Consumer complaint received 2023-01-30
Company: Specialized Loan Servicing Holdings LLC
State: MI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I own a home in XXXXXXXX XXXX, and the mortgage is serviced by Specialized Loan Servicing LLC since XXXX. I have maintained homeowners property insurance without an escrow since XXXX. In XXXX, I purchased homeowners property insurance from XXXX XXXX with a expiration date of XX/XX/XXXX. Prior to XX/XX/XXXX, I did not receive a renewal reminder from XXXX XXXX Specialized Loan Servicing LLC or Insurance broker/Agent XXXX XXXX XXXX However, on or about XX/XX/XXXX, I contacted XXXX XXXX, XXXX XXXX for the purpose of renewing the policy. On XX/XX/XXXX, the policy agreement was signed and payment or the insurance premium was given to XXXX XXXX. 

On or about XX/XX/XXXX, I received a mailed notice and a robocall from Specialized Loan Servicing LLC requesting verification of homeowners insurance. On or about XX/XX/XXXX, I received a mailed copy of the homeowners insurance binder from XXXX XXXXXXXX XXXX XXXX XXXX, with an issue date of XX/XX/XXXX and an expiration date of XX/XX/XXXX but the declarations page contained a policy period of XX/XX/XXXX to XX/XX/XXXX. I also discovered that the policy period dates were already uploaded to the Specialized Loan Servicing LLC insurance verification website. I subsequently called and spoke with a Specialized Loan Servicing LLC customer service representative, who indicated that unless I have the insurance coverage issue date backdated from to XX/XX/XXXX, I would be billed for a lender placed insurance policy covering an 8 day lapse period. I contacted XXXX XXXX, XXXX XXXX to request a change of the issue date to XX/XX/XXXX. However, XXXX XXXX explained that the insurance issue date could not be backdated because additional days were required to produce the above insurance policy due to a change of insurance carriers. XXXX XXXX also indicated that there are no insurance carriers that would agree to cover an 8 day period lapse and a grace period should be offered due to the above circumstances. 

Contact was established with Specialized Loan Servicing LLC, customer service representatives on two separate occasions. However, the customer service representatives were adamant that a force placed insurance policy would be obtained from XXXX XXXX XXXX XXXX for the 8 day lapse in coverage in the form of escrow on the mortgage account. This policy could not be paid out of pocket. Additionally, Specialized Loan Servicing LLC did not have a grace period policy and there was not a complaint resolution desk to resolve to the above matter. 

Specialized Loan Servicing LLC arbitrarily and capriciously, assessed my mortgage account an additional fee, which they determined was owed for an homeowners insurance lapse from XX/XX/XXXX to XX/XX/XXXX. However, Specialized Loan Servicing , LLC has yet to produce a valid insurance binder for above period and their action appears contrary to a court settlement from court complaint, XXXX XXXX v. XXXX XXXX XXXXXXXX XXXX  filed on XX/XX/XXXX, involving the same issues.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation