Consumer complaint received 2021-05-25
Company: Home Point Financial Corporation
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
To whom it may concern, I am having some troubling issues with my mortgage company, Home Point Financial, in which I feel I have been taken. There are two complaints with this same company. 
The first I will address is that the lender has charged me five months of interest that the mortgage company had absolutely no right to collect. Ten months after I purchased my home with a mortgage from HomePoint Financial, my home was a complete loss, along with everything I own, to the East Troublesome Fire on XX/XX/XXXX. The mortgage received {$190000.00} including a letter for instruction to pay toward the principal on or around XXXX XXXX, of XXXX, which was the initial 50 % of the insurance proceeds on the house from XXXX XXXX. The initial check from XXXX XXXX did not satisfy the full loan balance and XXXX XXXX had refused to take the 50 %. The loan balance was @ {$380000.00}. However, the mortgage agreement specifically allows and states that any principal amounts can be prepaid without penalty. When I called them to get the check applied to the mortgage, ( sometime in early XXXX XXXX the mortgage company lied stating that they had not cashed the check. XXXX XXXX confirmed that the check was cashed on XX/XX/XXXX. As a result of not applying the insurance proceeds to the loan, I have incurred 5 months of interest that should not have been owed, if the check had been applied to the mortgage. As XXXX refused to apply the funds for months and months, so I had to hire an attorney to get XXXX to do what the mortgage agreement clearly spelled out that they had to do. XXXX XXXX had finally applied the 50 % 5 months after the initial attempt of the payment. 
I would respectfully ask that the 5 months of interest that should not have been invoiced by reimbursed. I would also ask that my attorney fees of {$3300.00} be covered. 

The second issue is part of my homeowners insurance that XXXX XXXX is also taking me for. As stated earlier, my home had burned down on XX/XX/XXXX. The day after the fire, I made a claim with my insurance company and had also cancelled my homeowners ' insurance, as it was a total loss and there was nothing to cover. I had then, in early XXXX of XXXX, received a letter from Home Point financial Stating that they needed to receive insurance information for the property and that XXXX XXXX will be purchasing insurance at my expense. I had immediately called Home Point Financial upon receiving this letter, and spoke with a person named XXXX XXXX. He had cleared up this particular issue and assured me that the insurance would once again be cancelled. 
XX/XX/XXXX I was charged {$3600.00} for homeowners ' insurance that XXXX XXXX had purchased at my expense. I spoke with HomePoint again recently, XX/XX/XXXX, to try and get to the bottom of this. I was then told by XXXX that I would get a refund for this money if I had liability insurance. This is something I was certainly not aware of this entire time, otherwise I would have purchased liability insurance the day after the fire. Although, upon further research, I have learned that my renter 's insurance has liability insurance that covers any properties that I own, which I have had since XXXX of XXXX. On XX/XX/XXXX, I spoke with Home Point Financial again and showed them my renters ' policy with the liability insurance. I was then told by XXXX XXXX that this was not what they were looking for and that they needed to look in to it and get back with me in XXXX XXXX. The problem here is, I do not believe them. They have lied to me before and I believe they will again. I have not had any sort of response as of today, XXXX, XXXX, XXXX, XXXX well over XXXX XXXX  ) I feel that Home Point Financial needs do the right thing and I want HomePoint to refund the premiums that they wrongly charged me. Thank you for your time. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation