Consumer complaint received 2021-12-31
Company: Churchill Holdings, Inc.
State: WV
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
DATE : XXXX COMPLAINT ( S ) : 1- Dramatic increase in monthly mortgage payment due to accounting error at Churchill Mortgage Corporation 2- Threatened with negative impact to credit report if we didn't pay either the difference or the new increased monthly payment amount to correct their error.

3- Owners wish to be responsible to pay the real estate taxes and property insurance and terminate escrow account to prevent any further issues, was denied by the mortgage company because of their self-created deficit to our escrow account.

4- Threatened with late fees and collections if we do not pay to correct their error.

5- We were given 2 ANNUAL Escrow Analysis within 7 months, to adjust for an error that was caused by the accounting department of Churchill Mortgage Corporation . 

DESIRED RESOLUTION : 1 - For Churchill Mortgage 's accounting department to correct their accounting error, retroactively, which will erase any negative balance and not have a negative impact to our credit, as well will not increase our monthly payment because the change in insurance and taxes doesn't meet the criteria to increase the monthly payment, and we shouldn't be responsible to fix their error.

2- Owners to assume paying real estate taxes and home owner 's insurance premiums on home and not have an escrow account through a mortgage company. 

EXPLANATION : Good afternoon, we refinanced our home last year through Churchill Mortgage Corporation, because they were recommended by XXXX XXXX. After all required paperwork documents and payments were agreed upon and completed, our first payment of {$1100.00} started XXXX. We then received an Annual Escrow Analysis report dated XXXX, stating there was an escrow surplus of {$1900.00}, which they sent a check to us for. After verifying this twice, being told it was indeed an overage, and that that was how much our previous mortgage company had overcharged us, and it was okay to cash the check. So, we used the money to do some upgrades on our home. And with that same escrow analysis adjusted our mortgage payment from {$1100.00} down to {$1000.00} effective as of XXXX. Because we had already signed up for autopay, there was nothing we needed to do ; they did all the adjustments on their side. We received no other communication. 

We then received a notice of Servicing Transfer from Present Servicer of Churchill Mortgage Corporation to a New Servicer of XXXXXXXX XXXX  XXXX, dated XXXX. As well as we received another Annual Escrow Account Disclosure dated XXXX, stating a change in monthly payment from {$1000.00} to {$1400.00}, effective XXXX. I contacted Churchill Mortgage Corporation, XXXX, and after several attempts, was finally able to speak with XXXX, Corporate Office Liaison for Churchill Mortgage Corporation, XXXX, on XXXX, who didn't have any information on our loan, so I submitted all the documentation requested, which is included in the attachments below, as well as the conversation text. She stated the increase may be due to taxes or insurance being adjusted, which I submitted documentation for both taxes and insurance for both XXXX and XXXX supporting this was not the case. Then, she stated it looked like we possibly were sent a refund in error but would have to have it researched and would follow up with me once she received an update. I explained that we verified it twice, and that we were told it was indeed an overage, and that that was how much our previous mortgage company had overcharged us, and it was okay to cash the check. Again, we only received notice of overpayment of XXXX, as well as a notice of monthly payment adjustment effective XXXX, no other communication was sent to us from Churchill until the change of servicer notice dated XXXX and the second " Annual '' Escrow anaylsis dated XXXX. They increased our monthly payment to correct their mistake, and we refuse, as their accounting department created this error, and we shouldn't be held liable for their mistake. Again, we got verification twice, and it also states on the Annual Escrow Account disclosure statement dated XXXX, that this is a surplus. After waiting several days for an update, XXXX referred us to talk with XXXX. We were not told that our loan was sold to XXXX. We were told the new servicer would be XXXX XXXX XXXXXXXX Talking with a Supervisor, " XXXX XXXX ( female ), at XXXX XXXX she also confirmed that there was an error in processing, which was supposed to have been corrected but sent a refund in error, because a wrong amount was entered for the taxes in the escrow account. We were told we needed to pay them {$1000.00} or the new monthly payment of {$1400.00} to correct their error. We were also told that we would not be able to pay the taxes and insurance ourselves because there is a negative balance. But, this negative balance is due to their accounting error. We then received another Annual Escrow statement dated XXXX, adjusting the payment down to {$1200.00}, with no explanation of how they came to this amount, instead of adjusting this back to the {$1000.00}, because the difference in taxes and insurance doesn't warrant an adjustment. We were told that nothing else can be done on their side about the negative balance created by Churchill Mortgage 's accounting department, and that we need to correct the deficit, and it needs resolved in 15 days to keep from having late fees applied and ultimately needs resolved by XXXX to keep from having our credit negatively impacted. We have requested the autopay be stopped until this is resolved. We are very meticulous with our finances and have done everything to do what is right and pay our debt down to build our credit score up to excellent status. We take responsibility for our mistakes, Churchill needs to take responsibility for theirs. We have included several documents supporting this claim, but if you need anything further please let us know. Thank you for taking time to read this and any help you can provide us is greatly appreciated. This has been very stressful for us, on top of XXXX, now to have to deal with this. I am not able to get back the sleep I have loss due to the stress and worry this has caused, but looking forward to having this taken care of with a positive resolution. Again, thank you for your time and help with this matter.

Company response to consumer: Closed with explanation