Consumer complaint received 2015-05-15
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: WELLS FARGO & COMPANY (CA)

I received notice from our Mortgagor on XXXX dated XXXX stating they did not have evidence of hazard insurance coverage. Per request on XXXX, I sent a copy of XXXX XXXX Declarations Page showing current coverage from XX/XX/XXXX through XX/XX/XXXX. On XXXX I received notice from Mortgagor dated XXXX saying that unless they had evidence of hazard insurance Mortgagor would buy the insurance and charge me through an increase in escrow of {$390.00} per month for a policy substantially more expensive than my existing policy. Per instructions, I entered the information regarding existing hazard insurance on XXXX ( which actually in a confusing manner had pre-entered the Mortgagor 's more expensive coverage with XXXX XXXX XXXX XXXX. On XXXX I talked with a Customer Service Representative of the Mortgagor. ( I can provide name. ) She indicated that Mortgagor did have the information that proved we had current hazard insurance. I asked for a confirming email and was told she was prohibited from sending such an email. She instead initiated a written letter that I subsequently received dated XXXX confirming that the Mortgagor had received evidence of current coverage and that we could disregard the " notice of insurance expiration sent to you previously. '' I also received a second letter from the Mortgagor dated XXXX thanking us for providing coverage evidence and assuring us we were not charged " for the temporary coverage ''. 

I confirmed with my insurance agent that the agent had notified the Mortgagor upon expiration of the previous coverage on XX/XX/XXXX that new coverage was in effect from that date through XX/XX/XXXX. The agent can, if required, provide evidence of this notification. The agent also actually received from the Mortgagor a payment of {$160.00} from our escrow account to cover a premium increase that we authorized in order to avoid a substantial increase in the policy deductible. Thus, not only had the Mortgagor received multiple notifications of our current insurance but the Mortgagor acknowledged such and acted in accordance with the knowledge by paying our Insurance premium increase. 

Nevertheless, by letter dated XX/XX/XXXX we received a loan statement. It acknowledged receiving our payment of {$1300.00} on XXXX and also said our payment due XXXX XXXX, would be {$1700.00}. We also received an " Escrow account disclosure statement and notice of new mortgage payment. '' It shows an escrow shortage of {$3200.00} and an increased payment starting XXXX XXXX to {$780.00} because of projected payments for insurance purchased by the Mortgagor to XXXX XXXX XXXX. This is despite the specific listing in the statement itself of the above-referenced {$160.00} to our insurer for the increased premium on our current insurance. 

I called the Mortgagor on XX/XX/XXXX. I spoke to a Customer Service Representative who referred me to another representative in the Insurance Dept. who then referred me to yet another in the Escrow Dept. who referred me to still another in the Executive Dept.. ( For the first XXXX I had to repeat various ID information. ) The last XXXX agreed to send me a letter confirming that we now had a slight overage in our escrow account and that our payment for XXXX would be {$1300.00} and for XXXX would be {$1300.00}. She said she was prohibited from confirming this by email but a letter would go out at the latest on XXXX. 

This entire experience appears like it is almost designed to confuse senior mortgagees and trick them into agreeing to more expensive insurance linked to the Mortgagor. In some cases it would not even surprise us that mortgagees have been unwittingly duped into agreeing to unnecessary double coverage.