Consumer complaint received 2021-11-04
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LD Holdings Group, LLC (GA)

I closed on my mortgage with LoanDepot back in XXXX of XXXX. On the recommendation of my mortgage broker to save a quarter point of interest on my loan. I decided to have LoanDepot escrow my taxes and insurance for said property with LoanDepot. Approximately Six months into my mortgage ( XX/XX/XXXX ) with loan depot, I received a phone call from the insurance company that handles my flood insurance policy. I was informed that my current flood insurance policy which is required by the mortgage company was not paid by LoanDepot back in XXXX of XXXX and my home was presently not covered for any type of flood event if one were to occur.

After further discussion with the insurance agent, I was informed that since the flood insurance policy had now lapsed for non-payment by LoanDepot, I was not covered for potential flooding issues, even if I was to make a full payment of what was owed to them immediately. Thats because the ( NFIP ) national flood insurance policy program requires a 30 day waiting period from the date of purchase of your flood insurance policy to when the policy goes into affect. Because I wanted to get a head of the non-payment issue and get protection for my coastal home as fast as possible in the height of hurricane season. I asked what I could do right now to get flood coverage started on my residence, so I paid what was due on my flood insurance policy with a credit card on that day XX/XX/XXXX. Even knowing that I would not have flood insurance protection until XX/XX/XXXX. I just XXXX  that mother nature was good to me and that no flooding would happen until after the activation of my flood insurance protection policy. The total cost to pay for my own flood insurance that evening was {$480.00} which I paid with a credit card. 

After that insurance phone call, I reached out to loan depot escrow department and ask them as to why they did not pay my flood insurance policy on my home. I was informed that evening XX/XX/XXXX that they did not get a bill. During my conversations with the insurance company that evening they informed me that they sent loan depot multiple invoices for the flood insurance policy and requested payment. Back to the conversation with the loan depot specialist, I was informed that they did not know where to send The flood insurance policy payment to. So they didnt mail a check.

After hours of discussion on the phone with loan depot representatives in multiple departments it was determined that in their eyes it was my fault that the flood insurance policy was not paid. I asked them then for what reason does loan depot escrow part of my payment? Isnt to pay homeowners insurance and property taxes and whatever else needs to be covered to protect their investment That they hold the mortgage on? 

Moving on, I told LoanDepot that I paid for the flood insurance in full but that the policy will not take affect until XX/XX/XXXX due to the waiting Imposed by the ( NFIP ) OF 30 DAYS on new flood policies. Loan depot then instructed me that they would have to pay for insurance coverage for the time period that I did not have my home covered for flood insurance which was escrowed. They then got an insurance company to back insure my home from the date The house went uncovered for flood insurance back in XXXX of XXXX up until the date that my house would be covered by the payment that I made over the phone with my insurance company. Looking at my escrow analysis at loan depot they charged me {$490.00} for two months of flood insurance that I needed during the period that they did not pay the flood insurance on my home that was escrowed with them. I told multiple customer service representatives at LoanDepot that the payments are their responsibility through the escrow, they told me it is not.

Loan depot now refuses to and will not refund me that {$490.00} back to my escrow for the two months of insurance that I needed on my residence because they think its because I dropped the ball in not making the insurance payment and that its my responsibility. I chose loan depot to escrow my insurances and taxes so that they would make those payments and I would pay ahead of time for the convenience with a higher monthly payment and now I am being penalized an additional {$490.00} for two months of insurance that they neglected to pay on my behalf from my escrow that they hold. 

I want to be made whole and reimbursed back to my escrow account the additional {$490.00} that they took for two months of for insurance for my home.