Consumer complaint received 2018-02-18
Company: Caliber Home Loans, Inc.
State: MI
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
Dear CFPB, Please find this complaint against Caliber Home Mortgage who appears to operate a scam with my escrow account. 

I received my XX/XX/XXXX mortgage statement and a Notice from Caliber Home Loan where they said that I have a " shortage '' on my account ; and this is related to tax escrow. 

My current mortgage payment is XXXX. Caliber informs me that my new payment beginning XXXX will be .. {$1000.00}, or about 40 % increase in payments, because I have a " shortage '' of {$1700.00}. Or I can pay the full amount of " shortage '' and get a new loan payment {$920.00}, or MORE than my original mortgage amount, while my property taxes were significantly reduced because this property is my primary residence ; and I am a veteran. Under Caliber 's servicing, it looks like taxes somehow doubled from the original - without any notices to me. 

All other payments such as property insurance remain the same. 

Caliber conduct looks like a scam, racket and a massive consumer fraud. It is a well-known practice when Servicers bill customers twice, once in escrow account, and second as " shortage '' - and pocket the difference which is in average {$2000.00} per accident. 

Moreover, it appears that Caliber probably did not pay my property taxes on time ; and it caused a lump sum increase to the entire tax account. 

When I signed for the mortgage, my escrow account was {$290.00}, and the previous owner 's taxes were about {$1300.00}, which the previous owners billed as their secondary residence. The same amount ( {$1300.00} ) stayed for at least last ten years and never increased. 

In XXXX I claimed this property as my primary residence and as a veteran, so my tax bill in XXXX was significantly reduced to {$370.00} ( summer ) and {$530.00} ( winter ), total {$900.00}. I did not received any Notices from the tax assessor that my taxes are going up ; or the status of my residence was changed. 

In XXXX XXXX my summer tax bill was {$500.00} ( the previous owners never had it so high ) ; and my XXXX winter bill was ... {$1500.00}!!!! 

Which is total {$2000.00} in property taxes in XXXX! or over 100 % increase - again, without any Notice to me neither from the assessor ; or from the Servicer, who of course must be aware if the property taxes are going up, so Servicers can accumulate funds to cover the difference. 

Caliber never sent me any Notices that my taxes are going to be increased by over 100 % in just a few months. 

It looks like Servicers operate a massive fraud with mortgage escrow funds ; double charge borrowers ; and intentionally push people under hardship to foreclose them. 

Caliber has a very bad reputation among the customers whom they scam in all possible ways all the time. 

I demand explanations from Caliber regarding this unexpected " shortage '' in my escrow account ; why they failed to inform me about changes in my taxes ( if here were any changes, which I doubt ) ; and how I can remove my escrow account and pay my taxes and insurance separately. 

Thank you in advance XXXX XXXX how banks defraud customers is below " bank or mortgage servicer tries to collect twice on the escrow funds once as part of the overall mortgage payment, and again as a separate escrow shortage charge. 
The average double charge is about {$2000.00}, said forensic accountant XXXX XXXX of Full Disclosure in Arkansas, who sees escrow issues in half the cases he examines.

Company response to consumer: Closed with explanation