Consumer complaint received 2019-05-29
Company: PHH Mortgage Services Corporation
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
To whom it may concern, InXX/XX/2019I decided to cancel homeowner insurance with XXXX XXXX XXXX effectiveXX/XX/19. Shortly after I informed PHH Mortgage Services ( my mortgage company ) I am cancelling my policy and will provide proof of insurance with a new company prior to the cancelation which was onXX/XX/19.

PHH Mortgage Services send me a letter on XX/XX/2019acknowledging they knew I cancelled my policy with XXXX ( see attachment A ) but sent them a check onXX/XX/2019from my escrow account in the amount of {$1000.00} in error ( see page 1 attachment B ). A few weeks later onXX/XX/2019I received a refund check from XXXX XXXX  which I returned {$1000.00} to PHH Mortgage Services on XX/XX/2019( see page 2 attachment B ). Subsequently, I purchase new homeowner insurance from XXXX XXXX  on XX/XX/19in the amount of {$870.00} plus a service fee of {$25.00} totaling {$900.00} ( see attachment C & D ). OnXX/XX/19the same day I obtain the policy I informed by phone and sent via the website provided to me by PHH Mortgage Services proof of Insurance, however onXX/XX/2019PHH Mortgage Services sent XXXX XXXX  a check from my escrow account in the amount of {$900.00} in error ( see page 3 attachment B ) after I informed them on XX/XX/2019the insurance was already paid in full. XXXX XXXX sent me a check and I returned {$900.00} to PHH Mortgage Services onXX/XX/2019( see page 4 attachment B ). This was a total of {$1900.00} deducted from my escrow account and sent to two different insurance company in error which increased my mortgage payments. 

On XX/XX/2019I received the first of two off-scheduled escrow analysis from PHH Mortgage Services ( see attachment E ) stating a shortage of {$3100.00} and my mortgage increased from {$1300.00} to {$1300.00} and was giving a date of XX/XX/2019to pay the shortage then it will decrease to {$1200.00}, but I received the letter on XX/XX/2019after the lump sum payment was due. After returning both checks totaling {$1900.00} I requested another off-scheduled escrow analysis. 

On XX/XX/2019I received the second escrow analysis ( see attachment F ) stating a shortage of {$1400.00} and was giving a date ofXX/XX/2019to pay the shortage then it will decrease to {$1200.00}. By this time, I received my property taxes in the amount of {$6300.00}. On page 2 of the second analysis it clearly shows the following : Taxes : {$6300.00} Insurance : {$870.00} Total : {$7200.00} x 12 months = XXXX  In my monthly payments Im paying {$73.00} for 12 months totaling {$870.00} which I paid in full onXX/XX/2019and need this to be removed. In my opinion, it should show the following : Taxes : {$6300.00} Insurance : {$0.00} Total : {$6300.00} x 12 months = XXXX I may owe the shortage of {$1400.00} which PPH Mortgage is deducting for the next 36 months {$39.00}, however I believe my payments should be as followed : Principal & Interest : {$680.00} Escrow Deposit : {$530.00} Escrow Shortage : {$39.00} Total Payment : {$1200.00} After several phone calls this issue was escalated to an escalation manager named XXXX. OnXX/XX/2019I received a call back from XXXX stating the information was correct, however I disagree due to the information I provided. 
I asked if they would remove my homeowner insurance for my escrow account which will only leave them to pay the property taxes, but this request was denied. 

Please help in rectifying this matter. 

Thank you.

Company response to consumer: Closed with explanation