Complaint Review: Flagstar Bank

June 2010. I was shopping refinance rates to combine my current first and second home loan into one loan and reduce my monthly payment with a better interest rate. i submited my information through the Lending Tree website which promised to send my information to several lenders and let them compete for my business.  I recieved several responses and contacts from this and had narrowed it down to two companys and after they otained my information they both quoted 4.5% with no points to refinance my home. I ultimately went with LSI Mortgage Plus Greg Powers because he said that his company was the bank and that  i would not have to deal with any middlemen and this would to close the loan in approximately 3 weeks and would same me money of fees,  after sent him my financial information he advised that my loan was approved and the only thing that was needed is an apprasial and that it needed to be $ 180,000 or higher we would be good and that i would need to pay $ 400.00 to LSI Appraisal so that they can order an Appraisal which i did on July 09,2010.

Approximately 2 weeks later i get a call stating that the apprasial had come back with a appraised value of $ 183,000 but there was a problem with one of the compatble properties that were used in determining the value and that it was to high and that Flagstar Bank was wanting an explantion from the appraiser, 1 week later i was advised by LSI Mortgage Plus that the appraiser had sent back an update stating there were no other properties sold in the immediate area and no other comps could be added. I recieved a call from LSI Mortgage Plus and was advised that Flagstar bank denied the appraisial. i sent an email to Flagstar Bank underwriter K. Mifflin showing another appraisal was done less that two years earlier by a Federal Credit Union with the same circumstances and was valued at $ 187,000 and there was no problem with it being accepted. I recieved a call the following morning from LSI Mortage Plus advising me that my email had been forwarded to me by Flagstar Bank and that they would not talk to me.

Bottom line is they advise that you need to pay $ 400.00 for an appraisal and that they use an independant apprasial company LSI (Not suppose to be affiliated with LSI Mortgage Plus - hmmmm ) to order the apprasial and that you cannot speak to the apprasal company and that you cannot speak to the underwriting department to ask for ask them to submit the apprasial to an independant apprasier to review to verify the value. They just take your $ 400.00 and say sorry. 

If you don't want to accept an apprasial when it comes in above the required amount and it is done by an independant licensed by the state appraiser who is suppose to know how to determine the value, then do the right thing and refund the customers money since he has done nothing wrong.    

Now if i go with another company i will have to do this all  over again and pay another $ 400.00 that you have no say so over.