Consumer complaint received 2019-10-18
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: WASHINGTON FEDERAL BANK (WA)

My mortgage account with Washington Federal is an escrow account. Bank neglected to renew homeowners policy XX/XX/XXXX for {$1000.00} so policy cancelled. Bank placed their liability only insurance on my policy XX/XX/XXXX for {$2300.00}. During my call w/ XXXX in the XXXX XXXX XXXX I explained that the cost to begin new policy was {$1500.00} plus past due amount of {$150.00}. Higher premium of {$490.00} due to XXXX  rate increase of 15 % in XXXX. This was their error that caused policy cancellation and lapse in hazard coverage on my home costing me higher premium of {$490.00}, a history of a cancellation as well as their lender-based insurance added to my loan with additional interest. The response I got was my account was showing as a non-escrow loan. She said that typically they would have been sent a cancellation notice that may have led to them researching my account to find that the insurance needed to be paid from escrow. She stated that during that time frame WaFd had changed their mailing address from XXXX to XXXX and possible they didn't receive the cancellation notice. I find it hard to believe that a large banking institution wouldn't have safeguarded their mail delivery. On XX/XX/XXXX the bank sent me the annual escrow account disclosure statement to the wrong address for XX/XX/XXXX - XX/XX/XXXX that documents them paying {$980.00} to my insurance company on XXXX the annual renewal month. She submitted request to the research team to 1. change to an escrow account 2. refund my account for the lender-based insurance. 3. She would contact XXXX XXXX regarding the cancellation and get premium amount to reinstate policy and she would call me later in the day or the next day. I waited a week and on XX/XX/XXXX I called her. She told me that my loan had status update and changed to an escrow account that day. The request for a refund for their lender-based insurance was still pending. She asked if I wanted to start a new policy with my insurance company and I told her that I would check rates with other carriers. Having my insurance premium increase by {$490.00} in 1 year was concerning and would affect my escrow funds. I am also concerned about my insurance company increasing my rates on my other policies and wanted to talk to a few other agents. She said she would note this on my account. I called another provider for a quote for all my insurance needs, so I'd get the best discount. I disclosed upfront that my policy had been cancelled for non-payment and explained my situation. She advised me to contact a very competent agent she knew that was with XXXX locally here in XXXX XXXX, WA her name is XXXX. I spoke with her on XX/XX/XXXX and after my explanation of circumstances she was also reluctant to believe that my lender wasn't getting all their mail forwarded. She also suggested that I contact my insurance agent ( whom I've never met and was transferred to when my agent closed his agency ) and request that the agent advocate on my behalf and back date my policy so I wouldn't have a cancellation on my record and hopefully receive a better rate. I told her that I felt that this responsibility should be on my lender/bank to try and resolve based on it being their negligence. She agreed. On XX/XX/XXXX I spoke with XXXX with my current XXXX agents office about reinstating my homeowners policy. She reviewed the amount of my policy and told me that the increase of my premium amount was due to the lapse of coverage when my policy was not renewed by my lender and due to their rate increase of 15 % in XXXX. She quoted me the amount of {$1500.00} for the annual premium and the late fee owed of {$150.00} totaling {$1600.00}. It was suggested that I contact my lender with this information to have them contact my insurance company and make the payment to reinstate my homeowners coverage from my escrow account. I requested that my current insurance agent transfer all my policies to the XXXX agency here in XXXX XXXX, WA where I reside. I called XXXX at XXXX and left her a voicemail on XX/XX/XXXX and have not been contacted. I anticipate this matter to be a long stressful battle for me to get WaFd to rectify this on my behalf in its entirety. I shouldn't be penalized and have to pay so much more for my insurance, and I shouldn't be put in the position to pursue them to refund me for their policy they added in error not to mention the time and anguish it will cause me to try and figure out how all these changes, charges and refunds will affect the funds in my escrow account. I need someone that is qualified in these matters to look at these figures and protect me from being charged more than I should be had the bank not failed to represent me and manage my account correctly. I will try to work through this however I do wish to request your agency to protect my rights as a consumer please.