Citi Mortgage
Mandatory windstorm insurance of $4000 a year added to mortgage

I purchased my home in 2006 for 180k and got a 5.875% interest rate, with taxes and insurance included in my monthly mortgage payments. I have been on time every month since I purchased my home. I have not asked for a refinance or a modification. My recent monthly statement from Citimortgage has a new insurance, "windstorm insurance." I called Citimortgage Mortgage Servicing and was transferred to Citimortgage Insurance because the department I called couldn't help me. The lady I spoke with was very rude, insisting this is mandatory. I asked when I was informed, and she claims a letter was mailed to me in May indicating this new requirement. That is a complete lie. I asked if she could send me where it states in my loan documents that this is required, and she would not. I asked if she could forward the law or where it states it is mandatory, and she would not. I asked to speak to a manager, and there was no manager.

Apparently this insurance has been optional, like earthquake insurance, for some time, and now all of a sudden in December Citimortgage is requiring my loan to have it. The additional "windstorm insurance" is $4000 a year, which increases my current payment by 150%. I called my current insurance company and asked if they usually write "windstorm hazard policies" in Fontana, CA. They said no. I called my friend who is an agent. He too says he rarely writes these policies but can write me one, if I need to have it for my policy, for about under $1000 a year. I called my mortgage broker, who is still in business, and asked if he sells "windstorm insurance" with his mortgages. He said no. After I explained my situation to him, he laughed in disbelief and asked me if I was serious. I am very serious, this is no joke. I spoke with over 30 home owners today and not 1 of them pays this type of insurance, nor is it mandated by their mortgage lenders.

I think I am being scammed here. Is anybody out there having the same experience? Let me know. My attorney is taking a look into it tomorrow.

Company: Citi Mortgage
Country: USA
State: Missouri
City: O'Fallon
Address: 1000 Technology Drive
Site: citimortgage.com

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