Consumer complaint received 2019-04-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC
State: NC

Complaint narrative:
Rushmore Loan Management Services ' Loss Draft Department has repeatedly and unnecessarily delayed disbursing insurance funds to repair my house in the wake of Hurricane Florence damages. It took three months for Rushmore to make the initial disbursement of any funds from the insurance company to cover repairs I had covered out of pocket in the four months since the storm. I am currently waiting for Rushmore to disburse the final insurance funds to our contractor for my roof repair, and I see them delaying again in a similar manner to the initial disbursement. I contacted Rushmore on XX/XX/2019 to conduct a final repair inspection, which should happen within 3-5 business days according to their procedure. It is now XX/XX/XXXX and their inspector still has not contacted us. We need help speeding Rushmore up to pay our roofing contractor.

During this three-month period it took to get the initial insurance disbursement I had several phone communications with Rushmore where they made commitments to pay a portion of the money then failed to keep them. In the first phone conversation after sending in my paperwork, the Loss Draft Department told me they had a note on my account to endorse the insurance check and send it back to me. I said that would work great, I can manage the repairs myself. They never sent the check or told me that they changed their mind. I called back a few weeks later to ask where the check was and they said they could not send the check back. When I asked how I could get money to cover the repairs that had already happened they asked that I send in receipts for which they would reimburse me from the insurance funds. I sent in receipts and again did not get any insurance funds from Rushmore or notification that they changed their mind.

The next phone conversation happened about two weeks later when I had completed all the repairs with the exception of the roof replacement. Rushmore agreed on the phone to come inspect the repairs and then they would disburse that amount from the insurance funds. Their inspector came out and agreed that 30 % of the repairs were complete and filed the report back to Rushmore. Rushmore again denied making a disbursement from the insurance funds for the repairs. The Rushmore agent I spoke to on the phone claimed they tried to call me at my number which she read the first 7 digits correctly, then paused, then switched the last two digits. I recited my phone number to Rushmore correctly on each of my phone conversations with them. 

After a few more phone conversations a supervisor at Rushmore told me that she could send a check for 30 % of the non-roofing repairs which would be roughly 9 % of the total claim. I had to explain that it was 30 % of the total repairs that are complete, not 30 % of 30 % ( aka 9 % ) of the repairs. Eventually, Rushmore agreed and over two weeks later finally sent a check for the non-roofing portion of the insurance funds to cover those repairs. 

Background information : Our home was struck by a tree in the hurricane resulting in roof, porch, and interior damages. It took one month to get the insurance claim check, so when I scheduled a reputable local roofing contractor I was already 6-8 months back on the waiting list. I performed repairs to shore up the house and avoid mold damage by tarping my roof and removing wetted drywall and insulation before I began the conversation with my mortgage company. I later completed all the repairs myself with the exception of the roof replacement. The roofing contractor finished work on XX/XX/2019. We have remained current on all of our mortgage payments since the loan was originated, even through the additional repair expenses.

Company response to consumer: Closed with explanation