Consumer complaint received 2020-07-17
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
In XXXX of XXXX, we began the process of refinancing our mortgage. We competitively compared our existing mortgage company, Bank of America, NA to alternative mortgage providers. Our existing mortgage company, BOA offered a significantly better refinancing opportunity. On XX/XX/XXXX, the closing company issued us a closing disclosure for us to review, specifically indicating the closing cost and the payoff of the existing mortgage. This was in preparation for our closing on XX/XX/XXXX. We reviewed the numbers and agreed with the statement. The date of closing, XX/XX/XXXX, the closing attorney showed up at our house, and we reviewed the closing documents together and they were the same as the XXXX. The payoff was specifically {$310000.00} payable to Bank of America, NA. ( BOA ). The numbers on the Universal Loan Application matched the disclosure ; in addition, on the Schedule of Real Estate Owned was the same as the above {$310000.00}. It is important to note, this schedule was produced prior to closing, so, at closing, we had further confirmation that the {$310000.00} was what was owed to BOA, NA. Towards the end of the stack of closing documents, there was the document entitled, Impound Account Payoff. I was requested to sign this without being given any information that the impound account was my escrow account. No where on any document, statement, or any legal document did it indicate how much, if any of my escrow money would be used to lower my loan amount. By not disclosing this to us, it made the alternative mortgage lender 's quote look considerably higher, because BOA was misleading us on what the loan value would be by lowering it with the use of our existing escrow dollars. We could never get an apples to apples comparison, which we are owed by the Truth in Lending Act. This also seems to be puzzling that BOA would use our escrow money, that was due to pay out property taxes in 2 months, to get us to refinance with them as opposed to another lender. Why would BOA, who did pay our property taxes in XX/XX/XXXX, with their own money, since they depleted out escrow account, if not to mislead us into using them over the alternative mortgage company? 
At the beginning of XX/XX/XXXX, one year after refinancing, we were sent a letter from BOA indicating a shortfall in our escrow account, and that we needed to pay them approximately {$5100.00} to correct the shortfall. I was completely taken by surprise because I have paid my full mortgage and escrow amount every month since owning this house. No where during the refinancing process did anyone from BOA ever mention that our escrow would be used to reduce the value of the loan, as opposed to paying off our property taxes and hazard insurance, as what it was prescribed for. Since being informed of the shortfall, I have spoken to numerous BOA employees who have agreed they can not find anywhere in the closing documents that escrow money and how much of them were being used to lower the cost of the loan. They have acknowledged and agreed with us on the actual numbers on our closing statement and there was no indication of transfer of escrow funds from the initial loan to lower the loan amount on the refinanced loan. I have since been contacted by an escalating agent who has flatly said I signed the Impound Account Payoff and owe the money. I find it puzzling that BOA would deplete the escrow money we are mandated to pay forward, thus making them responsible to pay our property taxes for the next year. That is illogical : the reason why escrow is set up is for the consumer to pay the taxes and insurance and not the bank. I believe the reason why we were not informed of BOA 's intentions was either a mistake on BOA 's part or outright fraud to secure our business for the refinance.

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