Consumer complaint received 2025-08-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Dovenmuehle Mortgage, Inc.
State: VA

Complaint narrative:
This is supplemental notice to my prior Notice of Error ( 12 C.F.R. 1024.35 ) and Request for Information ( 12 C.F.R. 1024.36 ) first sent XX/XX/XXXX ( and supplemented since ). All Regulation X timeframes continue to run from XX/XX/XXXX ; this does not reset any deadlines. It also renews my demand for prompt, good-faith claim handling under Va. Code 38.2-510 and 38.2-209. 
XXXX XXXX Since Last Inspection An on-site inspection on XX/XX/XXXX, documented that over 95 % of the repairs to my home were complete. Despite that inspection and prior approvals, I have now been waiting over XXXX months ( since XXXX XXXX, XXXX ) for full reimbursement. 
To date, only {$260000.00} of replacement cost has been placed into the restricted/loss-draft escrow. 
An additional {$780000.00} in replacement cost that was submitted for reimbursement remains withheld. 
This prolonged nonpayment has directly caused irreparable financial hardship, creditor debt/contractor claims, and significant emotional distress. 
Ongoing Failures ( Servicing & Claims ) Notwithstanding the above, the parties have : Failed to promptly disburse restricted/loss-draft escrow funds to continue restoration ( violating 12 U.S.C. 2605 ( k ) ( 1 ) and 12 C.F.R. 1024.38 ( b ) ( 4 ) continuity-of-servicing obligations during transfer ) ; Refused to pay the full replacement cost necessary to return the property to pre-loss condition. 
Refused to reimburse mitigation for smoke/soot in the XXXX Addition ( reported XX/XX/XXXX, and approved by the first adjuster before the second adjusters re-inspection ) ; Refused to pay for debris/contents removal, temporary repairs, and cleaning approved by the first adjuster ; Withheld the XXXX  adjuster report ; Categorically denied contingency/unforeseen costs and temporary facilities/utilities despite the projects size, duration, and access constraints acknowledged by your own adjuster. 
Legal Duties ( non-exhaustive ) Servicers ( Freedom, XXXX, XXXX  ) : 12 C.F.R. 1024.35 ( XXXX  ) & 1024.36 ( XXXX ) require timely acknowledgment and substantive written responses ; 12 C.F.R. 1024.38 ( b ) ( 4 ) mandates policies/procedures to ensure accurate and timely transfer of loss draft/servicing information so borrowers are not harmed by transfers ; 12 U.S.C. 2605 ( k ) ( 1 ) prohibits failing to take timely action to respond/correct servicing errors ; 2605 ( f ) provides remedies for resulting damages. 
Insurer/Administrator ( XXXX ) : Va. Code 38.2-510 ( B ) ( 2 ), ( 4 ), ( 6 ) bars failure to promptly acknowledge/act on claims, refusal to pay without a reasonable investigation, and failure to attempt in good faith to promptly, fairly, and equitably settle claims when liability is reasonably clear ; Va. Code 38.2-209 authorizes attorneys fees where an insurer has not acted in good faith. 
Immediate Relief Requested ( Firm Timelines ) Please respond in writing : 1. Escrow Disbursement ( within 1 business day ) : o Disburse the pending draw consistent with the XXXX XXXX, XXXX, inspection ( XXXX % completion ) and pre-transfer approvals ; or provide a written, itemized deficiency list and draw schedule within XXXX business days so I can cure immediately. 
2. Replacement Cost ( within 5 business days ) : o Pay or schedule payment for the withheld {$780000.00} and all approved categories ( mitigation ; debris/contents ; temp repairs/cleaning ; temp facilities/utilities ; reasonable contingency/unforeseen ). 
3. Documents ( within 5 business days ) : o Produce XXXX and all adjuster reports/photos/scope notes/payment logs ; o Provide restricted-escrow ledgers ( XX/XX/XXXX, XXXX ), any funds-transfer transmittals between servicers, and the draw approvals/conditions on file ; o Provide the 1024.33 ( b ) hello notice for the transfer ( s ), the owner/assignee identity, and my single point of contact for loss-draft and insurance. 
4. Hazard Coverage ( within 1 business day ) : o Confirm coverage is bound ( force-placed or otherwise ) or provide the exact mortgagee clause so I can bind Builders Risk today to avoid any uninsured exposure while work continues.

Company response to consumer: Closed with explanation