Consumer complaint received 2023-05-23
Company: Mr. Cooper Group Inc.
State: WI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
First image mentions escrow advance of {$3700.00}. It is consistent with the first statement for XXXX. 

The second image we see escrow shortage is {$9000.00}. 

So why {$5300.00} extra? Second page adds up boxed numbers. 

The {$3700.00} divided by {$150.00} ( escrow monthly payment ) works out to just over 6 months. 

If I cut a check for {$9000.00} today, and used the shortage they state of {$3700.00} we would have {$5300.00} today. 

To pay {$1800.00} and {$5200.00} in XXXX. They do state the new amount starts in XXXX. So there would be XXXX five months at {$740.00} adding {$3700.00}. 

This totals {$8900.00} well in excess of the XXXX payments in XXXX of {$7100.00} = {$1800.00} But then 12 months for the XXXX payments there would be {$8900.00} collected to add to the {$1800.00} we get {$10000.00} for the annual bills now I understand these will go up. But they can and will raise the standard for that. Not the back payment. There is no estimate in the paid years. Only this year. 

This is just 16 of 60 payments. What ugly balance will be have with 5 years of $ XXXX surplus annually? 

Lenders are allowed by federal law to collect an extra two months of escrow payments as a cushion. The lender could receive extra throughout the year to make sure that the homeowner 's escrow account has enough money to cover these two bills. 

We do see this number {$1100.00} in the escrow balance required in XXXX. 

But the reason is $ XXXX in XXXX, this is the amount of all XXXX needs for tax and insurance, the entire back {$3700.00} and 4 payments of {$740.00}. 

When they have the 2 month cushion escrow would be 100 % caught up with 56 extra payments of {$150.00} or {$8400.00} extra for no reason at all. And zero flexibility to make changes without extreme measures. 

Im still 12 months ahead of the amortization. They want anther annual surplus. 

edit But then 12 months for the XXXX payments there would be {$8900.00} collected to add to the {$1800.00} we get {$10000.00} for the annual bills now I understand these will go up. But they can and will raise the standard for that. Not the back payment. There is no estimate in the paid years. Only this year. 

This is just 16 of 60 payments. What ugly balance will be have with 5 years of $ XXXX surplus annually? 

I take this back the additional $ XXXX would have been paid in my rundown so the XXXX escrow would be {$7100.00} to add to the predicted XXXX balance that would exist with the {$8900.00} payment. 

SO wed have {$8900.00} to pay what is {$7.00} last year. 

It will be less for XXXX than it was. 

XXXX  {$290.00} of the property tax in XXXX was delinquent tenant water bills. 

Description Amount Paid Due Gross Tax XXXX - - School Credit XXXX - - Submit Total XXXX - - First Dollar Credit XXXX - - Lottery Credit XXXX - - Net Tax XXXX XXXX XXXX Special Assessments XXXX XXXX XXXX Submit Special Charges XXXX XXXX XXXX Submit Delinquent Utility XXXX XXXX XXXX PrivateForest Crop XXXX XXXX XXXX

Company response to consumer: Closed with explanation