Consumer complaint received 2021-11-12
Company: LD Holdings Group, LLC
State: NC
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX Loan Depot Loan # XXXX XXXX XXXX XXXX XXXX, NC XXXX Serviced by the New Jersey Office Between XX/XX/XXXX and XX/XX/XXXX we refinanced 3 properties with Loan Depot. 
The experience with this VA Loan has been an unmitigated nightmare. 

For several months we have been trying to communicate with the insurance section of Loan Depot to get them to remove the forced placed insurance of {$250000.00} on this property referenced above. 
The tax value of the structure is {$38000.00}, the replacement value is just over {$100000.00}. We have {$140000.00} of coverage. Loan Depot claimed they need the maximum that FEMA allows .... {$250000.00}. 
The value is in the land because it has an easement to the XXXX XXXX. Our insurance broker has sent proof of value to Loan Depot..

Please check the notes on file with Loan Depot 's Customer Service Reps. For months we heard absolutely nothing from Loan Depot 's insurance office- MONTHS!! 
I did receive a call back in XXXX from a gentleman in the XXXX XXXX, CA office of Loan Depot who told me that the VA Loan on this property was not in compliance with VA regulations because we had refinanced the property within 200 days of the last refinancing. This was not true as the last refinancing was in XXXX or XXXX. I told him that and he said he would research my statement and call me back. He has not called back as of this date. 

On XX/XX/XXXX, XXXX, my wife, told me we had a letter from Loan Depot saying they had finally removed the forced placed flood insurance because they had received the documents our insurance broker had sent them. 

The same day that letter arrived another letter from Loan Depot was received saying that the flood insurance on this property was insufficient.????? 

As I do occasionally during the month I check our bank accounts. I have an automatic draw that allows Loan Depot to debit our account for the mortgage. I noticed that although the payments for two of our properties had been debited, the payment for XXXX XXXX ( XXXX # XXXX ) had not been taken out. 
I called and found out that Loan Depot had canceled the payments because we had only been sending what they considered partial payments for the past several months. I called and the phone person said she would escalate to a supervisor. I made a one time payment of the normal amount. I was told that now because they had removed the forced placed insurance a new escrow analysis would have to done. Until that was done they couldn't change the amount of the payment back to the original amount. 
do during the period of the last 4 months Loan Depot is now saying that the original monthly payment of {$1400.00} is incorrect and a new amount of {$1600.00} is now the proper payment. Obviously, I complained because the amount {$1600.00} reflected the forced placed insurance cost even AFTER that insurance had been removed by Loan Depot. Now, instead of reducing the payment amount, Loan Depot is saying that our monthly payment will be over {$1800.00}. We would never have refinanced the property if the monthly payment was going up over {$400.00} per month within the first few months of the closing. The principle and interest is approximately {$1000.00} per month which means Loan Depot says the taxes and insurance products are costing almost {$10000.00} per year for a house that has a tax value of {$38000.00} Please do not be confused or bamboozled by your contact at Loan Depot. CFPB can and should have all the documents and recordings of calls to determine what Loan Depot is trying to accomplish. 

I would suggest that you have Loan Depot send CFPB a complete record of both phone operators ' notes and written correspondence so you can understand the frustration we have been experiencing with the lack of responsiveness from Loan Depot. There is no way a consumer/veteran can get through to the XXXX XXXX headquarters to complain and seek resolution. This company needs to be fined, rebuked and admonished to service their customers in a efficient and proper manner. 

Of the three properties we refinanced with Loan Depot it has been only this VA Loan that has ( so far ) been a problem. All three of these loans have the Loan Principal, Interest, Taxes and insurance INCLUDED in the payments so it is Loan Depot 's responsibility to make these payments on-time. We continually receive notification from Loan Depot that our insurance is about to expire and would we send proof of renewal. We even got notice from the XXXX XXXX carrier that our insurance premium had not been paid and was therefore terminated. Fortunately we caught Loan Depot 's mistake and paid the premium. Loan Depot charged us a late fee for the insurance payment being late. Loan Depot is responsible for paying the insurance out of escrow and our monthly payments. We should NOT be charged a late fee. 

I feel that some form documenting this loan exists in the bowels of Loan Depot HQ. These must be a mistake or unpublished documentation in those original documents. 
Please attempt to get all documents and operators ' notes from my phone calls I have never had such a problem with a company before in my life. 


Respectfully, XXXX & XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation