Consumer complaint received 2025-08-29 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Payment process
Company: KEYCORP
State: OH

Complaint narrative:
Please forward thisComplaint to the proper authorities and please notify me as to who will follow up on this matter : Power of Attorney for my son regarding XXXX information withheld and jeopardizing his home and future. 

Contact informationMother and POA Respondents : KeyBank, N.A. ( Mortgage Servicer ) XXXX XXXX XXXX ( Homeowners Insurance Provider ) Subject : Improper Policy Cancellation, Misapplication of Payments, and Wrongful Foreclosure Threats 1.I act as Power of Attorney for my son 's mortgage account.

2.His mortgage payments have consistently been made on time. At no point has he missed a payment and often extra amounts toward his loan have been applied.

3.Despite this, KeyBank has treated his loan as delinquent, assessed improper late fees, and threatened foreclosure. 

Facts : XXXX XXXX ( XXXX ) : XXXX XXXX failed to properly notify me ( POA and payer of record ) regarding alleged policy cancellation. 
KeyBank accepted this as a lapse of coverage and used it to trigger foreclosure actions, despite my status as legal POA on record with KeyBank. 
Misapplication of Payments ( KeyBank ) : Extra payments ( e.g., {$840.00} ) were placed into so-called buckets or suspended accounts, instead of being applied to the mortgage balance. 
This created artificial shortages, making it appear that my son had missed a payment when he had not. 
Several staff confirmed that bucket payments would not appear in standard payment histories, leaving the loan flagged as delinquent. (!?! ) Improper Late Fees and Escalation : Repeated late fees were charged XXXX XXXX XXXX XXXXed to {$440.00} ) despite full and timely payments. 
KeyBank representatives acknowledged that payments were misdirected into these buckets, yet still demanded additional sums. 
OngoingHarassment and Unprofessional Conduct : KeyBanks staff belittled and harassed me during calls, including a representative named " XXXX '' who made personal remarks and implied he would get me in trouble. (! ) I was shuffled among multiple departments ( Loss Mitigation, XXXX team, Collections, XXXX ), each providing conflicting information. I have at least XXXX first names of individuals who couldn't or wouldn't help me get to the bottom of the problems. 

This Requires Investigation The combined actions of Lemonade and KeyBank appear to constitute bad faith servicing : Cancelling or mishandling insurance without POA notice, Misapplying mortgage payments, Creating a false appearance of delinquency, and Escalating toward foreclosure despite full compliance by the borrower & POA. 

These practices put my sons home and financial stability at risk and appear to violate both Ohio insurance regulations and federal mortgage servicing standards. 

Requested XXXX XXXX into XXXXXXXX XXXX XXXXXXXX XXXX and failure to notify me as Power of Attorney. 
2.Investigation into KeyBanks mortgage servicing practices, specifically the use of bucket accounts that misapply payments and generate false defaults.

3.Immediate correction of my sons mortgage account to reflect full payment history with no delinquencies.

4.Removal of all improper late fees and cessation of wrongful foreclosure threats. 
XXXX of compliance with notice requirements and single point of contact servicing standards going forward. 

Attachments ( Available Upon Request ) Phone logs and screenshots documenting communications with KeyBank representatives. 
Notes from calls showing misapplied payments, insurance lapses, and harassment. 
Evidence of full and timely mortgage payments. 


Thank you, Respectfully yours,

Company response to consumer: Closed with monetary relief