In June I obtained a home mortgage from American Sterling Home Mortgage. My homeowners insurance was to be withdrawn from my escrow account Within months my loan was sold to Wells Fargo. They failed to pay the insurance premium out of the escrow account.
I called Metcafe Bank (who had bought out American Sterling) and they verified they sent all the insurance information about when the premium was due and the amounts of the premiums to Wells Fargo Insurance Department. They had dates and times of received transmissions of faxes to Wells Fargo Insurance Department.
Wells Fargo instituted Forced Placed Insurance and charged me $464 for 3 weeks of insurance! (Annual premium is usually $650) due to their error.
When I complained they said it was my fault! That I should have called AAA and updated the information when they bought my loan! No notification was sent to me stating that I needed to do this. How is the average person supposed to know this?
They had the information of who the insurance company was (AAA) yet failed to pay the premium out of the escrow account stating "we never got a bill". I even got a letter of insurability from AAA stating if the premium had been paid, they would have renewed the insurance.
With all the mortgages that are bought and sold, this seems like a blatant attempt to ripoff people, charging them exorbitant fees for unnecessary high risk insurance. When they are the ones responsible for artificially creating the high risk!
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