Consumer complaint received 2022-11-21
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Home Point Financial Corporation (TX)

I updated my Homeowners insurance toward the middle of XXXX to get a bundle and reduce the cost of my auto policy. The effective date shows XX/XX/XXXX. From my understanding, the servicing unit changed to XXXX XXXX effective XXXX. My mortgage is escrowed, so they sent the bill to Hompoint. When the bill was received in XXXX, somehow the bill received was not provided to XXXX XXXX on the transfer and so they are saying they had no record of a bill. The bill went unpaid and the new policy lapsed because of it. I received as the homeowner no notifications of this through the entire process, so I was not aware the policy was in cancelling, nor it had not been paid. I was going on with life thinking I updated my insurance and everything was fine. 

Around XXXX time frame, I received a letter from Homepoint stating that I needed to fax/email evidence of insurance. I did so using the copy of the policy purchased XX/XX/XXXX. I received a second letter a few weeks later asking for the same information " XXXX and final notice '', this time I called them and found out that this policy had lapsed because of non-payment. This was the first I knew about it, sometime around XXXX timeframe. 

I immediately called to renew the policy and make updates. Because XXXX XXXX XXXX XXXX will not reissue a policy when it cancels because of non-payment, I had to use a different insurance company, the very best I could find was {$640.00} more expensive. I was upset because this was not my fault. The bill was sent to Homepoint, but was never paid. If there was an issue, there was nothing sent to me notifying of such to allow me to address before it cancelled. 

The new servicing company, I now know as XXXX XXXX, submitted a " bad debt claim '' to cover the {$640.00} increase as they understood that it was their fault for non-payment and the entire issue. I was to be called XX/XX/XXXX with resolution. No call ever came. 

I then received another letter from Homepoint XX/XX/XXXX asking for evidence of insurance between XXXX otherwise they would charge me for insurance coverage during that time. I called this morning to understand what this was and also to inquire about the bad debt claim to find out that they denied the claim due to not being responsible prior to XXXX. This morning, they basically said that it wasn't their fault, there was nothing they could do, I will be notified how much the insurance is for the lapsed period ( couldn't give me the price over the phone ) and that my only recourse would be to reach out to the " old servicer. '' Last time I checked, I write the check to Homepoint, so me having to spend literally hours on this now going back and forth between the old servicer and new servicer is crazy to me. I will say the women I spoke with at the " old servicer '' this morning was fantastic. I think she is the first person that understood what had happened. 

If they charge me for the missing gap of insurance, roughly $ XXXX {$400.00}, then this whole fiasco is going to cost me over {$1000.00} in total. 

I need some help/guidance on how to get some resolution to this. 

Thank you! 
XXXX XXXX XXXX