Consumer complaint received 2021-07-28
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LAKEVIEW LOAN SERVICING, LLC (SC)

in XXXX I purchased home, financed by XXXX XXXX. As such, I was able to receive hazard insurance because of their connection for under {$500.00} a year for full coverage on my home. I never had any intention of changing this insurance carrier, nor did I have any intention in refinancing my mortgage.

I received numerous calls from XXXX, almost to the point of harassment, telling me I qualified for an FHA Streamline refinance program. I declined numerous times, until I felt required to proceed with this. 

During this process, XXXX/LakeView Loan Servicing advised that they would handle everything " in house '' and there would be no changes to my mortgage except for a lower interest rate that will cause my payment to decrease. 

On XX/XX/XXXX, LakeView Loan Servicing , LLC committed an ERROR by boarding my loan incorrectly in their system, causing my homeowner 's insurance to not be paid. My homeowner 's insurance company formally known as XXXX ( now XXXX ) sent over four letters requesting payment, and still, no one at this company batted an eye and allowed my insurance to go unpaid, but had the complete ability to purchase lender placed insurance on my home. 

During this period, I did not receive any insurance warning letters. I did not get the opportunity of 45 days before lender placed insurance was added to look into the issue. I never received a phone call or email. XXXX/LakeView Loan Servicing did NOT make good faith effort to correct their mistake or communicate with myself about the issue going on with my mortgage that they " service ''. 

Completely unaware, they paid {$1300.00} for a lender placed policy from XXXX, when my previous policy was under {$500.00}. This continued for over a year with no communication from XXXX/LakeView. 

On XX/XX/XXXX they renewed the lender placed policy for XX/XX/XXXX - XX/XX/XXXX for {$1300.00}. 

At this time, I received an email showing lender placed insurance was paid. I was immediately alarmed and called 4 times with no one able to answer what happened with my previous insurance, nor when the warning letters were sent. I still have not received a copy of these letters. At this time, they tell me getting new insurance is my only option.

Numerous days/weeks of phone calls later and not a single response on what happened, I contacted my old insurance carrier ( XXXX ) to rewrite my original policy because of the mortgage servicer 's ERROR. I was advised they CAN NOT give me the same rate because my account is flagged as cancelled due to non payment and has been this way for 2 years. They transferred me to XXXX XXXX XXXX XXXX XXXX, who wrote a policy that gives me less coverage and can and will affect my family BECAUSE IT IS ALL I CAN AFFORD. The new policy is now {$1300.00} when it used to be under {$500.00} A YEAR!!!!!! 

This is now being calculated in my mortgage payment and has caused an increase of over {$200.00} a month. I am now behind on my mortgage payment and receiving late fees and negative credit reporting because of this issue. 

I require LakeView to own up to their ERROR and explain to me how I am supposed to pay a higher mortgage payment because they erroneously boarded my account, causing my insurance to not be paid and now cost me {$1300.00} rather than {$500.00}. WHO IS GOING TO COVER THIS EXPENSE FOR THE NEXT 30 YEARS!!!! this mistake is costing ME!!! when they made an error, they have now admitted to. 

The difference between my old insurance BEFORE LAKEVIEW CANCELLED IT BECAUSE OF THEIR MISTAKE was under {$500.00}, now it is {$1300.00} because NO ONE WILL INSURE ME AFTER THE LAPSE/CANCELLATION BECAUSE OF XXXX/LAKEVIEWS MISTAKE. The difference is over {$820.00} a year ... resulting in {$24000.00} for the life of the loan.. if not more. Is Lakeview going to cover this expense.. because it is their fault I am now unable to have my original policy in place. Also, is LakeView going to cover my increased mortgage payment that I am UNABLE to pay because it increased to THEIR ERROR? 

I have attempted to get in contact with XXXX XXXX and XXXX working in the Customer Care department who refuse to return my call to discuss this. I have also attempted to call the general department who states they are closed everyday during all hours. They make no effort to speak with homeowner 's who need assistance with THEIR MISTAKES. 

This company has caused my stress, financial hardship, lost hours of work during numerous phone calls. At this point, if they are not willing to own up to their mistake and see how they are costing me over the life of my loan, I will have to seek further legal assistance. 

I DEMAND to hear from a REAL PERSON that can actually look in to my account and discuss with my now you plan on fixing your error. Not just providing a refund for erroneous lender placed insurance, but also how you're going to cover or fix my increased mortgage payment and the difference in my homeowner 's insurance payment YOU CAUSED