Consumer complaint received 2018-01-10
Company: LoanCare, LLC
State: PA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My name is XXXX XXXX and I reside at XXXX XXXX XXXX, XXXX, PA XXXX. I am writing to complain about my current mortgage servicer, LoanCare LLC (  NMLS ID # XXXX ) and State of PA Mortgage Lender Licensee # XXXX who is requiring excessive escrow funds in violation of the Real Estate Settlement Procedures Act and Regulation X, Section 1024.17 ( c ). On XX/XX/XXXX,  my husband and I refinanced our mortgage through XXXX XXXX, who subsequently sold the servicing of our loan to LoanCare LLC. Since property taxes are due in XX/XX/XXXX, XXXX XXXX required that our taxes totaling {$2500.00} be collected and paid at settlement. When the servicing rights were sold to LoanCare LLC, they performed an escrow analysis and paid the XX/XX/XXXX taxes again. This duplicate tax payment created a substantial shortage in our escrow account and LoanCare LLC immediately performed an escrow analysis and increased our monthly mortgage payment by {$250.00} to cover the escrow shortage. 



I immediately contacted LoanCare and found out that they paid the XX/XX/XXXX taxes which had already been paid at settlement. 

They refused to research and reanalyze my account. LoanCare stated they contacted the tax collector and the tax collector told them the taxes had not been paid. However, I subsequently contacted the tax collector who provided evidence that the taxes had been paid. The township tax collector received the duplicate tax payment from LoanCare and immediately refunded the duplicate payment back to LoanCare, who confirmed they deposited it back into my escrow account. At this time, I have requested that LoanCare reanalyze my account to remove the excess escrow payment covering the alleged shortage. They have refused to reanalyze my escrow account and stated it is scheduled to be reanalyzed in XX/XX/XXXX and I have to pay the excess escrow until XX/XX/XXXX. I can not afford the extra {$250.00} per month for the next 4 months which will only increase the surplus in my escrow account way above what is permitted under the Real Estate Settlement Procedures Act including the 2 month cushion. LoanCare simply states Ill get a refund of the escrow surplus sometime in XX/XX/XXXX after the XX/XX/XXXX analysis is completed. I have filed a complaint with LoanCare regarding the now known excess escrow payment requirement, but they refuse to respond to my complaint emails as well as acknowledge receipt of my complaint which is also in violation of RESPA and Regulation X, Section 1024.35 ( d ) under Error Resolution Procedures. I have told them that I can not afford the excess escrow payment and would submit the initial monthly payment determined by XXXX XXXX to which I have the ability to pay. However, LoanCare is encouraging me to go into default for no reason other than the result of their mistake in paying my taxes twice. 
At this time I am reaching to you for assistance. LoanCare simply wants to maintain an excess in my escrow account enough to pay the following years property taxes which I can not afford. Please help me and penalize LoanCare for  violating RESPAs Regulation X relating to escrow funds and error resolution acknowledgment requirements. 
Thank you for your assistance. 



Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX, PA 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