March 11, 2021: Information - Flagstar Bank Does Not Pay Supplemental Tax Bills

Flagstar Bank does not pay supplemental/interim taxes.  


Supplemental/interim bills are the customer’s responsibility to pay. 


If the customer’s closing agent collected funds at the time of settlement in anticipation of a supplemental bill being issued, customers must contact  Flagstar Bank’s Customer Engagement team.  They will review their escrow balance to advise if an overage amount exists that can be disbursed directly to customers to assist in making the full payment to the tax office.  


Shown below is the verbiage in the letter mailed by Flagstar Bank when their customers request a supplemental bill to be paid from their escrow account:  


"Dear <Customer Name>:

We have received your request to pay your tax bill.  The bill you sent is in a supplemental/interim tax bill and Flagstar Bank does not pay supplemental/interim taxes.  Supplemental/interim bills are your responsibility to pay.  If your closing agent collected funds at the time of settlement in anticipation of a supplemental bill being issued, please contact our Customer Engagement team and they will review your escrow balance to advise if there is an overage amount that can be disbursed directly to you to assist you in making the full payment to your tax office.


Please contact our Customer Engagement Center in order to have any additional questions answered or your account reviewed further.  They can be reached by calling (800) 968-7700, Monday - Friday: 7:30 a.m. to 8 p.m. ET and Saturday: 7:30 a.m. to 4 p.m. ET."


Customers whose loans are serviced by Flagstar Bank must contact Flagstar Bank directly for assistance with this topic.