Consumer complaint received 2018-12-05
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: SUNTRUST BANKS, INC. (FL)

To Whom It May Concern : I received a mortgage from XXXX XXXX on XX/XX/2018. The mortgage was for a rental property I own in XXXX XXXX. The estimated total monthly payment for interest and principal was disclosed as {$2400.00}. The estimated taxes and insurance were disclosed as {$1400.00}. The combined payment for interest, principal, taxes and insurance quoted was only barely affordable to me at the time and I narrowly qualified for the loan. 

Importantly, prior to agreeing to the mortgage, I specifically discussed with my mortgage broker at XXXX XXXX that I did not have hurricane/windstorm insurance for the subject property and that it would not be affordable for me to purchase it. I have never had hurricane/windstorm insurance for this property. This was memorialized in several emails. I further stated that I would be unlikely to be able to close on this loan if the hurricane/windstorm insurance was necessary. As recently as yesterday, XX/XX/2018, the mortgage broker from XXXX XXXX acknowledged this discussion, and the agreement by XXXX XXXX not to require hurricane/windstorm insurance as a condition for the mortgage. 

Subsequent to the closing of the loan, XXXX XXXX  sold the mortgage to SunTrust Bank. SunTrust Bank is requiring that I purchase hurricane/windstorm insurance. They falsely claim that my prior hurricane/windstorm coverage has lapsed. As previously mentioned, I have never had hurricane/windstorm coverage. They have notified me that if I do not purchase hurricane/windstorm insurance on my own they will purchase it for me, and charge me {$20000.00} for it per year. This is equal to an additional {$1600.00} per month, which is completely unaffordable for me. 

SunTrust refuses to specify where in the mortgage agreement I signed with XXXX XXXX  they find the authority to charge me for hurricane/windstorm insurance. To my knowledge, there is no such requirement. It certainly is not clearly described, and I am a lawyer by training. XXXX XXXX  has told me that this is not their issue. XXXX XXXX states they did not require hurricane/windstorm insurance from me but can not control what SunTrust requires. 

It is completely unacceptable that XXXX XXXX could issue a mortgage to me that was only barely affordable per accepted mortgage guidelines without the requirement for hurricane/windstorm insurance and then turn around and sell the mortgage to a bank ( SunTrust ) only months later, which then requires me to purchase hurricane/windstorm insurance. This is the very definition of a bait-and-switch, and is precisely the kind of predatory lending and fraudulent behavior that financial regulations exist to prevent. Neither SunTrust Bank nor XXXX XXXX  seem the least concerned about the extremely stressful and damaging consequences to me of their actions. It should also be noted that the land value for the property is about three times the mortgage amount, even without any house. Therefore, there is no need from the perspective of collateral security to require the hurricane/windstorm insurance. 

If this is not resolved shortly, I will have to sell my property in XXXX XXXX, which I have long worked hard to maintain and is also the place I had planned to spend my retirement. The immediate attention and assistance of the CFPB is urgently requested. Thank you.