Consumer complaint received 2015-11-26
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: RoundPoint Mortgage Servicing LLC (LA)

I received a letter from my mortgage company, RoundPoint mortgage, XXXX XXXX, 2015 alerting me that I did not have adequate flood insurance coverage and would need to raise my coverage to {$250000.00}. I promptly called RoundPoint 's insurance department and spoke to XXXX. I explained that I had just gone through this same issue with XXXX XXXX at RoundPoint in XXXX of this year, and the {$190000.00} worth of coverage that I carry on my building is sufficient to cover the replacement of the building. XXXX reviewed my file and said that he would need a form from my insurance agent stating the coverage that I have is sufficient and all would be taken care of. He said that he would contact my agent the next morning to get what he needed. I also contacted my agent, XXXX XXXX at XXXX XXXX XXXX, and on XXXX XXXX, 2015 she confirmed that she faxed over a copy of my flood insurance renewal XXXX page, and renewal application listing the replacement cost to RoundPoint and the issue should be resolved in 24-48 hours after RoundPoint processed the information. I then get another letter dated XXXX XXXX, 2015 again telling me I do not have sufficient flood coverage and will need to raise my policy to {$250000.00}. I spoke to XXXX in the RoundPoint insurance department on XXXX XXXX, 2015. He told me that they had received the information from my insurance agent and that my coverage amount was only {$130000.00} and would need to be raised to {$190000.00} to cover the cost of replacement on my building. He also indicated that they overpaid the premium on my flood policy. This information did not seem correct, as my flood coverage was always {$190000.00} and it did not make sense that it was lowered, but I said I would check with my insurance agent and if it was only {$130000.00} I would have it raised to {$190000.00}. XXXX also said that he needed to check on the overpayment and would get back to me. As seems usual for RoundPoint I did not hear back from XXXX as promised. On XXXX XXXX, 2015 I again contacted XXXX to confirm the amount of my flood coverage and to find out about the overpayment XXXX mentioned. XXXX confirmed that my flood coverage is {$190000.00} and that it was possible the {$130000.00} was a typo on the part of the mortgage company. She also confirmed that there was no overpayment of my flood premium, the payment amount that XXXX quoted was for the hazard insurance policy, not the flood. I then called Roundpoint back and this time spoke first to XXXX, then to his supervisor XXXX. XXXX then tried to convince me that {$250000.00} of coverage was required because of my loan amount, to which I explained to her that my loan amount has nothing to do with the amount of flood coverage required. Flood insurance does not payout any more than what the building is worth no matter how muck flood coverage I have and my loan amount was to purchase land as well as the building and as a mortgage professional she should know that. As such, the {$190000.00} worth of coverage that I carry is the correct amount needed to replace the building. She then tried to backtrack and stated that there are instances where less than {$250000.00} of coverage are sufficient and my house is XXXX of those cases. She also confirmed that my flood policy was for {$190000.00} and that was sufficient. At this point it was my understanding that this issue was resolved. Then I received a letter from RoundPoint dated XXXX XXXX, 2015 alerting me that they had forced placed {$58000.00} worth of coverage on my dwelling for an additional {$430.00} per month.