Key Rock Construction, Inc.

[redacted], Our Portsmouth, Ohio office conducted the closing for [redacted] and [redacted] for the purchase of real estate located at [redacted] on June 17, 2015 by [redacted].   Pursuant to our closing instructions, we collected from...

the borrower, [redacted], the sum of $706.33 payable to [redacted] for homeowner’s insurance.  This payment was mailed to [redacted] immediately after closing.  We were contacted by [redacted] on September 16 who advised that the payment to [redacted] was not received.  We advised [redacted] that the check payable to [redacted] had cleared our bank, and we provided a copy of the negotiated check to [redacted] on September 17.  [redacted]  later contacted our office on September 20 advising that the check negotiated was cashed by [redacted] and asked our office to check with the issuing bank for clarification.  The office manager in our Portsmouth office met with the manager of [redacted] who advised that [redacted] was a servicing company and expected that [redacted] may service payments for [redacted], which would explain connection with [redacted] and [redacted].  We made a request from the issuing bank, [redacted], to research the check as it was not credited to the correct account.  The manager at [redacted] advised on October 13 that the funds were applied to a specific loan number at [redacted], and we began the process to have these funds retracted as the check was issued payable to [redacted] and not to [redacted].  On November 5, the bank manager advised our office that the bank cashing the check on behalf of [redacted] refused to cooperate in the retraction of the funds until the party whose account the check was erroneously credited to made the request, but would not share the information as to whose account the funds were credited.    We have worked with the bank manager to take other steps to recover these funds, and executed an Affidavit of Unauthorized Paper Debit with [redacted] on November 16. On November 24, our Portsmouth office manager spoke to [redacted] to confirm the amount owed for the homeowner’s premium at that time was $423.81, crediting monthly payments made by [redacted].  Accordingly, our office mailed a check to [redacted] in the amount of $423.81 and a check to [redacted] in the amount of $282.52 on November 24, 2015. We have made every effort to resolve the issue, and are sorry that [redacted] was incurred any inconvenience and financial hardship as a result of this matter.