Consumer complaint received 2021-05-12
Company: Specialized Loan Servicing Holdings LLC
State: NH
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
I have a current mortgage loan with Specialized Loan Servicing ( SLS ). SLS has distorted the escrow account and has refused to address the issue. The distorted and padded escrow figures has forced me into foreclosure. SLS has set a foreclosure sale date of XXXX Per NH Statute RSA 397 A-9 If the amount held in the escrow account as of the date such taxes and insurance premiums are due is insufficient to pay the taxes and insurance premiums despite compliance by the mortgagor with RSA 397-A:9, I, the licensee shall pay such taxes and insurance premiums from its own funds. The licensee shall then give the mortgagor the option of paying the deficiency over a period of not less than 12 months. The licensee shall not charge or collect interest on such deficiency during the 12-month period. SLS did not fulfill this requirement per NH Law. 
Per CFPB Provision 1024.17, a trust account is required for payment of any escrow account. This means any account that a servicer establishes or controls on behalf of a borrower to pay taxes, insurance premiums XXXX including flood insurance ), or other charges with respect to a federally related mortgage loan, including charges that the borrower and servicer have voluntarily agreed that the servicer should collect and pay. The definition encompasses any account established for this purpose, including a trust account, reserve account, impound account, or other term in different localities. An escrow account includes any arrangement where the servicer adds a portion of the borrower 's payments to principal and subsequently deducts from principal the disbursements for escrow account items. For purposes of this section, the term escrow account excludes any account that is under the borrower 's total control. Furthermore, there is a 12-month period that a servicer establishes for the escrow account beginning with the borrower 's initial payment date. The term includes each 12-month period thereafter, unless a servicer chooses to issue a short year statement under the conditions stated in 1024.17 ( i ) ( 4 ). Statements are required per the first disclosure statement that the servicer delivers to the borrower concerning the borrower 's escrow account. The initial escrow account statement shall meet the requirements of 1024.17 ( g ) and be in substantially the format set forth in 1024.17 ( h ). Before establishing an escrow account, the servicer must conduct an escrow account analysis to determine the amount the borrower must deposit into the escrow account ( subject to the limitations of paragraph 1024.17 ( c ) ( 1 ) ( i ), and the amount of the borrower 's periodic payments into the escrow account ( subject to the limitations of paragraph 1024.17 ( c ) ( 1 ) ( ii ). In conducting the escrow account analysis, the servicer must estimate the disbursement amounts according to paragraph ( c ) ( 7 ) of this section. Pursuant to paragraph ( k ) of this section, the servicer must use a date on or before the deadline to avoid a penalty as the disbursement date for the escrow item and comply with any other requirements of paragraph 1024.17 ( k ). Upon completing the initial escrow account analysis, the servicer must prepare and deliver an initial escrow account statement to the borrower, as set forth in paragraph 1024.17 ( g ). The servicer must use the escrow account analysis to determine whether a surplus, shortage, or deficiency exists and must make any adjustments to the account pursuant to paragraph 1024.17 ( f ).

If the new servicer changes either the monthly payment amount or the accounting method used by the transferor ( old ) servicer, then the new servicer shall provide the borrower with an initial escrow account statement within 60 days of the date of servicing transfer. The new servicer shall treat shortages, surpluses and deficiencies in the transferred escrow account according to the procedures set forth in 1024.17 ( f ).

Based on the rules listed herein, it is clear that SLS is in violation of NH Banking Law and CFPB Law. SLS has claimed to establish and transfer escrow direct to the loan in. This account never had an escrow account established. Furthermore, the action was taken well beyond the time line guidelines per the laws described herein. We are seeking your assistance in investigating this matter for us. Ultimately, we want the foreclosure sale date of XXXX halted and the case moved to mediation. Subsequently, we are interest and penalties to be paid relating to the same. Based on case law, {$2000.00} per occurrence for each violation is sought. You can reach me direct at XXXX or XXXX XXXX

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