Consumer complaint received 2024-02-28 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Specialized Loan Servicing Holdings LLC
State: OR

Complaint narrative:
In XX/XX/2023, I received a letter from my new mortgage company ( Specialized Loan Servicing ) stating that I needed to drop my current fire insurance company ( XXXX XXXXXXXX ) because XXXX XXXX was no longer an " A '' rated company. Supposedly they dropped to a " B '' rated company. I called Specialized Loan Servicing and spoke to a respresentative. I explained that my rental house in XXXX had received damage due to the heavy snow fall last winter and that I had a current claim out with XXXX XXXXXXXX to repair the damage. I explained it would be stupid to drop my insurance company now when I am in the middle of a claim. I also mentioned that I have been with XXXX XXXX for about 45 years and that this " B '' rated company must be fairly good because they have been paying the construction bills along the way from the snow damage. 

On XX/XX/2023, I received a letter in the mail from Specialized Loan Servicing stating, " to prevent the placement of forced insurance, your reponse is required. '' I immediately called the mortgage company. ( After XXXX minutes and XXXX seconds of pushing buttons to go through their voice messaging system, I finally got a live body on the phone to talk to. ) In talking to the rep, I find out that insurance had already been purchased. I said I just got my letter today. The rep said their letter was dated XXXX and that they purchased the insurance on XXXX. One day earlier than when I received my letter. 

I explained that I don't need double fire insurance coverage. The rep said that I should read the XXXX XXXX of the new fire insurance company, or call them, to see if they will honor the current claim that is outstanding from XXXX XXXX. I said this is called a pre-existing condition and that no insurance company is going to pay someone else 's bills. The rep said it is my problem and that I will just have to take that up with the new fire insurance company because Specialized Loan Servicing only deals with " A '' rated companies. 

This is called XXXX XXXX XXXX. I believe it is unfair in my situation. I have been with XXXX  XXXX for about 45 years. I am in the middle of a claim from the snow damages. Dropping them in the middle of a claim would be foolish. 

On a side note that you should be aware of. I decided to check the ratings of Specialized Loan Servicing. From the report that I read, there were XXXX reviews with a total score of XXXX out of a XXXX scale. That is pretty low. In my opinion that is about a C/D rating. I used to have XXXX XXXX as my mortgage company. For some reason they sold my account to XXXX XXXX XXXX. I think it is only right that a consumer should have some say on when one mortgage company sells their loan to another company. I sure wouldn't have said yes for my loan to be sold to Specialized Loan Servicing, a C/D rated company.

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