Consumer complaint received 2025-02-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: OR

Complaint narrative:
Let me start by saying that I have spent HOURS in Mr. Cooper 's automated phone system before I could actually speak to a real person. It just keeps sending you to the same spot around and around. In order to get a real person quickly, I had to blast them on social media. Then they sent me a direct number. 

On about XX/XX/XXXX, I called Mr. Cooper because they had not paid our insurance out of our escrow... which was due XX/XX/XXXX. I was told that it was pending and would be paid the following day. It was paid in full for the year XXXX the next day. 

In XXXX, I received a letter stating we did not have insurance and if we didn't prove we had it since XX/XX/XXXX, we would be charged for their expensive/basic insurance. I called and once I finally spoke to someone, they explained that a letter was sent on XXXX stating that our insurance 's rating dropped, so we would have to get new insurance. We never received this letter, and this was not mentioned during my phone conversation in XXXX. Plus they paid for that insurance after I had called. I was told I had XXXX weeks to get new insurance or they would be placing their insurance on our account and charge us for it. They would not extend the time at all. I asked to speak to a supervisor about this, as the timing was not okay. I was told one would be calling within 24 hours. No one called. 

So I quickly got us new insurance, but did not have the ability to shop around or look into plans, since the time to get a new plan was so short. I got it settled and in place by XX/XX/XXXX, and cancelled our previous insurance on that day as well. 

In XXXX, we received a letter stating that now we needed to prove that we had insurance from XX/XX/XXXX to XX/XX/XXXX ... which was paid out of our escrow account by Mr. Cooper in late XXXX. It said that if we did not show proof, we would be charged {$710.00} for their insurance to cover that time. Based on the date the letter had on it, it took 10 days for us to actually receive the letter and the very next day, they charged us the {$710.00}. I called and once I got a hold of a person, I said that they have proof of our insurance, as they paid it. I was told that what was paid in XXXX was for XXXX, when it was not. You pay house insurance at the beginning of the policy, not to mention that we had received a refund for the unused portion of the insurance, and they would not believe me and argued with me, saying I needed to just show proof. My current insurance provider also sent in proof of coverage from XX/XX/XXXX to XX/XX/XXXX, and they said that they would look into it. 

On XX/XX/XXXX, after hearing nothing, I put in a complaint via their website, and attached the proof of insurance from that time frame. Showing the date of start and when I cancelled the insurance policy on XX/XX/XXXX. I received a message back saying they were forwarding my message to the insurance department and I would hear back from them. It is now XX/XX/XXXX, and I have not received any communication from Mr. Cooper acknowledging their mistake of charging us {$710.00}. We then have paid twice for insurance from XXXX. They should be refunding that amount, but instead they are ignoring my messages. I don't have the time to spend more hours on the phone to make this right. They have all the information and proof that shows that we had coverage then. 

Mr. Cooper is not the mortgage company that we chose when we refinanced our loan, they purchased it. It locks us into a company that is apparently known for shady practices ( learned this from many friends and others online that have had struggles with them taking their money or not crediting the correct amounts. They stole {$710.00} from our escrow and are not even acknowledging that they paid the insurance that they are saying we did not have. If we were able to shift to another company, at this point we would, alas, it would cost us so much in fees and our interest rate would be higher, so we can not. 

I have attached proof of insurance and the cancellation letter that proves I cancelled the policy on XX/XX/XXXX, when our new policy went into affect.

Company response to consumer: Closed with explanation