Consumer complaint received 2021-02-04
Company: Redfin Corporation
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XX/XX/2021 XXXX XXXX XXXX XXXX, Texas XXXX Consumer Financial Protection Bureau XXXXXXXX XXXX  XXXX XXXX, IA XXXX Federal Trade Commission Bureau of Consumer Protection XXXX XXXX  XXXX, XXXX XXXX, DC XXXX Texas Department of Savings and Mortgage Lending XXXX XXXX XXXX, XXXX XXXX XXXX, TX XXXX Dear CFPB, FTC, and TDSML Representatives : I am writing to file a complaint against Redfin Mortgage for failing to properly calculate and disclose the Annual Percent Rate ( APR ) of our mortgage loan in accordance with the Truth in Lending Act, 12 CFR 1026.22, and engaging in Unfair & Deceptive Acts and Practices in violation of Section 5 of the Federal Trade Commission Act, 12 USC 45. I am seeking reimbursement for the improperly disclosed fee/incorrect APR, reimbursement for additional insurance coverage required solely for Redfins benefit when we were already otherwise insured, removal of this additional insurance coverage as an ongoing requirement of the loan, and a requirement that Redfin remedies this issue for existing and any future similarly situated consumers. While I have a private right of action in this case, pursuant to 15 USC 1640, I do not intend to exercise this private right of action if Redfin Mortgage takes expedient steps to resolve this matter. See 15 USC 1640 ( referencing that a creditor can remove liability by fixing the error within 60 days of notification ). 

The facts of this matter are as follows. On XX/XX/2021, my husband and I received a Loan Estimate from RedFin Mortgage to finance the purchase of a condo for investment purposes. The Loan Estimate indicated that the applicable Interest Rate was 2.875 % and the APR was 2.894 %. Our Loan Estimate listed in the Other Costs section an estimated Homeowners Insurance Premium. It stated under Other Considerations that the loan requires Homeowners Insurance. As you will see in the lengthy attached email traffic, we provided Redfin Mortgage with plentiful evidence including condo declarations, condo rules, a copy of the insurance policy/declarations page, and direct statements from the heads of the insurance company insuring the condo that the condo was fully covered from a property insurance perspective including the walls-in aspects of the condo ( and any betterments and improvements ). The insurance company also offered to add Redfin Mortgage directly to the insurance policy as an insured party. We further explained to Redfin Mortgage that we did not need personal property insurance because we were renting out the home and did not intend to live there, so the renters would obtain their own renters insurance. We also explained that we were covered by a separate umbrella policy for personal liability. 

The attached e-mail traffic shows that RedFin Mortgage understood that we had preexisting insurance covering this loan, that the insurance covered the walls-in aspects of the property including betterments and improvements, that we did not need personal property insurance, and that we had an umbrella policy for personal liability insurance. There are direct statements from RedFin Mortgage representatives in the attached e-mail traffic affirming their understanding of all these facts. However, RedFin Mortgage was seeking to sell this loan in the secondary market, and they determined their investor would only purchase this loan if we had a separate HO6 condo insurance policy. [ Note that an HO6 policy covers real property, personal property, and liability insurance. ] We felt we were so far into the condo purchase process at the time that this requirement to purchase a specific HO6 policy was added to the loan that we could not reasonably back out of the process at that point and close on the property on time. The appraisal had been completed ; we had invested a lot of time compiling documents and working for approval from Redfin Mortgage ; and the closing date was fast approaching. Feeling we had no other option, we moved forward and obtained the HO6 policy, obtaining low coverages since we were already insured and this was a requirement solely so the lender could sell the home in the secondary market to its investor. Redfin Mortgage then went back to its investor to ask about our coverage amounts and required us to obtain higher coverage amounts even though we were already insured and even though RedFin Mortgages interests were already fully protected. These higher coverage amounts were only required for RedFin Mortgages benefit so they could sell the loan in the secondary market to this particular investor. 

Given that RedFin Mortgage required us to be double-insured ( and with high coverages ) so they could sell the loan to a certain investor in the secondary market, we are of the opinion that this fee for double-insurance ( that is applicable annually over the life of the loan ) is a finance charge or other fee that should have been including on the Loan Estimate and the Closing Document as part of the APR. The APR is a a measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of value received by the consumer to the amount and timing of payments made. We are also of the opinion that Redfin Mortgage adding this requirement late in the processing of our mortgage and making us become double-insured solely so they could sell the loan in the secondary market is an unfair and deceptive practice. 

An act or practice is deceptive under section 5 of the FTC Act if there is a representation, omission, or practice that is likely to mislead the consumer. Redfin Mortgage was deceptive in this instance insofar as while they indicated in the Loan Estimate that we would need Homeowners Insurance, they did not indicate that we would need to be double-insured with a specific HO6 policy covering items for which we were already insured. The requirements to establish an act or practice is unfair under section 5 of the FTC act is when it ( 1 ) causes or is likely to cause substantial injury ( usually monetary ) to consumers, ( 2 ) can not be reasonably avoided by consumers, and ( 3 ) is not outweighed by countervailing benefits to consumers or to competition. This practice caused substantial injury insofar as we are required to pay twice for insurance we already have and/or do not need over the life of the loan. The substantial injury can not be reasonably avoided because they told us about this requirement late in the process after we had already paid for an appraisal, after we had already invested a great deal of time in providing required documents for approval, and close to our contractual closing date. This practice is not outweighed by countervailing benefits to consumers or to competition. It is not in anyones interest except this particular lenders interest for us to be double-insured. It causes harm to us individually and does nothing to protect the mortgage company since they were already covered under our original policies and the insurance company directly offered to add them as an insured party on that policy. Requiring us to be double-insured and purchase a specific policy with components we did not need is inefficient, harmful, and does nothing to benefit consumers or competition. 

Thank you for reviewing this matter and ensuring appropriate and timely remediation. I have attached the e-mail traffic showing Redfin Mortgage fully understood the information stated above, and I have copies of the insurance declarations, full insurance policy documents, condo declarations, and condo rules which provide supplemental information. I will be happy to get you copies of those documents. 

If you need any additional information in this matter, please do not hesitate to contact me at XXXX or XXXX. 

Sincerely, XXXX XXXX. XXXX Attachments : Email traffic between Borrowers, RedFin Mortgage, Real Estate Agent, and RedFin Mortgage related to this transaction and the requirement to purchase a specific HO6 policy with specific coverages despite already being insured. 

CC : Redfin Mortgage ATTN : Legal Department XXXX XXXX XXXX, XXXX XXXX XXXX, Texas XXXX -- -- -- -- -- -- -- -- -- -- -- -- E-MAIL CHAIN 1 -- -- -- -- -- Forwarded message -- -- -- -- -- From : XXXX XXXX XXXX Date : Wednesday, XX/XX/2021 Subject : XXXX XXXX XXXX To : XXXX XXXX XXXX Youre very welcome! I totally understand, Ive had lenders be sticklers in the past but have never had one require a separate walls-in policy when its covered at the HOA level. 

Regards, XXXX XXXX XXXX Account Manager XXXX XXXX XXXX, XXXX. 
XXXX XXXX XXXX XXXX - XXXX, TX. XXXX T ( XXXX ) XXXX x XXXX F ( XXXX ) XXXX " Be still, and know that I am XXXX '' XXXX XXXX From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/2021 XXXX XXXX  To : XXXX XXXX XXXX Subject : Re : XXXX XXXX XXXX Thanks, I appreciate it. I hate paying twice for the same coverage and dont need personal property or liability but for the fact that they are requiring it with no explanation. I already have an umbrella policy for liability and I am not going to live there so dont need personal property coverage. Ugh. 

XXXX On Wednesday, XX/XX/2021, XXXX XXXX XXXX wrote XXXX Hi XXXX we have a department in our office that handles HO-6 policies. Ive reached out to them and they can provide you with a HO-6 quote if you want to secure one. 

I sent the building information to XXXX over in that department. She will need to get some personal information from you to complete a quote. Her contact information is below. 

Thank you! 

XXXX XXXX XXXX XXXX XXXX, XXXX. 
XXXX XXXX XXXX XXXX, TX XXXX Office : ( XXXX ) XXXX Direct : ( XXXX ) XXXX XXXX From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/2021 XXXX XXXX  To : XXXX XXXX XXXX Cc XXXX XXXX XXXX XXXX ; XXXX XXXX XXXX ; XXXX XXXX XXXX ; XXXX ; XXXX XXXX XXXX ; XXXX ; XXXX XXXX XXXX Subject XXXX Re : XXXX XXXX XXXX XXXX, Just so you are clear, we do not need personal property insurance because we are not going to live there. Our renters would provide their own renters insurance. We have an umbrella policy for liability insurance. The walls-in improvements and betterments are covered by the existing blanket policy. But despite knowing this they are still requiring an H06. 

XXXX the underwriting team looped in on this email? 

XXXX On Wednesday, XX/XX/2021, XXXX XXXX XXXX wrote : Hello All, Our underwriting team requires the borrowers to hold an HO6 policy for this unit. 

Best, -- XXXX XXXX XXXX REDFIN MORTGAGE XXXX MORTGAGE ADVISOR XXXX XXXX : ( XXXX ) XXXX www.redfinmortgage.com NMLS : XXXX Check out my Redfin Reviews! 

* In order to provide optimal customer service we require any rate lock requests to be made over the phone once you are under contract. 
From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/2021 XXXX XXXX  To : XXXX XXXX XXXX Cc : XXXX XXXX XXXX XXXX XXXX XXXX XXXX ; XXXX ; XXXX XXXX XXXX ; XXXX XXXX XXXX XXXX XXXX Subject : Re XXXX XXXX XXXX XXXX XXXX XXXX Redfin Mortgage is requiring a HO6 policy even though they understand it is already covered. See below. I am copying XXXX XXXX. She is Redfin Mortgages representative. 
Thanks, XXXX XXXX -- -- -- -- -- Forwarded message -- -- -- -- -- From : XXXX XXXX XXXX Date : Wednesday, XX/XX/2021 Subject : RE : XXXX XXXX XXXX XXXX, XXXX, TX XXXX XXXX : XXXX XXXX XXXX Cc : XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX Hi XXXX, I have confirmed with our team that the walls in policy is required . I understand that the agent has advised that the walls in are covered and that only personal property is not going to be covered. Furthermore, we have noted that you are purchasing this as an investment property therefore you would not have any personal property to insure, however, the underwriter is requiring the H06 Policy. 
Best, -- XXXX XXXX XXXX REDFIN MORTGAGE XXXX MORTGAGE ADVISOR XXXX C : ( XXXX ) XXXX www.redfinmortgage.com NMLS : XXXX Check out my Redfin Reviews! 
* In order to provide optimal customer service we require any rate lock requests to be made over the phone once you are under contract. 
From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/2021 XXXX XXXX  To : XXXX XXXX XXXX Cc XXXX XXXX XXXX XXXX ; XXXX XXXX XXXX Subject : Re : XXXX XXXX XXXX XXXX, XXXX, TX XXXX If underwriting is not going to reconsider I need to know ASAP to find a new lender. Thank you. 

On Wednesday, XX/XX/2021, XXXX XXXX XXXX wrote : They are incorrect as confirmed by XXXX. We are not paying for walls init is already covered. 


On Wednesday, XX/XX/2021, XXXX XXXX XXXX wrote : Good morning all, Our underwriting team has determined that an HO6 Walls in policy is required. Perhaps speaking with XXXX will also help clarify what is covered and what is not covered. 
Please let me know if you have any questions. 
Best, -- XXXX XXXX XXXX REDFIN MORTGAGE XXXX MORTGAGE ADVISOR XXXX C : ( XXXX ) XXXX www.redfinmortgage.com NMLS : XXXX Check out my Redfin Reviews! 


* In order to provide optimal customer service we require any rate lock requests to be made over the phone once you are under contract. 
From : XXXX XXXX XXXX Sent : Tuesday, XX/XX/2021 XXXX XXXX  To : XXXX XXXX ' XXXX Cc : XXXX XXXX ' XXXX ; XXXX XXXX XXXX XXXX ; XXXX XXXX ' XXXX Subject : RE XXXX XXXX XXXX XXXX XXXX, XXXX XXXX TX XXXX Hi XXXX and XXXX, Below is the contact information for the insurance. This was provided to me by XXXX with the HOA. I sent the below email and received a notice that the insurance company email was blocked/not delivered. I will confirm the email and resend. 
XXXX XXXX XXXX XXXX Best, -- XXXX XXXX XXXX REDFIN MORTGAGE XXXX MORTGAGE ADVISOR XXXX XXXX : ( XXXX ) XXXX www.redfinmortgage.com NMLS : XXXX Check out my Redfin Reviews! 

* In order to provide optimal customer service we require any rate lock requests to be made over the phone once you are under contract. 



From : XXXX XXXX XXXX Sent : Tuesday, XX/XX/2021 XXXX XXXX  To : XXXX ' XXXX Cc : XXXX XXXX ' XXXX ; XXXX XXXX ' XXXX ; XXXX XXXX ' XXXX Subject XXXX XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX Hi XXXX XXXX 

Thank you so much for taking my call today. I have copied XXXX and XXXX in this email, they are in the process of purchasing the condo and would like more information on what the current blanket policy covers. 
Specifically we are working to determine if an HO6 policy will be needed or if the blanket policy will cover interior items as well. 
Best, -- XXXX XXXX XXXX REDFIN MORTGAGE XXXX MORTGAGE ADVISOR XXXX C : ( XXXX ) XXXX www.redfinmortgage.com NMLS : XXXX Check out my Redfin Reviews! 


* In order to provide optimal customer service we require any rate lock requests to be made over the phone once you are under contract. 



On Wednesday, XX/XX/2021, XXXX XXXX XXXX wrote XXXX All As far as we know, the required coverage is in place. Pls provide additional details as to exactly what you are needing. 

XXXX XXXX From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/2021 XXXX XXXX  To : XXXX XXXX XXXX ; XXXX XXXX XXXX XXXX XXXX XXXX XXXX Cc XXXX XXXX ; XXXX XXXX XXXX ; XXXX Subject : RE XXXX XXXX XXXX XXXX Hi XXXX Im sure this would be something that XXXX  and the HOA board would probably have to discuss and approve. I have no authority to make these decisions on behalf of the HOA/property management. 
I will let XXXX take it from here and await their response. 

Thank you! 

Regards, XXXX XXXX Commercial Account Manager XXXX XXXX XXXX, XXXX. 
XXXX XXXX XXXX XXXX - XXXX, TX. XXXX T ( XXXX ) XXXX x XXXX F ( XXXX ) XXXX " Be still, and know that I am XXXX '' XXXX XXXX From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/2021 XXXX XXXX  To : XXXX XXXX XXXX Cc : XXXX ; XXXX XXXX XXXX XXXX XXXX Subject : Re : XXXX XXXX XXXX XXXX and XXXX, Redfin Mortgage underwriters are being unreasonable and are requiring a walls-in policy despite the fact that they know walls-in is already covered by paragraph 14.2 of the declarations, as confirmed by XXXX. 
I was looking through the XXXX XXXX  declarations, and there is a provision 14.7 entitled mortgagee required policies. It states, Unless coverage is not available or has been waived in writing, the Association will maintain any insurance and bond required by an Underwriting Lender for condominium developments as long as an Underwriting Lender is a Mortgagee or an owner. 
Pursuant to this provision we are interested in having XXXX XXXX ask XXXX XXXX XXXX ( or another insurance company ) to issue us a separate walls-in policy for what is already covered. Would that work? [ XXXXI am not sure of what your position is at XXXX  XXXX, so if you are not the correct person to answer this please forward to whoever the decision maker would be at XXXX XXXX. ] Thanks, XXXX & XXXX XXXX On Wednesday, XX/XX/2021, XXXX XXXX XXXX wrote : Youre very welcome! 

Have a great day! 

Regards, XXXX XXXX Commercial Account Manager XXXX XXXX XXXX, XXXX. 
XXXX XXXX XXXX XXXX - XXXX, TX. XXXX T ( XXXX ) XXXX x XXXX F ( XXXX ) XXXX " Be still, and know that I am XXXX '' XXXX XXXX From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/2021 XXXX XXXX  To : XXXX ; XXXX XXXX XXXX ; XXXX XXXX XXXX XXXX XXXX XXXX XXXX ; XXXX XXXX XXXX ; XXXX Subject : Fwd XXXX XXXX XXXX XXXX Thanks, my husband and I are both attorneys and agree with that interpretation. Appreciate it! 

-- -- -- -- -- Forwarded message -- -- -- -- -- From : XXXX XXXX XXXX Date : Wednesday, XX/XX/2021 Subject : XXXX XXXX XXXX To : XXXX XXXX XXXX Hi XXXX my interpretation of the Declaration is that the Association will insure walls-in, including betterments & improvements. It will not insure any personal property of the unit owner. 

You may want to also discuss with the manager of the property, XXXX XXXX XXXX Thank you. 

Regards, XXXX XXXX XXXX Account Manager XXXX XXXX XXXX, XXXX. 
XXXX XXXX XXXX  XXXX - XXXX, TX. XXXX T ( XXXX ) XXXX x XXXX F ( XXXX ) XXXX " Be still, and know that I am XXXX '' XXXX XXXX From : XXXX XXXX XXXX Sent : Tuesday, XX/XX/2021 XXXX XXXX To : XXXX XXXX XXXX Subject : Fwd : XXXX XXXX XXXX Please see the attached documents and below discussion. 

-- -- -- -- -- Forwarded message -- -- -- -- -- From : XXXX XXXX XXXX Date : Sunday, XX/XX/2021 Subject : Rules of the Association To : XXXX XXXX XXXX Cc : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX Trying to sum all this up in one place : Please see the attached Insurance Policy Declaration, which I believe you already have. Note the building is covered by a {>= $1,000,000} policy. 

Also note 14.2 of the attached Declarations, which requires the HOA to have this coverage : This explicitly says the HOA 's property insurance covers the units.

Also as you can see from paragraph B-3 of the Community Manual, the HOA does not insure personal property. It does not say anything about the interior not being covered. 



E-MAIL CHAIN 2 -- -- -- -- -- Forwarded message -- -- -- -- -- From : XXXX XXXX XXXX Date : Thursday, XX/XX/2021 Subject : Update To : XXXX XXXX XXXX Cc : XXXX XXXX XXXX XXXX it has to be an HO6 so the lender can sell the loan in the secondary market. I am talking to XXXX in your company and asking for a quote and the lowest coverages since everything is already covered. 

Thanks for your help! I really appreciate it. 

XXXX -- -- -- -- -- Forwarded message -- -- -- -- -- From : XXXX XXXX XXXX Date : Thursday, XX/XX/2021 Subject : Update To : XXXX XXXX XXXX Cc : XXXX XXXX XXXX, XXXX XXXX XXXX XXXX Ok ... so there seems to be a disconnect ... that we just need to make a decision on. and forgive me if I dont have all the terminology correct here but I think we need to make a call. 

1. ) the underwriter needs to see a policy specifically called the HO6 policy. They have federally mandated guidelines that need to be met in order to be able to sell the loan. So we either need to have the insurer give the lender language that satisfies this or a HO6 policy needs to be in place ... it seems any lender who doesnt service their own loans will probably have this same guideline as its a standard mortgage guideline. 

2. ) if you do get the HO6 policy you could pass that cost on to the renter and ask your insurer how to best cover the renters.

3. ) very quickly switch to another lender who confirms through their underwriter this is adequate coverage.

4. ) terminate altogether using the HOA documents contingency since this issue is born from the language in the community manual. 

XXXX On Thu, XX/XX/2021 at XXXX XXXX  XXXX XXXX XXXX wrote : Except it cant be HO6 per se because that covers personal property. But they could likely do a walls-in policy minus the personal property. I have a personal umbrella policy for liability. 

On Thursday, XX/XX/2021, XXXX XXXX XXXX wrote : XXXX XXXX This is a great question. If the insurer of the blanket policy issued a separate document stating the property is HO6 insured, like XXXX is asking ... wouldnt that work? ( Like for example if the blanket policy was transferred to an HO6 policy document ... given they ( the insurer ) are saying they already cover the unit, the HOA is saying so and the buyers are saying so ... 

It would be super helpful to understand ... as this seems a little like a moving target. 

XXXX On Thu, XX/XX/2021 at XXXX XXXX  XXXX XXXX XXXX wrote : If the insurance company did a separate HOA policy covering just my unit for walls-in ( but not the full HO6 which also covers personal property ) and with Redfin listed as an insured would that suffice? You guys are not explaining well the reasoning or what pieces of the insurance you need. 

On Thursday, XX/XX/2021, XXXX XXXX XXXX wrote : Good morning XXXX, The information provided by XXXX yesterday was sent to our underwriting manager. They determined that an HO6 policy is still required to be held by the buyer. 
I am sorry. I know much information has been provided to prove coverage but I am not able get an exception for this additional requirement. 
Best, -- XXXX XXXX | REDFIN MORTGAGE | MORTGAGE ADVISOR XXXX XXXX : ( XXXX ) XXXX www.redfinmortgage.com NMLS : XXXX E-MAIL CHAIN 3 -- -- -- -- -- Forwarded message -- -- -- -- -- From : XXXX XXXX XXXX Date : Thursday, XX/XX/2021 Subject : Insurance requirements To : XXXX XXXX XXXX Cc : XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX Good morning XXXX XXXX The effective date of the policy needs to begin in XXXX, their closing date is XX/XX/2021. Also, please see the mortgagee clause below to include on the policy. Please be sure to include a copy of the paid in full invoice as well. 
Lender : Redfin Mortgage , LLC located at XXXX XXXX XXXX., XXXX XXXX, XXXX, TX XXXX Loan Number : XXXX Names of Insured : XXXX XXXX XXXX XXXX XXXX XXXX Address : XXXX XXXX XXXX XXXX, XXXX, TX XXXX The mortgagee should read as follows : Redfin Mortgage LLC XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, TX XXXX Thank you, XXXX XXXX | REDFIN MORTGAGE | PROCESSOR XXXX XXXX XXXX : XXXX Fax : XXXX From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/2021 XXXX XXXX  To : XXXX XXXX XXXX Cc : XXXX XXXX XXXX XXXX XXXX XXXX XXXX ; XXXX XXXX XXXX Subject XXXX Insurance requirements Hi XXXX, Would you please talk to XXXX and XXXX  ( copied on this emailcell phone number below ) about what they need for this insurance? 
We had already ordered the insurance with a late XXXX start date based on the initial information we received, but they apparently need a XXXX start date. They also need Redfin Mortgage listed as an insured party. So please go ahead and cancel/modify the current policy to have the coverages they require ( which for the walls-in part is 20 % of the {$220000.00} appraised value ). I think we can stay where we are at for personal property and liability. The Loan Estimate had a cost of {$1300.00} for this insurance for the year so if it will be more than that please let me know prior to ordering it. 
XXXXPlease explain whether having this insurance is an ongoing requirement of the mortgage of just something we need for the first year. 
Thanks, XXXX XXXX. XXXX -- -- -- -- -- Forwarded message -- -- -- -- -- From : XXXX XXXX XXXX Date : Wednesday, XX/XX/2021 Subject : Status update To : XXXX XXXX XXXX Cc : XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX Hi XXXX, My apologies I should have included that if you already made payment we can retrieve the documentation to support the payment and provide that to underwriting. I will advise XXXX of this so that she may update your file. We can remove the homeowners insurance from the loan estimate with proof that it has been paid. 
I understand your frustration regarding the insurance. I assure you that I have pointed out the details below to our team however the requirements from underwriting are not something I am able to adjust. I truly apologize that our communication has been lacking regarding the insurance. 
Best, -- XXXX XXXX | REDFIN MORTGAGE | MORTGAGE ADVISOR XXXX C : ( XXXX ) XXXX www.redfinmortgage.com NMLS : XXXX Check out my Redfin Reviews! 
In order to provide optimal customer service we require any rate lock requests to be made over the phone once you are under contract. 
From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/2021 XXXX XXXX  To : XXXX XXXX XXXX Cc XXXX XXXX XXXX XXXX ; XXXX ; XXXX XXXX XXXX Subject : Re : Status update Okay, well we have already made a payment to the insurance company so this would have been good information earlier in the process. I am frustrated by the whole way this has been handled. The appraisal came in at XXXX. Our loan is for XXXX. Redfin Mortgage has equity of XXXX from the get-go. We have great income and reserves. You have received confirmation for the insurance company that the HOA insures both the outside and inside of the property. We bought the insurance that we dont need ( including personal liability and personal property which we also dont need ). Now you are requiring increased coverages ( when you didnt tell us beforehand what you had in mind ). 
But as I mentioned at this point we will do whatever you require to get this done. 
If we are required to include the insurance in the loan cost we will cancel our existing policy and tell the insurance agent to contact you. If we are permitted to pay separately we will modify our existing policythat would be my preference. 
Please advise. 
XXXX XXXX On Wednesday, XX/XX/2021, XXXX XXXX XXXX wrote : Hi XXXX, I understand your frustration, I followed up and shared your feedback with my management team regarding the turn time for this information. I just received an update from the underwriting manager. They have advised that the policy will need to be revised. The coverage needs to be at least 20 % of the appraised value which was {$220000.00}. 
Please keep in mind you do not need to make a payment to the insurance company. The full twelve months of insurance will be prepaid at closing. Our initial estimate was already taking this into consideration. As I mentioned early on, we were using a county average at that time. Once your agent provides the updated insurance premium and declaration page we will update your loan estimate. 
Feel free to reach out if you have any questions. 
Best, -- XXXX XXXX | REDFIN MORTGAGE | MORTGAGE ADVISOR  XXXX XXXX : ( XXXX ) XXXX www.redfinmortgage.com NMLS : XXXX Check out my Redfin Reviews! 
* In order to provide optimal customer service we require any rate lock requests to be made over the phone once you are under contract. 

From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/2021 XXXX XXXX  To : XXXX XXXX XXXX Cc XXXX XXXX XXXX XXXX ; XXXX Subject : Re : Status update Still no answer on coverages?! Which investor are they dealing with? Seems like this shouldnt be that hard of a question. At this point I am just going to buy whatever you require. I just need an answer. 

On Wednesday, XX/XX/2021, XXXX XXXX XXXX wrote : Okay, please get the HO6 issue resolved. I cant believe how long it is taking to approve coverages. I just want to get this last piece done so I can stop having to worry about it. This needs to close on time or earlier. I want to wrap it up so there are no last minute surprises. 


On Wednesday, XX/XX/2021, XXXX XXXX

Company response to consumer: Closed with explanation