Consumer complaint received 2021-04-19
Company: Specialized Loan Servicing Holdings LLC
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
We refinanced in XX/XX/XXXX and our loan was sold and transferred to CMC Funding, underwritten by Specialized Loan Services ( SLS ), for servicing. CMC Funding began servicing the loan in XX/XX/XXXX. Since purchasing our home in XXXX, we have never been late with our payments. CMC collects money from us and places it into an escrow account for our homeowners insurance and our taxes. Our insurance premium was due on XX/XX/XXXX. There is a 60 day grace period for CMC to pay. We are already now over 30 days past the due due date, and CMC has not paid the insurance premium despite our repeated requests. 

XXXX : We were notified via text by our homeowners insurance company ( XXXX ) that our insurance premium had not been paid. 

XXXX : We contacted CMC Funding , who stated they will overnight the payment and it will be sent on XX/XX/XXXX. 

XXXX : We contacted the insurance company, who stated they had not received payment yet. 

XXXX : The insurance company reached out to CMC Funding , and CMC told the insurance company that they would send the payment overnight on the next day ( XX/XX/XXXX ). 

XXXX : We received an email from CMC stating that CMC paid our homeowners insurance. 

XXXX : We received two letters dated XX/XX/XXXX from CMC. The letters indicated that our insurance had lapsed and we were warned that we are responsible for maintaining continuous insurance coverage. 

XXXX : That evening, we contacted CMC. CMC assured us that the payment had been made to our insurance company and the letter was in error. CMC told us to ignore the letter. We asked for proof or confirmation the premium had been paid and for a written declaration that the letter was an error. CMC told us this was not possible. Furthermore, one CMC representative informed us that CMC had purchased emergency insurance on our behalf since we failed to maintain insurance coverage. When we got disconnected and called back, another representative told us no homeowners insurance had been purchased on our behalf. 

XXXX : We contacted our insurance company and were informed that payment had not been received. We then contacted CMC who informed us that a payment had been made on XX/XX/XXXX but CMC sent it to the wrong address. CMC stated they would send a new payment overnight. We confirmed with our homeowners insurance that there are two addresses that payment can be sent to : an overnight address and a " regular address. '' We confirmed with CMC and the homeowners insurance company that CMC sent it to the correct overnight address. Furthermore, our insurance company also told us that if something is sent overnight they are able to process the payment that next business day. 

XXXX : We filed a formal Notice of Error with CMC. We faxed it and mailed it to CMC with tracking. 

XXXX : We received an email from CMC indicating that our homeowners insurance had been paid. We contacted our homeowners insurance company. They had not received payment. 

XXXX : CMC received the mailed Notice of Error. Included in the XXXX was also the proof of successful fax indicating that we had also faxed it. 

XXXX : We received a letter, dated XX/XX/XXXX, stating that servicing of our loan would be transferred from CMC to SLS starting XX/XX/XXXX. All our prior correspondence from CMC indicated that CMC was either a subsidiary company of SLS or was essentially the same company as SLS. We are now concerned that this apparent " transfer '' will jeopardize our efforts to have our insurance premium paid as well as our efforts to formally notify our loan servicers of their error in handling our escrow payments. 

XXXX : We logged into our homeowners insurance account, and no payment has been received yet. 

XXXX : We logged into our homeowners insurance account, and no payment has been received yet. 

Enclosed in this complaint is the Notice of Error that we sent, the second email stating that our insurance had been paid, and the letter saying that servicing of our mortgage was transferred from CMC to SLS. We would like to pay the homeowners insurance premium directly, but CMC says we are not eligible to be released from paying into the escrow account, even though they have repeatedly failed to make these payments on time.

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