Consumer complaint received 2023-05-22
Company: Mortgage Research Center, LLC
State: CA
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
Background : I purchased a home with my agent on XXXX XX/XX/XXXX using a VA loan assumption through Veterans United Home Loans. Early estimates had the mortgage payment far higher than what the sellers had identified to my agent but XXXX XXXX at Verterans United ( VU ) reassured us that early estimates are conservative and will be more accurate as better information comes available. In fact, our final disclosure was almost identical to what the sellers had told us and everything seemed to be lining up. 


Complaint 1 : During the process of the assumption, Veterans United made several errors in regards to the escrow account : 1 ) Veterans United failed to notify myself, my agent, or XXXX XXXX  of the status of the escrow account, 2 ) Veterans United failed to ensure we understood the loan assumption would result in the inheritance of the escrow account per the Assumption Agreement and what those transfers consisted of, 3 ) Veterans United failed to conduct an escrow analysis as part of the loan estimate/disclosure development, 4 ) Veterans United failed to report notable changes to the escrow account once the assumption process was initiated, and 5 ) Veterans United failed to ensure the transfer of the escrow account per the assumption agreement including applicable refunds. 


Complaint 2 : Veterans United consistently failed to execute their due diligence in estimating property taxes as part of the mortgage payment. Veterans United blatantly ignored the property tax information provided to them. Furthermore, they failed to report the higher tax disbursement they made prior to the loan closure despite being privy to that information. 


Facts : On XXXX XX/XX/XXXX ( less than 3 months after closing ), I received an escrow analysis report from Veterans United that notified us that there was an escrow shortage due to increased property taxes and that our mortgage payment would be increasing by {$1000.00} per month for the next 12 months. This is {$12000.00} more in the first year after closing just 3 months ago. After much investigation and many phone calls back and forth with Veterans United XXXX XXXX XXXX XXXX, and XXXX XXXX XXXX, I discovered the following information and timeline : XXXX XX/XX/XXXX : XXXX XXXX assisted by XXXX XXXX at XXXX XXXX emailed the Preliminary Title Report conducted by XXXX XXXX XXXX to XXXX XXXX at Veterans United identifying that the property taxes were {$10000.00} annually ( attached email correspondence and preliminary title report ). 
- XXXX XX/XX/XXXX : Veterans United had a projected disbursement of {$1900.00} for the sellers hazard insurance but actually disbursed {$3800.00}. No refunds or replenishments were made to the escrow account ( attached escrow analysis report and escrow transaction report ). 
- XXXX XX/XX/XXXX : Veterans United provided a loan estimate with inaccurate property tax estimate despite receiving the Preliminary Title Report on XXXX XX/XX/XXXX ( attached loan estimate ). 
- XXXX XX/XX/XXXX : Veterans United provided a loan estimate with inaccurate property tax estimate despite receiving the Preliminary Title Report on XXXX XX/XX/XXXX ( attached loan estimate ). 
- XXXX XX/XX/XXXX : Veterans United provided a final closing disclosure with inaccurate property tax estimate despite receiving the Preliminary Title Report on XXXX XX/XX/XXXX ( attached closing disclosure ). 
- XXXX XX/XX/XXXX : Veterans United had a projected disbursement of {$3800.00} for property tax but actually disbursed the first installment of property taxes from the escrow account for {$5400.00}, the same amount as provided on Preliminary Title Report on XXXX XX/XX/XXXX ( attached escrow analysis report and escrow transaction report ). 
- XXXX XX/XX/XXXX : We closed on our home and the escrow account we inherited was negative {$1800.00} ( attached escrow analysis and escrow transaction report ). 
- XXXX XX/XX/XXXX : Veterans United provided a post-closing disclosure with inaccurate property tax estimate despite receiving the Preliminary Title Report on XXXX XX/XX/XXXX and disbursing the property tax payment from the Veterans United managed escrow account on XXXX XX/XX/XXXX. Veterans United erroneously disbursed {$1800.00} from escrow for my hazard insurance despite requiring me to prepay ( attached disclosure and escrow transaction report ). 
XXXX XX/XX/XXXX : I was first notified by Veterans United that after conducting an escrow analysis, there was a shortage due to property tax increases and that our monthly mortgage would be increasing by {$1000.00} ( from {$4100.00} to {$5200.00} ) per month for the next 12 months ( attached escrow analysis statement ). 
XXXX XXXX XXXX : I first saw the e-statement detailing the escrow analysis and higher mortgage payment. I immediately contacted Veterans United and spoke with several individuals in customer service and the escrow department while trying to find out how this happened. 
XXXX XX/XX/XXXX : I emailed the Veterans United Assumption Department and CCd XXXX XXXX. I received a response from XXXX XXXX, the Client Relations Manager, who stated he was forwarded the email from XXXX XXXX with my concerns ( attached email correspondence ). 


I have gone back and forth in emails with XXXX XXXX at VU who has consistently blamed me for not negotiating the terms of the assumption with the seller. He has consistently denied providing inaccurate tax information on the loan estimates and disclosures. He has also stated they are not required to disclose the escrow balances prior to assuming a loan even if if the escrow is deficient. He spent a considerable amount of time on our phone call pointing out fine print and dates where he could poke holes in my complaint and place further responsibility on me. Lastly, XXXX at VU has been very persistent in trying to convince me that an assumption is not a purchase.

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