Specialized Loan Servicing LLC Mortgage Complaint

Conventional fixed mortgage Loan servicing, payments, escrow account

Specialized Loan Servicing LLC Mortgage department,

Conventional fixed mortgage Loan servicing, payments, escrow account Texas

Have had a mortgage loan with - for the past couple years since refinancing with them in -/-/-. The loan servicing was switched from - to SLS Loan Servicing on -/-/- without my knowledge or input. I received a letter the -/-/- from SLS informing me of his change. The letter stated that nothing about my note or mortgage would change. I then got another letter at the end of -/-/- stating that a $2700.00 lender placed hazard insurance policy would be placed and the payment would increase by $110.00 per month starting -/-/- unless I found my own policy within 45 days ( note : there was only about 30 or so days til -/-/- at the time ). This forced policy amount was double what I had been paying to escrow for hazard insurance. I then got an agent and found a policy for $1500.00 which went into effect on -/-/-, however the payment did not decrease at all and I was told that I still owed the difference from my my $660.00 payment to the increased payment of $780.00 even though I had purchased a much cheaper policy which would 've brought the escrow back down well


I was never informed that I did not have coverage at any time until today. I was not given any notice ahead of time about the transfer of servicing or the lapse in coverage in order to get a policy before hand and prevent a lapse. On the contrary, I was told that nothing would change in the letter I received at the end of -/-/- ; even though the rep in the Hazard Insurance Processing Center for SLS stated that the lapse in coverage is standard on all loans from - to SLS. Than no Hazard Insurance policy is ever continued from - to SLS. I think it is horrible business practice to plan and execute a transfer of loan servicing, allow a lapse in Hazard Insurance coverage, then charge the only party in the transaction who had no knowledge or control over anything ; after the fact. This could have been prevented by simply informing me 30 to 14 days BEFORE the transfer of the loan. Now I have an unpaid balance of $110.00 on my -/-/- mortgage payment as well as a deficit of $480.00 in my escrow account that I just found out about today. Please assist.

Specialized Loan Servicing LLC customer in Texas
Mar 24, 2017

* Source: CFPB Complaint Database

Specialized Loan Servicing LLC response to complaint:
Closed with explanation

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