Consumer complaint received 2026-05-28 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Dovenmuehle Mortgage, Inc.
State: VA

Complaint narrative:
I am submitting this complaint regarding severe mortgage servicing misconduct, excessive lender-placed insurance ( XXXX ) practices, escrow mismanagement, restoration underfunding, and improper handling of a VA-guaranteed residential mortgage loan associated with XXXX XXXX XXXX XXXX Dovenmuehle Mortgage , InXXXX XXXX XXXX XXXX XXXX, and XXXXlated insurance participants. The subject property is lawfully classified and recognized as a residential single-family dwelling. Prior to a catastrophic fire occurring on XXXX XXXX, 2024, the property was consistently insured and underwritten as residential owner-occupied collateral under comprehensive homeowner insurance policies. Following the fire loss, servicing and insurance participants improperly relied upon post-loss Commercial Risk classifications to interfere with my ability to obtain voluntary residential homeowner insurance coverage while simultaneously imposing extraordinarily excessive lender-placed insurance charges and escrow burdens. The servicers imposed force-placed insurance disbursements and projections exceeding approximately {$20000.00}, {$33000.00}, and {$46000.00} during successive servicing periods despite the property remaining legally classified as residential collateral. These charges created catastrophic escrow shortages and substantially increased my financial hardship. The lenders and servicing participants further refused to fully fund approved restoration obligations despite independent adjusters approving the reasonable and necessary cost of restoration, including electrical reconstruction, structural repairs, and hazardous-condition remediation. As a result, the property remains partially unrestored and in continuing hazardous condition involving unresolved electrical fire-risk exposure. After refusing to fully fund restoration of the electrical systems and fire-damaged components, MVB Bank procured lender-placed insurance coverage through Certain Underwriters at XXXX, XXXX containing materially diminished protections and express exclusions for Fire Damage, Products/Operations liability, Personal and Advertising Injury, and Medical Expense coverage while continuing to charge substantial premiums approaching approximately {$26000.00} annually. The lender-placed insurance policy appeared materially defective and misleading because it excluded Fire Damage coverage despite being issued on residential property collateral located within the XXXX of Virginia that had already sustained catastrophic fire loss and continued to contain unresolved electrical fire-risk conditions. I believe the policy structure violated Virginia Standard Fire Policy requirements under Va. Code 38.2-2101 and 14VAC5-342-50 while simultaneously imposing excessive premiums for materially diminished coverage protections. I further believe the servicers and lender-controlled insurance participants engaged in improper lender-placed insurance practices, unreasonable escrow administration, improper force-placement conduct, failure to reasonably evaluate hardship and loss mitigation options, and potentially unlawful fee structures and servicing practices in violation of RESPA, Regulation X, and applicable mortgage servicing standards governing federally related mortgage loans. I previously requested escrow information, lender-placed insurance information, servicing explanations, hardship assistance, modification review, and restoration-related information, but the servicing issues remain unresolved.

Company response to consumer: Closed with explanation