Consumer complaint received 2023-11-22
Company: GUARANTEED RATE INC.
State: IL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage
Sub-issue: Fees or costs after closing

Complaint:
This complaint is regarding an issue that took place prior to closing that was never discovered until XX/XX/2023. I purchased a home on XX/XX/2023, as all mortgages go, XXXX was required and information was submitted from the insurance agent to the loan officer then to the underwriter and then I was given the clear to close. However, I just found out that the XXXX was under a different address this whole time. At closing I paid a {$1200.00} premium on a property that essentially was not mine. Because the address was wrong, my lender ( XXXX XXXX  XXXX had started putting me under an XXXX. This forced placed insurance had a yearly premium of {$3300.00} that was taken out from escrow. Due to this, my payments had now risen from XXXX $ to {$2800.00} for XXXX, XXXX, and now for XXXX of XXXX. Originally in XX/XX/2023 I had called the lender to ask why the sudden increase and they said it was because they had no XXXX  on file for me. The lender had sent 2 notices in XX/XX/2023 and XX/XX/2023 saying that they had not received any XXXX  and that if I did not submit anything by the end of XX/XX/2023 then they would take the {$3300.00} for the XXXX out of my escrow. After receiving each of these notices, I emailed the insurance agent in charge of sending the XXXX  to the lender. He told me that he would take care of everything and that there is nothing I have to do. In XXXX when the mortgage went up by XXXX $ I once again emailed the insurance agent and told them that I am now being charged more for the mortgage because the lender still hasn't received anything. He once again said that he would take care of it. XX/XX/XXXX is when I followed up with the lender and I was the one who discovered the address was wrong which is why the lender was not accepting the original XXXX. To avoid any additional costs from escrow towards that XXXX $ premium, I quickly got a new XXXX. As of now my payments are going to still be a lot higher than normal and my escrow is currently - {$2800.00}. I reached out to the insurance agent to let them know that the address was wrong the whole time and that because of this error that I have lost a lot of money towards repaying the escrow, and also paying for two home insurance premiums. I asked the insurance agent if they can help with bringing my lender account back in good standing since this was an error that occured on their end and they said that it falls on me because I had signed the document to begin with. This does not take away the steps the loan officer, insurance agent, and underwriter do. This never should have been approved to close. Additionally, the {$3300.00} XXXX premium would never have hit my account if the insurance agent had done their job and fixed the issue in XXXX AND XX/XX/2023 when I sent them the picture of the letter I received and he told me to not do anything and that he would take care of it. 

The Loan Officer involved is XXXX XXXX - XXXX The Insurance Agent involved is XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation