Consumer complaint received 2019-09-20
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Dovenmuehle Mortgage, Inc. (FL)

This complaint concerns Dovenmuehle Mortgage with sub-servicer CHFA-Colorado Housing and Finance Authority, the servicer of our XXXX XXXX  mortgage loan which has an escrow account. Dovenmuehle Mortgage personnel refuse to issue us a full refund for windstorm insurance coverage they had purchased ( a forced lenders policy ) even though we provided proof of coverage BEFORE they purchased the forced lenders policy. 

We moved to Florida and built a new home through a builder XXXX XXXX financed the construction loan and then converted it to a traditional mortgage once the house was built. When the house was completed in XX/XX/XXXX, we purchased our homeowner 's insurance through XXXX. 

We purchased hazard and flood insurance ( the location of our lot did not require flood insurance, but we purchased it anyway since we prefer to be fully covered ). Being new to Florida, we assumed that the hazard policy was all-inclusive that windstorm coverage was part of the general hazard coverage. 

In XX/XX/XXXX, XXXX notified us that we did not have windstorm coverage within our policy and a separate wind policy could be arranged through XXXX XXXX XXXX, a non-profit established by the Florida Legislature. They gave us instructions on how to request an inspector to come out and perform a wind inspection on the house, which was needed for the windstorm coverage. 

On XX/XX/XXXX, we applied for windstorm coverage through XXXX XXXX XXXX submitting it with an effective date of XX/XX/XXXX ( XXXX would later tell us that a 30-day waiting period was required, thus the revised effective date of XX/XX/XXXX ). 
We also requested the wind inspection. 

On XX/XX/XXXX, we verified via our XXXX online account that windstorm coverage was recorded in our loan with XXXX XXXX as the lender. We understood it was common practice for the insurance company to also submit that information to the lender. 

The inspector came out on XX/XX/XXXX, performed the wind inspection, and then processed the necessary inspection documents. 

On XX/XX/XXXX, once we received confirmation that our windstorm policy was being written, we submitted the coverage information on ihaveinsurance.com ( we were told this site forwards the information to the lender ). 

On XX/XX/XXXX, a XXXX insurance agent called us to process payment on the policy. 
We paid {$990.00} for an annual policy that ran XX/XX/XXXX XX/XX/XXXX. 

On XX/XX/XXXX, we emailed the proof of windstorm coverage to Dovenmuehle ( CHFA ) Mortgage servicer via the email address their personnel told me to use : XXXX We also submitted an online request to XXXX XXXX to verify they received the insurance information. 

On XX/XX/XXXX, we received a mailed notification from XXXX XXXX  that they received our inquiry and referred it to the appropriate are for review. This notification included this statement : We will make every effort to provide a response to your inquiry as promptly as possible. In any event, we will do within the time limit required by law. 

On XX/XX/XXXX, we received notice that XXXX XXXX purchased a windstorm insurance policy on XX/XX/XXXX through XXXX XXXX XXXX XXXX for {$10000.00} with a coverage term of XX/XX/XXXX XX/XX/XXXX. 

On XX/XX/XXXX, we emailed Dovenmuehle/XXXX  to inform them they unnecessarily purchased another windstorm insurance policy on our home. We attached our insurance coverage information and informed them we had already submitted the coverage information to them earlier in the month. 

On XX/XX/XXXX ( or a couple of days after ), we received from XXXX XXXX  a mailed notification letter similar to the letter received on XX/XX/XXXX that they received our inquiry and referred it to the appropriate are for review. This notification also included the statement : We will make every effort to provide a response to your inquiry as promptly as possible. In any event, we will do within the time limit required by law. 

We also called our servicer ( Dovenmuehle Mortgage/XXXX XXXX ) and they told us they would issue a refund but that it could take a few weeks to appear. Nothing was said to us at this time that a full refund would not be given. 

On XX/XX/XXXX, we noticed the refund appeared in our online account but that they only refunded {$9500.00}. On the same day, we received in the mail a policy cancellation notice from XXXX XXXX XXXX XXXX that they cancelled the policy and refunded {$9500.00} due to duplicate coverage the cancellation effective date was XX/XX/XXXX. 
They retained {$1100.00} for the policys effective term of XX/XX/XXXX to XX/XX/XXXX. 

On XX/XX/XXXX, we called Dovenmuehle Mortgage/XXXX XXXX and asked why we did not receive the full refund. Both the initial person we spoke with at Dovenmuehle Mortgage and their supervisor said it was only partial because the policy had to be paid for the effective term of XX/XX/XXXX XX/XX/XXXX. 

When we asked why they purchased the policy on XX/XX/XXXX when they had already received proof of coverage from us before that date, they said their records show our information was scanned into the system on XX/XX/XXXX. 

When we asked why they purchased insurance on XX/XX/XXXX when they scanned our information into the system on XX/XX/XXXX, their response was that it takes time to process that information. Their automated system had not been updated with our information so an annual windstorm policy was purchased. 

Despite my contention that a forced lenders policy should not have been purchased when we demonstrated due diligence in obtaining insurance ( not to mention our loan was in good standing ), we were told their system purchased the insurance automatically and that we were still responsible for paying for the term of the policy for the lapsed coverage. 

We can not fathom how it is ethical, or even legal, to force a customer to pay an exorbitantly high cost XXXX {$1100.00} for 5 weeks coverage compared to our {$990.00} cost for a years worth of coverage ) when we did everything within our power to obtain windstorm insurance as soon as we were informed of the gap in coverage ESPECIALLY since we did obtain coverage and provided proof of that additional coverage BEFORE the forced lenders policy was purchased.