I financed a newly constructed home from Richmond American Homes and financed it with their captive mortgage company Home America Mortgage. Valon Mortgage bought the mortgage from Home America in September 2024. One of the requirements for our development is that we are required to have flood insurance. In the sales agreement, Richmond American agreed to pay for the Flood Insurance for up to ten years or until the flood zoning was removed. Home America Mortgage handled the flood insurance flawlessly and with no issue. On 11/05/2024 I received a letter from Valon Mortgage stating they are now charging me $1,000.55 a month from my previous $690.68 to escrow for flood insurance. This is $309.87 a month or $3,718.44 increase. Never mind that I have Flood Insurance in place. I call and write emails to no avail and they keep saying that they are required by the Biggert-Waters Act to escrow for Flood Insurance. I provided Valon with information publicly available from FEMA that oversees the Flood Insurance and talked directly to FEMA and provided all the information to Valon. I provided Valon with a bound, paid for, and backup documentation including the full legally required Insurance Policy for the next year starting on January 1, 2025 December 31, 2025. The actual cost of the Flood Insurance which is in place is $718.00 a year. Valon, provides no backup, no documentation, no policy, but simply states THEY ARE PROVIDING flood insurance for $3,000 more than the actual cost. If I do not pay this full amount, I am in default of the loan agreement. After many back and forth with Valon, they came back and said they would now reduce the escrow amount to $129.66 or $1,555.92 a year, which is still over twice the cost of the actual Flood Insurance. Once again, no documentation, no backup, no explanation. I gave up and refinanced with Rocket Mortgage, with no escrow requirement per their escrow and legal department. however, it cost me over $4000 in closing costs and points. Valon is an unethical or at best an incompetent company