Consumer complaint received 2019-07-20
Company: Aspen Yo LLC
State: TN
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
This is in response to Gregory Fundings response to my complaint # XXXX-XXXX. 

I received a letter from Gregory Funding dated XX/XX/XXXX. I appreciate their quick response but nothing in their response letter was correct. 

Page one, paragraph 2 states that per the terms of my loan I must maintain my own hazard insurance. This is true to the fact that I must have my taxes and hazard insurance impounded, thus it is to be part of my payment monthly. Not that I am responsible for paying the yearly premium. I pay monthly to the servicer and it is the servicers responsibility to pay the premium. All HAMP modified loans require taxes and Insurance be impounded per our Modification agreement that became effective XX/XX/XXXX ( see exhibit D attached ). This is for the entire term of the loan! GSE as well as Non-GSE servicers have no right to discontinue collecting and paying insurance premiums. This can also be confirmed by calling the making home affordable hotline at ( XXXX ) XXXX and by reading Handbook for servicers of non-GSE mortgages version 4.1, page 124 and page 50 of the Handbook for Servicers, as well as page 22 under Transfers of Servicing and page 23 Relationship Manager. It should also be included in the Servicers Participation Agreement and If Gregory Funding doesn't have such an agreement with the prior Servicer, they do not have any right Servicing my kind of loan. 


Page 1, paragragh 4 states that both the XXXX escrow analysis as well as the XXXX escrow analysis project no disbursements for hazard insurance, so even if I did not receive the XXXX letter informing me that Gregory Funding would no longer disburse for insurance, I should have been able to figure it out by reading the analysis ( I did not ever receive anything informing me that Gregory funding would no longer be paying my insurance premium ) nor did I ever receive any analysis until they sent me one with the response to my complaint. Never the less, at the same time Gregory funding did send me a Escrow Payment History stating that on XX/XX/XXXX XXXX was paid to XXXX XXXX ( which is my hazard insurance company ) ( see exhibit E attached ) Page 1, paragraph 5 it states that I sent Gregory Funding required proof of Insurance in the normal course of time and that their records reflect that I currently have coverage from XX/XX/XXXX to XX/XX/XXXX. This was in the response letter to me dated XX/XX/XXXX ( see exhibit B attached ). But the day before I received Gregory Fundings response letter dated XX/XX/XXXX, I received a letter from Gregory Funding dated XX/XX/XXXX stating that their records show that my hazard Insurance policy had been cancelled and they do not have evidence of me having hazard Insurance ( see exhibit A attached ). So I am confused .... I have never sent Gregory Funding anything from my hazard insurance carrier, which is XXXX XXXX. This clearly proves that mistakes do happen on the Servicers end. This is a serious error, what if my house caught on fire and burned down and I have no insurance coverage? Does the servicer have a large enough bond to cover the lender and I for our loss because they decided to not pay my Insurance premium as agreed? 


Page 1, paragraph 6 states that assuming my neighbors car was injured by my tree XX/XX/XXXX, I should be able to place my claim with my insurance company because I gave Gregory Funding a notice that I had insurance coverage. This is 100 % untrue, I NEVER GAVE GREGORY FUNDING ANYTHING SAYING I HAD HAZARD INSURANCE IN EFFECT AND BECAUSE GREGORY FUNDING FAILED TO PAY MY INSURANCE PREMIUM, XXXX XXXX WILL NOT COVER MY NEIGHBORS CAR REPAIRS. I think it is obvious that this if not my fault, but rather Gregory Fundings fault and they should be responsible to pay for my neighbors car to be repaired! 


Page 2, paragraph 1 If states that non-GSE servicers maintain the normal right to escrow and de-escrow insurance premiums. It also states there is no agreement in my loan records providing that I can have any surplus of funds that might be in my escrow account. 


So does this mean Gregory funding gets to keep any extra money I might have paid towards my taxes and insurance? And is that why the first year I had the trial payment period and the modification became in effect.. I over paid the sum of {$2600.00} and that money was never refunded to me nor was it credited towards my mortgage payment as I had requested? ( see exhibit F attached ). That is very interesting, and deceptive in nature. How can that possibly be lawful? 


My trial period started XX/XX/XXXX, my modification became effective XX/XX/XXXX from XX/XX/XXXX through XX/XX/XXXX the servicer collected XXXX every month for impounds for my taxes and insurance, when they should have only been collecting XXXX. The breakdown being {$370.00} for taxes and XXXX for insurance ( taxes were XXXX a year and insurance was only XXXX a year ). So I had a surplus of XXXX. What happened to that money? 


Page 2 paragragh 3, this is nothing short of insulting! It states that I was frequently over 30 days late with my payments. I was in fact NEVER been 30 days late, the problem wasn't on my end. I spoke to the servicer, XXXX XXXX  and I also wrote them a letter requesting that they credit the overage in my escrow account towards my next months payment ( see exhibit F attached ) they told me they would do so. Obviously they didn't do this and this caused me to be 30 days late and it has been continuously 30 days behind ever since as well as I am being charged late fees due to this error on the servicers part. 


You did send me a customer account activity statement that I have questions about. ( see exhibit G attached ) it states that on XX/XX/XXXX there was a hazard insurance refund of XXXX, on XX/XX/XXXX a principal curtailment of XXXX and XX/XX/XXXX disbursement to mortgagor {$1200.00}. It is my understanding that I am the mortgagor and I never received any money from anyone in regards to my mortgage, if you are saying I did, then it shouldn't be too difficult to provide me with a copy of a canceled check. I NEVER RECEIVED ANY AMOUNT OF FUNDS FROM ANYONE REGARDING MY LOAN.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation