Consumer complaint received 2020-03-02
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC (CA)

In XXXX XX/XX/XXXX I informed XXXX  by telephone call with loss draft department that our home had sustained damage during the XXXX XXXX  in California, A Presidentially declared disaster I was sent Loss Draft Procedure documents in XX/XX/XXXX, I called to get clarification of procedures multiple occasions each time, my calls went unanswered. 
In XXXX of XXXX I began working on loss mitigation application while awaiting insurance funds. 
Nine months passed before we received our first homeowners insurance payment. The insurance company illegally combined payments for loss of use, personal property cleaning, dry cleaning, separate structures, and landscaping onto a single check listed as Dwelling A Yet there was no structural damage. This was outlined along with breakdown of funds on check Again acting in bad faith and against California Fair Settlement procedure during Qualified Presidentially declared disaster my personal loss of use, ( hotels in excess of 50,000, cleaning of homes personal contents, pet boarding had been comingled jointly issued to XXXX and myself. Despite my best efforts the insurance company refused to reissue payment directly to me and in accordance with California state law. ( The California Department of Insurance has been a complete waste of time and received no help ) Reluctantly, I endorsed and overnighted the check to XXXX along with the insurance estimates detailing the comingling of proceeds with the promise from XXXX that personally related funds would be immediately disbursed. 
Loss Draft procedure state : Funds will be disbursed within XXXX business days ( See attached ) XXXX failed to honor policy claiming funds would not be released because our mortgage wasnt current. 
loss draft policy, If loan is current at time of disaster payments they will issue disbursement within 5 business days. But first it takes them a minimum of them of 72 hours to review documents. Another 48 hours to receive a phone call back after follow up calls to confirm receipt of endorsed check and Insurance ESTIMATE. Then they have another 5 working days to acknowledge documents and even more time to release funds. Not what it states in policy XXXX disregarded our personal property, loss of use, content cleaning etc. and released only 2 check jointly to contractors estimate. We had not even selected contractor as we had only estimates of work pertaining to landscaping and other structues, No Dwelling despite the way the check was issued. XXXX  along with the insurance estimates detailing the comingling of proceeds with the promise from XXXX that personally related funds would be immediately disbursed. 
Loss Draft procedure state : Funds will be disbursed within XXXX business days ( See attached ) XXXX attempted to stale disbursement claims we weren't current but to we certainly were at time of disaster Only insurance estimates had been submitted in report and there had as we had not decided on who we would be using, no contracts had been signed or work started yet but the check was jointly was made out to the contractor listed on estimate. Leaving no choice but to use contractor. 
Simultaneously seeking payment forbearance due to disaster. Spouses unemployment and complete depletion of all retirement and savings accounts because of failure to receive insurance money directly for reimbursement of money out of pocket and additional costs related to work to repair home from fire all directly from me XXXX has kept the remaining balance in a restricted escrow account. 
Our assigned loss draft specialist, XXXX assured us all personally related to expenses that should not have been issued under dwelling would be incurred would be dispersed and issued in my name ONLY as I had already spent the money and this was just partial insurance reimbursement. 
Our Loss Draft specialist XXXX was never reachable by phone or email, the hours she kept were Midwest hours and she would be done with work by XXXX CST and we live west coast time. Our contractor was also delayed due to inability to speak with her .Julia informed our contractor she never checked her messages. 
We then requested an immediate new point of contact to take over the claim. This is when we were assigned XXXX.. 
On XX/XX/XXXX, We wrote to XXXX informing loss draft all work had been completed. We sent all required documents. We again requested they immediately release the remaining {$53000.00} theyve illegally been holding in escrow for 6 moths XXXX was oblivious to the fact that XXXX had only issued a single disbursement of insurance proceeds XXXX acknowledged they were in receipt of all required documents on XX/XX/XXXX. Then proceeded to tell us they would first need to order home inspection to verify work was completed as outlined. And would release balance once they received confirmation that work was 100 % complete. 
It then took another 8 days for a home inspector to get scheduled Again going against loss drafts policy to disburse funds within 5 days On XX/XX/XXXX XXXX inspector came to our home, inspected everything and completed his report. The report was sent back to XXXX same day but remember it can take 5 days to review paperwork. This practice needs to be regulated and there servicers need to be fined for causes undue delays. 
On XX/XX/XXXX once again we called and emailed requesting final distribution since inspection was completed showed 100 percent complete. Out money has also now has accrued interest. Yet unsuccessful at reaching XXXX and no body but her would give us information pertaining to our claim. 
On Friday, XX/XX/XXXX we called to inquire about the disbursement and was abruptly informed they no longer serviced out loan and that it had been transferred to Rushmore loan management on XX/XX/XXXX. This was the very first we had ever heard of it. The representative did confirm inspection showed 100 percent complete and funds were scheduled for disbursement that day but they no longer our servicer. transferred. 
. Our loan servicer was transferred one day prior to the schedule release of our funds. Also, coinciding with our loss mitigation application that XXXX would accept because they said it was incomplete when I have HUD certifying it was complete. Giving the facts of the Qualified loss and Presidential disaster HUD doesnt require a complete application for review yet we were not afforded any help after such massive devastation even with a complete application that I have already sent in to the CFPB for verification. XXXX even refused to accept payment of mortgage on our behalf from the XXXX XXXX who had requested a completed W-9 so they could pay mortgage oun our behalf. One lie after another with that company. 
We were told to call Rushmore as XXXX no longer had access to our files. 
We then immediately called Rushmore who informed us that it would be roughly 15 days for them to receive all documents pertaining to our loss draft claim Adding more unnecessary delay and declining economic status. 
Rushmore was sent documents on XX/XX/XXXX and had all requested documents from us on XX/XX/XXXX at which point they would release money. 
We reiterated the immediate need of the funds held by XXXX who was FINALLY set to cut check but all of a sudden transferred servicers the day before. that should From XX/XX/XXXX to today, XX/XX/XXXX we are still waiting, needlessly suffering. We have made approximately 5 calls a day to Rushmores loss draft department requesting status. We sent in prepaid envelope, we did everything requested. We were also told they would follow what our previous servicer and I had agreed upon. We were told they had all documents and it was complete. 
XXXX also has a policy of 5 days for disbursements of final claims once inspections have been completed. 
Rushmore failure caused irreparable harm and caused my daughter to lose her XXXX  spot university due funds not being released within promised time under their own statement. Rushmores has only had our loan since the XXXX and is using unfair and deceptive tactics. Misleading and false information. 
It is XX/XX/XXXX and Rushmore is stating that the completed loss draft packet is sitting at corporate waiting for yet another approval.This is wholly unacceptable. Rushmore is acting with disregard for out prior agreement with our servicer, is acting irresponsible and Rushmores failure to act accordingly with California State Law and fair business practices has caused irreparable harm to my family. Causing extensive financial damages. 
If not immediately resolved I am retaining an attorney and will file suit for numerous violations of the Californias Homeowners Bill of Rights as well as Fraudulent RESPA information and unfair business practices causing financial devastation against the three companies XXXX, Rushmore as well as out new loan owner XXXX XXXX.