Consumer complaint received 2022-01-03
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (NY)

I am hoping that you may be able to help me settle a consumer matter involving myself and my mortgage servicing company, Mr. Cooper ( previously known as Nationstar Mortgage, LLC ), regarding the handling of my escrow account ( related to loan number XXXX. ) Mr. Cooper did not pay my homeowners insurance policy premium, which led to a lapse in coverage on my property from XX/XX/XXXX, to XX/XX/XXXX. Mr. Cooper did not inform me of this lapse until XX/XX/XXXX, by which time it was too late for me to rectify it. 

I have suffered financial penalties due to Mr. Coopers mishandling of this situation. For one, I could not get the same premium that I was offered by my insurance company in XX/XX/XXXX. At that time, my premium for 12 months of insurance would have been {$1700.00}. However, because Mr. Cooper did not pay the premium, I have a lapse on my record, and my new insurance policy is now {$2500.00}. I would like Mr. Cooper to re-imburse me for the {$810.00} difference in the insurance premium. 

Additionally, Mr. Cooper charged me for insurance that covered the period when my property did not have insurance coverage. The fee for that was {$1700.00}. I would like them to reverse this charge since they were the ones that did not pay my original insurance premium, which led to the lapse in insurance. 

This is upsetting to me for several reasons. An escrow account is a simple concept. Every month, I fulfill what is expected of me by paying my monthly payment. However, Mr. Cooper did not fulfill their end of the agreement by paying my insurance premium. As such, my house was not insured for a period of nine months. Additionally, I am being penalized through higher insurance premiums due to the lapse. A representative from Mr. Cooper told me on the phone that they did not realize that the insurance policy had lapsed until XX/XX/XXXX. 

When I discussed the matter with Mr. Cooper, they denied that this was their fault. I re-financed my mortgage in XX/XX/XXXX with XXXX XXXX and the servicing of the mortgage was subsequently transferred to Mr. Cooper in XX/XX/XXXX. Mr. Cooper claims that my former mortgage servicer did not transfer the correct insurance information which led to Mr. Cooper not making the payment. However, Mr. Coopers research team explained to me in writing that when my mortgage was transferred, Mr. Cooper received two insurance documents. One was for a policy that ran from XX/XX/XXXX to XX/XX/XXXX ( which was correct. ) The second document was for a policy that ran from XX/XX/XXXX to XX/XX/XXXX ( which was incorrect. ) Mr. Cooper admitted that the second document was not associated with my property and was for a different homeowner. It makes no sense to me that Mr. Cooper would use the incorrect document. Mr. Cooper appears to not have any internal controls in place to deal with this type of situation. I have included a letter I received from Mr. Coopers research department. 

I feel as though I am caught in the middle of two mortgage companies, each one pointing fingers at each other, while I am stuck in the middle. I am hoping that you can help me settle this matter.