Consumer complaint received 2019-11-05
Company: U.S. BANCORP
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
This complaint is hereby filed to document another issue with my home mortgage company U.S Bank Home Mortgage ( USBHM ) concerning a Lender-Placed Home Owners Insurance and the aggravation encountered as a result of their actions. 1.  On XX/XX/XXXX, I received a letter from XXXX XXXX XXXX XXXX titled LENDER-PLACED INSURANCE CONFIRMATION OF NON RENEWAL. This letter specified that U.S. Bank National Association was the Mortgagee and that in accordance with the certificate number XXXX under my loan with USBHM, this certificate expiration dates was to be effective XX/XX/XXXX which allowed me 14 business days to have another homeowners insurance in place for my house. ( See attachment # 1 ). 

2. The NON-RENEWAL reason given by the insurance company for the reason for non-renewal was Request of the Name Insured Mortgage. Meaning USBHM. I waited to hear from USBHM in writing or via e-mail regarding this issue. However, since no correspondence was ever received from USBHM, on XX/XX/XXXX, I filed a complaint XXXX with the Consumer Financial Protection Bureau ( cfpb ) against USBHM for this action. 

3. On a letter addressed to Ms. XXXX dated XX/XX/XXXX from US Bank and signed by XXXX XXXX, Mr. XXXX stated in Paragraph # 10 of his letter he stating to that " the Bank recently changed insurance vendors ... ... .... '' that the " lender placed policies through ... ... ... ... .old vendor were not renewed. '' Based on this, I began the process for the purchase of my own insurance. ( See attachment # 2 ). 

4. On XX/XX/XXXX, a copy of this insurance policy was provided to XXXX XXXX XXXX at The XXXX XXXX XXXX, XXXX XXXX via e-mail. Ms. XXXX is the attorney who is presently handling my Chapter XXXX Bankruptcy. ( Attachment # 3 ). 

5. This Homeowners Insurance Policy and premium purchased and paid by me on XX/XX/XXXX with an effective date of XX/XX/XXXX through XX/XX/XXXX was obtained through an insurance company called XXXX out New York. 

6. In this e-mail, I explained to Ms. XXXX, the problem that I encountered due to the cancellation of the Lender-Place Insurance Confirmation of Non-Renewal received from XXXX XXXX XXXX XXXX which I believe is one of the insurance company listed in the USBHM Master Contract. 

7. While conducting an on-line market research for the purpose of purchasing a Homeowners Insurance, I came across inaccurate information contained in my claim report from XXXX XXXX XXXX and obtained by XXXX XXXX on XX/XX/XXXX. According to this report, four ( 4 ) claims were filed under my property which prevented me from obtaining a Standard Insurance Policy with a well-known insurance company. ( See attachment # 4 ) 8. After a review of these information, I realized that three ( 3 ) of these claims were not filed by me. Investigations for these claims were initiated by the following institutions : XXXX ; XXXX, and the XXXX XXXX XXXX XXXX in XXXX, Virginia. However, when I contacted my prior insurance company, XXXX XXXX XXXX, I was informed that one of these claims was filed by USBHM on my behalf on XX/XX/XXXX. 

9. I was not aware of the claim filed by USBHM nor was I in the area since I was attending to my mother who was ill in New York. In addition, I was appalled by this information received from XXXX XXXX since I was in constant communication with USBHM during that time due to a Uniform Borrowers Assistance Form ( UBAF ) and 4506t form that needed to be completed for a Loan Modification. ( See attachment # 5 ) ; e-mail dated XX/XX/XXXX ). Due to the time constraints in obtaining this insurance which did not allowed me sufficient time for the purchase of a Standard Homeowners Insurance. 

10. On XX/XX/XXXX, I obtained a policy with XXXX in the amount of {$2200.00} which was forwarded to USBHM as a proof of insurance obtained by the insurance company. ( See attachment # 6 ). 

11. However, on XX/XX/XXXX, I received a letter from USBHM dated XX/XX/XXXX ; this institution claimed that since they did not have evidence that I have obtained a new coverage, they were going to buy insurance coverage on my behalf. ( See attachment # 7 ). 

12. On XX/XX/XXXX, I proceeded to call the Insurance Department at USBHM and ask for the State where the Master Contract was signed for customer under Lender-Placed Insurance. This information concerning the master contract was needed in order to find out who initiated the cancellation of the insurance policy. 

13. In accordance with USBHM statement in the letter sent to my attorney, it was indicated that the Bank recently changed insurance vendor. I was also informed by XXXX that the reason for the non-renewal of the insurance was because, USBHM was allowing me 45 days to purchase an insurance which contradict the statement on a the letter sent by USBHM to my attorney on XX/XX/XXXX. ( See paragraph # 10 of attachment # 2 ) 14. On XX/XX/XXXX when the letter from XXXX XXXX XXXX was received, I called the bank to discuss this issue since I did not know who this insurance company was. I was told by USBHM that I needed to have my attorney contact their attorney while under Chapter XXXX protection. 

15. To my dismay, I was also informed by XXXX that on XX/XX/XXXX and after receipt of my new policy from XXXX that USBHM when ahead and paid XXXX insurance company {$2200.00}. I requested to know why since I already had paid my insurance policy. XXXX sounded nervous and her response to me was that I may be owed a refund but first she needed to call another department to find out what can be done. 

16. I asked her to call me back with a response and she stated that she did not have an option to call me back and that it was better if I hold on since we needed to have a 3 party conference call with that other department. The other department was not specified. XXXX also mentioned that I may have a shortage on my escrow. 

17. After a long waiting period, she came to the line with another person name XXXX from the escrow department. I could not hear XXXX very well. His voice was low and fading and I could not understand what he was saying about the escrow and taxes. 

18. In addition, I could not understand why XXXX department had anything to do with me getting and paying my own insurance. I asked XXXX to speak a little louder. XXXX stated that maybe if she leaves the conference call, I may be able to hear XXXX more clearly. 

19. At that point XXXX excused herself from the conference call. However, I still could not hear XXXX clearly and at that point I asked him if he could call me back after XXXX XXXX  on XX/XX/XXXX. As of today, XX/XX/XXXX, I still have not yet got a response as to why USBHM went ahead and paid for my insurance without prior notification to me or my attorney. 

20. This action, again done by USBHM was done in an unethical manner taking under consideration that this changes the whole scenario to the revised payment plan and monthly payments scenario under Chapter XXXX. USBHM did not considered this change made by them which I believe have significant impact in modified plan was modified and the additional payments that was added to my mortgage payments with USBHM. 

21. However, in lieu of USBHM write an explanation as to why of their action in paying my policy twice, a letter originated from USHBM of a CONSENT ORDER MODIFYING AUTHOMATIC STAY was received on XX/XX/XXXX from XXXX XXXX XXXX XXXX. ( See attachment # 8 ). 

22. All these actions done by USBHM are arbitrary and capricious with no reasonable basis for their action which has prevented me from getting not only the right Standard Homeowners Insurance with a well-known homeowner insurance company. This is not a good business sound decision since it impacts my payments and maybe delays my confirmation once again. 

23. At this moment, I am in communication with the following institutions concerning my homeowners insurance and investigation of erroneous and reported information in my insurance report : a. XXXX b. XXXX XXXX and c. XXXX XXXX XXXX XXXX in XXXX, VA 24. I request that the Office of the Consumer Financial Protection Bureau to investigate as to why USBHM is handling my mortgage loan so poorly. 

a. Why was my claim dated XX/XX/XXXX under my umbrella insurance filed without prior acknowledge and notification since my house was not abandoned nor was I in the area even though, I was paying for my umbrella policy with XXXX XXXX XXXX. 
b. What reason ( s ) do USBHM have to go ahead and paid for my insurance policy after I paid for it? 
c. Why the CONSENT ORDER MODIFYING AUTOMATIC STAY letter was sent after I purchased my homeowner insurance which would decreased my monthly payments as oppose to the payments remain unchanged. 
d. Lastly, I am enclosing a copy of the modified plan dated XX/XX/XXXX and that was originally signed on XX/XX/XXXX. ( See attachment # 9 ).

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