Consumer complaint received 2021-02-23
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: WELLS FARGO & COMPANY (CA)

Hello, I am having an issue with my lender, Wells Fargo re : flood gap insurance they said my condo unit needed. When I questioned this demand, provided evidence to the contrary, and after weeks of back and forth, they ultimately said I didn't need it ; yet still charged me a premium. 

On XX/XX/XXXX, I was asked to provide evidence of flood insurance to my lender. I provided that in XXXX. On XX/XX/XXXX, I received notification that it was my second notice that my flood insurance does not provide sufficient coverage required on my property and WF will purchase insurance on my behalf if I do not provide evidence of insurance. As I do have flood insurance, and the building has flood insurance, and we are not located in a high risk flood zone, I was confused by this request and began making inquiries with Wells Fargo. 

I was informed they received their information from FEMA maps that changed for my address in XXXX, XXXX. I asked them to provide me that information, as the maps on FEMA.gov show my address in XXXX XXXX since XXXX. The Wells Fargo representative in the resolutions department confirmed to me, over the phone, that he saw what I saw, but at some point it was changed and FEMA notified Wells Fargo. I pursued my case further with the resolutions department and Wells Fargo opened an investigation. I faxed the Wells Fargo Insurance Dept the very same FEMA maps they claimed they based their information on. And on XXXX XXXX, XXXX, I received a call from XXXX XXXX, a representative from the insurance department at Wells Fargo that my property is located in XXXX XXXX not considered to be a high risk flood zone and therefore does not need flood gap insurance. 

In a letter dated XX/XX/XXXX, I was notified that flood insurance is no longer required for my property citing the FEMA flood maps of XXXX. In a separate letter dated XX/XX/XXXX, I was notified that the flood insurance would be canceled effective XX/XX/XXXX. I called to inquire why would the effective date not be immediate and the representative told me that's just what it takes to process. 

But that wasn't the end. I had been charged {$540.00} from my escrow account to cover the insurance premium WF purchased " on my behalf ''. In a letter dated XXXX XXXX, I was thanked for " providing evidence of insurance coverage '' they were cancelling the flood gap police obtained " on my behalf '' effective XX/XX/XXXX. And they were reimbursing me {$480.00}, because I do not need flood gap insurance but still charged me {$92.00} for the period of XXXX XXXX XXXX XXXX when the policy remained in force. I called and questioned this again. Another investigation was opened and ultimately closed on XX/XX/XXXX. However, I received a letter on XX/XX/XXXX, dated XXXX XXXX, stating ( again ) that I do not need flood gap insurance and that I ( now ) will be reimbursed {$520.00} of the {$540.00} charge in question, but that {$18.00} premium is charged to my escrow account for the dates XXXX XXXX XXXX, XXXX. 

I called and spoke with XXXX XXXX XXXX XX/XX/XXXX XXXX, the Wells Fargo investigator assigned to my case. She informed me that all information they received was from XXXX, not Wells Fargo. My property was moved into a flood zone in XXXX and then it changed back again in XXXX. I asked to see the information they received from FEMA and I was told only the insurance department has that. She advised me to call FEMA, because THEY were the ones who notified WF of the change in my zoning. This was, and has been, curious as no other WF morgagee in my building ( I spoke with neighbors ), nor the building managers were aware of this re-zoning. Why was I being singled out? 

I called FEMA today ( XX/XX/XXXX ) and was told that the organization does not call lenders re : individual properties. A letter of map amendment would have to have been filed for my property, yet the FEMA representative in the insurance department, could not find evidence of that. I immediately left a message for my contact in the insurance department at Wells Fargo and again with XXXX XXXX requesting my case be reopened and I want to know exactly where they are getting this information from. 

So here I am writing to you. I believe someone either made a mistake, or is willfully misrepresenting where this erroneous information came from in the first place.