Flagstar Bank fraud, insurance fraud, mortgage, insurance policy Troy, Michigan

I recently got a mortgage on a condo thru Flagstar Bank.  The condo association has a master insurance policy to cover the units themselves and I got another policy to cover my belongings inside the unit.  All seemed fine.

A month later I got a letter from Flagstar saying that my insurance coverage was insufficient and that I'd need to greatly increase my personal policy to cover "betterments and improvements" to the unit... If I did not they'd open a policy themselves and charge me for it.  I told them my unit didn't have any improvements (upgraded cabinets, granite countertops etc) and that I was fine with the associations coverage.  They said it wasn't an option and that basically I HAD TO essentially get a policy to cover improvements that I did not have. 

I spoke to my real estate broker, mortgage broker, insurance agent and the homeowner's association and all of them had the same answer: they'd never heard of anything like that and they suspected it might be fraudulent. Flagstar said this clause was in the documents I signed at closing, but when I asked them to provide me with a copy of the doc I signed that tied me to this, they said they couldn't produce it....amazing.  Flagstar, if you're going to rip me off you should at least have your ducks in a row! 

Avoid these guys at all costs...I have had a number of mortgages over the years and these guys are the worst mortgage company I've ever dealt with by a long shot.