Consumer complaint received 2019-08-04
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — 
Company: GOLDEN 1 CREDIT UNION, THE (CA)

Re : Complaint by XXXX vs The Golden 1 Credit Union XXXX, XXXX and XXXX, XXXX XXXX XXXX XXXX XXXX, CA XXXX Flood Insurance Declaration ( XXXX XXXX XXXX ) Policy # XXXX Policy Period : XX/XX/XXXX XX/XX/XXXX Premium Paid to XXXX  : {$450.00} Homeowners Policy ( XXXX XXXX XXXX ) Policy # XXXX Policy Period : XX/XX/XXXX XX/XX/XXXX Premium Paid to XXXX  : {$1300.00} G1CU, 1st Position First Mortgage Loan # XXXX G1CU, 2nd Positon Home Equity Loan Loan # XXXX My husband ( XXXX ) and I purchased our home in XXXX XXXX in XXXX and have resided in there ever since. 
After Flood Insurance became mandatory, we purchased it thru our Home Insurance carrier, XXXX and continued as notified, to pay for that coverage thru XXXX ever since ; with our most recent renewal being XX/XX/XXXX and we expect to renew our policy in XX/XX/XXXX. 
Same applies for Hazard Insurance. We purchased it thru our Home Insurance carrier, XXXX  and continued to pay for that coverage thru XXXX ever since, with our most recent renewal being XX/XX/XXXX. 
Since XXXX the process we have used for paying our flood insurance and our Home Owners Insurance ( Hazard ) has been followed with no problem until XX/XX/XXXX. 
We contacted XXXX, and they assure us, in a timely manner, they forwarded to the Golden 1 Credit Union ( G1CU / G1 ) proof of our coverages on property located at XXXX XXXX XXXX, XXXX, CA XXXX. We have no reason to doubt them, because for the past 20 years they have billed us, we have paid them and no word from G1. 
XX/XX/XXXX, G1CU sent their first form letters to us, stating we are not in compliance with Flood Insurance and since then ( XX/XX/XXXX and XX/XX/XXXX ) we have received two more letters, another one regarding lack of Flood Insurance and the last letter, the lack of Hazard Insurance and those letters state both insurances are expired etc. and they will charge us to place insurances on our two mortgages ( outrageous amounts ). 
In conclusion, since XXXX ( nearly 20 years ), XXXX XXXX XXXX, the facilitator, has provided the Golden 1 Credit Union , the mortgagee, with proof of insurance coverages on our residence. 
The process went smoothly until XX/XX/XXXX, at which time the G1CU began sending us threating and confusing form letters ( mostly unsigned ) stating we are not in compliance with the Federal guidelines and subject to harsh repercussions. 
We are long-time G1CU customers and it would have been nice if someone had first reached out to us to inquiry instead of thrusting forth as they have, giving the impression we are guilty of failing to abide by the rules we signed when obtaining our mortgage loan. 
XX/XX/XXXX, my husband will be XXXX, and in XXXX the same year, I will be XXXX. The balance on our first mortgage is $ XXXX and the balance on our equity loan is {$0.00} and our property is worth a lot more. 
Upon receiving G1s first letter, we contacted XXXX, who assured us they have provided G1CU with proof of our insurance coverages and upon our insistence, three more times, XXXX again provided G1CU with documentation and we doubt XXXX is lying. 
When we visited the G1CU XXXX XXXX, the representative made a copy of the Flood Policy we brought along and forwarded it to G1s Insurance Department. A day or two later, I spoke to XXXX XXXX, G1s Insurance Department Manager, and he verified being in possession of the policy declaration and volunteered that many customers are having the same problem as us and XXXX said he wrote a memo suggesting changes to G1s procedures. We believe G1 has changed procedures, gotten a new computer etc. and G1s lying and has received proof of our coverage. 
We just hope somebody takes the time to read and understand all this stuff. On one side, we have provided plenty of evidence that weve complied with our flood and hazard protection requirements and, on the other hand there is plenty evidence that were being unduly harassed. 
There must be something less than legal or ethical going on someplace, given were both seniors and we wonder if we should seek a good lawyer. 
We dont know for certain, but it would seem the Golden 1 has recently made changes in personnel or policies or contracted with an incompetent 3rd party for servicing / insurance because suddenly they are not receiving our insurance policies from XXXX This issue must be resolved and soon. 
Sincerely, XXXX XXXX and XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX XXXX ( XXXX e-mail XXXX ( XXXX e-mail ) ( XXXX ) XXXX Home / Landline OK to leave voice message ( XXXX ) XXXX Fax HISTORY DETAIL XX/XX/XXXX, as every year for the past 20 years, my husband and I received a renewal billing from XXXX XXXX for payment of our Flood Insurance and we promptly paid and soon received the attached Flood Policy Declaration that shows the Policy Period of XX/XX/XXXX XX/XX/XXXX. 
XX/XX/XXXX, as every year for the past 20 years, my husband and I received a renewal billing from XXXX Insurance for payment of our Homeowners Insurance and we promptly paid and soon received the attached Hazard Policy that shows the Policy Period of XX/XX/XXXX XX/XX/XXXX. 
XX/XX/XXXX and XX/XX/XXXX, as every year for the past 20 years, XXXX promptly delivered to the Golden 1 Credit Union ( G1CU, mortgage lender ) the same Flood Policy Declaration and Homeowners Policy which G1 requires on our First Mortgage and Equity Line of Credit. 
XX/XX/XXXX, from XXXX XXXX, G1CU Insurance Services Manager, we received the attached letter via USPS. 
Per XXXX  letter : A review of your loan ( doesnt state which loan ) indicates the flood insurance on your property has expired.if you do not respond within 45 days, we will purchase on your behalf, the premium in the amount of {$1000.00} ( includes a policy fee of {$49.00} ) will be added to your loan We contacted our XXXX agent, who promptly sent three ( 3 ) additional copies of current Flood Insurance Declarations to Golden 1, with the expectation they would assure their loan servicing agencies to update their paperwork to show compliance with Flood Insurance requirements.

We discussed all this with the Golden 1 insurance department employee ( XXXX XXXX ) who had initiated the XX/XX/XXXX letter and he indicated to us that all parties should now have the proper / correct paperwork, and that we are not the only ones who had the problem and he has written a memo suggesting changes XX/XX/XXXX, I sent an online message to the G1 as follows and attached From : XXXX XXXX [ mailto : XXXX ] Sent : Tuesday, XX/XX/XXXX XXXX XXXX  To : XXXX Subject : Complaint re Flood Insurance  ; Attn : XXXX XXXX Importance : High 1. Complaint Letter re Flood Insurance 2. XXXX Flood Policy Declaration 3. Copy of G1s XX/XX/XXXX letter XX/XX/XXXX, NOTICE OF FLOOD INSURANCE REQUIREMENT ( 2nd letter received from G1CU on XX/XX/XXXX by USPS ) The unsigned form letter goes into great detail about the Federal law requires lenders to ensure that flood insurance is obtained and maintained for properties located in a Special Flood Area ( SFHA ) etc., talks about FEMA and demands we send proof of flood insurance coverage to : Golden 1 Credit Union Its Successors and/or Assigns ( ISAOAS ) XXXX XXXX XXXX XXXX, TX XXXX XX/XX/XXXX, my husband and I went into G1s XXXX Branch. We met with XXXX XXXX, Member Relationship Specialist, at the branch ( Phone : XXXX Ext # XXXX, E-mail : XXXX XXXX XXXX assured us G1s error would be corrected. 
XX/XX/XXXX, XXXX XXXX, XXXX XXXX sent me an e-mail message, copied G1s Insurance Services also attaching a copy of our Flood Insurance Declaration to her message. 
XX/XX/XXXX, XXXX XXXX, XXXX XXXX copied me on her email to XXXX XXXX which said : I will forward this over to XXXX. Contact info for XXXX XXXX : Insurance Services Representative, Service Operations Golden 1 Credit Union ; Phone : ( XXXX ) XXXX XXXX ; Fax : ( XXXX ) XXXX, e-mail XXXX XX/XX/XXXX, XXXX XXXX, I received a phone call from ( XXXX ) XXXX Golden 1 Credit Union . XXXX XXXX, identified herself as a G1 employee in the insurance department, verified our Mortgage address, loan number ; said info is correct on your Flood Policy Declaration and coverage is in effect from XX/XX/XXXX XXXX/XXXX/XXXX. 
XXXX said she had no idea why XXXX XXXX, G1 Insurance Services Manager sent the XX/XX/XXXX letter s and said today shell send ( by mail ) a copy of our Flood Policy Declaration to XXXX a 3rd party outside company who handles G1s insurance XX/XX/XXXX, XXXX XXXX, I sent e-mail to the G1CU ( attached ) : XX/XX/XXXX, Phone call from XXXX XXXX re Flood Insurance Policy XXXX XXXX said / verified our flood insurance was not expired and policy period is XX/XX/XXXX XX/XX/XXXX ; and the copy his department had would be forwarded to the department that handles insurance requirements Also, Manager XXXX said ( regarding his XX/XX/XXXX Flood Insurance letter ) : With G1, you have TWO mortgage loans ( see below ) and both loans require insurance coverage ( fire coverage / flood insurance etc. ) 1st Position : First Mortgage   # XXXX 2nd Positon : Home Equity Loan # XXXX Problem ( per Manager  XXXX XXXX ) : Insurance policy collection for each loan is not handled by the same G1 insurance department, servicing company or 3rd party / outside companyapparently, XXXX  services our First Mortgage, while XXXX, a 3rd Party outside company, may service the Home Equity Loan (? ) We, the customer, has no idea who does what because the G1CU has never made it clear to us is confusing because the letters we have received have many different phone / fax numbers etc. and when I have called, the person at the other end refuses to listen to me and simply says you have no insurance coverage Manager XXXX said our flood insurance declaration was received for our First Mortgage ; but apparently was not received for the Home Equity Loan ( XXXX failed to provide reason why not, when XXXX provided it to G1 ). Also, XXXX verified that the loan numbers and addresses on the declaration G1 received are correct. 
I argued, we obtained both loans thru G1, regardless of who handles insurance for which type of loan, its G1s responsibility to coordinate insurance documents, not the customer, who has no idea who does what. 
XXXX agreed, said you are not the only ones who had this problem, I wrote a memo suggesting changes XX/XX/XXXX, Hazard Insurance, basically attached to this letter are ( form ) documentation that pertain to IMPORTANT INSURANCE INFORMATION CONCERNING THE HOME LOAN and goes into great detail, saying this document is an attempt to collect a debt etc. as they do not have proof of current coverage or there is a lapse in coverage also, PROCECURE FOR SUBMITTING WRITTEN NOTICES OF ERROR AND WRITTEN REQUESTS FOR INFORMATION but the cover letter, pertaining to Loan # XXXX ( which is one of my Golden 1 account numbers and is NOT one of my G1 Loan numbers says : Our records show that your Homeowners ( Hazard ) insurance expired, and we do not have evidence that you have obtained new coverage. Because Homeowners ( Hazard ) insurance is required on your property, we plan to buy insurance for your property. You must pay us for any period during which the insurance we buy is in effect but you do not have insurance Golden 1 Member Service Contact Center Golden 1 Credit Union ( XXXX ) XXXX ) or ( XXXX ) XXXX XXXX XXXX  XXXX XXXX, CA XXXX Golden 1 Credit Union XXXX XXXX Branch XXXX XXXX XXXX, XXXX XXXX XXXX, CA XXXX G1 Reference # XXXX / G1 Unique Identifier # XXXX XXXX XXXX, Member Relationship Specialist E-mail : XXXX Phone : ( XXXX ) XXXX ex XXXX XXXX XXXX | Insurance Services Representative | Service Operations T ( XXXX ) XXXX XXXX F ( XXXX ) XXXX XXXX XXXX XXXX XXXX, Insurance Services Manager ; ( XXXX )