Flood Insurance Nightmare

When a large company like Nationstar Mortgage LLC (dba Mr. Cooper) sends you a letter telling you flood insurance is required for your house, you likely assume they're telling you the truth. Unfortunately they might not be telling the truth and by sharing my personal flood insurance nightmare, you might save a lot of money!

Letter Outlining My Flood Insurance Nightmare 

When forced to waste precious time fixing problems caused by others, I usually send a letter to the CEO. It also pays to copy stock holder relations and other relevant parties inside the company. With this letter it also made sense to copy key resources in the mortgage and flood insurance industries.

Jay Bray, CEO Mr. Cooper
8950 Cypress Waters Blvd
Dallas, TX 75019
[email protected]

Re: Flood Insurance Nightmare

Mr. Bray,

I’m writing to highlight what appear to be abusive practices by your company. While I’m a strong proponent of flood insurance (read: Flood Insurance Might be a Bargain), your company’s bully tactics and recent billing in excess of $2,000 for flood insurance for my property is unacceptable.

Here is a summary of the research I’ve done (read: Do You Really Need Flood Insurance?), leading to a letter from FEMA stating my home is in flood zone X which does not require flood insurance.

• Received 2 letters from Cenlar stating I needed to purchase flood insurance.
• Checked FEMA flood map which indicated zone X which doesn’t require flood insurance.
• Requested supporting documentation from Cenlar; told only a FEMA letter was acceptable proof.
• Began FEMA process to dispute claim that I needed flood insurance.
• Talked to surveyor who said no flood insurance needed and he sent me supporting documentation.
• Talked to county flood plain management who confirmed no flood insurance needed.
• Submitted extra documentation to FEMA (registered deed and tax records, really) to FEMA and finally received letter stating NO flood insurance needed!

The reason for listing all these activities is to show you that a 60 day deadline is inadequate to research and get documentation proving no flood insurance required.

What’s sad is I communicated what I was doing both verbally and in writing. You claim at Mr. Cooper “… we’re 100% committed to giving you a less worrisome and more rewarding mortgage experience. One that’s less complex and more caring. One where your problems are our problems …”?

Your 1/10/20 letter gave me 15 days to submit proof of insurance. As FEMA had not completed their review, I provided the following within your 15 day window (proof of delivery attached). My letter ended with “… request you wait until FEMA has concluded their research before purchasing flood insurance unnecessarily.”

Here are the documents included with my letter:

• FEMA flood map showing my house doesn’t require flood insurance.
• Builder’s surveyor documents showing my house doesn’t require flood insurance.
• County floodplain management letter stating my house doesn’t require flood insurance.
• Letter from FEMA asking for more documentation to research dispute about flood insurance.

Issues Identified During Flood Insurance Nightmare

Here are the issues I have with your company’s actions:

• You ignored my communications indicating no respect for customers.
• You failed to provide any documentation about the flood insurance policy you purchased on my behalf … so what exactly did I get?
• Pricing over $2,000 for your policy is outrageous! Previous policies I’ve had cost between $450 and $550. Even Cenlar’s policy was only $750.
• Pricing even more objectionable because it excludes coverage of $100,000 for personal property which is included in FEMA flood insurance pricing identified above.
• Policy written for $250,000 but that’s more than it would cost to rebuild my home.
• Amazingly you’ve also back dated the policy assigning an effective date of 12/6/19.

Together these actions look like a major industry scam is underway. Forcing homeowners to buy flood insurance when none is needed! Outrageous pricing for an undocumented unknown policy for the standard FEMA maximum coverage when half the coverage is excluded.

Trying to Resolve Flood Insurance Nightmare

Here is what I’m requesting to resolve these issues:

• Immediate refund of any money stolen from my escrow account, and documentation to prove this has been done.
• Letter of apology for mismanagement of this issue from inception.
• Letter explaining what changes are being made to your process so that other homeowners are not subjected to this abuse. I will publish this along with my letter at HomeTipsforWomen.com.

Following your lead, I’d like these actions to be completed within 30 days.

Sincerely,

… original signed (sent via snail mail and email)

Tina Gleisner, Home Expert & Homeowner Advocate at HomeTipsforWomen.com
Property Address: 999 XXXXXXXXXXXXXXXX Florida 99999
Mr Cooper Loan Number: 9999999999

Attachments follow …

Copied:

• Mr. Cooper Shareholder Relations, [email protected]
• Mr. Cooper Media Relations, [email protected]
• Mortgage Bankers Association (MBA) Public Affairs, [email protected]
• Federal Emergency Management Agency (FEMA) Media Relations, [email protected]
• Consumer Financial Protection Bureau (CFPB) using their consumer complaint process

List of attachments (download-letter-and-attachments):

1. Proof of delivery, that my letter was received by your company before due date!
2. Cover letter sent to your company with following information
   1. FEMA flood map showing my house doesn’t require flood insurance.
   2. Survey showing my house doesn’t require flood insurance.
   3. County floodplain management letter stating my house doesn’t require flood insurance.
   4. Letter from FEMA asking for more documentation to research dispute.
3. Mr Cooper demand letter and …
4. Mr Cooper’s ridiculous … proof of flood insurance ripoff!
5. FEMA letter and proof … no flood insurance needed!

Research & Dispute Claim that You Need Flood Insurance

This process is easy once you figure out the quirks as originally I thought FEMA wanted $400 to request a review. This process though is absolutely free with possible exception that you'll have to pay a few dollars for proof you own your property.

1. FEMA flood map service center is easy to use – just plug in your address. If the map shows your home is not in a flood zone but your mortgage copy will only accept a letter from FEMA …
2. Request a “Letter of Map Change” to prove your house doesn't need flood insurance. Call if you get stuck as the people are very friendly and helpful. Start this process right away because it can take up to 90 days.

Irony of Dealing with Flood Insurance Nightmare

The irony here is that I had to fight false claims that I needed flood insurance … while dealing with a flooded house.