Consumer complaint received 2025-12-26 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: FL

Complaint narrative:
CFPB XXXX XXXX XXXX Insurance, Escrow Mismanagement, Financial Harm, and Emotional Distress Company : Mr. Cooper Mortgage XXXX Mortgage / Lakeview XXXX XXXX XXXX XXXX XXXX this XXXX against Mr. Cooper Mortgage, XXXX XXXX as Nationstar Mortgage LLC and Lakeview XXXX Servicing XXXX for XXXX force-placed insurance, escrow mismanagement, failure to correct a servicer-caused insurance lapse, and resulting financial and emotional harm, in violation of federal mortgage servicing regulations. 

I purchased my home in XX/XX/XXXX. Since origination, my homeowners insurance and property taxes have always been escrowed and paid by the servicer. I have continuously maintained homeowners insurance through XXXX and never authorized, requested, or caused any cancellation of coverage. 

Servicer Failure to Pay Insurance Despite Escrow Collection In XXXX, XXXX XXXX collected XXXX XXXX XXXX for homeowners insurance but failed to remit payment to XXXX in the amount XXXX {$2700.00}. Several attempts from XXXX for payment was unsuccessful This was not a borrower fault, it was a servicer disbursement failure. 

As a direct result, XXXX billed me personally. To prevent cancellation of my homeowners insurance, which could have placed my mortgage in default ; I was forced to pay XXXX month insurance out of pocket, despite having already funded escrow. This caused immediate financial strain and hardship. 

I spent several hours on repeated phone calls attempting to resolve an error that I did not cause. After exhausting standard customer-service channels, I placed XXXX and XXXX XXXX on XXXX joint XXXX XXXX XXXX which it was confirmed that the payment did not occur. ( XXXX, XXXX, XXXX and XX/XX/XXXX ) In XX/XX/XXXX, XXXX XXXX issued XXXX XXXX XXXX analysis adding {$8900.00} in lender-placed ( force-placed ) insurance, inflating the total insurance amount to {$12000.00}. 

This action is unlawful, abusive, and unjustified : My insurance was not canceled by me, lender failed to disburse escrow The escrow analysis itself shows insurance payments were made which is false Any lapse was caused solely by the servicers failure to disburse escrowed funds I repeatedly notified the servicer of their error Instead of correcting their mistake and paying XXXX, the servicer force-placed an excessive lender policy Under RESPA and XXXX X, force-placed insurance is only permitted when there is a legitimate lapse not caused by the servicer. 

Regulatory Violations XXXX XXXX XXXX XXXX XXXX XXXX multiple federal servicing regulations, including but not limited to : 12 CFR 1024.17 ( k ) Failure to properly administer escrow accounts and make timely insurance disbursements 12 CFR 1024.35 Failure to correct a servicer error after notice ( Notice of Error standards ) 12 CFR 1024.37 ( a ), ( b ), and ( c ) Improper assessment and charging of force-placed insurance when coverage was in effect 12 USC 2605 ( RESPA ) Failure to respond appropriately to servicing errors and protect the borrower from harm The servicer manufactured an insurance lapse through its own negligence, then attempted to financially benefit from that failure by imposing excessive lender-placed insurance charges. 

Financial Harm and Mental/Emotional Distress As a direct result of the servicers actions, I have suffered : Out-of-pocket insurance payments that should have been covered by escrow Artificially inflated escrow balances and monthly payment demands Significant financial distress and disruption to my household finances Mental and emotional distress, including stress, anxiety, and exhaustion caused by several hours of phone calls, lack of resolution, and fear of insurance cancellation or mortgage default Loss of time, productivity, and peace of mind addressing errors entirely caused by the servicer No borrower should endure financial or emotional harm due to a servicers failure to perform basic escrow obligations. 

XXXX XXXX use of multiple operating names ( Mr. Cooper, Nationstar, Lakeview ) obstructed accountability and delayed resolution. I was not provided timely, accurate, or consistent information, and my concerns were repeatedly dismissed while improper charges were imposed.

Company response to consumer: Closed with explanation