Consumer complaint received 2021-11-02
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Mr. Cooper Group Inc. (TX)

Was told in the purchase process that I could choose any homeowners insurance I wanted. Then I was told that the homeowners insurance I choose which was a 10 % deductible plan was not allowed, and I would need a homeowners insurance with a 5 % deductible. This adds a {$600.00} cost to the mortgage. This means I'm required to pay 1 % of the price of my home just for home owners insurance that covers nothing except fire ( house is too old for foundation coverage or roofing coverage ). 

Their last email from me ( before rejection was ) -- -- Thank you for your call yesterday and yes this exactly what we are looking for. 

Have a wonderful rest of your day -- -- Here is the email I sent with my dates and times, -- -- I asked XXXX prior to XX/XX/XXXX what was needed for the homeowner 's insurance. I was told any insurance we found would work. I wrote to XXXX XXXX 11 days ago ( XX/XX/XXXX ) and said this, > What is the requirement for Homeowners Insurance? Will this work? When can we touch base on the other things requested? 

I provided to him in the request a quote ( the same one I went with ) that clearly on page two stated there was a 10 % deductible -- it's at the top. Seven days ago I sent a follow up message on XX/XX/XXXX and asked, > Can I get a follow up as to whether or not this insurance is approved? I would like to finalize it ASAP. 

I immediately got a message back from XXXX ( same day ) ( XX/XX/XXXX ) > Your agent isnt able to send us docs we need w/o you finalizing the quote to bind it to a policy. Once you do that, we will have a copy in hand to review. 

Of course I have no idea what you need, but even she finds this awkward as I ask her the same day and she says, > Odd that they won't approve or disprove the deductible just looking at the quote. I can go ahead and bind coverage On XX/XX/XXXX I ask her to finalize the quote. 

On XX/XX/XXXX I write to XXXX another email subject " Status on quote '' about homeowners insurance and I'm told > This is what my assistant just told me : they said they been going back and forth through email yesterday and it would be best to let the borrower know to call and finalize it I follow up within the hour and say, > I did that she asked me if she could finalize it and i said yes.. I have no idea what that even means. Am i supposed to pay her and is this appoved? 

At this point it's clear no one knows what they're doing so I start calling. On XX/XX/XXXX ( next day ) I follow-up placing two calls to XXXX before calling XXXX. XXXX tells me very explicitly ( 1 ) any insurance will work ( 2 ) that the insurance is for us ( 3 ) Mr Cooper doesn't care about my deductible.

Of course none of this is on your website ( ie, not a single mention of a 5 % deductible ) https : //www.mrcooper.com/support/escrow/insurance I shopped around for this quote with all the information you had provided me, and even requested more information on multiple occasions. Now this is what I want from you : where is the underwriting criteria of 5 % deductible written down? What document specifies what homeowners insurance I need to carry as a term of this mortgage? I read everything ( that I could find ), called everyone ( multiple times ), asked on multiple occasions, and shopped for a homeowners insurance provide and coverage I was comfortable with. 

The difference here between premium on a 5 % deductible and a 10 % deductible is $ XXXXyear. That's a lot of money. I'm putting 20 % down on this property. The LTV is 80 %. I can show funds for another 10 % if needed. I should not be forced to pay {$600.00} a year more to cover a 5 % lower deductible.