Got a consumer Mortgage loan on what was supposed to be a small rental property in the spring of 2000.
Prior to closing, there was a requirement for proof of insurance (Hazard, Flood, etc...) on the property. This proof was REQUIRED at closing or the loan wouldn't close.
Obtained a year's insurance, paid in full and brought policy documents to closing.
About three months later, we started getting letters from WAMU's insurance division saying we needed to provide proof of insurance. I called them, (that's an entire experience in and of itself) and finally got to the insurance division.
I explained that the same proof of insurance that was required to close the loan three months prior also showed that said insurance was paid in full for one year from the date of the closing.
They insisted they had no such proof and it was my responsibility to provide it.
I went to the agent and had them fax a copy of all the documents to WAMU. This seemed to placate them till about February or March of the following year (Insurance renewed in April). Again they started with the letters and eventually phone calls about "no proof of insurance".
This time I ignored them, and in April, renewed the insurance for another year, paid in full.in my presence, the agent faxed copies of the pertinent documents to WAMU.
In the following 12 months, I suspect I recieved 50 phone calls demanding proof of insurance. Sometimes I'd go to the agent and have them fax it again, but it never really mattered since no one at WAMU actually seems to have a clue what they're doing.
They kept insisting I had no insurance.
This went on till about mid 2003... Finally I called and asked them what their forced place insurance would actually cost.
After an interminable time on hold. Someone finally came back and told me it would be about $40/mo... Considering that the monthly on the existing insurance was about $30, I considered that the peace and quiet of them not constantly harassing me was probably worth $10/mo that I'd be paying extra.
I told them (this was a FATAL error on my part) to go ahead and just do it because I was sick and tired of their inept office practices.
The calls stopped, and I just paid the difference till about December. (I should point out here that the payment was an auto ACH from my checking account and I rarely actually looked at it after all this time)...
In December with no notice to me, they changed carriers to Lloyds of London. The monthy insurance payment went from about $40/mo to almost $300/mo.
When I started having difficulties with my checking account, I looked deeper into it and found the new payment change.
As pointless as I knew it would be, I called and asked why I wasn't notified of the change and given an opportunity to go out and procure my own insurance again... They insisted they had, but of course, as is common with WAMU, that was a lie.
I cancelled the auto pay so they couldn't debit my checking account any longer. I then went out and obtained my own insurance again... This took about four months... During which time I did pay them three more times at the inflated rate or, more than the inflated rate to make up for the missing month I didn't pay them.
I got new insurance in April (three months after discovering their new charges)... They continuted to CHARGE me the almost $300 till August of that year.
Of course, since I had my own insurance since April, I adamantly refused to pay it.
The agent faxed them, and actually spoke with them on the phone at least five times between April and August. Still they kept insisting that there was no proof of insurance.
Finally, my credit report was reflecing a 90 day rolling late on a mortgage to WAMU. Even though I had my own insurance in place and was paying my regular payment. I was not going to pay them that extra insurance money with my own policy in place.
I finally got the force place removed in August, but they insist that they owe me nothing in the form of reversals of fees and charges for the almost five months they continued to assess that force placed charge to my account.
Last month, the letters and phone calls started again about the no proof of insurance.
I've written the comptroller of the currency... No help there.
The Attorney General. No help there. They're a National Bank.
WAMU SUCKS and I have a few friends in the real estate business.
They do anything they can to steer clients AWAY from WAMU for home loans.
Sal
Olympia, Washington
U.S.A.
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