Consumer complaint received 2026-03-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Rocket Mortgage, LLC
State: NY

Complaint narrative:
Subject : Illegal Force-Placed Insurance, Dual Coverage, and Fraudulent Servicing Practices XXXX XXXX XXXX XXXX XXXX XXXX I. Consumer Information Servicer XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. Summary of Complaint I am filing this complaint against XXXX XXXX XXXX ( XXXX XXXX XXXX ) for engaging in unlawful force-placed insurance practices, including knowingly placing duplicative insurance on my property despite having proof of valid coverage, and charging excessive premiums that inflated my loan balance. This conduct constitutes violations of RESPA ( 12 CFR 1024.37 ) and UDAAP under the Dodd-Frank Act, and reflects a broader pattern of servicing misconduct. III. Force-Placed Insurance Violations A. I Maintained Valid Insurance Coverage I maintained an active homeowners insurance policy through Travelers Insurance . The policy covered the subject property continuously, and Rushmore Servicing was listed as mortgagee/additional interest. B. Servicer Imposed Force-Placed Insurance Anyway Despite having proof of my valid insurance, XXXX placed lender-placed insurance through American Security Insurance Company with coverage of approximately {>= $1,000,000} and an annual premium of approximately {$9800.00} for the period XX/XX/XXXX through XX/XX/XXXX. C. False Claim of No Insurance Rushmore stated that force-placed insurance was obtained because it had not received satisfactory evidence of insurance coverage. This statement is false, as my valid policy was active and XXXX was already listed as mortgagee. XXXX XXXX XXXX At the same time, my private insurance policy was in full force while XXXX maintained its force-placed policy, resulting in duplicative insurance coverage that was unnecessary and financially abusive. E. Financial Harm The force-placed insurance premium was charged to my loan account and/or escrow, tre ated as a corporate advance, and used to inflate the alleged amount due. This contributed to artificial default and increased loan balance. IV. Legal Violations RESPA ( 12 CFR 1024.37 ) : Servicers are prohibited from placing force-placed insurance when the borrower has provided proof of insurance. XXXX had proof and imposed insurance anyway for the amount of {>= $1,000,000}. UDAAP ( Dodd-Frank Act ) : The conduct is unfair, deceptive, and abusive. V. Additional Concerns There are also serious irregularities in the loans chain of title, including an Assignment of Mortgage executed in XX/XX/XXXX but notarized two months earlier. The document appears to have been executed and notarized by employees of XXXX XXXX XXXX XXXX, as confirmed through records of the California Secretary of State. This issue is supported by a forensic handwriting expert affidavit and a police report raising concerns regarding authenticity and potential fraud. These facts raise concerns regarding the reliability and independence of the documentation relied upon in connection with this loan and further support the need for a comprehensive review of the servicers practices. VI. Improper Payment Application and Use of Suspense Account In addition to the force-placed insurance violations, the servicer has engaged in improper payment application practices. Defendant made regular monthly payments in the contractual principal and interest amount ( approximately {$710.00} ). These payments were received and negotiated, as evidenced by canceled checks and proof of delivery. However, the servicer failed to properly apply these payments and instead placed them into a suspense account, asserting that a higher payment amount ( approximately {$1700.00} ) was required due to escrow and other charges. As a result : Payments that were timely made were not credited as due Payments were held in suspense rather than applied to principal and interest The servicer created or increased an alleged default despite receipt of payments Payments from prior years were later reclassified and moved into suspense, further distorting the loan history This conduct resulted in an inaccurate accounting of the loan and contributed to the alleged default. The servicers actions are inconsistent with standard mortgage servicing requirements and raise concerns regarding compliance with applicable federal servicing regulations. VII. Requested Relief I request removal of all force-placed insurance charges, full refund of all premiums with interest, audit of the loan account, correction of balances, detailed itemization of any advance, and the complete loan transaction history from origination. ( See fair resolution section )

Company response to consumer: Closed with explanation