Consumer complaint received 2018-11-29
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: UBS BANK USA (SC)

We obtained a home mortgage loan in XXXX and refinance twice with the latest loan being initiated in XXXX on the same property with UBS. We have never had flood insurance on this property ( not required by our homeowners ) because although some of the land is in a flood zone, our dwelling is not. When requested another time for flood insurance I submitted an elevation certificate and subsequently received a letter from the Mortgage lender saying " the flood insurance requirement has been removed from our loan '' ( see Doc. 1 ). 

This year on XX/XX/XXXX a letter was sent to us by the lender saying we needed to obtain flood insurance or it would be obtained for us or we could submit documentation otherwise. They also stated our flood policy expired on XX/XX/XXXX, which there has NEVER been a policy in effect nor have we ever had an escrow account associated with this loan. ( this fact is important to note for later in the complaint ). A second and third letter was sent on XX/XX/XXXX and XX/XX/XXXX. 

The Mortgage company actually obtained a flood policy for us on XX/XX/XXXX and created an escrow account for us. They also unknown or uniformed to us they backdated the coverage to XX/XX/XXXX ( although those months had passed and no policy has ever been in place on this property or loan ). 

I submitted on XX/XX/XXXX documentation to challenge the requirement of flood insurance. the original letter that was theirs on their letterhead ( XXXX. XXXX ) an elevation cert of our property ( XXXX. XXXX ) and an email stating that some of our property is in AE but the dwelling is in X. On XX/XX/XXXX, the company responded that more docs would be required. ( XXXX ) We moved forward with a request by phone on XX/XX/XXXX for a payoff of the mortgage in order to settle the matter and not be paying for flood insurance we are not required to have and without waiting for 4-6 months on XXXX  to reply while incurring the flood insurance charges. However, they would not send it excluding the flood costs. I asked for someone in the insurance department to call me to discuss. 

On XX/XX/XXXX we received an escrow analysis statement for the first time ever. ( Doc 4 ) that showed the amounts due for the upcoming year beginning XX/XX/XXXX. I called and spoke to two customer service agents XXXX and XXXX who informed me for the first time that we are actually responsible for charges on the flood insurance policy obtained on XX/XX/XXXX backdated to XX/XX/XXXX. This was our first knowledge they are charging us for coverage back to this date. Also, XXXX told me a letter was sent in XX/XX/XXXX that an escrow account was being established. We never received this letter nor do any of our paper or online statements show any extra fees, payments or email notifications. He also told us XXXX had contacted them in XXXX saying flood was required on this property. Although, by law XXXX is required to let us know and we never heard this from them. I have requested a copy of this XXXX XXXX notification from the mortgage company in our phone conversation today XX/XX/XXXX. I also requested a copy of the supposedly expired flood insurance on XX/XX/XXXX declaration page ( we have never had a flood policy or an escrow account ). In addition, I requested a copy of the XXXX letter ( which they are required to send 3 letters before obtaining insurance or an escrow account for us, I believe ). Lastly, i was unable to speak to anyone in the insurance dept or escrow department directly with the customer service agent telling me there is no phone number to be connected to. I have again requested someone from that department to call me. The agent said this is not possible, however he would request his superior in customer service to call me. 

There has been veiled information seeing as we did not know of the back dated charges, even on this new/first escrow statement received today nothing shows anything from XXXX. I would not have even known of this had I not called for an explaination of the " shortage charge '' now added today that more than doubles the cost of the annual premium for the flood insurance obtained, from XXXX to XXXX. 

Finally, I offered we would pay this mortgage off in full tomorrow and would bear the responsibility for 1 month of flood coverage in XX/XX/XXXX and he said he could not remove the coverage backdated to XXXX of XXXX. 

I need some intervention and advice. Thank you for your time.