Consumer complaint received 2016-04-28
Company: NATIONSTAR MORTGAGE LLC
State: TX
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account

Complaint:
I am writing you to express my concerns over the predatory practices of Nationstar Mortgage , LLC. I have attempted to resolve this issue with them through numerous telephone calls and online inquiries and have reached an impasse and desire external oversight. 
I purchased a home in XXXX XXXX, TX while on XXXX XXXX with the XXXX XXXX in XXXX XXXX. I financed the purchase with a mortgage through XXXX. I have maintained insurance through XXXX from the purchase through the present, including a windstorm policy that is handled by XXXX but underwritten by the XXXX. XXXX sold the mortgage to XXXX Mortgage in XXXX XXXX. XXXX sold it to XXXX XXXX XXXX, XXXX in XXXX XXXX. Lastly XXXX sold it to Nationstar Mortage, LLC in XXXX XXXX. The escrow account has paid both my fire insurance, the windstorm policy and XXXX XXXX property tax since I purchased the house, regardless of what company was servicing the mortgage without issue until XXXX XXXX. XXXX mailed multiple statements to XXXX seeking a payment of {$520.00} for the annual renewal on the windstorm policy. It was never paid and the policy expired on XXXX XXXX, XXXX. On my XXXX XXXX, XXXX, my escrow account showed a disbursement for {$520.00}. Unfortunately, it was never sent to XXXX, the policy lapsed, and the premium was refunded to my escrow account on XXXX XXXX, XXXX. On XXXX XXXX, XXXX, I received a letter from Nationstar Mortgage , LLC detailing a lender-placed insurance policy that was purchased for windstorm insurance for {$2300.00} for coverage effective retroactively from XXXX XXXX - XXXX XXXX. After a detailed audit of my escrow account, I discovered the error, XXXX 's failure to pay the windstorm premium in XXXX XXXX, and coordinated with XXXX to have the XXXX underwrite a new policy with an annual premium of {$580.00} that was then disbursed from my escrow account on XXXX XXXX, XXXX. The escrow refunded only {$990.00} of the {$2300.00} lender-placed premium and kept the retroactive portion from XXXX XXXX until the XXXX policy was in-place. 
I think it is reprehensible to underwrite a policy retroactively when there is obviously no loss to insure against. This insurance cost of {$1300.00} was significantly more than the {$520.00} annual policy that should have been in effect. Additionally, XXXX and Nationstar, by acquiring the mortgage, failed in their fiduciary responsibility to me as the consumer to maintain pre-existing insurance that had been on the property for over 10 years with no issues. I was the one who was XXXX while the policy was lapsed from XXXX XXXX until XXXX XXXX. If a hurricane had hit the XXXX XXXX, I would have been the one catastrophically impacted! 
I have made over 10 phone calls to Nationstar seeking resolution of this issue. Most of their representatives have little empathy and even the ones that do, state that although the situation is unfortunate, it is the policy of Nationstar to pass the cost of their error on to me. I have contacted the Department of Savings and Mortgage Lending in XXXX, TX, but because the property is not owner occupied I have been told that it is out of their jurisdiction. I am also contacting the Bureau of Consumer Financial Protection and the XXXX. 
It would have been ideal if I had caught their mistake before a lender-placed policy was written but unfortunately I have been XXXX for a year with a military XXXX. I have had XXXX. If I had known what a headache that this would become, I would never have setup an escrow account. I would have paid all of these bills without experiencing a policy lapse. After my terrible experience with Nationstar Mortgage, it is no surprise to me that they have an " F '' rating

Company response to consumer: Closed with explanation