Consumer complaint received 2021-11-10
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Freedom Mortgage Company (NV)

I re-financed my VA home mortgage and it closed on XX/XX/XXXX. The new mortgage did not have an escrow account as the loan to ratio was 38 %, well below the customary 80 % threshold. In XXXX I was contacted by the mortgage company that they did not have a copy of the flood insurance policy and needed it for their records. I forwarded the original email I had sent them which contained a copy of the policy. I was contacted again by the mortgage company stating they had not received the policy and would force a policy on me. I contacted the flood insurance company and requested they send a copy of the policy to the mortgage company. I was cc 'd on that email dated XX/XX/XXXX. I spoke to the mortgage company and they again said they had not received the policy. I forwarded the email from the flood insurance company with a copy of the flood insurance policy enclosed. I asked for a return receipt in my email and when I did not receive one, I called the mortgage company the next day and confirmed they had received the flood insurance policy. I paid the annual flood insurance policy at the renewal date and shortly after received a refund check from them stating " duplicate payment. '' I called the flood insurance company as after reviewing my checking account, I did not see a duplicate payment. The flood insurance company informed me that the mortgage company had duplicated my payment. I called the mortgage company and spoke with someone in the insurance department and was told, " I see the notes on your account. You did your due diligence and I will get this corrected. '' I then received a notice in the mail from the mortgage company dated XX/XX/XXXX, stating " You are receiving this statement because you have an escrow account with us. '' I again called the mortgage company and spoke with someone in the escrow department. I was told they would " remove the insurance so it does not create a negative and put in the request to remove the escrow account and make sure no disbursements go out again. I was told I would need to send in a written request to remove the escrow account and to send in the duplicate payment check from the insurance company. I sent the request to remove the escrow account with the original refund check from the flood insurance company to the address provided by the individual in the escrow department. I received a letter dated XX/XX/XXXX, stating the request to remove the escrow account was denied. The letter states the following conditions are necessary for canceling an escrow account. 1. Loan is not an FHA insured loan ( VA loan ), 2. Loan has a Loan to Value Ratio below 80 % ( LTVR is 38 % ), 3. Loan has good payment history or timely payments for the principal, interest, and escrow payments ( principal and interest payments have been made on time with additional funds going to the principal each month. There is not an escrow account added to this loan until XX/XX/XXXX per the XX/XX/XXXX statement received ). I called the mortgage company yet again and spoke with an escalation specialist who transferred me to a mortgage team member who told me she would get her supervisor involved and submit a request to remove the escrow account. I asked that I receive something in writing by the end of the day to that effect. She said it would be by the end of the week. Today, XX/XX/XXXX, I received a call from the mortgage company saying they are refusing to remove the escrow account and that they don't have the refund check. So I am out the money I paid to the flood insurance company, out the refunded money for the duplicate payment and being charged through an escrow account that per 12 CFR 1024.17, if the escrow account was a condition of my loan, I should have been notified in the closing disclosure. Instead, the escrow account was added to my loan without my knowledge and although I meet the criteria in the letter I was sent by the mortgage company for conditions to remove the escrow account, they are still refusing to remove the escrow and to refund me the money already paid to the flood insurance company.