Product: Mortgage

Dear Consumer Financial Protection Bureau, I am writing to formally lodge a complaint against RoundPoint Mortgage Servicing LLC regarding their process and requirements for switching to a bi-weekly mortgage payment plan. My experience with RoundPoint has raised significant concerns about security, transparency, and fairness, which I believe warrant regulatory attention. 

On XX/XX/XXXX, I attempted to switch my mortgage payments to a bi-weekly schedule with RoundPoint. I was surprised to find that this option is not available through their website. Instead, I was required to fill out a PDF application, attach a copy of a voided check, and send it via email. This method is highly insecure and raises serious concerns about the protection of personal and financial information. 

After submitting my application, I received a call from a RoundPoint representative who reviewed my application, requested dates for the first payment, and assured me that my application was approved. However, I did not receive any email confirmation for another two days, prompting me to call their office for clarification.

During this call, I was informed that I needed to send a copy of a voided check via email again and make the payment for the next month in advance to avoid late fees. I was further informed that the bi-weekly payments do NOT cover the full next month 's payment, requiring clients to pay the next month in advance and then make additional interest and principal payments through the bi-weekly schedule. This practice effectively results in double interest billing, which is both unreasonable and unfair. 

Nevertheless, requiring an additional payment upfront creates a significant financial burden that can be challenging, if not impossible, for many customers to manage. In my case, my mortgage payment is {$3100.00}, and I am being asked to pay this amount twice : once upfront and then again within the same month through bi-weekly payments. This effectively doubles my financial obligation in a single month, which is an unreasonable expectation for most households. Such a requirement not only strains my budget but also undermines the potential benefits of switching to a bi-weekly payment plan, which is intended to ease financial management and reduce the loan payoff period. This practice can place undue stress on customers, making it difficult for them to meet their financial commitments and potentially leading to financial instability. 

The process to switch to bi-weekly payments is unnecessarily complicated and prohibitive. Bi-weekly payments are known to reduce the payoff period and, consequently, the total interest paid over the life of the loan. It appears that the current process is designed to discourage clients from opting for this payment method, which is not in the best interest of consumers. 

Furthermore, there is no simple way to manage bi-weekly payments through their online portal, and all changes must be submitted via insecure email. This lack of a secure and user-friendly online option is concerning and not in line with industry standards. 

I would like to point out that no other mortgage company I have encountered requires a monthly payment upfront to allow for bi-weekly payments. Typically, clients make the payment for the next month and then make XXXX additional partial payments during the month, without the need for double billing of interest.