Consumer complaint received 2019-06-24
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: FIFTH THIRD FINANCIAL CORPORATION (PA)

My wife and I bought our house back in XXXX and at the time, our original mortgage company ( XXXX XXXX XXXX ) did not require us to have flood insurance. Our flood certification from  XXXX said we were rated as Zone X, but did say the following : * The subject property IS PARTIALLY WITHIN a Special Flood Hazard Area. The existing STRUCTURE, however, is not affected and is not in the floodplain. 

In late XXXX, our mortgage was sold to Fifth Third Bank. We received a letter in late XXXX saying that we needed to provide proof of flood insurance because they found our house was in Zone A and  if we didn't provide proof of insurance they would purchase a policy on our behalf. I called into customer service and after explaining the situation and saying I had a flood certificate from the original mortgage holder saying I was zone X, they said to email it to them. This company is also one that will never call you back. It is always 15-25 days later I will receive a letter. 

So, 20 days later I get a letter saying that the documentation I provided was not sufficient and their vendor found me to be in Zone A. I called back in pretty irritated and after arguing with the rep for 20 minutes, they pretty much said the only way the requirement would be removed is if I provided a LOMA form from FEMA.

I complained enough that the issue got escalated to 5/3 's office of the president. In the meantime, 5/3 purchased a flood policy on my behalf for {$2500.00} a year, which raised my mortgage around {$300.00} a month. After waiting around 40 days, I received a letter saying that after having their vendor recheck everything, they are sticking by their original assessment. They then proceed to tell me that they are requiring the flood insurance since my house might " slide into the flood zone ''. To me this is completely ridiculous. At this point without knowing what else to do, I contact my XXXX XXXX agent who I have my Homeowners insurance through to get a quote on flood insurance. I end up getting a quote back from them for only {$500.00} a year since they found since the house is in Zone X I was able to get a preferred rate from FEMA. My agent even talked to a FEMA rep and this person asked why were getting flood insurance since its not required. The FEMA person even said they would get on a 3 way call with a rep from the bank to try and explain.

I called the office of the president back and re-opened the case. I provided all of this info including the fact the FEMA rep would get on a phone call. 15 days later I get a letter saying they are still sticking by their determination. Around this same time, I also get a letter saying that they can't accept the flood policy I purchased from XXXX   XXXX/NFIP since the policy says " Zone X '' and there is a discrepancy since on their side they show Zone A. I called them back and they told me they wouldn't get on a 3 way call since it wouldn't change their mind and plus that department doesn't talk to customers. They said the only way they would reverse their decision was if I provided a LOMA showing I'm not in a flood zone or some other kind of documentation from FEMA saying why they can't provide a flood policy for me showing Zone A instead of X. I was resigned to the fact that for {$500.00} a year, having a flood policy isn't that big of a deal ... but now they aren't even going to let me do that? I am beyond frustrated. I have never dealt with a company like 5/3 Bank. I have also tried to find out who the bank uses for their flood certificate determinations, but they have thus far refused to give me this information. 

I think at this point I want to focus on somehow trying to get the bank to accept the cheaper flood policy, or somehow getting a letter from FEMA saying why the policy is zone X. At this point how could I even get a policy showing Zone A when it was determined the policy was based on X? I don't get it.

Any help would be appreciated. I think they are hoping I just drop this and pay for an expensive flood policy, but I want to fight this. They should at least allow me to have the cheaper preferred rate flood policy since even FEMA underwriting stated I was in zone X.