Consumer complaint received 2019-02-08
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: REGIONS FINANCIAL CORPORATION (FL)

Subject : Notification of Impeding Progress In XXXX of XXXX, the customer visited a Regions Branch in XXXX XXXX XXXX, FL to sign over a check from XXXX XXXX XXXX allocated for the Dwelling portion of their policy. The amount of the check was approximately {$110000.00} and it included Regions signature. An initial disbursement was issued to the customers for {$40000.00}. Terms were discussed prior to signing the check to Regions that appropriate documentation such as quotes/contracts, amounts paid, XXXX, contractor license, etc. would be provided to Regions. Essentially, Regions was requiring that the insurance funds were being utilized for repairing the property. 

During the discussion, the customer made it clear to Regions that as progress was made and proof was being provided, Regions would disperse additional funds so further progress could continue. Two specific areas were thoroughly covered : 1 ) Regions would not take more than two weeks to assess/inspect necessary documents including property inspections and a check would be sent overnight mail in order to expedite the process, and 2 ) in no way would Regions impede the progress by their processes and withhold funding in the escrow account in repairing the property. 

On XX/XX/XXXX, the customer sent emails to the Regions provided email account : insuranceclaims@regions.com. Two main efforts had been completed : a new roof and the removal and remediation of the home. The cost of the roof was {$15000.00} and the cost of the removal and remediation was {$27000.00} totaling {$42000.00}. The emails included pictures of the new roof and the gutted insides ( down to the studs ), quotes, invoices paid in full, XXXX, contract license, and all the other documentation Regions had requested. After not receiving any communication, the customer contacted the mortgage insurance claims department on XX/XX/XXXX. Regions confirmed they received the information and wanted to schedule an inspection prior to issuing any further funds. Regions used XXXX XXXX XXXX. It was not until XX/XX/XXXX that an inspector, XXXX XXXX, visited the property. The inspector indicated they would have the report completed that night and Regions would have it no later than XX/XX/XXXX. It was noted that Regions would need 48 hours to assess and to contact them on Friday XX/XX/XXXX. On XX/XX/XXXX, the customer contacted Regions regarding the report. Regions indicated they had not received the report. On XX/XX/XXXX, the customer contacted XXXX XXXX and they indicated they had not received the report from their inspector. Throughout the week the customer attempted to contact both XXXX XXXX and Regions regarding the report. There was indication that the percent work complete was in dispute. 

On Monday XX/XX/XXXX, the customer went into a local Regions branch in XXXX XXXX XXXX, FL to gain further assistance. The only effort was to call the mortgage insurance claims department and left a message to call the customer within the next 24 hours. No call was made to the customer. On Tuesday XX/XX/XXXX, the customer returned to the local Regions branch. XXXX XXXX XXXX attempted to call and even wrote an email, copying XXXX XXXX, requesting a response to the inspection and the disbursement of funds. On Wednesday XX/XX/XXXX, the customer returned to the same branch and spoke to XXXX XXXX XXXX again. XXXX XXXX XXXX again attempted to reach out to the mortgage insurance claims department to obtain insight. XXXX XXXX XXXX filed an internal formal complaint. 

To date, there has been no resolution, a lack of communication, a breach in expectations discussed to disperse funds as well as a breach by the Regions of the implied covenant of good faith and fair dealing. Ultimately Regions is impeding on the progress for the customer to repair their home. This letter is to notify Regions of impeding progress and to immediate release the necessary funds to continue progress. Further delays will result in discussions and potentially actions to remove the funds from Regions escrow and place the funds in a third party trust that can be handled more responsibly.