Consumer complaint received 2022-03-02
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: MONEY SOURCE, INC., THE (IL)

I'm reaching out regarding mortgage XXXX on the residential property at XXXX XXXX XXXX XXXX, XXXX XXXX IL XXXX. On Sunday XX/XX/XXXX, there was a fire at the property. We were basically told that most likely the house would need to gutted and have the fire damage remediated before it needed to be re-done. I immediately put in a claim with my Insurance company the same day. 

On Tuesday, XX/XX/XXXX, I was contacted by the insurance company and informed that we didnt have a policy in place. I was informed by the insurance company that my insurance policy had been cancelled due to non-payment of the annual renewal back in XX/XX/XXXX. I was told that contact had taken place between them and my mortgage company, but XXXX had not paid my policy renewal fee. I never received a notice of cancellation from my insurance provider after XXXX did not pay the renewal. 

My insurance has been paid from my escrow account since Ive had the mortgage on the property. The annual renewal fee was also listed on my escrow analysis as going out in XXXX. My insurance provided was also listed on my mortgage when I logged into the online system. 

I reached out to XXXX and they were able to put a forced place policy in place and back date it to XXXX so that the fire damage was covered. However, the policy they put in place didnt contain the same coverage as the policy I had in place. The policy I had in place covered the dwelling and included coverage for loss of rental income because the house was being rented to tenants. The policy they put in place also didnt include {$5000.00} in coverage for items in the house ( the appliances ) and was approximately {$700.00} more than my original policy. 

Because they let the policy lapse and didnt place the same coverage on the house, we now have no way to make up the loss of rental income that I am losing by the house not being occupied. I am now 2 months behind on the mortgage and they are calling me almost every other day to ask for a payment on the house. 

Ive contacted the mortgage servicer multiple times and have been working with the VP of Customer Experience, XXXX XXXX to get this resolved. Ive provided the information that she requested and they have been working on an internal investigation into what happened. In my communications with her, she asked for some time to resolve the issue before I filed any formal complaints. Hence why this complaint is just being filed now. 

She was provided with the below information regarding XXXX specific communication. In early XXXX, I received a letter from XXXX asking for evidence of insurability. I called XXXX within 48 hours of receiving the notice and spoke with a customer service rep ( or customer ally as they are referred to ). I told the rep who answered the phone that I wasn't sure what the letter was because our insurance was paid by XXXX out of our escrow account. I asked him what they needed but after looking at my mortgage and escrow accounts, he told me that we were all set. He said that our escrow account looked good and he could see that our insurance payments were included. Based on that conversation, I did nothing further. 

For informational purposes, here were 4 calls that I made to XXXX over a several week period where this issue would've been discussed. There are multiple calls to them because I am having another issue with my other mortgage with them as well. They record all calls that come in so there will be a recording of my conversation with the customer service rep. 

XXXX - XXXX ( XXXX mins, XXXX secs ) XXXX - XXXX ( XXXX mins, XXXX secs ) XXXX - XXXX ( XXXX mins, XXXX secs ) XXXX - XXXX ( XXXX mins, XXXX secs + XXXX mins, XXXX secs ) I've also attached the following things : 1. A copy of the original homeowner insurance policy 2. A screenshot that was taken on XX/XX/XXXX of my mortgage account that lists XXXX XXXX as my insurer with a payment amount of {$1400.00} 3. A text file with the claim number that was originally filed the night of the fire. 
4. A full copy of my email communication with the VP of customer experience XXXX XXXX ( note, there are a few typos or mistakes on dates in the email ) 5. The escrow analysis statement from XX/XX/XXXX that lists an insurance payment of {$1400.00} being paid in XXXX from escrow.