Consumer complaint received 2024-12-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: SC Opportunity Fund LLC
State: NC

Complaint narrative:
I am supposed to be closing on a loan tomorrow ( XX/XX/year>2024 ). 

The mortgage broker is XXXX XXXX XXXX XXXX ( NMLS ID XXXX ) and the mortgage lender is The Loan Store ( NMLS ID XXXX ). 

Since XX/XX/year>2024, the lender has been acting completely unreasonably with regards to insurance on the property. 

The HOA that the property belongs to has blanket insurance coverage covering the property, any additions, improvements, fixtures, under construction additions, and even appliances and floor coverings. By any reasonable definition of " walls-in '' coverage, this property has " walls-in '' insurance coverage. I have attached a copy of the insurance policy provided by the HOA 's insurance agent. 

Article X of the HOA CC & Rs also requires the HOA to maintain insurance coverage : " XXXX XXXX shall obtain and maintain blanket property insurance covering all risks of direct physical loss commonly insured against, including fire and extended coverage penalty for all insurable improvements ( a ) within the Common Area, and ( b ) all Units for the purpose of repair and reconstruction of the following : ( i ) the exterior and all structural and mechanical components which comprise the Unit ; and ( ii ) only such interior fit-up ( for example, fixtures, appliances, countertops, cabinets, ceiling fans, paint or other wall coverings, window treatments, carpet, tile, linoleum or other floor coverings, lighting fixtures, molding, baseboards, interior walls, door and windows ) as the Unit contained at the time it was conveyed to the original Owner ( not including the conveyance from Declarant to any Builder ). '' By any reasonable definition of " walls-in '', the HOA CC & Rs require `` walls-in '' coverage for the XXXX. I have attached a copy of the HOA CC & Rs. 

I have pointed this out to the lender numerous times but they keep saying because the HOA insurance documents do not explicitly say the word " walls-in '', they can not accept the HOA insurance coverage as " walls-in '' coverage and are requiring me to purchase additional HO-6 insurance even though the interior of the property is already covered by the HOA insurance policy. Since XXXX XXXX, 2024, I have had a series of XXXX emails between me and the broker, who is sending me information relayed from the lender. I have attached this email chain to this email. If you read this email chain, you will see that it gets progressively more ridiculous. At one point, I directly asked the broker " Can you please define what exactly they need? Do they just need the word " walls-in '' to appear on the declarations page? '' The broker replied " Yes. For example, here is one I worked on today '', and showed an image that had " walls-in '' on the declaration page, thus directly admitting that the only reason the lender isn't accepting the insurance is that the word " walls-in '' doesn't appear on the declarations page. The declarations page lists " Building ( Blanket ) '' and " Building '' is later defined in the document to include the building or structure, additions, fixtures, building glass, additions under construction, appliances, floor coverings, alterations and repairs to the building and structure, and many other things. The coverage is effectively " walls-in '' coverage, but because it does not have that specific word, the lender is refusing to accept it. 

I have also contacted the HOA 's insurance agency, XXXX XXXX XXXX XXXX in XXXX, NC, to confirm that the HOA 's policy does provide " walls-in '' coverage. Two different agents at that office ( XXXX XXXX, XXXX, XXXX and XXXX XXXX, XXXX, XXXX ) confirmed this to me over the phone today ( XX/XX/year>2024 ). 

I also asked the HOA Community XXXX, XXXX XXXX, about this and he also confirmed that the HOA provides walls-in insurance coverage. I have attached my email chain with him. The last email in this chain is dated XX/XX/year>2024. 

By any reasonable interpretation of " walls-in '' ( including the interpretation of two insurance agents and the HOA community XXXX ), it is clear that the HOA insurance policy provides " walls-in '' coverage and that the HOA CC & Rs require the HOA to maintain " walls-in '' coverage. The lender is stubbornly refusing to accept this unless the document specifically contains the magic word " walls-in ''. This refusal is going to cost me a significant amount of money, as I know need to purchase my own HO-6 insurance policy to meet the lender 's ridiculous requirements.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation