Consumer complaint received 2018-04-03
Company: MONEY SOURCE, INC., THE
State: UT
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/XXXX, I, a XXXX XXXX XXXX XXXX XXXX XXXX XXXX Veteran, using a VA Home Loan received a letter from XXXX XXXX XXXX XXXX stating that my loan was reassigned, sold, or transferred to XXXX XXXX XXXX XXXX. 

I, the veteran was paying for homeowners and flood insurance directly to XXXX. Randomly the new servicer paid XXXX without my knowledge for homeowners insurance, therefore increasing the fixed monthly mortgage rate in XX/XX/XXXX. 

I received a letter stating that the mortgage payment was late and an {$80.00} fee was assessed. 

I called XXXX XXXX XXXX XXXX several times. A payment of over {$500.00} in XX/XX/XXXX was paid to compensate for the homeowners insurance. I was informed that the {$80.00} would be reversed and the automatic payment amount was changed to be sent monthly as per usual. 

A letter was sent via email and confirmed receipt by phone : ( information of this memo sent has been edited to protect private information ) To Whom This May Concern : 1. Request loan number : XXXX : be placed into a NO ESCROW type of account. 

2. Reasons : a. Per Utah State Law ( Utah Code 59-2-1104 & 1105 ) as a XXXX XXXX XXXX XXXX XXXX XXXX Veteran, as filed with XXXX XXXX County Treasures Office ( you can call to confirm ), no taxes are due or will be due for the foreseeable future. 
b. I, XXXX, have been paying XXXX for Homeowners Insurance monthly and Flood Insurance since the origination of the loan. 

3. Please note The Money Source paid out x amount of dollars without my knowledge to XXXX for insurance and now an audit will need to be done to find out what happened to the dispersed funds. 

4. This request occurred in writing in XX/XX/XXXX. This is my second request for a NO ESCROW account. 

5. The Money Source states via phone they sent a letter in XX/XX/XXXX raising my FIXED mortgage $ 400+/- a month. No such letter was received. 

6. A late fee was assessed of {$81.00} because the fixed mortgage was changed and the monthly over payment of {$1800.00} was not enough. 

7. I request any negative action or actions that have occurred with this VA Loan be resolved and suspended until these matters have been resolved in accordance with both State and Federal law. 
-- -- - XXXX XXXX XXXX has not responded to the Memo within the 20 business day requirement per RESPA ( 12 U.S.C 26205 ). In fact XXXX XXXX XXXX XXXX has not responded at all. 


I call the VA XXXX Regional Office for help because it seemed that things were moving in the background with the loan like paying XXXX without my knowledge. The VA rep who tried to help stated that XXXX XXXX XXXX XXXX would not communicate with her on three separate occasions and the VA rep stated I should find help elsewhere. For XXXX XXXX XXXX XXXX was was cooperating with the US Dept of Veterans Affairs. 

In XX/XX/XXXX I get a call from XXXX XXXX XXXX XXXX stating that I was late, short funds. I didn't understand because the {$500.00} Payment was to cover any shortage for the Homeowner 's insurance. It was demanded that I pay an additional {$81.00} for a late fee. Also I had to pay {$12.00} to process the payment and it was stated by the Money Source that there was no other way to make the payment. If I didnt pay the {$12.00} that I would be marked as my loan as 30 days late to be reported to the credit bureaus. Under duress I paid two late payment fees and the processing fee. 

The servicer, XXXX XXXX XXXX XXXX was not in compliance with the 60 business day reporting to the credit bureaus because of the received correspondence that the Money Source has neglected to address.

Company public response: Company believes the complaint is the result of a misunderstanding
Company response to consumer: Closed with explanation