Consumer complaint received 2025-06-05 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: OH

Complaint narrative:
I am writing to follow up on my complaint ( submitted XX/XX/XXXX ) regarding Mr. Cooper ( Nationstar Mortgage LLC ) charging me improperly for hazard insurance. Ive now received their formal response, which confirms my concerns and introduces additional issues requiring CFPB review. 

Summary of the Issue : Mr. Cooper disbursed payments for XXXX separate insurance policies covering the same property and coverage period ( XX/XX/XXXX XX/XX/XXXX ) : XXXX. On XX/XX/XXXX, they disbursed {$4800.00} to XXXX XXXX. 
XXXX. On XX/XX/XXXX, they disbursed {$1700.00} to XXXX XXXX, which is my preferred and active policy ( Policy # XXXX ). 

Despite confirming receipt and recognition of my XXXX policy, Mr. Cooper disbursed funds to XXXX different insurers, which has caused a {$1700.00} escrow shortage and a significant increase to my monthly mortgage payment.

Mr. Coopers Explanation : In their response, Mr. Cooper claims : That no lender-placed insurance was applied. 
That I, the borrower, should have canceled the alternative policy ( XXXX ). 
That they can not cancel preferred policies on my behalf. 

This response is inaccurate and misleading. I never requested or authorized a policy from XXXX. Mr. Cooper acted as the disbursing party, and by their own admission, they paid for XXXX policies both for the same time period. 

This is a servicing error and a mismanagement of escrow funds.

Violations and Concerns : 1. RESPA Violation ( 12 CFR 1024.37 ) : They failed to prevent double coverage after receiving valid proof of insurance. Even if they claim the insurance wasnt force-placed, the effect is identical.

2. Escrow Mismanagement : The double disbursement of funds without borrower consent directly caused a shortage and increased payment.

3. Misleading Language in Servicer Response : Mr. Coopers claim that no lender placed insurance has been added is evasive, given that one policy was clearly unnecessary and not requested.

4. Shifting Responsibility to the Borrower : They incorrectly claim I was responsible for canceling the duplicate policy. However, the burden of managing disbursements based on valid policies is the servicers legal responsibility once proof is received. 


Requested Resolution : I am asking the CFPB to : Require Mr. Cooper to refund the {$4800.00} disbursed to XXXX back into my escrow account.

Direct Mr. Cooper to correct my escrow balance and reduce my monthly payment accordingly. 
Ensure they acknowledge the XXXX policy as the sole active coverage, with proper mortgagee clause documentation. 
Ensure future compliance with RESPA and servicing requirements related to insurance and escrow disbursements.

I have attached Mr. Coopers full response to this message for your review. 

Thank you for your continued assistance in ensuring accountability and protecting consumers from servicer errors. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation