I worked for a mortgage company - management, not a broker - and we placed several loans with Flagstar. This was during the heyday of sub-prime lending. Their "quality control" people decided a few of the loans didn't meet their standards (like they have any) and they demanded we buy them back. I found a "bad paper" investment firm which said they would be pleased to take them, so I contacted Flagstar and said okay we'll buy them. They had threatened us with all sorts of legal action if we didn't. Their Office of General Counsel wrote back and said - "Oh, sorry. We don't own them, so we can't sell them to you." They then filed crimminal charges against the company and a civil suit against our president. Our E&O insurance settled the civil case. In a plea bargain our president paid them back with "restitution." AND they had already sold them. Now they are sueing the settlement company and Stewart Title. I have heard from a couple of sources that the SEC is looking into these guys - evidently for good reason. I hope the NY Attorney General does the same. (They are publicly traded). If this isn't fraud I don't know what is. Are there other brokers out there who are getting shafted by these scumbags? Maybe we could do a class-action suit against them? PA has triple damages when fraud is involved.