Consumer complaint received 2016-03-20
Company: Specialized Loan Servicing Holdings LLC
State: GA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
SPECIALIZED LOAN SERVICES ( SLS ) Chronology of Events I am writing to request an investigation of Specialized Loan Servicing ( SLS ), a mortgage service provider. This company purchased condominium unit content insurance at exorbitant rates under suspicious circumstances ; then raided my escrow account to pay the charges. Following is a chronology of what transpired regarding my account : XXXX/XXXX/XXXX - I purchased a XXXX home condominium in XXXX XXXX XXXX, Fl. The condo was financed by XXXX XXXX XXXX. Since the home would not be rented, the unit would be sparsely furnished, the structure well insured, and my financial position strong, XXXX did not require condo content insurance coverage. 
XXXX/XXXX/XXXX - The condo is refinanced through XXXX XXXX XXXX XXXX. No condominium unit ( content ) insurance is required for the same reasons as noted above. 
XXXX/XXXX/XXXX - XXXX XXXX XXXX transfers mortgage to Specialized Loan Servicing ( SLS ). SLS provided no notification directly or indirectly that condo content insurance is required at the time. 
XXXX/XXXX/XXXX - I receive letter, dated XXXX/XXXX/XXXX, from SLS notifying me that condo insurance unit coverage is required. 
XXXX/XXXX/XXXX - I contacted by phone XXXX XXXX, supervisor of SLS insurance department, and XXXX ( ID # XXXX ) of the SLS Executive Services department. I explained that I had owned the property for nearly 8 years and the previous lenders waived the condo unit coverage. I requested similar waiver. Both persons told me SLS would never consider a waiver and they do not care of the circumstances. 
XXXX/XXXX/XXXX - I wrote SLS 's CEO, XXXX XXXX, outlining my circumstances and requested a waiver. 
XXXX/XXXX/XXXX - I received letter from SLS, dated XXXX/XXXX/XXXX, indicating they would not consider waiver ; that I had to get required coverage. 
XXXX/XXXX/XXXX - after conducting due diligence, I obtained the required insurance coverage for {$330.00}, and submitted the insurance certificate online, reflecting coverage effective XXXX/XXXX/XXXX through XXXX/XXXX/XXXX. 
XXXX/XXXX/XXXX - received SLS letter dated XXXX/XXXX/XXXX, stating they have purchased single interest condo insurance coverage and attached it to my account at a cost of {$2000.00}. Furthermore, the insurance would be retroactive to XXXX/XXXX/XXXX, the date they acquired the mortgage from my previous lender. Needless, I was shocked and disappointed. 
XXXX/XXXX/XXXX - I learned that SLS had raided my escrow account to pay for its exorbitant condo insurance, resulting in a negative escrow balance. Since I had owned this property for 8 years and had never been required to obtain the condo unit coverage by previous lenders, it is unfair, unreasonable and possibly illegal that a 3rd party lender with whom I had never contracted with, would acquire my mortgage, take 9 months to notify me of its insurance requirements ; buy coverage at exorbitant price ; back-date the coverage ; then raid by escrow account to pay for it while I was pursuing my own coverage at a significantly lesser cost. 
I will upload copy of documentation supporting my claim. I hope your office will review this case closely to put an end to such consumer abuse. 

Thanks in advance! 
XXXX XXXX XXXX

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