Consumer complaint received 2024-09-18
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC (NE)

XX/XX/XXXX I discovered that my mortgage payment increased tremendously so I researched it by calling my mortgage company. Customer Service transferred me to the insurance escrow department saying the increase was because I they did Lender Placed Hazard insurance on my escrow. I have had the same homeowner 's insurance for XXXX years without a claim. My mortgage company was bought out by this new company XX/XX/XXXXXXXX XXXX  so this new company has been receiving my mortgage payments + escrow since XX/XX/XXXX. My homeowners policy was to renew XX/XX/XXXX. While talking with the XXXX customer service rep about the insurance he said this has to be a mistake because he saw all the information pertaining to my purchased homeowners insurance so he said the additional insurance had to be added by mistake and he requested a reimbursement for all the costs associated to that and said it should be corrected in 24-48 hours. After discussing that I decided to call my insurance company just to verify everything is correct. When talking with my insurance company they said they never received payment from the mortgage company so my policy lapsed and of course on XX/XX/XXXX was cancelled. I called my mortgage company back and discussed the nonpayment of my policy. I explained I dont understand how it wasnt paid because they told me they had the invoice and all the information excluding the " XXXX XXXX  ''. They had all the escrow payment money, the invoice, the insurance information but yet didnt pay the policy renewal. The customer service rep told me it was because they didnt have the XXXX XXXX. She said they called the insurance company many times and never got an answer. My insurance agent and myself find that extremely hard to believe because they answered immediately when I called today. She even put me on hold and called my insurance company to see if they would reinstate my policy and when she came back to the line she said they were not able to reinstate me. I requested on her end she needed to talk to the proper people to get me reimbursed for the insurance policy that they assigned to my escrow as it was not necessary had they just paid my current policy. I then hung up and called my insurance company and asked to speak to whomever just spoke to the customer service rep from my mortgage company. The receptionist asked everyone in the office and no one spoke to my mortgage company. So the customer service rep didnt call them when she put me on hold as she told me she did. So again, did they try to call my insurance company for the " XXXX XXXX  '' like they told me they did or did they just not pay my policy renewal so they could force their over priced under insured insurance policy on me? I spoke to my insurance agent and was able to rush to get new coverage but I believe according to the research I have done on this issue the mortgage company should be responsible to reimburse me for costs associated to their negligence. The purpose of escrow is to know your taxes and homeowners insurance is being paid on time and in full.