Consumer complaint received 2025-08-14 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: LD Holdings Group, LLC
State: UT

Complaint narrative:
I am submitting this complaint to report a series of significant process failures at LoanDepot that resulted in an erroneous charge of {$770.00} to my escrow account on XX/XX/XXXX, for a supposed " lapse in coverage '' on my homeowners insurance.

Summary of Events : -I received notices by mail from LoanDepot stating there was a lapse in my homeowners insurance coverage and instructing me to verify my insurance information with a third party, which I did. 
-After submitting the requested proof of coverage, there was no communication or notification in my LoanDepot online account, email, or the " XXXX XXXX XXXX '' regarding the {$770.00} charge to my escrow account. 
-I only discovered this charge after a careful review of my loan payment activity and had to call LoanDepot to determine which insurance company received the disbursement on XX/XX/XXXX. 

My Information : -Name : XXXX XXXX XXXXAccount Number : XXXX -Home Address : XXXX XXXX XXXX XXXX, XXXX, UT XXXX -Phone Number : XXXX Issues Identified : 1. Error in Processing Insurance Cancellation Notice : -My insurance company sent a cancellation notice to LoanDepot , but the loan and policy numbers referenced were incorrect. 
-The Borrower Name and Property Address on the notice did not match my information. 
-LoanDepot failed to verify these critical details and sent me notices to provide proof of coverage based on erroneous information.

2. Failure to Update Account After Proof of Coverage Provided : -I provided proof of coverage to the third-party provider, and my insurance coverage was verified.

-LoanDepot did not update my account, leaving the erroneous lapse in coverage uncorrected and resulting in the escrow charge.

3. Inadequate Customer Service and Lack of Resolution : -Upon discovering the charge, I contacted customer service ( XXXX ) , who requested proof of coverage via email. 
-Despite receiving documentation, XXXX did not make the necessary adjustments, citing cancellation dates and lapses that did not match my name or address. 
-After escalation, a manager ( XXXX XXXX XXXX informed me that my account would be corrected and provided ticket # XXXX, but did not offer any follow-up process or case tracking. 
-The focus appeared to be solely on correcting my individual account, with no indication of addressing the underlying root cause or preventing recurrence. 

Concerns : -These failures demonstrate a lack of due professional care and a breakdown in LoanDepots internal controls.

-There was a lack of transparency and communication regarding the {$770.00} charge after I complied with the notices and provided proof of coverage.

-I am concerned that other customers may be similarly affected, either due to negligence or potentially intentional misconduct.

Actions I Requested from LoanDepot : -A thorough investigation into the root causes of these failures. 
-Remediation of internal processes and employee training to prevent recurrence. 
-Confirmation that my account has been fully corrected and that no negative impact remains. 
-Assurance that LoanDepot will proactively review similar cases to protect other customers. 

Actions Taken by LoanDepot : XXXX XX/XX/XXXX, LoanDepot called to confirm they refunded the erroneous charge and would review my escrow account for accuracy. 
-No other requested actions appear to have taken place. 
-No information was provided regarding investigation of root causes, remediation, or employee training. 
-No communication was provided to notify me of the escrow charge after I submitted proof of coverage. 
-No indication that LoanDepot is proactively reviewing similar cases to protect other customers. 

This lack of transparency is particularly concerning, as it is deceptive to instruct a customer to provide verification of insurance and then still charge the escrow account after verification is provided, without any notification. 

Thank you for your attention to this matter. I am available to provide further documentation or clarification as needed. 

Sincerely, XXXX XXXX XXXX ( XXXX ) XXXX

Company response to consumer: Closed with explanation