Consumer complaint received 2025-12-23 00:00:00
Product: Debt collection — Other debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Mr. Cooper Group Inc.
State: FL

Complaint narrative:
Summary of Complaint : My mortgage servicer, Mr. Cooper, is attempting to charge me {$7900.00} for retroactive force-placed wind insurance for the period XX/XX/XXXX XX/XX/XXXX. This charge is improper and violates federal servicing rules, including RESPA ( 12 CFR 1024.37 ). The servicer failed to properly monitor my insurance, failed to notify me of any deficiency, and is retroactively billing me for a period in which they had no valid basis to claim a lapse in coverage. 

Details of Issue : I am filing this complaint because Mr. Cooper incorrectly force-placed insurance on my property and is charging me {$7900.00} for a claimed lapse in wind coverage for a past period. Their actions are not supported by the facts, violate RESPA requirements, and have created a major financial hardship for my family. 
1. Servicer failed to send required annual notices requesting proof of insurance From XXXX through XX/XX/XXXX, I did not receive a single notice stating that my homeowners insurance lacked wind coverage. Under 12 CFR 1024.37 ( c ), a servicer must send written notices before charging for force-placed insurance. Mr. Cooper failed to do this for two full policy years. 
2. Servicer claims it did not discover the wind exclusion until XXXX, which demonstrates a monitoring failure Their written response ( dated XX/XX/XXXX ) admits they received renewal information for my XXXX policies multiple times between XXXX, yet claim they had no indication that wind coverage was excluded until a declaration page in XX/XX/XXXX. 
This contradicts industry practice, Florida insurance norms, and the fact that XXXX has not written wind policies in my region for years. 
If the servicer actually received renewals and EDI data, as they state, then they should have known the policies excluded wind earlier. This is a servicer oversight and should not result in a retroactive charge to me. 
3. Retroactive force-placed insurance is only permitted when the servicer did not have information earlier but here, they had it and failed to review it The servicer contacted XXXX on XX/XX/XXXX, and XXXX then XXXX them that the XXXX policy also excluded wind coverage. 
That means Mr. Coopers own belated inquirymore than a year after the coverage period startedis what created this discovery. RESPA does not allow a servicer to retroactively bill for force-placed insurance when the servicer already had sufficient information but failed to act on it in a timely manner. 
4. They failed to provide proof from XXXX showing wind exclusion in XXXX They are relying on an alleged verbal confirmation from XXXX in XX/XX/XXXX but did not provide a declaration page or written evidence showing that wind was excluded in the XXXX term. Their force-placed charge is based on undocumented information. 
5. They only began sending notices in XXXX, XXXX, and XX/XX/XXXX after the new XXXX XXXX policy was issued This means that any alleged lapse from July 2024July 2025 was never communicated to me during that period. I was deprived of any opportunity to correct or verify coverage. 
6. I secured proper wind coverage with XXXX effective XX/XX/XXXX Once notified in XXXX, I immediately obtained proper wind coverage through XXXX. This demonstrates that I have not acted negligently ; the problem stems entirely from the servicers lack of timely monitoring. 
7. The servicer is attempting to justify a retroactive 365-day force-placed premium solely based on its own delay They initiated a retroactive force-placed policy starting XX/XX/XXXX, explicitly because their internal review occurred in XX/XX/XXXX. Retroactive billing that results from the servicers own delayed review is not permitted under federal regulations. 

What I Am Requesting : 1. Removal or reduction of the retroactive force-placed wind insurance premium ( {$7900.00} ). 
2. Correction of my escrow balance, which is currently negative due only to the improper forced premium. 
3. Written confirmation that my account will not be reported as delinquent for amounts tied to disputed force-placed insurance. 
4. A complete audit of their insurance-monitoring actions from XXXX, including copies of all policy documents and notices they claim to have received or sent. 

Why I Need the CFPBs Help : I have disputed this directly with Mr. Cooper, but they insist no error occurred despite clear servicing failures. The servicers own timeline and statements contradict regulatory requirements. I am being charged nearly {$8000.00} because the servicer failed to review my insurance in a timely manner and failed to send required notices for two consecutive years. 
This improper charge is creating financial strain and placing my loan in a massively negative escrow status through no fault of my own.

Company response to consumer: Closed with explanation