Consumer complaint received 2019-09-17
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Community Loan Servicing, LLC (formerly known as Bayview Loan Servicing, LLC) (NJ)

I am a XXXX senior citizen on a fixed income. I am current on my mortgage and have been since XX/XX/XXXX when I obtained a permanent loan modification from Bayview Loan Servicing ( Bayview ). Prior to my loan modification in XXXX I had force placed homeowners and flood insurance policies. I purchased my own homeowners insurance policy in XX/XX/XXXX and that policy has remained on my home since that time. I purchased my own flood insurance policy in XX/XX/XXXX and that policy has remained on my home since that time. 

I have not missed any mortgage payments since my loan was modified in XXXX. Around XX/XX/XXXX, servicing of my loan transferred from Bayview to XXXX XXXX XXXX ( XXXX ). I never received a written notice that servicing was transferring from Bayview or XXXX. I found out about the change when I went to make my payment to Bayview and was told to make the payment to XXXX, which I did. 

In XX/XX/XXXX, XXXX sent me an escrow analysis that showed a shortage of {$4700.00}, which would cause my monthly mortgage payments to jump from {$1200.00} to {$1600.00} starting XX/XX/XXXX. Because I had always paid my mortgage payments in full every month this could not be correct. When I called Bayview about this issue, I was told that because servicing had transferred to XXXX, Bayview could no longer update my account and all errors had to be fixed by XXXX. When I called BOA to address this issue I was advised that BOA could not fix the errors of a prior servicer and to contact Bayview. 

Eventually I was able to get a loan history from Bayview which showed charges for my chosen flood and homeowners insurance policies plus 14 charges marked as Flood Insurance Disbursement or Misc. Insurance Charge from XX/XX/XXXX through XX/XX/XXXX. These additional charges totaled {$3700.00} and appear to be charges for force placed insurance during times I was covered by my own insurance policies. 

On XX/XX/XXXX I sent a Notice of Error to XXXX XXXX XXXX and to Bayview. I attached proof of my insurance coverage and attached the loan history showing the force placed charges to both Notices of Error. The unlawful charges were even highlighted in my Notices of Error. I asked XXXX XXXX XXXX to remove those charges and do a new escrow analysis. I asked Bayview to remove those charges from the loan account history and to send those updates to XXXX. 

In a letter dated XX/XX/XXXX Bayview responded to my Notice of Error. Bayview stated A review of the account reflects that there was a lapse in hazard coverage from XX/XX/XXXX to XX/XX/XXXX for which we are not in receipt of proof of insurance. As such, the LPI assessed to the account for the foregoing time period is valid. In regards to the flood insurance, the LPI assessed to the account was canceled effective XX/XX/XXXX, as there was no longer an insufficiency with the coverage provided by the preferred lender policy. Per the preferred lender policy indicating coverage as being from XX/XX/XXXX to XX/XX/XXXX, will remain as we are not in receipt of proof of coverage for this time period. Please allow up to thirty ( 30 ) days from the date of this letter for the account to be updated accordingly. 

This response was vague and confusing. Bayviews response requested thirty days to update the account, but did not say exactly which charges, if any, it would remove from my account. My XXXX loan modification with Bayview states : Borrower agrees that the unpaid principal balance due on the Note of {$130000.00}, shall be increased by {$140000.00} the amount of the unpaid installments, interest, late charges, fees and costs, and if applicable any advances for unpaid property taxes and/or insurance premiums. ( emphasis added ). Thus, Bayview was required by the loan modification to include the previous insurance advances in the principal balance of the loan. If Bayview failed to do so it violated the terms of my modification. If Bayview did include the advances as required by the loan modification, then it is charging me twice for periods in which I did not have coverage.

To the extent Bayviews response agreed that those charges were inappropriate because I had my own policy during those times, it did not correct that issue within 30 days. 

To date, neither XXXX nor Bayview has credited my account for the force placed charges from XX/XX/XXXX through XX/XX/XXXX when I was covered by my policy. My payment shot up in XX/XX/XXXX as a result of the false escrow shortage. I have continued to stay current on these unlawfully inflated mortgage payments because I am terrified of ending up in foreclosure. These unlawful charges have caused me a great deal of financial and emotion strain. 

By charging my account for force-placed insurance for periods when I had my own insurance Bayview violated RESPA, 12 C.F.R. 1024.37 ( b ). Bayview also violated RESPA by failing to correct this error within 30 business days of being notified of it. 
Attached hereto please find the XX/XX/XXXX Notice of Error I sent to Bayview, Bayviews response thereto dated XX/XX/XXXX, and my XX/XX/XXXX loan modification.