Consumer complaint received 2021-05-20
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (IA)

XX/XX/XXXX - Submitted application for mortgage refinance with XXXX XXXX XXXX XX/XX/XXXX - Initial underwriting approved XXXX - Closing and commitment letter, documents signed and approved XX/XX/XXXX - Check for first payment posted to XXXX XXXX XXXX XXXX - Mortgage is sold from XXXX XXXX XXXX to LoanCare LLC XXXX East XXXX a XXXX XXXX ) XX/XX/XXXX - First and only, Notice of Policy Expiration from XXXX Insurance sent to homeowner ( me ) and XXXX XXXX  XXXX marked as " Payor '' in notice ; expiration is XX/XX/XXXX at XXXX AM. XX/XX/XXXX - XXXX XXXX - East obtains loan from XXXX XXXX ( unsure if a Notice of Transfer was sent to XXXX ) XX/XX/XXXX - Notice of Lapse sent to homeowner ( me ) with XXXX XXXX XXXX as the Mortgagee ( s ) XX/XX/XXXX - Check for first payment posted to LoanCare LLC - East XX/XX/XXXX - XX/XX/XXXX - Shopped around for new homeowners insurance, spoke to XXXXe about the lapse ; they stated they would NOT reinstate us despite the situation of service provider transfer, we would have to reapply and go through underwriting again ( despite being a multi-year, auto and homeowner customer ) XX/XX/XXXX - Purchase of homeowners insurance from XXXX XXXX and effective date XX/XX/XXXX - First notice of hazard insurance lapse/expiration received from LoanCare, spoke with customer service representative of LoanCare that XXXX XXXX insurance was in effect as of yesterday, explained refinance situation and that the lapse happened between service transfer from XXXX XXXX and LoanCare, CSR stated this was ok and now that insurance was effective situation was remedied XX/XX/XXXX - Second notice of hazard insurance lapse/expiration received from LoanCare, spoke with customer service representative who transferred to escrow department, escrow department stated that there was nothing we could do to purchase insurance for the lapsed time and that it was service provider error ; an escrow analysis would be done to ensure escrow was not under- or over-funded XX/XX/XXXX - Notice of forced place insurance being purchased from 'lapse period ' of XX/XX/XXXX ( incorrect date, date of ownership by LoanCare but policy lapsed XX/XX/XXXX ) - XX/XX/XXXX ( date of new homeowners insurance policy instated with XXXX XXXX ), despite two correspondences with Customer Care and Escrow from LoanCare XX/XX/XXXX - Talked to escrow department at LoanCare, spoke with XXXX who created Corporate Credit Request to pay for the {$430.00} forced place insurance purchase charge for the XXXX period, was apologetic and said I would be contacted with outcome in XXXX business days XX/XX/XXXX - Called escrow department at LoanCare to follow-up on XXXX XXXX XXXX ; request was denied XXXX stating XXXX contacted homeowners ( me ) about possible lapse and we did not reach out to our servicer to ensure it was paid I am concerned about how I am supposed to ensure escrow is paid when my loan was being transferred between service providers at the same exact time my homeowners insurance policy is supposed to renew. I have maintained my escrow account for years, through several service providers, purchasing of new homes, working with several companies, and never once had this issue. XXXX XXXX XXXX needs to be held accountable to make sure they did their due diligence and followed appropriate laws and regulations in maintaining my escrow account in their ownership and selling of my mortgage to XXXX XXXX - East. XXXX XXXX - East needs to be held accountable to ensure that if they received proper notice from XXXX XXXX XXXX in the service transfer that they disbursed escrow appropriately. It appears that one or the other, or both, did not handle our escrow account in accordance to federal laws and regulations. I can not get a straight answer from XXXX - who tells me it is the mortgage companies fault, or from the mortgage companies - who tells me XXXX should have received notice and they missed it.