Consumer complaint received 2015-06-16
Company: NATIONSTAR MORTGAGE LLC
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
This is a enunciated version of the letter I wrote to Nationstar a few weeks ago. they have already blown me offBack in XX/XX/XXXX I was contacted by a Nationstar representative who was trying to sell me on the idea of a re-finance of a loan I already had with Nationstar. I was very hesitant but was willing to listen to the rundown of the numbers. I do remember having several phone calls and asking many questions with the representative to make sure I was doing the right thing. Ultimately my main concern was that I was now going to have to pay a mortgage insurance of about a 100 dollars a month. The representative I was speaking with assured me it was easy to have the mortgage insurance removed down the road. I did ask more then once and he said it was a simple phone call to customer service and the mortgage insurance could be removed once a certain loan to value threshold was passed. I ultimately agreed to do the re-finance. 
Sometime towards XX/XX/XXXX I did call customer service in an attempt to have the mortgage insurance removed. The representative I spoke with at the time indicated I was NOT paying the mortgage insurance. I was happy to hear this and I did ask why it was already removed. The representative really did not know why but assured me I was not paying a mortgage insurance. 
On XXXX XXXX, XXXX, I was receiving phone calls from Nationstar that I owed more money on my loan payment. I called customer service and they indicated that my new monthly payment had gone up some XXXX dollars. Of course I was never notified of the increase, the representative said there was an increase in my escrow and it had something to do with the mortgage insurance. I told the representative that I had called several months ago and I was told that I was not paying a mortgage insurance. The representative had no explanation why I was now paying it. I then said that I wanted to have the insurance removed. The representative told me I had to be under XXXX precinct of the loan to value. She checked some numbers and she did indicate that I was at XXXX precent and could have the insurance removed. I told her I definitely wanted to start that process. The representative indicated she would start the process to cancel the insurance and I would hear something from Nationstar with the next week to ten days. 
On XXXX XXXX I had not heard from Nationstar so I again called customer service. Of course there was no record of my request to have the insurance removed. After about 2 hours of phone calls and numerous transfers between customer service, escrow, and insurance, I learned the following ; Nationstar had been paying my mortgage insurance since the re-finance and the reason for the big increase in the monthly payment was because I now had to reimburse Nationstar for the past insurance payments. The second thing I learned was that the request for the insurance removal had to be made in writing. I asked the representative why I was n't told this on my phone call back on XXXX XXXX and of course the he had no answer and a form would be mailed out to me. 
On XXXX XXXX, I did receive the form to request to have the insurance removed. The letter said that I may have to pay up to XXXX dollars for an appraisal and to have the insurance removed I must be at XXXX precent of loan to value. I was never NEVER at anytime since XX/XX/XXXX told about an appraisal, and the loan to value was now an XXXX precent threshold instead of the XXXX precent that I was told on XXXX XXXX. I called customer service back and I think I eventually ended up with a supervisor at the escrow department. The supervisor did say they do n't always do an appraisal and they would definitely call me before they did one. The supervisor also said the loan to value historically has to be under XXXX precent to have the insurance removed but that it was not a definite threshold.

Company response to consumer: Closed with explanation