Consumer complaint received 2021-06-14
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (AL)

My adult daughter and I are co-owners of the house she lives in, purchased in XXXX. The mortgage, taken out by us jointly, was sold 3 times, becoming held by Mr. Cooper dba Nationstar Mortgage, LLC in early XXXX. Despite having an existing homeowner 's insurance policy ( with XXXX XXXX ) in place at the time they acquired this mortgage, Mr. Cooper failed to pay that policy premium, due XX/XX/XXXX, allowing it to lapse. They then purchased out of escrow a Lender Placed Hazard Insurance ( LPHI ) policy from The XXXX XXXX. The previous homeowner 's premium was {$860.00} per annum and the LPHI policy with XXXX cost {$2000.00} per annum. I, as co-owner, was not notified of this. In XXXX, XXXX Mr. Cooper increased the mortgage premium by {$300.00} per month. Since my daughter was making those monthly payments, I was not initially aware of that increase. ( She had assumed the increase was due to increased property taxes. ) In XXXX, XXXX we applied to refinance the mortgage loan with Mr. Cooper. It was during that process, between XX/XX/XXXX and XX/XX/XXXX, that I first learned of the change in the homeowner 's policy and the resulting added cost. I contacted XXXX XXXX and after paying a past due amount was able to get that policy reinstated, covering the time of XX/XX/XXXX - XX/XX/XXXX. Since the mortgage contract obligates the mortgage company to pay the homeowner 's premium out of escrow, my insurance broker sent the new XXXX policy information to Mr. Cooper. I have an email from an agent of Mr. Cooper, dated XX/XX/XXXX, confirming receipt of the XXXX policy information. She indicated that its premium would be paid at closing of the refinanced mortgage. However, in early XXXX, XXXX, I terminated the refinance application due to what I perceived as an unreasonable request by Mr. Cooper to subordinate a XXXX balance XXXX on my primary residence ( which is not the house covered by this mortgage in question ). On XX/XX/XXXX I was notified by Mr. Cooper that they had renewed the XXXX policy for {$2000.00}, paid out of the escrow account. That same day I contacted XXXX to learn that Mr. Cooper had not paid the premium that was due XX/XX/XXXX and that this new XXXX policy would lapse very soon. I then paid XXXX the {$860.00} premium by personal credit card and have verified that that amount was drawn from the credit card and received by XXXX. On XX/XX/XXXX I sent the attached letter to Customer Relations at Mr. Cooper to the address listed on their webpage for handling of complaints. Using USPS tracking, I confirmed that the letter was delivered to them on XX/XX/XXXX. As of today, XX/XX/XXXX, Mr. Cooper has not responded to my letter. Since sending that letter to them, I have learned that both Nationstar Mortgage, LLC ( the parent company of Mr. Cooper ) and The XXXX XXXX are owned by XXXX. This has raised my concern that this repeated failure by Mr. Cooper to pay our own XXXX XXXX homeowner 's premium, and in its place purchase much more expensive XXXX from XXXX, is a form of cross-selling and is at least unethical.