Consumer complaint received 2024-04-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: RoundPoint Mortgage Servicing LLC
State: OR

Complaint narrative:
I have maintained a history of timely mortgage and homeowner 's insurance payments through an escrow account. Despite this, I've encountered significant issues following the transfer of my mortgage from XXXXXXXX XXXX  to Roundpoint Mortgage in XX/XX/XXXX, leading to an unnecessary lapse in my insurance coverage and the imposition of unjust fees. 

Transfer and Documentation : In XX/XX/XXXX, my mortgage was transferred to Roundpoint Mortgage, with all necessary documentation, including escrow balances and insurance payment information, provided by XXXX XXXX. 

XXXXXXXX XXXX XXXXXXXX : Roundpoint Mortgage failed to renew my homeowner 's insurance policy, resulting in a lapse from XX/XX/XXXX until I managed to resolve the issue on XX/XX/XXXX. Roundpoint attributed their failure to " not knowing who to pay, '' despite having received comprehensive transfer documentation. 

Communication Issues : Despite being informed via letter of the lapse, I was unable to address the issue until XX/XX/XXXX due to being out of town. Subsequently, I received a letter dated XX/XX/XXXX, indicating a punitive fee of {$600.00} for the lapsed period, a rate significantly higher than market standards. 

( Note : That fee is well above market and predatory. The new annual policy fee I am paying for a year 's worth of coverage is {$1000.00} ; or {$2.00} per day. Their purposed " estimate '' equates to {$11.00} per day and covers a period in the past that accompanies XXXX claims on the property. ) - In response, today, XXXX, XX/XX/XXXX, I called my new insurer ( XXXX ) and asked if they could backdate the coverage. They can not. That vehicle is not available to me as a consumer. Not a product I can buy on the free market. 

- I then called RoundPoint to discuss the issue and ask how to remedy it, and on the recorded line, was told by their rep that if I could provide documentation that they knew who to pay to renew my insurance, by the end of the week, the fee and penalty would be removed. 

- I then called the insurance company and the previous mortgage servicer and was able to find and, am in receipt of, such documentation. XXXX XXXX  sent me the documentation that was sent with the transfer that indicates my escrow balance and the XXXX renewal and fees due to renew the policy with my insurance company ( XXXX XXXX ). 

- I called RoundPoint back asking where to send that documentation to have the fee and lapse removed. I was connected with a different representative who told me that her scripted template only permitted her to tell me that the fee would be charged unless i could provide proof of insurance for the lapsed period. She said she was unable to provide me with any route to share the information I had collected and that documentation would do 'nothing to resolve ' the issue. 

- I asked for a copy of the recorded transcript and notes on from calls. She replied she was unable to do that. 

XXXX asked for an email address where I could deliver the documentation I was in receipt of that clearly demonstrates they were in receipt of my insurer payee and the amount due and when it was due. She replied she was unable to do that. 

-I asked her to put in writing and send to me via email that they are telling me that they had no record of where to send the money I had paid in full and was stored in my escro account for the explicit purpose of procuring homeowner 's insurance and that is why they are charging me well above market rates for a product that does not exist to consumers, but would not accept such proof. Only proof that I had the insurance during those dates would remove the fees. She replied she was unable to do that and was restricted to the scripted language that essentially mirrored the letter I received. 

Conclusion : The documentation I possess, commonly transferred between mortgage processors, clearly details the allocation of escrow funds for insurance. Roundpoint 's failure to act on this information, combined with their refusal to acknowledge evidence and impose exorbitant fees, underscores a lack of accountability and predatory practices. As a consumer, I am left with no recourse to rectify this situation through reasonable means, highlighting a significant fault on Roundpoint 's part.

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