Consumer complaint received 2021-07-12
Company: PLANET HOME LENDING, LLC
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
As of XX/XX/XXXX, the servicing of my mortgage loan was transferred from XXXX XXXX XXXX XXXX XXXX to Planet Home Lending , LLC. As required, I continued to make timely monthly payments to the appropriate loan servicing agent. However, on XXXX XX/XX/XXXX, I returned to my home to find a certified letter postmarked XX/XX/XXXX. It was from XXXX XXXX XXXX XXXX stating that there was a " lapse '' in my homeowner 's coverage due to non-payment. Please note that for the past 20 years that I have had this mortgage, I have always escrowed the taxes and insurance. 

Upon discovery of this notice, I immediately began an investigation on the next business day, XXXXXXXX XX/XX/XXXX. I called XXXX  and spoke with XXXX who stated that the flood policy was paid on XX/XX/XXXX, and that Planet Home Lending was notified that same day that due to late payment, there was a lapse in coverage with the new policy effective date as XX/XX/XXXX. Additionally, XXXX informed me that Planet Home Lending had been provided with an updated mortgage clause listing Planet Home Lending as the new lender. I asked if I there was any way for me to get flood insurance in the interim until the new policy took effect on XX/XX/XXXX. XXXX said that an individual purchasing a policy has a 30-day waiting period, therefore, I could not buy a policy in the interim. 

On XX/XX/XXXX, I spoke with my insurance agent and learned that the homeowner 's policy had been paid late, but it was done so without a lapse. But the flood insurance with XXXX XXXX was not paid timely and was, therefore, cancelled. Here is a summary of what I learned : -My insurance agent reached out to Planet Home Lending on XXXX occasions XXXX XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX XXXX PRIOR to the date of cancellation. The purpose of their calls was to remind Planet Home Lending that payments were past due for the homeowner 's and flood insurances. 
-On XX/XX/XXXX, my insurance agent emailed copies of the insurance declarations along with past due invoices -On XX/XX/XXXX, my insurance agent spoke with XXXX at Planet Home Lending and was told that the payments would be sent overnight on XXXX, XX/XX/XXXX, and both companies should receive payments by the following day -On XX/XX/XXXX, my insurance agent called and spoke with XXXX  at Planet Home Lending and learned that the payments had not been released. The agent explained that the " flood policy would lapse effective XX/XX/XXXX for nonpayment leaving the insured with no coverage during hurricane season ''. XXXX said that her manager would be calling the carrier to make a possible phone payment. The manager makes the decision whether to go forward with the payment. 
-On XX/XX/XXXX, my insurance agent confirmed that a payment was made to XXXX for the flood insurance, but it wasn't received by XXXX until XX/XX/XXXX. Since the payment was not within the 30 day grace period allowed to mortgage companies to renew without lapse, the new effective date was changed to XX/XX/XXXX. 

In summary, despite repeated notifications and opportunities, Planet Home Lending made egregious errors and failed to make timely payment, and as a result, I have been without flood insurance from XX/XX/XXXX to XX/XX/XXXX. 

On XX/XX/XXXX, I contacted Planet Home Lending insurance department and spoke to XXXX. I was on the phone with her for over 40 minutes and repeatedly told that there was nothing she could do to help me get this resolved and I would have to wait until XX/XX/XXXX to have coverage. I insisted on speaking to a supervisor and was eventually transferred to manager, XXXX XXXX. After 20 minutes on the phone with her, she informed me that I did have " lender placed '' coverage, but it did not include coverage for contents ; only for the property. I asked for proof of that coverage, but Lynnette told me that she could not access that information, but would make sure I received it within 24-48 hours. After hearing nothing back, I called XXXX back on XX/XX/XXXX only to learn that the one person who had access to my flood insurance coverage documents was out on vacation and not due back until the following week. I thought this seemed completely unacceptable and insisted on speaking to another manager. I spoke to XXXX XXXX who informed me that I did have lender placed flood insurance, but he could not provide me with proof. He assured me that he would " expedite '' my request. 

Since XX/XX/XXXX, I have made over 20 calls to Planet Home Lending requesting proof of lender placed coverage. On every occasion, I was either told that no one could help me and/or I was given inaccurate and conflicting information. To date, I still have no proof of flood insurance coverage from XX/XX/XXXX to XX/XX/XXXX. During that time, the state of Florida had a serious threat of hurricane which was headed directly for my home on the west coast ; my home lies in Hurricane Zone A which is poses the largest threat of flood. Despite my outcries for help immediately before and during the hurricane threat, I still have no proof of coverage. In fact, XXXX XXXX recently informed me that Lender Placed Insurance didn't even take effect until XX/XX/XXXX which is 37 days after my flood insurance policy cancelled. 

It's also important to note that I have never been officially notified of the lapse in flood insurance coverage by Planet Home Lending, even though they were notified by XXXX on XX/XX/XXXX. As of the date of this complaint, not one notice, email or phone call was initiated by Planet Home Lending to inform me of the lapse of coverage. 

It's my understanding that as a term of the mortgage loan, Planet Home Lending is required to enforce and ensure that there is homeowner 's and flood insurance on my property. I am asking for proof of that coverage from the date they let the policy lapse, XX/XX/XXXX, through the re-activated date of XX/XX/XXXX.

Company response to consumer: Closed with explanation