Retained servicing customers whose loans transferred to Flagstar Bank on February 1, 2021 and remitted their monthly payment to Fairway/ServiceMac using online banking or a third party bill-pay service from January 29, 2021 and forward are receiving an email or letter advising their payment has been returned to their financial institution or third party bill pay service provider (a letter will be sent if an email address is not available).
Additional details regarding this process are described below.
Funds for payments remitted through this channel post-transfer are not posted to loan-level upon receipt, and they are automatically rejected and returned to the customers’ bill pay service or financial institution the next business day.
The timeframe for customers to receive the returned funds takes 3 – 7 business days. This is dependent upon the third party bill pay service’s processing time and/or processing time at the customer’s bank.
A spreadsheet has been added to the shared folder containing the date funds were rejected and the email address used to send customers the notification of the returned funds. View this spreadsheet by accessing the shared drive path below – must access through the Citrix desktop:
X:\Servicing\Customer Experience\Bill Pay Rejects Flagstar Bank Transfer
Talking points for customers:
- Payments remitted to Fairway (ServiceMac) using their bank online bill pay or a third party bill pay service beginning 01/29/2021 for loans transferring to Flagstar Bank effective 02/01/2021 are being rejected and returned to the sender (online banking or bill pay service)
- While the funds are automatically returned the business day after they are received, it may take 3 – 7 business days for customers to see funds in their account
- Customers should check with their bank or third party bill pay service for details on receiving the returned funds
IMPORTANT - Customers must update the payee information with their online banking or bill pay service to reflect their new servicer, Flagstar Bank:
Payment details must be updated as follows:
Pay to the order of: Flagstar Bank
Reference: Flagstar loan #__________
Mail to/reference the: Payment Processing Department
Flagstar Bank, P.O. Box 660263
Dallas, TX 75266-0263
A copy of the newsflash advising of this process – distributed February 1, 2021 – is attached to this email for your reference.