Consumer complaint received 2016-08-26
Company: FIRST MORTGAGE COMPANY
State: OK
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
I bought a house, and First Mortgage Company LLC was my servicer ( out of XXXX, OK ). They sold my loan to another company ( transfer date XXXX XXXX, XXXX ). At that time I had made a regular payment in XXXX along with an extra principal payment. I also made a regular payment in XXXX along with an extra principal payment. When I got a letter that my loan was going to be transferred, I went online to print off my info from their website. I noticed they had taken back my XXXX regular payment and extra principal payment, and they had taken back my XXXX extra principal payment. They then reapplied my XXXX payment. That meant without the XXXX extra principal payment, I was now paying less toward my principal balance and more in interest than I had originally. Then they applied my XXXX extra payment principal. They did not pay my XXXX premium ( due XXXX XXXX, XXXX ) to HUD for my PMI. They sent my XXXX PMI amount and my XXXX extra principal payment as unapplied, unspecified amounts to my new servicer. I filed a research inquiry with my new servicer about my missing extra principal payment from XXXX, the PMI payment that was never made, and my opening balance with my new servicer. The new company sent me a letter confirming that First Mortgage had not paid my PMI payment in XXXX ( which was before my loan transfer ever happened ), but that they would be sending the payment in. They figured out what the amount for the XXXX extra principal payment was for and applied it as an extra principal payment. However, they determined that the funds applied at the transfer of the loan were correct ( the amount after First Mortgage had messed with my payments ). On XXXX/XXXX/XXXX I spoke to XXXX at First Mortgage Company about the issue with the transfer balance. She said she would look into it and call me back. She called me back after speaking with XXXX and told me that my loan was now with another company and First Mortgage could no longer do anything with my loan or make corrections to it ; I would have to fix the issue with my new servicer. After trying to work with my new servicer, I was finally told my " previous lender will need to correct the payment history and send [ my current servicer ] the payment change '' before they could adjust my account accordingly. This process took a while and on XXXX/XXXX/XXXX I left a message for First Mortgage. XXXX called me back and said both my payments had been forwarded, so he would have to check with XXXX because she handled these cases ; she was out of the office, so he would call me back. He called me back and asked me to send him a scanned copy of the letter I got from my new servicer and XXXX would be handling my case. I sent a copy of the letter to him via email. I called my new servicer to alert them they would be receiving a call from First Mortgage soon about my account. I emailed XXXX back and requested he forward my email to XXXX saying that I wanted to receive a copy of my updated history once it was fixed when she sent it to my new servicer. XXXX I had not yet received any email, letter, or call from XXXX. I left a message and when she called me back she told me the new servicer would not talk to her since my account was private. I told her I called them and told them to put a note on my account saying they would be receiving a call. She then said she had sent it, but not heard back from them yet. I told her I had also not received an email and I had requested one, so if she had sent it, it did not go to me and I had called my new servicer and they had not received anything either. She said she would resend the payment history and send me a copy. I received a letter attached to a payment history where she acknowledged that the balance at transfer was inaccurate. But, my new company has still not been able to determine that the transfer balance was incorrect despite her letter.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation