Midland, Texas
Not resolved

Wells Fargo has a habit of requiring that flood insurance be at the same level as hazard insurance. We live in an area that is flat, has no rivers, but because of drainage, our street will flood.

Our house has never flooded, never will, but Wells Fargo does not listen to us or our insurance provider. We owe 32,000 on the house and they require 129,000 of flood insurance which costs us about 1,000 more a year. If you do not pay for the same level for flood insurance , they purchase it for you from their insurance companies at a very high rate.

I am sure that they make millions from this practice. This is why I hate them.

Monetary Loss: $1.

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"The person above" to whom I refer, is actually entry #10 in this thread.


Ditto on my experience--mortgage purchased, etc. The poliburo-like attitude and response of the person above is representative of this company's attitude toward people in our class.

Quite possibly, this practice may target the aging population who are less likely to understand the ultimate import. They are more likely to downsize to garden homes, etc., and having successfully serviced the debt on the older family home via more straight forward processes, and, being in diminished states via eyesight, awareness of modern mortgage predation and the like, may continue to service their mortgage deb in accordance with their understanding of their fixed payment agreement at origination time.

Unwitting, unsuspecting, confused by the jargon and near impossibility to discern written monthly statements in the form in which they have currently evolved, are ideal prey for forclosure, and if not that, undue suffering. Actually, this holds true for most of us, irrespective of age.


and processing center guy why they getting sued? you probably get kickbacks too my mortgage paper says no flood insurance required


It also says that your original leinholder can change the requirements for homeowners insurance as they see fit (i.e, require flood insurance even though it wasn't originally required).


I too have this problem with wells fargo N.A they decided with the help of fema with no flood elevation certificate bought insurance and now want 2,000 for escrow shortage and they will raise house payment $150 nice and you hazzard processors think its fair F.E.M.A NEVER WAS AT MY PROPERTY THEY GOT THIER COLORS OUT ONE DAY AND NOW MILLIONS OF PISSED OFF PEOPLE ARE GETTING SCREWED



I have the same story. My loan was also purchased by Wells fargo.

My contract that I signed with Cardinal financial states that I only have to pay the principle balance of the loan amount for flood ins. Fargo says my contract is no longer valid since they purchased it. This is causing my flood ins to more than double. I have filed a complaint with the BBB of Florida because that's their home base.

I suggest everyone else does the same. It is a simple online form.


I am going to email kdarby in reference to a class action law suit as soon as I finish this. I owe Wells Fargo $76,000 on my 220,000 home.

They are requiring me to pay for flood insurance to cover the replacement value. I feel I should only be required to cover what their loss would be in the event of a total loss. The rest is my problem and if I'm willing to take that risk that is my decision and my problem. As far as the guy who works for the hazard processing center, if it does say in my mortgage papers that I agreed to let Wells Fargo charge me whatever they like for something I don't need then shame on me for signing it.

That does not make it right though.

I have already contacted my state representative about this and he has agreed to look into it. Anyone who wants to discuss this is welcome to email me albinwi@charter.net


Incorrect answers.....

I was told by a Wells Fargo Rep that I needed to increase my flood after a refy from $148K to $204K what I owe on the property, only to recieve gap insurance letters after the increased amount and then told that my flood has to match my Home Owners policy of $245K, now I have to go through the whole process again to increase my flood coverage to $245K an additional $700/yr..... What a Charlie Foxtrot


I did not buy my mortgage from Wells Fargo, they bought it after the fact. I have flood insurance for the *actual* value of the home not Wells Fargo's *replacemnt* value which is 50% more than I can sell the home for.

I've just received my 45 days notice. I will be contacting the attorney who handled my original close to find out if this is even legal. I sure can't find anything in my mortgage papers that says the company can force me to buy more insurance than their interest in the home. I hope I can find a class action suit to join.

No other mortgage company has treated me this way. I refinance to get rid of my PMI and take advantage of lower interest rates but that will all be eaten up by this outrageous demand that I purchase more insurance than the property is worth.


In response to the employee of the hazard processing center. Your response is rude and unprofessional and the reason so many of your clients are upset and discouraged by this process.

I am currently working with a client that Wells Fargo is requiring that they purchase flood insurance and they are not in a flood zone. FEMA does not show them in a flood zone but Wells is still requiring the insurance. I would very much appreciate it if you could put me in contact with someone of authority that could explain to me why this person would be required to carry the insurance when she is not in the flood plane. Also, I am interested in knowing why you would require replacement cost coverage when the loan amount is substantially less.

Just because it is in your loan docs does not mean that it is right or even legal to do. I do recall reading several articles regarding legal actions against Wells Fargo Mortgage lending institutions from across the US for investigation into possible violations of fair lending and consumer fraud laws. If you could put me in contact with the right person or persons to try to settle some of theses issues I would greatly appreciate it.

No one needs bad press. Thanks for your help.


Wells Fargo is running an insurance scam. I just assisted my client (I am a Realtor here in the Tampa Bay area) who closed over a year ago to have the flood insurance removed from her property.

I will halp anyone with the process we went through. It is not that difficult but is time consuming.

I believe we should do a class action law suit and also this is criminal and can be proved by the pattern. Wells Fargo is making a lot of money by people that do not know how to fix this with FEMA.Please contact me 813-230-7436 or e-mail kdarby@tampabay.rr.com .


I work for the hazard processing center. Let me be the first to suggest that A.) you read your mortgage papers.

It states in plain english that Wells may ask that you keep whatever type of hazard insurance in whatever amounts that the mortgage company chooses, or THEY WILL PLACE IT FOR YOU AT YOUR EXPENSE, B.) You take up this issue with FEMA. FEMA is the organization that sets the mapping requirements -- if you state you are not in a flood zone, then dispute it with FEMA.

You strike me as one of the kinds of homeowners who calls up to the center and is totally rude and horrible to the service representatives who are just doing their jobs by providing you answers. Thanks for that.


If you don't like dealing with people who have a legitimate reason to be angry than you should consider a new career.