Consumer complaint received 2019-02-13
Company: Mr. Cooper Group Inc.
State: WI
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
Nationstar Mortgage ( Subservicer for XXXX ) has inaccurately managed/inaccurately funded my escrow account two years in a row, resulting in escrow shortages over {$2000.00} that I've been responsible for paying back because of their mistakes. 

When I bought my home on XX/XX/XXXX, Nationstar setup my escrow account to pay taxes bi-annually. This is not allowed in the city I live in, they only accept tax payments paid annually or quarterly. This caused an escrow shortage of {$2400.00}. 

In the " XXXX XXXX or XXXX XXXX XXXX '' ( attached ), it states the home sellers credited me {$2400.00} to cover the taxes from XX/XX/XXXX to when I bought the house on XX/XX/XXXX. That {$2400.00} was never applied to the escrow account. Instead, Nationstar credited it towards closing costs. 

XXXX and I called XXXX ( our facilitator at closing ) at XXXX XXXX and she informed us that the lender is responsible for collecting the appropriate amount to escrow, not the title company. XXXX said that it was not closing company 's responsibility to ensure that the {$2400.00} went towards the escrow account. XXXX suggested that I instead contact my loan officer ( XXXX XXXX, XXXX ) regarding the issue. XXXX XXXX was ultimately unable to resolve or help with the issue at all, claiming that once an interest rate is locked in, the rest of the mortgage process is completely out of his hands. 

I've since confirmed that the tax documentation from the title company that was sent to the loan processors in charge of my account conveyed that the taxes should have been paid annually. Yet, NationStar setup my taxes to be paid bi-annually, thus creating this - {$2400.00} negative balance in the escrow account. 

I contacted the county treasurer asking if a partial refund could be made to put my escrow account in good standing so we could then re-run an escrow analysis. They informed me they do not issue refunds. 

After talking to every representative at Nationstar and being escalated to the point where I met the highest point of management and could not be escalated any more, I was informed they could either adjust my mortgage monthly payment by $ 250+/month to make up for the shortage, or I could keep my mortgage payment the same if I paid the - {$2400.00} in a lump sum. Defeated, I paid the - {$2400.00} lump sum and moved on. 

Fast forward to XX/XX/XXXX. I receive a check in the mail for from NationStar for {$3100.00} along with a letter stating my escrow account is in surplus. I call them and they claim that my escrow account is over-funded. I explain all the issues I had last year, and ask them to re-evaluate. They research, and retract saying they made another mistake. 

NationStar had my escrow account setup to pay taxes annually, but at the quarterly rate of {$840.00}. Because of this, my total taxes paid for the year of XX/XX/XXXX are only {$840.00}. They should have had my escrow account setup to pay taxes quarterly at a rate of {$840.00} ( four times a year ). Instead, they only paid once. 

Now, they have cancelled the {$3100.00} check, re-distributed it into my escrow account, and claimed they've set my account up to pay the appropriate quarterly taxes.

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with explanation