Consumer complaint received 2023-03-28
Company: Village Capital & Investment LLC
State: TX
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
I closed on a home XX/XX/XXXX. I was assisted through the process by XXXX Mortgage. During the closing day signing, the XXXX agent was asked by the title agent if they would be selling the loan and she advised no. Unfortunately, this was not accurate and XXXX sold the loan before the first payment due. My loan was immediately sold to Village Capital with my first payment due XX/XX/XXXX. My payment amount from XX/XX/XXXX through XX/XX/XXXX seemed to be in line with the payment amount and documents advised during closing of {$2800.00} which included $ XXXX for mortgage insurance for loan type. XXXX of XXXX my monthly loan amount increased to {$3400.00}. It advised it was to balance escrow so I thought it was not going to be a monthly increase the first time I saw the payment difference. XXXX statement my monthly mortgage has now increased to again to {$3400.00}. I called Village capital on XX/XX/XXXX. In the call to understand why the increase and would this be ongoing the rep said the increase was because they used and analysis tool and based off of their findings, they found my mortgage would be {$630.00} more a month. I asked for a breakdown and the rep looked line by line and said we called, and no taxes increased those were the same. Then the agent advised of the increase the {$200.00} was for mortgage insurance and the other {$430.00} was for homeowners ' insurance. She said they did not have a declaration showing I had insurance and the analysis tool they use advised my insurance would be {$3500.00} a year. 

This loan is not even a year old. I would not have been able to close if I didn't have homeowners ' insurance which policy payment is required on an annual basis. I was advised they had no declaration page, but this service provider was able to verify no taxes changed but was not able to find a homeowners declaration page after purchasing the loan from XXXX mortgage and done no due diligence for this line item, so they increased my monthly based off of an in-house tool. And for them to include more mortgage insurance on top of what was already included in my payment terms & conditions is a billing error. 

This company is running a scheme on homeowners to get them to default or refinance on their mortgages. How many others has this occurred to. They have similar practices as such that has already been in federal litigation. Why does the federal government allow companies like this to continue to hurt consumers. They are taking additional monthly income from me and advising they are placing these funds in an escrow account and for what justifiable reason. A reason that does not include an in-house analysis tool. I don't think it is fair that the statements are also not line-item detail transparent. They just categorize the over payment as short/surplus which is subjective and open to the ability for a consumer to not be able to reconcile their mortgage. They are trying to steal consumer homes through billing errors and analysis tools that can be improperly programmed.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation