Mortgage -- Trouble during payment process -- Complaint #7533741
Complaint Overview
Complaint ID: 7533741
Company: American Internet Mortgage
Product: Mortgage
Sub-Product: Conventional home mortgage
Issue: Trouble during payment process
Sub-Issue: Escrow, taxes, or insurance
State: Arizona
ZIP Code: 860XX
Date Received: 2023-09-11T12:00:00-05:00
Date Sent to Company: 2023-09-20T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I purchased a townhouse in Arizona in XXXX. My HOA provides a master insurance policy that covers the structures to the inside walls. My understanding is that if my property burned down today, the lender would be made whole with that coverage ( they could, with that insurance, rebuild my townhouse ). My loan servicer just changed in XXXX as it has many times over the 16 years I've had my mortgage. The new servicer is requiring an " HO6 '' policy to supplement my HOA 's policy. My understanding is that an HO6 policy covers improvements I make to the inside of the property. Currently, I have no improvements to the inside of the property to insure. Everything is original builder-grade from when the property was built in XXXX ( flooring, window treatments, kitchen, etc. ). I called the new mortgage servicer to ask what coverage limit I was required to have given that I have no improvements to cover. They are requiring that I cover the entire $ XXXX unpaid balance of my mortgage. They didn't have any answers on how that balance relates to improvements inside the home, and they are placing their own expensive insurance until I come up with my own. This seems abusive to me. It seems like they are using a backdoor to get the equivalent of private mortgage insurance from me. I worked and saved to put down a down payment that avoided such a requirement, and have since gained substantial additional equity. I have excellent credit ( XXXX ) and have never missed or been late with a mortgage payment. It seems unfair for them to add a new $ XXXX bill to my monthly expenses to cover their own risk with no conceivable benefit to me.
Frequently Asked Questions
What is Complaint #7533741 about?
Complaint #7533741 was filed against American Internet Mortgage regarding Mortgage specifically about Trouble during payment process. It was received by the CFPB on 2023-09-11T12:00:00-05:00.
How did American Internet Mortgage respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Mortgage) and describe your issue in detail.
Can I see other complaints against American Internet Mortgage?
Yes, visit the American Internet Mortgage company profile at readthecomplaint.com/company/american-internet-mortgage to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.