Consumer complaint received 2015-05-27
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Ditech Financial LLC (WA)

I am required to have flood insurance for my mortgage. Because I have a detached garage, I am required under the XXXX to have separate policies for the house and the garage. The policy on the house renews in XX/XX/XXXX, the policy on the garage renews in XX/XX/XXXX. 
Each year in XX/XX/XXXX, Green Tree 's system kicks out both policies and sends me a letter saying I do n't have enough insurance. In the past it 's been enough ( though annoying ) for me to fax Green Tree the XXXX declarations, reminding them of the different renewal timelines. 
This year, I sent the declarations as usual in early XX/XX/XXXX after receiving the first " your coverage is inadequate '' letter. But when I received another, more ominous notice of inadequate coverage in early XX/XX/XXXX, I phoned and spoke to XXXX in Green Tree 's Insurance Division on XXXX XXXX. After doing some poking around while on the phone with me, XXXX told me that they had received the declarations I 'd faxed, but only XXXX policy had been updated in their system. She told me that it was " now fixed '' so that my coverage was adequate ; they would send a letter to that effect, and the outside coverage quote in the " lack of adequate coverage '' letter they sent me would not go into effect. 
In late XXXX I realized that I had never received the written notice that my coverage was adequate that XXXX had said would be sent. So on XXXX XXXX I called Green Tree again, this time speaking to XXXX in the Insurance Division, who told me that my coverage was sufficient and she would send written confirmation of this. 
A couple of days later I received a " Notice of Placement of Additional Insurance '' dated XXXX XXXX stating that Green Tree had purchased additional flood coverage for me and I would be charged. The notice also stated that " We will cancel any insurance we buy without charging you any premium, interest, or related charged if you provide evidence of insurance ... no later than thirty ( XXXX ) days from the date on this letter. '' The same day I received a notice dated XXXX XXXX titled " Receipt of Sufficient Flood Insurance '' and stating that " A review of our records indicates that the flood insurance coverage for your property provides the coverage required for your account. '' So it seemed settled. 
However, XX/XX/XXXX I received my monthly statement for the payment due XXXX XXXX and it showed Transaction Activity on XXXX/XXXX/2015 of {$63.00} with the description " Insurance Advance Disbursement '' and a fee added to my monthly payment of {$7.00}. I called Green Tree once again on XXXX XXXX and spoke to XXXX in the Insurance Division. She could n't explain what the fee was for but said it " appears to be a one-time only charge '' and that I could write a letter requesting a credit. A couple of days later I received a letter dated XXXX XXXX stating " Per your request, this letter is to notify you that we are in receipt of your evidence of required insurance ... '' but only referencing the policy that renews in XX/XX/XXXX. The letter went on " Our records have been updated accordingly. Any insurance charges added to the account will be reversed where applicable. " But I just received my monthly statement for the XXXX XXXX payment and it also shows the {$7.00} fee ( I assume they 're pro-rating the {$63.00} over XXXX months ). I called tonight and spoke to XXXX who said she 'd submit an inquiry to the XXXX XXXX and I should call in XXXX days for an answer, but that she could n't advise me not to include the fee with my payment, which is due before then. 
This is entirely Green Tree 's error going back to XX/XX/XXXX when they deleted my non-expired policy ( as happens every year ) then taken to a whole new level when they received both current flood policies in XX/XX/XXXX but failed to update my account information ( as admitted to me by XXXX on XXXX XXXX ). It 's been months of hassle, and now a monthly fee which, while small, is completely unjustified.