Consumer complaint received 2020-11-10
Company: LD Holdings Group, LLC
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Re-opening complaint XXXX as the company still has not done anything to correct the issue they made. I was called by a representative of LoanDepot explaining the issue which was completely made on THEIR end and was told that they had taken steps to resolve. I know for a fact my insurance has properly been increase to XXXX as after LoanDepot failed to send the proper amount which they required when I initially took out the mortgage. It is not my fault that they failed to pay the insurance at all per the guidelines of my escrow and also not my fault that they submitted the wrong amount of payment to initially lower the XXXX policy they initially required when I did the refinance. After receiving a call last week from LoanDepot they assured me this was resolved. Today I received a letter that they have since force placed insurance on my home again, which now effectively increases the coverage to {$210000.00} which is well over the required amount as I'm only required to maintain an amount of the unpaid principal loan balance which is less than the XXXX original loan amount. Companies like this should not be able to get away with this complete negligence in servicing mortgages for their customers. I can only hope my mortgage eventually sells so I can get away from this terrible company. 

Details from Original Complaint submitted XX/XX/XXXX YOUR COMPLAINT I recently refinanced my mortgage with Loan Depot closing at the end of XX/XX/XXXX. During the origination process LoanDepot required that I raise my flood insurance coverage to {$200000.00} and handled this update to coverage themselves. This was fine given the new loan amount and the flood policy was updated, or so I thought. Since I closed on the mortgage it has not been transferred and has remained under control of loan depot mortgage servicing. In early XXXX both myself and loanDepot were mailed a Flood insurance Expiration notice with the renewal premium of {$360.00} that was previously updated by Loan Depot to was due. Payment never ended up being sent from my escrow account by LoanDepot and on XX/XX/XXXX the insurance company reached out and notified me that it had not been paid. I checked my escrow activity and noticed it had not been sent either. I initially reached out to LoanDepot an re-provided all documentation they already had on file as they were the ones who originally increased the insurance amount. After several days of back and forth and even getting the insurance company themselves directly involved loandepot finally sent over the payment from my escrow account on XX/XX/XXXX. I received an email from the Insurance company this past Friday XX/XX/XXXX notifying me that they sent {$15.00} less than the total premium and only sent {$340.00} instead of {$360.00}. They let me know that if funds are not received by LoanDepot by XX/XX/XXXX that my policy will have to be redone and the premium will increase substantially due to how long the policy has been in place. I have tried unsuccessfully to get LoanDepot to do anything about this since Friday and am going to just remit the {$15.00} myself to ensure my policy stays in tact. I want to see what further action can be taken against LoanDepot in this matter as they could care less to let someones policy lapse and do not properly manage escrow accounts. 

Company 's Response XXXX XXXX XXXX is correct in stating that, at the origination of his loan, loanDepot worked with his insurance company to increase his flood coverage to {$200000.00}. loanDepot has a copy of a preliminary Endorsement Application Statement confirming the increased coverage. With that said, on XX/XX/XXXX, loanDepots insurance vendor received a copy of his flood insurance policy from XXXX XXXX reflecting a premium amount of {$340.00} for a coverage amount of {$180000.00}. Because the coverage amount was lower than required, loanDepot made two contact attempts on XX/XX/XXXX and XX/XX/XXXX to XXXX XXXX insurance agent to validate the coverage and premium amounts. loanDepot also left a voicemail for XXXX XXXX on XX/XX/XXXX, requesting a call back. XXXX XXXX contacted loanDepot on XX/XX/XXXX, to find out why his flood insurance policy had not been paid. loanDepot provided XXXX XXXX with a fax number for him to provide a copy of his current flood insurance policy. On XX/XX/XXXX, loanDepot received a copy of XXXX XXXX flood insurance policy ; however, the policy received was illegible. On XX/XX/XXXX, loanDepot issued XXXX XXXX XXXX a check in the amount of {$340.00} for XXXX XXXX flood insurance policy. This was the premium amount from the last legible policy received. The check was cashed by XXXX XXXX XXXX on XX/XX/XXXX. On XX/XX/XXXX, loanDepot received a flood policy document from XXXX XXXX XXXX reflecting a premium amount of {$340.00}. As result of XXXX XXXX complaint, loanDepot contacted XXXX XXXX XXXX on XX/XX/XXXX, who confirmed that the flood insurance policy coverage amount had increased to {$200000.00} on XX/XX/XXXX, with a premium amount of {$360.00}. loanDepot confirmed the flood policy received from XXXX XXXX XXXX on XX/XX/XXXX, and again on XX/XX/XXXX, reflected a premium amount of {$340.00}. On XX/XX/XXXX, loanDepot issued XXXX XXXX a check in the amount of {$15.00} for the additional premium he paid out of pocket. XXXX XXXX should receive the check by mail within 7-10 business days. For additional questions or concerns, please contact XXXX XXXX, XXXX of XXXX XXXX, at XXXX XXXX XXXX XXXX ext. XXXX or XXXX. 

ADDITIONAL COMMENTS The companies response reflects inaccurate information and makes no logical sense. I have copies of the flood insurance policy that were mailed to both myself and LoanDepot in XX/XX/XXXX reflecting the Premium of {$360.00} in XXXX. The payment itself was due on XX/XX/XXXX which I was notified by my insurance company after this date that LoanDepot had failed to pay. I never received a call or voicemail from Loandepot in XXXX in regards to this. It was at this point that I was proactive in reaching out to LoanDepot. After initial contact on XX/XX/XXXX I sent over a copy of the policy reflecting {$360.00} I had received in XXXX. I called back the following week and was told it had not gone through even though I had receipt of the successful send. The agent told me LoanDepot had switched addresses and had likely lost the original statement that was mailed when i inquired about why they never received the original statement and failed to pay. He instructed me he was contacting the insurance company and would call me back once everything was complete. A little while later he reached back out and said that everything had been taken care of and the payment was being sent out. I reached back out on to the insurance company to confirm and the agent confirmed and sent me a copy of the policy sent reflecting {$360.00} for {$200000.00}. It was at this point that LoanDepot remitted the incorrect amount of {$340.00} to the flood insurance company after the policy was initially past due. I was contacted by the insurance company on Friday XX/XX/XXXX notifying me of the {$15.00} shortage letting me know they were unsuccessful in contacting LoanDepot to correct. I contacted loanDepot myself on multiple occasions ( XXXX or more times ) at this point with no success in getting the issue resolved. Most calls resulted in hold times of up to an hour with the agents being rude and offering no assistance to resolve the issue. By XX/XX/XXXX I gave up on LoanDepot doing anything to resolve and submit the payment on time. I contacted the flood insurance company myself and made the payment for the {$15.00} shortage on XX/XX/XXXX as I was informed there would be a mandatory 30-day waiting period before coverage could be increased. I have now received the check from LoanDepot for the {$15.00} shortage, however want to point out the inaccuracies in the statement made by loandepot. LoanDepot should have been remitting the {$15.00} check to the Flood insurance company after initially being informed of their mistake.

Company response to consumer: Closed with explanation