Consumer complaint received 2019-11-13 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC
State: OK

Complaint narrative:
I am writing in reference to what I believe to be an erroneous and/or deceptive practice by my mortgage service provider : Shellpoint Mortgage Servicing DBA NewRez, LLC. I have  received correspondence from multiple offices of this entity, including : XXXX XXXX XXXX, XXXX, SC XXXX ; XXXX XXXX XXXX, XXXX, MI XXXX ; and XXXX XXXX XXXX XXXX, MI XXXX. 

In XX/XX/2019 my mortgage servicing was transferred to NewRez, LLC from my previous mortgage servicer, XXXX, who had serviced my mortgage for approximately five years prior to the transfer. 

Soon after the transfer of mortgage servicing, on XX/XX/2019, I received a letter from NewRez, LLC stating that " due to a map revision by FEMA, my property was now located in a flood zone '', demanding that I immediately obtain a flood insurance policy for the property securing the mortgage.

Since I am familiar with real estate transactions, mortgage servicing, and insurance requirements due to my profession as a XXXX XXXX   XXXX, I looked up the most recent FEMA flood maps and did not find that a revision had been made to the area in which my property is located. With this knowledge, I responded to NewRez both via their online customer support feature, and by telephone, stating that my home does not appear to be located in a FEMA flood zone ; therefore I did not believe that I am required to obtain flood insurance, and requested that if NewRez did not agree then would they please provide me with a copy of the updated FEMA flood maps and I would gladly obtain a flood insurance policy if my property had in fact be rezoned.

I received multiple correspondence letters from NewRez subsequent to my request that essentially said " due to the complexity of my request, additional time was needed to research and respond ''. I then received correspondence from NewRez that stated that since I had not complied and obtained a flood insurance policy that NewRez was moving forward with obtaining a forced-placed flood policy for which I would be charged ( at a rate much higher than I could obtain a private policy ).

In an effort to avoid being charged for an exorbitantly expensive force-placed insurance policy, I contacted my insurance agent on XX/XX/2019, and obtained a flood insurance policy and submitted the proof of coverage and request for payment of the policy from my mortgage escrow account via NewRez 's online insurance documentation portal. Meanwhile I was still receiving correspondence from NewRez stating that more time was needed to research my request which to me indicated that they did not have a copy of the updated FEMA maps readily available, if they even existed. 

I then received correspondence from NewRez on XX/XX/2019, stating that due to my failure to obtain flood insurance coverage, a force-place policy had been obtained by NewRez and my escrow account would be charged ( a policy which was approximately twice as expensive as the private policy that I obtained and submitted 7 days previous ). 

After receiving notice that NewRez failed to recognize or implement my privately obtained flood policy, and then force-placed their own ( more expensive ) policy to my escrow account, I again reached out to NewRez via their online customer support system inquiring why my private policy had not been honored, why I was charged for the more expensive force-placed policy, and why the requested documentation ( updated FEMA maps ) was never provided to show that I was even required to have flood insurance in the first place. 

I then received correspondence from NewRez on XX/XX/2019, stating that I never submitted a private flood policy, they have found no errors with their practices, and provided a FEMA flood map ( a Letter of Map Amendment ) ( LOMA ), stating that the LOMA satisfied my request of proof that flood coverage was required for my property. However, the LOMA provided is for a property that I do not own, and that does not secure the mortgage that is serviced by NewRez. Neither the legal description, nor the physical address on the LOMA reference my property ; they reference a property that is approximately 1/2 mile away. Furthermore the LOMA states that the subject property is being moved OUT of a flood zone and into FEMA Zone X.

After dealing with, and requesting information from, NewRez for more than 90 days, I still do not have documentation supporting that my property is located in a flood zone therefore requiring flood insurance. My private flood policy was not honored or paid from my escrow account, and I have been charged approximately {$300.00} over the last two months for a force-placed flood policy that I do not believe that I am even required to have.

I have retained copies of all correspondence from NewRez, have copies of the privately obtained proof of insurance ( including confirmation email from NewRez 's document portal ), and have a copy of the original plat map of my property showing that my home is not located in a FEMA flood zone.

I would very much appreciate it if the CFPB is able to provide me with relief as NewRez has been derelict in providing me with a satisfactory response to my requests. Furthermore, I am concerned that if this is a standard practice and the force-placed flood insurance provider is affiliated with NewRez and/or Shellpoint Mortgage Servicing, significant consumer harm may be conducted against many homeowners whose mortgages are serviced by these companies.

Thank you for your consideration.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation