Consumer complaint received 2020-10-05
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: M&T BANK CORPORATION (SC)

Below is a copy of the Notice of Error sent to M & T Bank : XX/XX/XXXX To : M & T Bank c/o M & T Bank-Mortgage Payoffs XXXX XXXX XXXX XXXX XXXX XXXX. 
XXXX XXXX  XXXX, MD XXXX From : *name and address* NOTICE OF ERROR XXXX Re : Error Resolution Notice under 12 C.F.R. 1024.35 Mortgage Loan Number : **** I am writing to request correction of the error described below in regard to the mortgage on my property at *property address*.

Enclosed is a copy of the response from you, M & T Bank, to the  XX/XX/XXXX request for payoff figures, sent to third party, XX/XX/XXXX, with a copy received by me via USPS today,  XX/XX/XXXX. 

Escrow Errors : On Pg. 3 of the enclosed document under the ESCROW section is stated as follows : According to our records, listed below are your next tax and/or insurance items to be paid :  {$780.00} XX/XX/XXXX HUD-risk Based Ins Prem {$1100.00}XX/XX/XXXX XXXX County {$1.00} XXXX XXXX XXXX  The HUD-risk Based Ins Prem item for {$780.00} is the error that needs to be corrected. 

The above outlined error is Force-Placed Insurance, which under the guidelines of Federal Law, you have no right to impart on this account. Under Federal Law, the servicer must reasonably believe that the borrower has failed to maintain insurance coverage on the home before purchasing a Force-Placed Insurance policy. Furthermore, under Federal Law, the servicer must send the first  notice at least 45 days before purchasing a force-placed insurance policy. The servicer must then send a second noticea reminder noticeno earlier than 30 days after the first notice and at least 15 days before charging the borrower for force-placed insurance coverage. This notice must include the cost of the force-placed insurance or a reasonable estimate of the cost. ( 12 C.F.R. 1024.37 ).

You have followed none of the above outlined Federal Law requirements for Force-Placed Insurance.

The enclosed Response to theXX/XX/XXXX request for Payoff is the first document that states the cost of the Force-Placed Insurance. No previous notice with the cost or a reasonable estimate was provided prior to this Payoff letter, as is required by Federal Law.

Insurance coverage on my property has remained the same for the past 14 years, renewing each year in XXXX, with a renewal Certificate of Insurance provided by my insurance agent via fax to the mortgage service provider at the time of renewal each year. There has been no lapse in coverage, non-payment, cancellation or expiration of coverage during the last 14 year period, leaving no reason for the lender to believe I as the borrow have failed to maintain insurance coverage before purchasing Force-Placed Insurance as stated by Federal Law.

I have submitted evidence of coverage multiple times to M & T Bank over the last several months, using various methods of communication. The insurance agent has faxed a copy of the  Certificate of Insurance multiple times, I have uploaded a copy on the website more times than I can count, and I have even mailed a copy via USPS.

Due to the egregious violation of Federal Law with the Force-Placed Insurance applied to my account, I will be submitting a copy of this Notice of Error with a formal complaint to the Consumer Financial Protection Bureau ( CFPB ), and I do expect a response on this matter from M & T Bank.

*************************************************************************************************** I would like to add that I am in the process of refinance with a new mortgage lender provider and that the payoff of the loan with M & T Bank will occur within the next few days. However, as this is an ongoing issue with M & T Bank over the course of many months,  beginning in XX/XX/XXXX and continuing to the present, with threatening letters and the addition, and then the subsequent removal of Force-Placed Insurance on my account, I am requesting intervention. 

I have carried insurance on my property for the past 14 years since original purchase that has not lapsed, been cancelled, expired, or changed. Evidence of this coverage has been sent to the various lenders over the last 14 years, including M & T Bank. I have had two loans with M & T Bank, leading to a refinance of one M & T Bank loan to the current M & T Bank loan in XXXX. During the last 14 year period, covering the span of two loans with M & T Bank, there has never been an issue with insurance coverage, with either M & T Bank or any of the previous lenders. My new mortgage provider, XX/XX/XXXX, scheduled to close this week, has verified and confirmed my insurance coverage with no issue, which is the exact same insurance coverage that has been provided to M & T Bank time and time again over the course of the last few months. 

I have received several notices from M & T Bank stating that my insurance coverage has expired or been cancelled and threatening to add the Force-Placed Insurance if I do not provide evidence of coverage. These threats began only this year, XXXX, the first of which occured in XX/XX/XXXX, although there have been no changes to my insurance over the course of two loans with M & T Bank, the  current loan dating back to XX/XX/XXXX. Each time, my insurance agent faxes the certificate of insurance, I upload a copy to the website provided in the letter, and I have even gone so far as to mail a physical copy. I then receive notification that the coverage has been accepted, and the Force-Placed Insurance will be removed. A few weeks later another threatening letter arrives stating the insurance has expired or been cancelled, and they cycle continues. 

Obviously, this is some pathetic employee at M & T Bank trying to justify their position during the Covid-19 pandemic, but I HAVE HAD ENOUGH. I became so frustrated with the never ending cycling of verifying insurance coverage, that I chose to refinance through a completely different lender and sever all ties with M & T Bank. 

My last communication from M & T Bank was in XX/XX/XXXX, another letter stating insurance has expired or been cancelled. I had just provided an updated copy of my XXXX in XX/XX/XXXX, as did my insurance agent, via multiple methods of communication, as the policy renews in XXXX each year. At this point, my insurance agent will not even fax another copy to M & T Bank as she has done so repeatedly and they do not stop requesting. She has stated the dates she has faxed the policy, and the renewal and will no longer entertain this nonsense, and I can not blame her for that. I uploaded copies to the website and put a copy in the mail and thought that would be the end of it, since I am refinancing with a new lender anyway. 

I then received the copy of the Payoff which was requested by XX/XX/XXXX on XX/XX/XXXX. My copy arrived via USPS on XX/XX/XXXX. On the Payoff letter is a charge for Force-Placed Insurance in the amount of {$780.00} to be charged from my Escrow account on XX/XX/XXXX. 

M & T Bank has violated several Federal Laws regarding Force-Placed Insurance with this Payoff statement, as outlined in the Notice of Error I sent to them. 

In addition to the countless times and various methods I have sent evidence of continued insurance coverage to M & T Bank, XX/XX/XXXX has also verified and confirmed the coverage in order to proceed with my refinance. There is NO QUESTION here as to my insurance coverage, and M & T Bank is completely out of line and in violation of Federal Law for adding the Force-Placed Insurance to my account. 

I fully expect my loan with M & T Bank to be paid in full by the new mortgage service provider,XX/XX/XXXX, before the charge listed on the Payoff statement can be processed on XX/XX/XXXX. However, as the charge would be paid from my Escrow account, of which the balance is to transfer to the new loan as funds for payment of property taxes, I am taking no chances with M & T Bank fraudulently withholding funds from my Escrow account to pay for Force-Placed Insurance that I do not require, and I am requesting a review of this matter with you, the Consumer Financial Protection Bureau. 

M & T Bank is a disgrace to the hard-working American consumer and should be punished accordingly for their flagrant disregard for Federal Law.

Thank you for your time and attention to this matter.