Consumer complaint received 2023-08-07
Company: WELLS FARGO & COMPANY
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
RE : Wells Fargo Forced Place Insurance Matter / Recalculated Escrow XX/XX/XXXX Wells Fargo agrees to {>= $1,000,000} dwelling coverage on current policies with XXXX XXXX XXXX as a condition to us doing a refinance loan with them. 
XX/XX/XXXX XXXX ( XXXX XXXX  ) goes into receivership and honors our coverage until XX/XX/XXXX. Due to Hurricane IAN in southwest XXXX. We are located in XXXX. 
XX/XX/XXXXXXXX XXXX  We search high and low to secure a new wind policy. We have had continuous hazard insurance with XXXX. 
XX/XX/XXXX Wells Fargo requests proof of wind coverage. We communicate with the that we are trying to find insurance. 
XX/XX/XXXX - Wells Fargo requests proof of wind coverage. We are still looking. 
XX/XX/XXXXXXXX  We receive notification from Wells Fargo that they have issued forced placed insurance on our loan for {$83000.00} with a dwelling amount of {>= $1,000,000} vs. {>= $1,000,000}. The coverage was effective XX/XX/XXXXXXXX XXXX. 
XX/XX/XXXX We call and speak to XXXX and ask her to amend the policy to the previously agreed amount of {>= $1,000,000} Explain we are working on finding replacement coverage. 
XX/XX/XXXX We call our XXXX XXXX agent and he says he can help us if we provide building records showing that our home was renovated XXXX XXXX since the appraisers office shows XXXX 
XX/XX/XXXX We get approved by XXXX XXXX and get a policy issued on XXXX XXXX  Insurance Company paper. 
XX/XX/XXXX Send to both lenders ( we have a HELOC with XXXX  ) and request them to cancel forced place policies. Wells Fargo XXXXXXXX XXXXXXXX XXXX only issues a wind policy for the collateral amount of the loan. WHICH IS WHAT WF should have done. 
XX/XX/XXXX Receive via XXXX note from Wells Fargo Corporate stating they have completed escrow analysis and will be increasing our payments from {$3600.00} to {$21000.00}. 
XX/XX/XXXX I call and ask them to look for the replacement insurance, cancel and prorate the policy and amend the policy limits to {>= $1,000,000} vs. {>= $1,000,000}. I speak to XXXX and she says she will try. I also ask her to freeze the new payment amount until we can get this resolved. 
XXXX XXXX XXXX We receive confirmation of the cancellation effective XX/XX/XXXX from XXXX XXXX XXXX Wells Fargo. 
XX/XX/XXXX We start looking for legal counsel. 
XX/XX/XXXXXXXX  Receive letter from Wells Fargo stating they are refunding {$62000.00} which represents the unearned premium. They have charged a premium of {$20000.00} and will be paying for all future wind insurance from our escrow account? HOW CAN THEY DO THIS? 
XX/XX/XXXX I call the XXXX Department of Insurance, start asking for Lawyer recommendations. 
XX/XX/XXXX We ask them to go back and amend the dwelling amount to reduce our premium at the amount they originally agreed to {>= $1,000,000}. per the loan docs and correspondence. 
XXXX  Wells Fargo sends a letter stating that effective XXXX XXXX  they are increasing our mortgage payment by XXXXXXXX XXXX Speak to XXXX at Wells Fargo and ask her to adjust the return premium and she says that she can not do that. We are stuck paying the higher premium of {>= $1,000,000}. 
XXXXXXXX XXXX XXXX XXXX- We go back and forth with the executive department at Wells Fargo trying to get answers. They say they will not do anything for us. Meanwhile, they are forgiving loans for people affected by IAN who are not paying their loans. We are paying and they are penalizing. 
XX/XX/XXXX - They reopen our case. and we ask them why Wells Fargo isn't standing by the XXXX XXXXXXXX wind amount that they agreed to at the time of the loan. Ask them to go back and prorate the premium by asking their forced place carrier to reduce the dwelling amount to XXXX XXXX vs. XXXX XXXX. Remove escrow and refund the differences. 
XXXX  - Speak to XXXX XXXX who says there is nothing he can do with the insurance as it states that they go by the last amount on the hazard. That is not what there documentation says. They state " that the amount of coverage they obtain will be based on the amount of the last hazard policy or last comprehensive wind policy provided to us or prescribed by state law. '' XX/XX/XXXX- XXXX says he can't undo the escrow. He can give us 24 months to pay it. I tell him that he needs to go back and fix insurance and he informs me that he can't. 
This is a scam. They are taking advantage of consumers and not honoring the terms of the loan, issuing higher limits in forced placed insurance to take advantage of consumers.

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