Consumer complaint received 2020-08-26
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: Fairway Independent Mortgage Corporation (AZ)

In XX/XX/XXXX, I purchased a house from XXXX XXXX. This was my first house and I was not aware of all the things that went into purchasing a home. A friend of mine had a realtor they recommended and so from that suggestion, I gave her a call. I found her to be pleasant and she seemed very helpful. She works often with Fairway Independent Mortgage Corporation ( FIM ) and that is who she chose to handle my loan. 
FIM began to collect bank statements, run my credit, the works. What I didnt know, as they would have me pay off credit cards in order to get approved for the loan, money I was looking to put down on my house. There were so many things I had to pay off before I could qualify. Now, this is fine, but this is the start of the information they did not disclose to me. FIM disclosed information in parts, to where it would seem I had no choice but to move forward with their recommendation. They prepared my loan and shipped it off to the highest bidder. I know this is now part of the business now, but I feel someone should have disclosed to me that I had more options than what they presented. Upon closing, I was required to have a homeowner 's insurance policy, which I obtained through XXXX, policy number XXXX with a policy term of XX/XX/XXXX to XX/XX/XXXX. I was approved for the loan and I have been the happy homeowner of my house for the past year and 10 months. 
Since then, XXXX has picked up my loan from FIM and I have continued making my regular monthly payments, never late I might add. On XX/XX/XXXX, I received a letter from XXXX staying they have not received proof of hazard insurance and they have purchased a policy to protect their interest on the property. It also advised that if I had purchased a hazard insurance policy that they would cancel the policy they obtained. This letter came as a surprise to me. During the process of getting approval for the initial loan, I was required to provide a quote to FIM of the homeowners insurance that I was wanting to use for my home. I provided such a quote from XXXX and was under the impression that the policy was purchased and was in effect for the past year and six months. Still confused, I contacted XXXX, the rep I spoke with stated that there was no hazard insurance on the property. I asked how this could be possible as I provided XXXX  information when I had closed on the loan and when I looked at my closing documents it shows that money was set aside for the first year and 3 months for insurance payment. I asked how it was possible that a year has gone by without anyone noticing that the policy was no longer active and the rep was speechless at this point. She disclosed that audits get done every XXXX and advised that one was never done on this account and stated, we forgot about you. I never once received one email, one phone call, or letter from FIM or XXXX advising me of not having hazard insurance until XX/XX/XXXX, more than 1 year later. 
This began the process of me searching for answers. I pulled out my closing documents and saw that it spells out word for word in the breakdown I was being charged {$560.00} for Homeowners Insurance Premium ( 12 mo. ) to Fairway Independent Mortgage Corporation and the next line indicates {$140.00} also for Homeowners Insurance {$47.00} per month for 3 mo. Where did this money go if it did not go to a homeowners insurance policy? I also pulled all my monthly mortgage statements to review. Every month for the past year, according to my statements, {$230.00} has been allotted for Escrow ( taxes and insurance ) but I am not sure where that money has gone if no insurance policy was ever purchased. 
Since this homeowners policy was purchased by XXXX, as of XX/XX/XXXX, I am being required to pay an additional {$280.00} a month of back payment because they advised I have to pay for not having insurance on my home for 14 months. What happened to the money that was allotted for Escrow over that past 14 months? Where did that money go? 
I have been told by FIM as well as XXXX, this almost never happens. Ok great, but I am still stuck with paying extra each month until I meet the forced insurance, which is around {$1500.00} and some change. Either way, I am still confused about how I got into this position. I have never missed a payment I have never been late on anything. Why did I not have insurance? How did my account get out of underwriting with no insurance? What would have happened if something catastrophic would have happened to the house? 
Around XX/XX/XXXX or XX/XX/XXXX, I received a call from XXXX XXXX from FIM about refinancing my loan. I was familiar with XXXX, as he was the one who handled all the documents and closing when I initially received my loan from FIM. 
Now, this is where things get interesting with FIM In one of the calls I received from XXXX, I asked him what happened to my homeowners insurance, he advised he had no idea but would investigate the matter and get back to me with some answers. This would go on for about three weeks of him getting answers. XXXX never explained what had happened but advised that he would get my money reimbursed. He told me that he would send me a check in the amount of {$560.00}. I mentioned to XXXX how I had to pay more now for my mortgage because there was no hazard insurance on the house for the last year, but he still seemed more interested in still having me refinancing with FIM. He then continued to call me every other day to get me to refinance my home, I quit answering my phone and to date, I never received that promised check. 
I was still confused as to where my money had gone and decided to contact the title company, XXXX XXXX. I spoke with XXXX XXXX and she said she would look at the information for me. Right off the bat, she noticed that FIM never sent my check for {$560.00} anywhere and it sat. She looked into things a little further and notice that the original breakdown of my mortgage was off. States that whoever put the numbers together for me did not have enough coming out for a few things. 
Now, this may explain why I am in the hole, but I am just not sure anymore. I dont know who is telling me the truth about what happened. Did XXXX notice this and just not tell me? I dont know, but he never brought this to my attention. I dont find any of this to be fair, I got the short end of the stick. I turned in every document they asked me for, I paid off the debt they asked to pay before closing, I took FIMs advice, and it has not been in my best interest. I did my part, I have never missed and payment and still have not missed a payment despite having to pay {$280.00} more each month because of FIM mistake. I can honestly say it has been a struggle to come up with the extra {$280.00} a month. Its XXXX near been impossible with the COVID-19 going around. I am down two jobs, but still holding up my end of the deal. I do not feel FIM treated me fairly in this matter and frankly, no one seems to care.