Consumer complaint received 2018-08-09
Company: Union Home Mortgage Corp
State: PA
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/XXXX I cancelled my homeowners insurance policy with XXXX XXXX and property insurance because their customer service was horrible and I was having issues with them. Also On XX/XX/XXXX I purchased a new policy with XXXX XXXX. I knew that I had to wait for a refund from my previous insurance carrier that would take several weeks. In order to avoid an " escrow shortage '' and monthly payment increase I paid for the new XXXXXXXX XXXX   policy in full out of pocket. I got a receipt from the insurance agent that the policy was paid in full until XX/XX/XXXX. On XX/XX/XXXX I faxed a letter to Union Home Mortgage. In the letter I informed them that I paid for the new policy in full, and I informed them that I did not need any money sent out of the escrow account for the new policy. I provided a copy of the deck page as well as a receipt that the policy was paid in full. On XX/XX/XXXX I received a letter in the mail from Union Home Mortgage that was dated XX/XX/XXXX which stated they received the updated insurance information and that they depleted the remaining funds in my escrow account and if I did not replace the funds I would have a shortage and increased monthly payment because the bank used my tax funds to pay for an insurance premium that I already took the initiative to pay to avoid a shortage while I waited for the refund of the unused premium from the old policy. I contacted Union Home Mortgage at XXXXXXXX XXXX XX/XX/XXXX to ask why they would send out money from my account when I provided a receipt and proof that it was already paid. The Customer Service Rep that I talked to in the Insurance Department put me on hold for a total of 20 minutes, and then came back on the phone with a response that " She did not know why they didn't look at the receipt that I sent in before sending out money causing a double payment on the insurance policy. '' She then very rudely told me that I needed to contact XXXX XXXXl and " track down '' the money and get it back to the bank to deposit in my escrow account or " else I WILL be getting a payment increase '' I explained to her that I did everything that was required of me as a customer to avoid this, that her response was unacceptable because the bank made the mistake with double paying for the insurance not me. I then ask to speak with a supervisor. I waited on hold for nearly 45 minutes with the rep checking in " periodically '' saying she was " trying really hard to get to a supervisor '' Finally she told me she had reached a supervisor and was going to transfer me. As soon as the call was transferred before I could even speak to the manager he or she disconnected the call the on purpose. At that point I was so angry I had my wife call back. My wife got another representative on the phone who threatened to put me in collections for the escrow shortage that the bank caused. My wife asked to speak with a supervisor and the representative laughed and stated " Sorry all the managers went to a meeting and aren't speaking to customers now. '' This whole process wasted nearly two hours of my day, solved nothing, and now I am possibly having my escrow  account go to collections for something that was not my error. I have only had this loan 2 months with company as I just closed on my house XX/XX/XXXX. I have made every single payment on time actually a few days early. All I did as customer was change my insurance provider which is a completely routine transaction because I felt XXXX XXXX would better protect my home. Now Union Home Mortgage makes a huge mistake with my money, fails to own up to it, and then due to no fault to me as a customer threatens to increase my payment and due other things that could have detrimental consequences to my financial health and well being.

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