Consumer complaint received 2018-06-06
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Dovenmuehle Mortgage, Inc. (FL)

I. Issue with high cost forced placed insurance On or about XXXX, XXXX, while viewing the online portal for the mortgage servicer, Dovenmuehle Mortgage ( hereinafter referred to as " Doven '' ) I noticed a listed charge of {$6300.00} for a forced placed insurance which we the borrowers were unaware of as well as an increase in monthly mortgage payment. I immediately contacted Dovenmuehle Mortgage to inquire on this and they advised they did not receive renewal information from the company I had insurance with prior, I advised Doven that we have never been notified of this issue. At this time I asked Doven to provide me with the Name of the Carrier for the forced placed and information on when and where the notices were received ; no information was provided and was told this would need to be researched. Subsequently, I immediately obtained a new policy with XXXX XXXX and faxed over the information to Doven. On XX/XX/XXXX XXXX was paid for the new policy from my Escrow and on XX/XX/XXXX a refund of {$4000.00} was applied to my escrow. Thereafter, I continued to make several attempts to obtain information as to why we the borrowers did not receive information of the forced placed insurance and with whom the insurance policy was with as never even received of copy of that either. One Doven agent I communicated with via chat ( chat transcript attached as Exhibit ) stated that the carrier we use for lender place insurance is XXXX XXXX. The fact that this lender only uses one carrier for forced place is alarming as it leads to believe that this servicer has some agreement with the insurance carrier and may be receiving kickbacks for only allowing them to service these high cost forced place policies. Also alarming was the fact that no notice of any intention to place this insurance was ever received and no copy of the policy or communication from the insurance company was ever received. 

My efforts to obtain copies of the alleged notifications and policy continued as I strongly believed and still do that the insurance was placed without proper notification in order to allow me the opportunity to renew my former policy or obtain new coverage ; many request were made via email ( at their request ) on XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX. On Monday, XX/XX/XXXX I received correspondence from Doven dated XX/XX/XXXX ( please make note it is postmarked with a stamp of XX/XX/XXXX envelope copy attached as exhibit ). The correspondence included a cover letter, copies of three notice letters and a copy of the policyNotice of lender placed insurance ( all attached as exhibits ) ; the first notice dated XX/XX/XXXX is addressed to XXXX XXXX, a firm who assisted us with a modification last year and despite them sending mortgage statements to our property and home address this notice was not directed to us but to XXXX XXXX at a XXXX XXXX address. The additional two notices XX/XX/XXXX and XX/XX/XXXX are not even addressed to a physical location and do not contain a mailing address. This is not proper notice as required by law. 
II. Issue with credit reporting The servicer, Doven has inaccurately reported and misapplied payments for the trial modification period that occurred XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX of XX/XX/XXXX and as a result is also reporting these payments as late payments on the borrowers credit reports. Additionally and most concerning, the XX/XX/XXXX payment was never even applied. I emailed Doven regarding this issue on XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX and also provided them with a copy of the cashiers check which we paid with and which clearly depicts they received and deposited it and I have yet to receive a response or correction of this. 

This kind of mismanagement and repetitive errors place great financial hardship on homeowners and result in financial devastation and many foreclosures just to line the pockets of unscrupulous lenders and mortgage servicers.