Consumer complaint received 2023-01-27
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: MORTGAGE FIRM, INC., THE (FL)

Our mortgage company requires home insurance, and also handles the payment of that insurance through our required escrow account. We were dropped by our insurance company ( as many homes in Florida were being dropped ) but were quickly able to secure new home insurance with XXXX XXXX -- the only company that would insure us at the time. We immediately sent proof of our new insurance policy and payment requirements to our mortgage company, so they could note the new coverage and pay the premium. They confirmed receipt, and had plenty of time ( 90 days ) from our notice to make the payment from our escrow account, but for some reason ( it's still unclear why ) they dropped the ball and payment did not go out in time. Our new insurance company, XXXX, sent a notice of rescission of our policy for non-payment on XXXX XXXX, XXXX, back-dated to the beginning of the policy on XX/XX/XXXX. I called our insurance company to explain the situation, but they said there was nothing they could do, even if our mortgage company sent out the payment, we could no longer get coverage with them -- our policy was cancelled. When I called our independent agent to try to get emergency/temporary coverage with another company, she told us there is no other insurance company in XXXX  that would cover us, since on paper we had now been uninsured for several months. So, I called our mortgage company several times over the next 3 months, trying to get answers and/or someone to help us, but their only answer was that they would have the let the automatic process happen where they provide insurance coverage themselves, called " forced coverage ''. In the meantime, the rep I spoke with lied about the amount their " forced coverage '' insurance would be, quoting an amount similar to our previous policy in order to placate me, I'm guessing. They also told me a supervisor would contact me, which never happened. I received a warning letter on XX/XX/XXXX from the mortgage company, stating that my policy expired and to provide evidence of coverage, or they would have to " provide forced coverage '' that would be significantly more expensive than our previous policy. I then made a couple more calls to our mortgage company but was unable to get a supervisor on the phone, to which they said one would return my call. Still no phone call and no follow up. On XX/XX/XXXX we received the final warning letter that the " forced coverage '' insurance our mortgage company would provide would be {$7700.00} which is about double the amount of our previous policy, and because the coverage would be back-dated, that means that as of XX/XX/XXXX, we will have paid double the amount of insurance for 7 months ( to date ). This whole debacle is our mortgage company 's fault, and we have been unable to resolve this situation with them. I believe they have violated CFPB Statute 1024.31 because we did provide proof of home insurance coverage and the escrow funds were there, but the insurance policy was rescinded because of the mortgage company 's failure to pay the premium by the deadline.