Consumer complaint received 2021-04-09
Company: Mr. Cooper Group Inc.
State: GA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
Closed on Home in XXXX. Made payments on time for 1 year and decided to do an FHA Streamline Modification in XX/XX/XXXX. Called my lender Mr. Cooper and was offered a lower interest rate and given an estimate of what the payments would be and an offer to lower the interest rate. After reviewing the disclosure sent by the loan officer, there were several discrepancies with the property taxes. The taxes on the property were significantly lower for the previous owner because of her age and other discounts. I confirmed with them the estimated amount of taxes for the year and they sent it to underwriting and re worked it to account for the higher tax amount. I then was sent a revised copy of the closing disclosure and agreed to the changes that were made. I was told the closing cost were rolled into the new loan so only a small amount to pay the lawyer was required for cash to close.I closed on XXXX. I was advised the cash needed to close was XXXX to which I paid by personal check directly to the lawyer in my living room. 
My mortgage payment was lowered from {$1700.00} per month to {$1300.00} a month and my interest rate changed from 4.2 % to 2.75 %. This was exactly what I agreed to, understood and wanted. 
In XXXX I received an escrow statement advising me that I had a shortage and that from XX/XX/XXXX going forward my mortgage payment would now be {$1900.00}. The amount was for taxes and fees etc. I couldnt understand how I had a shortage when I had funds in my escrow account prior to the refi, the lender sent me a check back for overages in the amount of XXXX and for 6 months I was paying {$1300.00} as agreed. I called Mr. Cooper and spoke to someone in the escrow department who advised me that the reason why there was a shortage was because the closing costs and other fees that I was told would be rolled into the loan were actually taken from the escrow account and now even after the modification there was no way I would be able to pay the amount I agreed and have been paying which was {$1300.00}. She advised I would need to either pay the negative balance causing the shortage in full or pay the higher monthly rate of {$1900.00} ... she then also advised that the lowest amount my mortgage payment would be is {$1500.00}. even with a lower interest rate based on the taxes. I then called my loan officer and explained all of this to him to which he said I should have never been told that and it wasnt true, but after I was told, I reviewed my closing disclosure and I saw where the figure was added to the cost of the loan even and the taxes etc. I was then told I would be contacted by a manager. I recieved a call from a manager who basically stated there were mistakes made and he would " try '' to get Mr. Cooper to fix the issues by meeting me half way, which I feel like is completely unreasonable because everything piece of paperwork I have completely supports what I agreed to and is contrary to what they said. How can you take money from my escrow account and use it to pay yourself ( because it all went to fees ) and then add when the taxes need to be paid and you have XXXX my escrow account now I have to hundreds of dollars more per month to cover it. Isnt that double dipping?. I am very unhappy with Mr. Cooper.

Company response to consumer: Closed with explanation