Consumer complaint received 2025-02-05 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: United Shore Financial Services, LLC
State: CA

Complaint narrative:
I am submitting this formal complaint against United Wholesale Mortgage ( UWM ) regarding critical errors in my mortgage loan process, including : 1. Incorrect classification of my property, leading to insurance complications and potential financial risks. 
2. Miscalculation of property taxes, which resulted in a significant, unexpected increase in my mortgage payments. 
3. Failure to ensure adequate homeowners insurance coverage at closing, exposing me to potential financial loss. 

These errors and oversights have resulted in financial hardship and increased liability, demonstrating negligence in UWMs loan processing and due diligence. 

Loan and Property Information are attached as required.

Nature of the Complaint : 1. Incorrect Property Classification UWM incorrectly classified my property as a condo when, in reality, it is a duet single home. This misclassification resulted in : Inadequate homeowners insurance coverage due to incorrect underwriting. 
Incorrect loan documentation based on an inaccurate property type. 
Refusal by UWM to correct the error, despite multiple attempts on my part to seek a resolution. 

2. Property Tax Miscalculation & Unpaid Supplemental Tax Several months after closing, I was notified by the county tax office of an unpaid supplemental tax balance that should have been accounted for during closing. Upon investigation, I found that : United Wholesale Mortgage failed to properly calculate my property taxes at closing. 
The county confirmed that the supplemental tax was listed before closing, yet UWM falsely claimed it was not. 
Due to this error, I was forced to pay an unexpected increase of over {$600.00} per month on my mortgage to cover the unpaid taxes. 

This represents a failure in UWMs due diligence in ensuring accurate tax calculations, causing me significant financial distress. 

3. Inadequate Homeowners Insurance Coverage at Closing UWM failed to ensure that my insurance policy met appropriate coverage standards before closing the loan. Specifically : The policy only included {$12000.00} in coverage for internal structures ( e.g., cabinets, countertops, drywall ), which is grossly inadequate. 
Standard industry practices require at least XXXX XXXX of the propertys value to cover internal structural elements. 
UWM did not alert me to this deficiency or require additional coverage before closing, putting me at significant financial risk. 
Had I suffered property damage, I would have had to pay out-of-pocket for repairs or risk losing the property due to lack of coverage. 

UWMs negligence in allowing a substandard insurance policy at closing is a serious regulatory concern and demonstrates a lack of proper oversight. 

Desired Resolution : I request that the Consumer Financial Protection Bureau ( CFPB ) formally investigate United Wholesale Mortgage for these errors and failures in due diligence. I respectfully request that UWM : 1. Immediately correct the classification of my property in their records. 
2. Provide a formal written acknowledgment of the corrected classification for my records. 
3. Review and adjust my escrow and tax payments to reflect the correct tax amounts. 
4. Compensate for the financial hardship caused by their tax miscalculation, lack of insurance, and gap in insurance coverage, including any overcharges on my mortgage. 
5. Take responsibility for failing to ensure adequate homeowners insurance coverage at closing and provide remedies to mitigate any ongoing risks. 
6. Implement corrective measures to prevent similar cases for future borrowers. 

Supporting Documentation : I am providing the following supporting documents with my complaint : A copy of my insurance policy reflecting the inadequate coverage amount at closing. 
Mortgage loan documents reflecting the incorrect property classification. 
County tax records showing the supplemental tax was listed before closing. 
Correspondence with UWM regarding the property classification, tax miscalculation, and insurance coverage issues. 

Conclusion : United Wholesale Mortgages failure to properly classify my home, accurately calculate my property taxes, and ensure adequate homeowners insurance coverage has caused significant financial hardship and placed me at unnecessary risk. These actions are unacceptable, and I urge the CFPB to take immediate action to hold UWM accountable.

I appreciate your attention to this matter and request to be kept informed of any updates regarding this complaint. 

Sincerely, XXXX

Company response to consumer: Closed with explanation