Consumer Complaints and Reviews
LOAN DEPOT HOLDS ESCROW FUNDS FROM VETERANS
My VA home mortgage loan with LOAN DEPOT included escrow payments for homeowners insurance. The loan was refinanced through Clearpath Lending with Freedom Mortgage the mortgagor, closing on September 18, 2020.
LOAN DEPOT had previously collected 9 months of homeowners insurance premiums for 2020 and was supposed to pay the renewal policy premium, but did not.
LOAN DEPOT told me they contracted First Insurance of Hawaii twice but never contacted an agent; First Insurance told me there were 8 agents available on date of LOAN DEPOT call 11/20/20.
LOAN DEPOT did not pay insurance premium on 11/30/20; as a result I lost bundled homeowners/auto/umbrella coverage. Can you imagine dealing with 12 days of non-coverage of auto/homeowners/umbrella insurance while straightening out this screwup by Loan Depot.
Freedom Mortgage demanded proof of insurance 12/2/20, then purchased homeowners insurance policy.
I had to work with First Insurance of Hawaii to reinstate the insurance that I had paid the premiums on auto and umbrella; then had to pay all premiums twice due to billing problems at First Insurance during attempts to reinstate the insurance policy.
Made multiple calls to Clearpath, Freedom, First Insurance, and LOAN DEPOT; all pointed finger at LOAN DEPOT as the problem.
Calls to LOAN DEPOT said:
1. Could not get response from insurance company
2. Check was mailed
3. Escrow refund check was mailed
4. Escrow check will be reissued since lost in mail
My contact with LOAN DEPOT started December 2, and had since been moved from their Loan Servicing Department to their Loan Purged Department to their RESEARCH DEPARTMENT. Today is January 18. Every time I called, there is a different agent with a different procedure to go through.
I have spent hours on calls to LOAN DEPOT, First Insurance, Clearpath Lending, and Freedom Mortgage.
I have yet to receive my escrow account refund (>$4,000.00) from LOAN DEPOT.
Anybody else experiencing this type of problem?
An investment firm was once cited by the SEC for issuing checks to clients from banks on opposite coasts to take advantage of the check mailing and clearing time (float/time value of money.)
The delays and nonfeasance on a federally backed VA mortgage is not right. This delay is akin to that investment firm scheme taking advantage of mailing, only now it is complicated by the the Covid-19 pandemic.
Mortgage documentation, correspondence, emails, and phone records are available.
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1 Comment
Derek
I haven’t had this problem, yet. But it did take three months to close. Also, they contacted my county and had my tax status changed from agricultural to strictly residential, even though I own forty acres, and said my taxes would go up from the $8 I already paid to $800 and have been billing me accordingly all year. I just got my property tax forms which stated my property taxes only went up to $160 so I currently have an overage of double what I needed. They also failed to be able to explain for several months why I needed my well water tested even though I don’t have a well. AND, they initially lied about their VA appraiser using three trailers to get an appraisal on my custom stick-built home; which is not an authorized comparison. This allowed them to lower the appraisal of my brand new home by $50,000 which put me into a lower loanable amount, and therefore a higher interest rate. I had to talk to several bosses before someone admitted this. The closing costs they originally asked for were $7,000 which is REDICULOUS. I have never paid even a third of that before. The manager “managed” to lower it however when I threatened to go elsewhere. Oh, and when I did threaten to go elsewhere, they refused to give me a copy of my appraisal, because “it belonged to them” even though I was the one that paid for it. These guys are snakes. They should know better than to mess with disabled war Veterans.