Consumer complaint received 2019-07-28
Company: STERLING BANCORP
State: MA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Sterling National Bank sold the servicing on my mortgage to XXXX XXXX XXXX on XX/XX/2019. In preparation for the transfer, one month prior to the transfer, on XX/XX/2019, Sterling National Bank conducted an off-cycle analysis of my mortgage escrow account. In that analysis, which is attached to this complaint, Sterling National Bank indicated clearly that it projected to pay the real estate taxes that were due on XX/XX/2019. This was important, since the payment was due 2 days after the loan was being sold to XXXX XXXX XXXX XXXX and the servicing on the loan was being transferred to XXXX XXXX   XXXX, and since a penalty and high interest payments ( 14 % ) accrue if the payment is late ( after XX/XX/2019 ).  Unfortunately, contrary to the commitment that the escrow department at Sterling National Bank made and transmitted to XXXX XXXX  XXXX along with the loan package, Sterling National Bank did not make the tax payment from my escrow account in XX/XX/2019, even though there were more than adequate funds in that account to pay the tax bill. Moreover, since Sterling National Bank 's escrow analysis clearly indicates that Sterling National Bank would be paying the tax bill, I have been unable to prevail upon XXXX XXXX XXXX to pay the taxes, which are now delinquent for the past 2-1/2 months. In fact, on XX/XX/2019, XXXX XXXX XXXX wrote to me that, based on its " research '' of my records ( i.e., the XX/XX/2019 escrow analysis that Sterling National Bank provided to XXXX XXXX just prior to the transfer of the loan servicing ), the real estate tax bill had already been paid. On XX/XX/2019, the Tax Collector notified me in the attached letter that it is placing an advertisement in the newspaper, notifying the community that my taxes have not been paid, and that a lien is being placed on the property. This will damage my reputation indelibly, leading individuals searching the internet to conclude that I am a tax delinquent -- despite the fact that I have already paid the taxes to my mortgage escrow account that Sterling National Bank transferred to XXXX XXXX XXXX. This is completely unacceptable to me and will result in considerable damages to my reputation, for which I depend for my livelihood. 

On XX/XX/2019, I spoke with XXXX from the XXXX, Illinois office of Sterling National Bank, who indicated that the supervisor in the escrow department at Sterling National Bank informed her that it did not pay my real estate taxes in XX/XX/2019, because the loan was being transferred. XXXX mistakenly told me that Sterling National Bank had informed XXXX XXXX XXXX that it had not paid the taxes, when in fact, Sterling National Bank indicated that it was projected to pay the taxes in XX/XX/XXXX, BEFORE the transfer of the loan to XXXX XXXX XXXX. 

On XX/XX/2019, after XXXX XXXX XXXX   provided me the attached XX/XX/2019 escrow analysis performed by Sterling National Bank, I spoke with XXXX in the XXXX XXXX, Illinois office of Sterling National Bank. I politely requested that she have the escrow department at Sterling National Bank contact the escrow department at XXXX XXXX XXXX to correct the mistake that Sterling National Bank had transmitted to XXXX XXXX XXXX. XXXX informed me that since the loan had been transferred, there was nothing further that Sterling National Bank would do to ameliorate this situation which was caused by Sterling National Bank. The failure of Sterling National Bank to pay my real estate taxes in a timely manner ( i.e., before XX/XX/2019 ) is a breach of the fiduciary obligations of Sterling National Bank as a holder of my escrow account. Their failure to take any action to correct this error is unacceptable.

Company response to consumer: Closed with explanation