a professional institution like Flag Star Bank to screw up every month, and I am supposed to catch everything they do to screw me over. If they accidentally put an extra $100,000 in my savings account, are they going to say it is their fault, do not worry about it and keep it. They have no intentions of making things right to my wife and I. In my opinion, they can give a crap less for their customers

Customer service rep assisted with making the payment over the phone, the payment was applied to the next month instead of current which caused an error on their end. The funds were withdrawn from our bank account but never applied to the mortgage. They marked the account 30 day delinquent. Now, they are refusing to process our request for PMI removal even though the delinquency issue was created on their end; they hold on to the money without depositing it instead of refunding it to the bank account. Customer service says one thing, PMI department is another thing. We are trying to get the issue created by Flagstar rectified. Predatory Practices.

The mortgage services were fairly well. My rating is influenced by their poor performance when it came to Insurance claim check endorsement. They failed to endorse it in-time. Been waiting on them for a month before I learned they didn't bother to endorse my check! Provided tons of reasons and deadlines, which all btw were met. Highly disappointed by their incompetence and fishy approach. Shame on you Flagstar!

Stay away from this company. They bought out my mortgage and Ive had nothing but trouble from them. Customer service is horrible and the staff are incompetent. I send my payments via online banking. My bank sends them a check every month to the same address. Someone at Flagstar misplaced my check and it was fraudently cashed. They took no accountability. As a result it took months to get the money back which resulted in them reporting me to the credit bureau as 30 days late every month since they were posting my monthly payment for the previous month. There is nobody available in the credit reporting dept other than via email. Ive submitted documentation twice as evidence and I keep getting a generic letter that refuses to correct it. My mortgage has since been sold to another company thank goodness, however my credit has been ruined at no fault of mine. Im going to be forced to seek legal action to get it corrected. Ive never experienced such poor service from a company.

Had massive damage to my house from a weather event. As per policy, homeowners insurance claim checks had to be sent to mortgagor after I cosigned. They have been extremely difficult to deal with to get inspectors out to evaluate repairs to pay contractors. Once they finally did, and I received additional checks from my insurance specifically for an updated adjustment by the insurance company based on higher contractor costs they would not release the funds, "declined". I spoke to a supervisor who asked that I give them five days to review and potentially release the funds and never heard back. Called on the 6th day and they refused to handle it anymore as they had sold the loan to a new company who says I need to wait 10 days until they can even access the information from the claim/inspection/funds. Look out for communication from my lawyer, scumbags.

Flagstar is a rude and greedy financial institute. My loan was sold to them, and they cannot wait to sell my loan to Mr. Cooper just after 6 months of having my loan payments. They denied my recast option even though there were still 45 days left before the transfer date to process the recast. Right after the transfer date, the mortgage customer service phone number no longer even allows me to talk to a representative. They have two customer service numbers, 18009687700, this is the one that sends you to self service if your loan is BEING transferred out; 18882486423, where you may get through the matrix to talk to a mortgage representative.