Consumer complaint received 2025-12-31 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: MIDFIRST BANK
State: AL

Complaint narrative:
In early XXXX, a very large tree fell on my home, along with other storm damage rendering it uninhabitable. My insurance company approved a major claim ( exceeding {$30000.00} ) and issued funds to XXXX Mortgage to endorse and send to me to get the repairs done. For nearly two years, XXXX has withheld these funds while my family has been displaced. 

Initial Out-of-Pocket Costs : I paid nearly {$18000.00} upfront to remove the tree after XXXX promised immediate reimbursement XXXX It took months and months of repeated document requests to be reimbursed. Each time I provided requested documentation, they demanded additional items, each time getting more absurd. At one point, they were requiring the contractor to submit their business bank statements before releasing any funds. 

Unauthorized Repairs and Additional Damage : XXXX hired unlicensed third-party contractors to attempt to perform work, however, most was not covered by the insurance scope. This work was substandard and ultimately caused additional damage to the property. The XXXX party appeared at odd hours in unmarked, damaged vehicles and would abruptly leave when neighbors approached. XXXX then filed a separate vandalism claim and a supplement claim, both of which were approved by the insurance company. However, none of these funds were released to me for repairs, put towards the house for repairs, and would never be explained as to what they did with the money. 

Contractor Coordination Failures : Multiple times, XXXX representatives confirmed funds would be released within days, allowing me to schedule contractors. Each time, they later contradicted this and refused to release funds without explanation or documentation of where the insurance money went. 

Current Financial Hardship : My wife, XXXX XXXX XXXX daughter ( who was a baby when this started ), and I have lived in temporary housing for nearly two years while paying for both rent and the mortgage. To this day, the property continues deteriorating and remains uninhabitable due to incomplete repairs. XXXX continues demanding mortgage payments while withholding the insurance funds needed to make the property habitable, while reminding me about foreclosure if payments arent made. 

Loss Draft Department Issues : Since XXXX, I have documented every interaction with XXXX. The Loss Draft department has been evasive, argumentative, and refuses to provide clear answers about fund disbursement or next steps. At this point, multiple representatives recently admitted no additional funds would be released, while some add they do not see any funds at all. This is the part that continues to baffle me as we are talking large sums of money going missing. 

Pattern of Behavior : I have talked to multiple council, with majority indicating this is a common practice by XXXX. Even my insurance company stated they are familiar with XXXX engaging in this behavior. 

I am requesting investigation into XXXX handling of insurance claim funds and their property preservation practices that have left my home uninhabitable for almost two years while holding large sums in approved insurance funds.

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