Consumer complaint received 2020-02-05
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (NJ)

I received a letter from my mortgage servicer, Loancare LLC, dated XX/XX/XXXX regarding my lack of flood insurance on my property. At the time I purchased the home in XX/XX/XXXX, we had an Elevation Certificate done stating that the home was not in a flood zone and would be considered Zone X per the FEMA flood maps effective XX/XX/XXXX. This was considered acceptable by my insurance company ( XXXX ) as well as the original mortgage lender ( XXXX XXXX XXXX ). 

For three years I was not required to carry flood insurance. When I received this initial letter, I called the servicer - who had been servicing my account since XX/XX/XXXX - regarding this issue. I spoke with a customer service representative named XXXX ( ID XXXX ) and explained the situation and supporting documents. He told me to disregard the letter stating I was required to carry flood insurance. In that letter, I was told I had 45 days to provide proof of insurance or it would be force placed. I was told not to worry and that since I had this documentation in my possession and did not require flood insurance at the time of closing or at any time in the last 3 years, it would not be an issue. We even confirmed that the FEMA maps for my home had not changed since the original XX/XX/XXXX effective date. 

Fast forward to XX/XX/XXXX - I received two more letters stating that my flood insurance expired ( which I never carried, so therefore it couldn't have expired ) and another one stating that Loancare had contracted an independent company to review homes for improved real estate and determine which were in a SFHA. I immediately called Loancare to get to the bottom of this. I was told that I needed a LOMA ( Letter of Map Amendment ) from FEMA to provide to Loancare or in 45 days insurance would be force placed on me. I informed them that I had already spoken with someone roughly 8 weeks prior and that it was a non issue. I was told that this was wrong, and that I either needed flood insurance or this LOMA. I immediately contacted FEMA about getting the LOMA, and was informed that the process takes about 60 days. This to me is an obvious instance of the mortgage company knowing that FEMA takes 60 days, and instituting a 45 day deadline so that they can force place the insurance, and make the consumer attempt to get a refund from them. Its a cash grab.

The second issue, is that in the letter, they state that there have been changes made to the community flood maps, and improvements made to the property securing my loan. Neither of these statements are true. The current FEMA maps still indicate an effective date of XX/XX/XXXX, and my property has not had any capitol improvements since the date of purchase. When I questioned LoanCare regarding these issues, and asked for documentation supporting their claims, I was denied. In fact, I was told that FEMA had given Loancare the information. This is also a lie, I contacted FEMA and was informed that they do not have any specific property information and would never provide, nor do they have, any information about specific properties and lenders. As to the claim of " improvements '' to my property - no one has come to my home asking to inspect, and no documentation regarding these improvements has been presented to me.

At this point - Loancare is stonewalling me. They are saying LOMA or insurance with no other recourse. I'm happy to provide any documentation they want regarding the elevations, and even attempt to get the LOMA. However, their 45 day window is clearly not enough time. I also want to see the documentation showing their findings regarding my property and the alleged map changes or improvements. 


****I have additional files but it will not let me upload them - letters, elevation certificates, etc..***