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Flagstar Bank - Disappointing Service / Bait and Switch Closing Cost Savings

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.

User's recommendation: 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.

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#2344304 Review #2344304 is a subjective opinion of poster.
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