Consumer complaint received 2018-09-04
Company: WELLS FARGO & COMPANY
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I obtained my mortgage with previous lender back in XX/XX/XXXX. Since then, our mortgage had been transferred/sold between numerous lenders. In order to obtain the loan, we had to comply with ALL the requirements including open and maintain an Escrow Account and obtain the REQUIRED insurances. 

For the past 5 years, we never had any issue with our lenders until Wells Fargo purchased our mortgage account in XX/XX/XXXXInferno had began. 

On XX/XX/XXXX, I received a first notice from Well Fargo demanding an Additional Hazard Insurance which I promptly contacted the office to explain that might have been a mistake. The Notice stated that the Well Fargo was entitled to force-place comprehensive insurance and charges us for the cost of that insurance. After talking to 3 different Wells Fargo representative, I was told that representative XXXX would research and contact me back. 

On XX/XX/XXXX, I received a second and final notice from Wells Fargo stating that a comprehensive wind insurance was required under Wells Fargo mortgage, considering that as a mortgagee consumer, we have no say as to the transfer of mortgage between lenders/financial institutions. 

On XX/XX/XXXX, I send a Qualified Written Request regarding the unreasonable request and demand for action. 

In XX/XX/XXXX, I received a statement of our escrow account showing an increase of {$9100.00} charge for the harzard insurance. Our mortgage raised from {$1300.00} to {$2600.00} or as a second option {$1900.00}. 

In addition, Wells Fargo sent a letter dated XX/XX/XXXX stating that it had issued an additional hazard insurance for the amount of {$6300.00}, but the statement send on XX/XX/XXXX shows an increase on the escrow account in the amount of {$9100.00}. 

Wells Fargo sent us a letter stating that they are entitled to force placed insurance based on existing contract. However, Wells Fargo failed to considered that ( 1 ) No insurance had been cancelled for our property since XX/XX/XXXX and ( 2 ) no insurance policy had failed to renew within the past 5 years. Thus, without the two situations above that trigger their right to force-placed insurance, Wells Fargo is not entitled to do so. In sum, Wells Fargo as a sucessor lender had NO reasonable basis to request, to demand, and to impose a collateral/additional insurance since we have met all the requirements to maintain required property insurances on out home. 

Finally, the transfer between lenders should not alter the mortgage conditions or its practice to the point that burdens the consumer mortgagee. Wells Fargo should be obligated to abide by previous terms and conditions and practice of the existing relationship between previous lenders and us. The mortgage loan transfer SHOULD NOT create a financial burden on uslike in this case in which defenselles our mortgage monthly payment almost double the amount of payment ( {$1300.00} to {$2600.00} or {$1900.00} ).

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