I purchased my home in 2006 for 180k got a 5.875% interest rate with taxes and insurance included with my monthly mortgage payments. I have been on time every month since I purchased my home . I have not asked for a refinance or a modification. My recent monthly statement from Citimortgage has a new insurance "windstorm insurance." I called Citi mortgage Mortgage servicing and was transfered to Citi mortgage Insurance because the department I called couldnt help me. The lady I spoke with was very rude insisting this is mandatory. I asked when I was informed, she claims a letter was mailed to me in May of 2009 indicating this new requirement - a complete lie. I asked if she could send me where it states in my loan documents where this is required, she would not. I asked if she could forward the law or where it states it is mandatory she would not. I asked to speak to a manger, there was no manager. Apparently this insurance has been optional - like earthquake insurance - for sometime and now all of the sudden in December of 2009 Citi mortgage is requiring my loan to have it. The additional "windstorm insurance" is $4000 a year, this increases my current payment by 150%. I called my current insurance company and asked if they usually write "windstorm hazard polices" in Fontana, CA, they said no. I called my friend who is an agent he too says he rarely writes these polices but can write me one if I need to have it for my policy for about under $1000 a year. I called my mortgage broker, who is still in business, and asked if he sells "windstorm insurance" with his mortgages, he said no. After I explained my situation to him, he laughed in disbelief and asked me if I was serious. I am very serious, this is no joke. I spoke with over 30 home owners today and not 1 of them pays this type of insurance, nor is it mandated by their mortgage lenders.
I think I am being Scammed here. Is anybody out there having the same occurrence? Let me know, my attorney is taking a look into it tomorrow.