Consumer complaint received 2024-06-04 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: Zillow Group Inc.
State: MD

Complaint narrative:
The following complaint will largely be centered around the practices and negligence of Zillow Home Loans. The complaint will mention the mistakes of other businesses, but the focus should be on Zillow Home Loans. 

On XX/XX/XXXX, I purchased a house using Zillow Home Loans ( ZHL ) as my lender and XXXX XXXX XXXX ( XXXX  ) as my title company. After several months, I began noticing issues with the house and began to track the repairs that needed to take place. In XX/XX/XXXX, I reached out to my insurance company XXXX XXXX XXXX XXXX XXXX ) to attempt to make an insurance claim for one of the repairs. I was then made aware that my insurance policy had been canceled since XX/XX/XXXX. This confused me because that was the time that I initially closed on the house. After getting in contact with several people, I learned that XXXX XXXX never received payment for the annual insurance policy, and then canceled the policy without my knowledge. Their reason for canceling the policy was that they never received payment for the annual policy, and when they contacted ZHL about this, they never received a response. I came to learn that the ZHL loan processor made a mistake on the final closing disclosure and listed the wrong insurance company. XXXX XXXX XXXX, then sent the check to that wrong insurance company. The check obviously did not get cashed, because XXXX received the check and not XXXX XXXX. XXXX XXXX claims to have contacted ZHL to notify them that the policy would get canceled and never received a response. The next portion of the complaint will be a timeline of the events that occurred to the best of my knowledge and records. 

XX/XX/XXXX : I received two separate quotes from XXXX ( XXXX ) and XXXX XXXX on home insurance policies. Note : XXXX XXXX does not service my area so they act as a broker for XXXX XXXX XXXX XXXX XX/XX/XXXX : I receive the closing disclosure form ZHL and have questions about some of the figures listed. I begin emailing the loan processor ( XXXX XXXX ) and loan officer ( XXXX XXXX ) about some of the figures. 

XX/XX/XXXX : The loan processor emails me saying she only received the quote for XXXX ( {$2500.00} ). I respond by saying I found a new insurance company XXXX XXXX XXXX ) and gave her the new quote. 

XX/XX/XXXX : The loan processor emails me stating that the new quote is still in quote status and that I will have to contact the writing agent ( XXXX XXXX ) to finalize. I respond by saying I have a call scheduled with XXXX XXXX the next day XXXX XXXX XXXX : Email chain between me, XXXX XXXX ( loan processor ), and two XXXX XXXX sales agents ( XXXX XXXX and XXXX XXXX XXXX XXXX In these email exchanges, the two agents show the new quote from XXXX XXXX. 

XX/XX/XXXX : XXXX XXXX emails me the closing disclosure. It contains the new amount for the insurance policy ( {$1700.00} ). What I only notice later is that it states the insurance premium is to be paid to XXXX. 

XX/XX/XXXX : Closing date. XXXX XXXX XXXX sends the check to XXXX XXXX XXXX XXXX ( XXXX  ). Check does cash because it was meant to go to XXXX XXXX XX/XX/XXXX : XXXX XXXX  sends notice to XXXX XXXX that the insurance policy will get canceled since they have not received payment. ( Presumably, it is around this time that they also notify Zillow Home Loans of the upcoming cancellation ). 

XX/XX/XXXX : Zillow Home Loans emails me saying the loan will no longer be serviced by them and will now be serviced by XXXX XXXX XXXX ( XXXX  ). 

XX/XX/XXXX : XXXX XXXX cancels insurance policy XX/XX/XXXX : XXXX XXXX XXXX attempts to re-send the check to XXXX. Check does not get cashed. 

XX/XX/XXXX : I learn that my insurance policy has been canceled for months after I try to file an insurance claim with XXXX XXXX. 


Throughout the weeks following XX/XX/XXXX, I get into contact with XXXX XXXX, XXXX XXXX, and XXXX XXXX XXXX in order to find out exactly what happened. I then get a new insurance policy under XXXX and the insurance rep then contacts XXXX XXXX about the old insurance policy. According to XXXX XXXX XXXX XXXX, they reached out to Zillow Home Loans and notified them that the policy would get canceled. Zillow Home Loans never contacted me about this, and did not attempt to correct this in any way. From my perspective, this was an act of negligence. As a result of this negligence, I now have repair costs that can not be covered by the new insurance policy because the issues were discovered prior to the new policy becoming active. Furthermore, the new lender ( XXXX  ) wants to charge me a fee for the months that I did not have insurance.

Company response to consumer: Closed with explanation