Consumer complaint received 2023-06-10
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Freedom Mortgage Company (HI)

Summary Our mortgagee, Freedom Mortgage ( FM ), declared that the wind insurance coverage on our apartment had expired. FM purchased wind insurance on our apartment for which we will be charged until we renew our wind insurance. I provided evidence to FM that our wind insurance had never expired. However, FM has refused to acknowledge that our wind insurance coverage had not changed since our mortgage was originated a decade earlier and will charge us for lender-placed insurance coverage that FM has not demonstrated is needed. 

Three lengthy telephone calls to FM haven't resulted in FM working with us to resolve this problem. This despite that during the past decade, we have never been late on a single mortgage payment, we have never allowed our insurance coverage to lapse, and we have always paid our property taxes. 

If FM considers our wind coverage to be deficient, why didn't FM notify us about this deficiency years ago? It's unfair of FM to suddenly claim that our wind coverage is deficient yet to provide no opportunity for us to buy the wind coverage that FM claims that we need before FM purchases lender-placed insurance. 

How can FM buy wind insurance on XXXX XXXX XXXX that is effective on XXXX XXXX XXXX, a date in the past? There have been no hurricane losses between XXXX XXXX XXXX and XXXX XXXX XXXX. FM has not provided any evidence that our wind coverage became deficient on XXXX XXXX XXXX, so we should not have to pay for lender-placed wind coverage from that date. 

Despite FM not providing any written requirement for optional hurricane coverage in Hawaii, we agreed to add hurricane coverage to our HO6 policy effective on its renewal date, XXXX XXXX XXXX 

Details In late XX/XX/XXXX, I received a letter from FM dated XXXX XXXX XXXX in which FM declared that the wind insurance coverage on our apartment had expired and had not been renewed. FM wrote that it had purchased wind insurance on our apartment and that FM would charge us for this insurance until we renewed our wind insurance coverage. 

After received that letter, I called our XXXX insurance agent, XXXX, to verify that our XXXX policy had wind coverage. Our XXXX agent confirmed to FM in a telephone call that our XXXX has always had wind coverage. FM told us that it considers hurricane and wind coverage to be the same. Our agent explained that in Hawaii, wind and hurricane coverage are not the same with hurricane coverage being optional. No XXXX agent has ever suggested that we purchase optional hurricane coverage. No wind losses as a result of a named hurricane have occurred in XXXX since the XXXX 's. FM told us hurricane coverage is required for Hawaii properties and that we had 45 days to add it. We added hurricane coverage effective on XXXX XXXX, less than 45 days after we were told we must have it. I sent the updated declarations page to FM. 

In mid-May, I received a 2nd warning letter from FM dated XXXX XXXX. On XXXX XXXX, I called FM to ask whether they had received my updated declarations page showing hurricane coverage as of XXXX XXXX. FM confirmed that they had received it but that my insurance had been deficient since XXXX XXXX XXXX, so I would be liable to pay for FM-purchased wind insurance as of XXXX XXXX XXXX. FM could not tell me why on XXXX XXXX XXXX our wind coverage had become deficient and guessed that our condo master policy must have excluded betterments and improvements coverage as of that date. 

On XXXX XXXX, I wrote to our XXXX XXXX 's insurance agent, XXXX XXXX, to ask about the condo master policy. She confirmed that the master policy had always covered hurricane damage " as-built '' but never covered betterments and improvements. The only change to the master policy on XXXX XXXX XXXX was an increase in the water damage deductible from $ XXXX to $ XXXX. She advised us not to accept being charged for wind or hurricane coverage. 

By this point, I had given up being able to work with FM and decided to file a complaint with the Consumer Financial Protection Bureau. On XXXX XXXX, I called FM to request in writing the reason why lender-placed wind insurance was purchased for our apartment effective XXXX XX/XX/XXXX. FM could or would not provide anything in writing. 

On XXXX XXXX XXXX, I paid our annual premium for XXXX coverage including optional hurricane coverage for the first time. 

On XXXX XXXX, I filed a complaint against FM with the Consumer Financial Protection Bureau. Attached is a document that includes the 3 FM letters that we received XXXX declarations pages for previous and current insurance condo master policy insurance certificates from before and after XXXX XX/XX/XXXX with hurricane coverage and deductibles highlighted message from our condo master policy agent XXXX annual premium invoice for renewal on XXXX XX/XX/XXXX receipt for the XXXX XX/XX/XXXX payment of our XXXX annual premium