Consumer complaint received 2025-09-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Rocket Mortgage, LLC
State: AR

Complaint narrative:
On XX/XX/XXXX, I contact my my mortgage servicer ( Rocket Mortgage ) as I received a cancellation letter from my homeowner 's insurance company ( XXXX ) due to non-payment. I spoke with a Rocket Mortgage representative to find out why my homeowner 's policy had not been paid from my escrow funds. The Rocket Mortgage rep initiated a recorded conference call with the agent from XXXX to and it turned out that my insurance had not updated the mortgagee clause information despite my notification to them in the months prior when I was notified that my mortgage loan had been purchased by Rocket Mortgage. The XXXX agent assured me and the Rocket representative that if they received a check from Rocket Mortgage before XX/XX/XXXX that the policy would continue uninterrupted. When the Rocket representative confirmed the address to which she would overnight the check, the XXXX agent informed her that was not the correct address and if she mailed it to that address that the payment would not be processed in time and the policy would be canceled. The Rocket representative assured me that the payment would be sent to the correct address provided by the XXXX agent for the payment process and then proceeded to send the check to the incorrect address. XXXX sent a cancellation notice directly to Rocket Mortgage on or around XX/XX/XXXX ( per Rocket Mortgage when I called on XX/XX/XXXX ) stating that they had not received a check and that the policy would be canceled on XX/XX/XXXX. Rocket Mortgage ignored the notice and did not notify me that XXXX had not received the check. I was under the impression that everything was taken care of until I received a call from Rocket Mortgage that I had failed to provide current proof of insurance and they would be taking out coverage in my name for the gap. I immediately called Rocket Mortgage to get to the bottom of the situation ( call placed on XX/XX/XXXX ) and they stated that XXXX had returned to the check to them on XX/XX/XXXX as the policy had been cancelled. Based on the address discrepancy that I was aware of from the XX/XX/XXXX call, I requested that Rocket Mortgage open an investigation to see where the check was sent for the homeowner 's insurance premium payment. They assured me that the investigation would be completed by XXXX and they would let me know the results. In the meantime, I called and obtained homeowner 's insurance within a matter of hours and had the new declaration pageXXXX  uploaded to their portal. Rocket Mortgage did not call me with the results of the investigation, but I did call them on XXXX and they confirmed that the check was sent to the address that they had on file and NOT the correct address that XXXX provided. I then received a letter in the mail that they were charging {$1500.00} to my escrow account to cover the insurance that they took out in my name for the period of XX/XX/XXXX - XX/XX/XXXX since I could not prove coverage during that period. I feel that this is gross a mishandling of my escrow funds, and that I should not be liable for the {$1500.00} premium for the two month period when I would have had coverage if Rocket Mortgage had handled my funds appropriately. In my attempts to work this out with Rocket Mortgage, they have acknowledged that this was not in any way a fault of mine but a procedural gap in their follow up since they did not alert me on XXXX when they received the notice from my homeowner 's insurance that they still had not received the check that they sent to the incorrect address. Had I been notified, I would have paid the annual insurance premium out of pocket and requested reimbursement from my escrow funds and avoided {$1500.00} in forced coverage premium charges. Even though Rocket Mortgage has admitted fault on their part and stated that the issue was not caused by me, they have refused to reduce or remove the {$1500.00} premium for the gap in coverage.

Company response to consumer: Closed with explanation