Consumer complaint received 2020-08-28
Company: LoanCare, LLC
State: MI
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
I purchase my house on XX/XX/XXXX. During the process of my mortgage I was told I was in a flood zone. I also had to purchase flood insurance, costing less than {$600.00} for the year. I purchased a Elevation Certificate on XX/XX/XXXX which shows that my elevation is above the flood plain. Which I knew I could take the elevation certification and sent it to Fema and received a Letter of map amendment. Dated XX/XX/XXXX. On XX/XX/XXXX I faxed the documentation to Loan care to XXXX. I sent them a Letter of Map Amendment removing the requirement of Flood Insurance. Then I called Loan Care Insurance department to follow up a few time until I received the Letter from them dated XX/XX/XXXX. 
Below is the copy of the letter that I received after I sent in the documentation. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, MI XXXX XXXX : Loan # XXXX Property Address : XXXX XXXX XXXX XXXX XXXX XXXX MI XXXX Dear Customer ( s ) : LoanCare , LLC has reviewed its real estate loan portfolio to identify properties that are exposed to the hazards of flooding. Your property was included in this review. 
The flood hazard status of a property is determined by its location on maps produced by the Federal Emergency Management Agency ( FEMA ).

Occasionally FEMA revises the boundaries of the " Special Flood Hazard Areas '' ( SFHA ) on its maps based on the construction or improvement of canals and levees that mitigate the possibility of losses from flooding in certain areas. 
LoanCare , LLC has recently contracted with an independent provider whose goal was to perform a flood zone determination on your property and to determine the location of your property on the current FEMA maps and identify its flood " Zone '' status. There was no cost to you for this review. 
The results of the review indicate that your property is not located within a SFHA on the current FEMA maps. LoanCare , LLC does not require flood hazard insurance to be carried on properties that are not located in SFHA.

We understand that you may want to continue this coverage. However it is not a requirement and therefore, it is not our policy to have this as part of the monthly escrow payment. As a result we have deleted the monthly escrow for flood from the mortgage payment and performing an analysis of your loan. When this is completed you will receive a notice stating the change and if there is an overage you will receive a check. 
If you have any questions, please contact our Insurance Center at  XXXX between XXXX - XXXX Monday - Friday EST,  except for major holidays. 
Sincerely, Insurance Department XXXX -- -- This letter is what I had to give to FEMA to cancel the flood insurance. If the lender didn't remove it they will not allow for it to be removed. 

On XX/XX/XXXX, I received a tax saying my flood has disbursed from escrow account on XX/XX/XXXX. Costing est of {$1700.00}. That surprised me since I thought I no longer had to carry flood. So I tried to call Loancare Insurance department. I wasn't able to get ahold of an actual person but I was directed to a website that I could upload flood or hoi documentation. So I uploaded the letter saying that Loancare determined that flood was not needed on property unless I choose to have it. I waited a few days for it process. Then it said it was processed and nothing came out of it. So I tried and tried to contact a person. On XXXX Finally I do talk to a person and the lady ( XXXX ) that answered wanted to know how I got to her extension, then asked for my information and phone number incase we are disconnected, then she told me to hold then we were disconnected and I have never received a call back from her. I called the same day and talked to another lady she said she took care of it and it will take 7 business days before they refund the flood insurance back to my escrow. I asked if there was a reference # that I could have and she said no, only her name. ( which I can't locate at this time ) At the same  time I contacted the XXXX XXXX XXXX and filed a complaint. 
On XX/XX/XXXX they sent the rebuttal saying they mailed me two letters out one on XX/XX/XXXX. Which they may have sent out but I didn't receive it. That 2 days after they sent me a letter after their investigation someone pulled a flood certification on XX/XX/XXXX and flood certification said property is in a flood. Now they want an amended Letter of Map Amendment dated after XXXX XXXX. 

My escrows are now in a shortage and they said that my mortgage payment will now increase. Which this is causing so much stress for me. This is a horrible time to do this in the Covid-19 crisis.. that they will now increase my mortgage payment.

I feel that Loancare dropped the ball an instead of correcting it they are going to require me to run around trying to get more documentation, lose time at work to get this some done ... when it was already done. 

The customer service is absolutely horrible. I feel that this will be never ending. I'm not able to talk to a person get an id or a reference number. Nobody is accountable.

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