Consumer complaint received 2023-10-11
Company: Mr. Cooper Group Inc.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Trying to communicate with the company to fix an issue while managing or servicing your loan

Complaint:
RightPath Servicing has violated XXXX Forced Placed Insurance, knowingly, and has now initiated foreclosure based on their claim of expired hazard insurance. 

RightPath Servicing was provided proof of insurance coverage that satisfies the requirement of such coverage, All Inclusive or All In coverage was provided. 

Timeline : XX/XX/XXXX - RightPath Servicing sent notice that hazard insurance expired and was required. Proof of insurance to be emailed to the provided email address. 

XX/XX/XXXX - Borrower provided proof of insurance, binder showing a coinsurance clause that satisfies the requirement by XXXX XXXX. Insurance coverage from XX/XX/XXXX to XX/XX/XXXX XX/XX/XXXX - RightPath Servicing sent notice requiring proof of hazard insurance, Second Notice. Again, on XX/XX/XXXX borrower sent proof of insurance to satisfy the request. Proof of receipt of insurance documents was sent by RightPath Servicing, via email, as a response to the documents sent. 

XX/XX/XXXX - Complaint filed after borrower is assessed for HO-6 Forced Placed Insurance . 

XX/XX/XXXX- Borrower receives documents indicating a lawsuit has been filed to foreclose on the property for non-payment as demanded by RightPath Servicing for forced placed insurance and subsequent fees etc. related to this act. 

RightPath Servicing has received numerous Notices of Error via the CFPB portal and have refused to correct the error, claiming no such error occurred. 
The Declaration for the condominium property clearly explains the master insurance policy covers replacement cost for the entire condominium ( 100 % ), including all walls coverage. The condominium has never failed to provide the required coverage. 

XXXX XXXX Servicer Guide - 4703.2c clearly states : A policy with a coinsurance clause, and inclusion of an agreed amount endorsement or selection of the agreed value option ( which waives the requirement for coinsurance ) is considered acceptable evidence that the 100 % replacement cost requirement has been met. 

This language satisfies the claim by RightPath Servicing that HO-6 insurance is required. 

The coverage provided in the HOA Master Policy exceeds the requirement for walls in coverage, or HO-6 insurance as claimed by RightPath Servicing XXXX All Inclusive coverage by inclusion of a coinsurance clause exceeds RightPath Servicings request for walls in coverage. 

In a letter dated XX/XX/XXXX RightPath Servicing states : Some homeowners associations include HO-6 in their condominium master policy. If they do, it is not required. It is required only when it is not included in the mater ( master ) policy. 

RightPath Servicing refuses to acknowledge the fact that the coinsurance clause included in the master policy IS coverage for the inside of the unit and 100 % RC, Replacement Cost, has been met. 

No improvements or upgrades have been made to the unit that would not be covered by the master policy coinsurance clause. 

The repeated refusal to correct the error, by RightPath Servicing, can only be understood to be viewed as a deliberate act of bad faith.

Company response to consumer: Closed with explanation