Consumer complaint received 2020-09-24
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: WELLS FARGO & COMPANY (OH)

My wife and I own a XXXX XXXX  XXXX XXXX and we live in one of the units. We've had an FHA loan via Wells Fargo ( WF ) since XX/XX/XXXX. Our original insurance was with XXXX XXXX ( XXXX ) and the policy was paid via our escrow account. As of XX/XX/XXXX, XXXX  could no longer underwrite our property therefore, we searched for another insurer. We had difficulty finding a conventional insurer because of the type of structure therefore, WF offered their Lender 's Placed Insurance ( LPI  ) policy while we were searching for an underwriter. We accepted WFs LPI policy to insure our property during our search. 
Ohio XXXX XXXX ( XXXX  ) was able to insure it between XX/XX/XXXX - XX/XX/XXXX. After XX/XX/XXXX OF could no longer insure our property therefore, we chose WF 's LPI once again. We understood that LPI was more expensive than a policy from a conventional company and its coverage was only for the bldg. We also understood the LPI policy wouldn't cover the personal property nor injuries of any of the bldgs residents however, this was our only recourse at the time. 
On XX/XX/XXXX, we purchased renter 's insurance via XXXX XXXX ( XXXX  ),  separate from our WF mortgage policy, to cover our personal and business property within our unit ONLY. Between XX/XX/XXXX to the present, this policy has somehow been submitted to WF several times without my permission, as a hazard property insurance policy. XX/XX/XXXX to my XX/XX/XXXX phone calls with WF & XXXX, was the longest period of time that my WF LPI was switched to my XXXX  Renters Insurance, again without my permission. 
I brought this to the attention of XXXX XXXX of WF, during the XX/XX/XXXX recorded phone call during which I was told that XXXX  submitted my renter 's policy to a national automated EDI system and that WF 's system automatically pulled the policy from this system, analyzed it and concluded that this was being submitted to replace my LPI. Additionally, I was told that I would have to contact XXXX  to find out why the renter 's policy was submitted to replace my LPI. I called XXXX and spoke with XXXX of XXXX XXXX 's XXXX  agency, and she told me that XXXX did not submit my renter 's policy to WF. I called WF back and told them that XXXX  denied submitting the policy. 
During both calls to WF, I emphasized that the LPI covers our property for a total of $ XXXX and that my renter 's policy only covers our personal belongings within our unit up to a total of $ XXXX. Moreover, I questioned this discrepancy and asked why WF 's system did not flag this action due to the inadequate coverage amount. I also asked why was the XXXX  renter 's policy called a " Landlord Policy '' by WF. WF escalated the matter and started a case investigation. At that time, I requested WF to reinstate the LPI. 
In XX/XX/XXXX, I received a letter from WF stating that there's an escrow shortage of + {$4000.00} and that my mortgage payment was raised from $ XXXX/mth to + $ XXXX/mth to cover the shortage. The insurance switch on XX/XX/XXXX caused that + {$4000.00} shortage on my escrow account. I would like to know if Wells Fargo and/or XXXX XXXX, is responsible for the unauthorized change of coverage on our property that caused any shortage on our escrow account.