Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2014
Consumer Financial Protection Bureau settlement
Flagstar agreed to pay a settlement to the Consumer Financial Protection Bureau in connection with consumer-finance and mortgage-servicing-related matters.
2013
Mortgage-backed-securities and repurchase settlements
Flagstar reached or paid settlements involving MBIA, Assured Guaranty, Fannie Mae, and Freddie Mac concerning mortgage representations, residential mortgage-backed securities, and loan repurchase obligations.
2012
Federal mortgage-insurance lawsuit
The U.S. Department of Justice sued Flagstar, alleging that the bank improperly approved thousands of residential mortgage loans for government insurance. The litigation became part of the institution’s broader post-crisis mortgage-underwriting record.