Consumer complaint received 2025-06-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: WA

Complaint narrative:
Copy of my letter sent to Nationstar Mortgage/Doing Business As Mr Cooper regarding Force Placed Insurance violation To Whom It May Concern : I am writing to formally express serious concern regarding Nationstar Mortgage LLCs ( d/b/a Mr. Cooper ) handling of force-placed insurance on my mortgage account. Specifically, Mr. Cooper has acted in blatant disregard of both Washington State law and federal regulations regarding the imposition, backdating, and cancellation of force-placed insurance coverage. 

On XX/XX/XXXX, Mr. Cooper paid a premium of {$2000.00} for a force-placed insurance policy that was retroactively effective starting XX/XX/XXXX more than three months prior to the payment date. This policy overlapped with an existing XXXX XXXX policy that was already in force and had been paid for by Mr. Cooper as the mortgage servicer. Despite this, Mr. Cooper knowingly initiated overlapping force-placed coverage in direct violation of : Washington Administrative Code ( WAC ) 208-620-551, which prohibits servicers from force-placing insurance when evidence of existing coverage is available, and 12 C.F.R. 1024.37, which requires servicers to cancel force-placed insurance within 15 days of receiving proof of a borrowers new coverage and to refund all overlapping premium charges.

I provided evidence of my new insurance policy, requesting that it replace the force-placed policy and that I be refunded for any overlapping premium. The appropriate effective date for the force-placed policy should have been XX/XX/XXXX, and it should have been cancelled by XX/XX/XXXX following submission of my replacement coverage. Yet, despite this and despite being informed by a Mr. Cooper representative by phone that the overlapping coverage should not have happened and would be corrected no refund has been issued and no cancellation confirmation has been provided. 

Furthermore, when I contacted the force-placed insurance company directly to seek cancellation, I was told I had no authority because I was not the policyholder underscoring Mr. Coopers sole responsibility and continued failure to act in accordance with law.

Mr. Coopers actions have resulted in : The imposition of backdated and overlapping insurance coverage.

A failure to cancel force-placed insurance within the legally re

quired 15-day period. The retention of a {$2000.00} premium that was unjustly charged and should have been refunded. This is not only unacceptable, but a potential pattern of non-compliance that merits regulatory attention. I respectfully request : Immediate cancellation of the force-placed policy retroactive to the date my new coverage became effective. A full refund of the {$2000.00} premium charged for overlapping coverage. Written
confirm

ation that these steps have been taken. In addition, I urge Mr. Coopers executive compliance and escrow departments to review your force-placed insurance practices for systemic violations and to ensure full compliance with both Washington State and federal law. I have also elevated this complaint to the Washingto

n State Department of Financial Institutions, the Washington Insurance Commissioner and the Consumer Financial Protection Bureau. Please consider this letter formal notice of the above violations. I request a written response within 15 business days.

Company response to consumer: Closed with explanation