Consumer complaint received 2019-08-17
Company: FIRST CONTINENTAL MORTGAGE LTD
State: TX
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
Here is a recap of what our concerns are : The mortgage company, First Continental Mortgage ( the original mortgage company, will be known as F.C.M. ), sold our loan 15 days after closing. 

F.C.M. did not and would not provide a 15 day transfer notice. 

F.C.M. forwarded the new mortgage company, XXXX XXXX, also referred to as XXXX., a quote for homeowners ' insurance post closing, causing XXXX, to pay the premium, acquiring a second homeowners insurance premium from our escrow account, back in XX/XX/XXXX ; however I was able to catch this issue, contact the insurance company, and request a refund for the second homeowners insurance premium. 

F.C.M. stated that even though the mortgage was sold ( inXX/XX/XXXX ) before the first payment was made, the first payment needed to go to them. My concerns was that this initial payment would not get reflected on the loan balance, escrow, or interest, etc. The first payment was due XX/XX/2019. We discussed this with F.C.M. further and they stated that credit will be made and that we would receive a 1098 form, at the end of the year ... 

Not sure how F.M.C would credit or make any payment adjustments without having the loan, but we went along with it, because these transactions are traceable ... 

F.M.C. insisted that when the loan was sold, that they made concessions for the first ( XX/XX/XXXX) payment ... We did not see this credit based on loan balance that was reported by the new loan service-er, XXXX 

XXXX, provide an escrow report, showing P.M.I. fees accessed from our escrow balance, funded and established from our closing fees, for the first payment, for the month of XX/XX/XXXX. We made the XX/XX/XXXX payment to F.C.M., however XXXX. accessed P.M.I. fees for XX/XX/2019, further depleting the escrow balance. 

XXXX XXXX first payment was not due, until XX/XX/2019. Why would XXXX. be requesting P.M.I. fees for a month that they did not service the loan? The first payment due was given to F.M.C. because XXXX. first payment, was not due until XX/XX/XXXX. 

XXXX XXXX escrow report does not show an adjustment regarding a payment received for the month of XX/XX/XXXX, however XXXX. accessed and deducted a P.M.I. fee from our escrow balance for XX/XX/XXXX anyway. 

XXXX XXXX escrow report also shows a balance adjustment ( reported on XX/XX/XXXX )  reducing our escrow balance to {$310.00}, but no data showing where the funds went ... After speaking to a XXXX. agent, the notes stated that F.C.M. contacted XXXX. to release funds to pay XX/XX/XXXX taxes, in the amount of {$900.00}. The difficult part is, the home was new construction and was not built until XX/XX/XXXX, and we did not purchase the home until XX/XX/2019. We did not owe any XX/XX/XXXXtaxes ... 

After talking to F.C.M, F.C.M. is stating ( in writing ) that too much money was released to XXXX. to fund escrow, and the refund was not forXX/XX/XXXX taxes. F.M.C. is stating that the refund request was for an over-payment made during loan transferring, while establishing escrow. This is not what they told XXXX. to get the funds or payment. 

If F.C.M. requested these funds, post title/closing, why? 

If taxes were due, the title company, would have addressed it ... We are not responsible for XX/XX/XXXX Taxes and do not understand why XXXX. released the funds to F.C.M.  without any question or concern for XX/XX/XXXX taxes. 

We do not understand why, XXXX, did not protect our escrow funds and paid a second homeowners insurance policy, then released additional fees back to the original loan service-er, F.M.C. 

We need our first payment credited to our loan ( principal, interest and escrow ), and we also need our {$900.00} refunded back to our escrow account, as well. 

Please help correct this oversight. 

Kindest regards, XXXX XXXX XXXX

Company response to consumer: Closed with explanation