Consumer complaint received 2016-02-10
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: GA
Product: Mortgage
Sub-product: VA mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Until XXXX XXXX my home mortgage had all payments up-to-date and was with XXXX XXXX XXXX. Couple of weeks prior to XXXX XXXX, I received notification that my account was being sold to Carrington Mortgage services, nothing would be changing other than the payee, and all payments would remain the same. I began making monthly mortgage payments to Carrington XXXX XXXX, {$890.00} ( principal and escrow ) and {$100.00} ( addl principal reduction ) total $ XXXX monthly. All appeared to be a smooth transaction until I received letter in XXXX XXXX stating my monthly mortgage payment is increasing to {$1100.00}, which is a {$230.00} increase, with no explanation as to why. I called Carrington Customer service to inquire as to why the increase and got multiple explanations as to possible shortages, last of which was because of an Escrow shortage. At which Customer service transferred me to Escrow dept. Escrow dept said my escrow acct was short for XXXX taxes. I informed them that I was viewing my XXXX county taxes and it showed no shortage and actually showed an over payment. So Escrow now transferred me to Tax dept. Tax dept reviewed and said yes they over paid {$890.00} and XXXX county had returned the payment to Carrington so they had to do another escrow forecast re-evaluation to determine correct escrow amount, but to keep from being late on my payment, I was to go ahead and make my normal monthly mortgage payment. I made the payment and awaited the re-evaluation results. I started receiving collection calls from Carrington a week later in which I explained what had taken place earlier ( incorrect tax payment by their company, waiting for re-eval, and the payment I had already made ). The agent explained that Carrington showed me as delinquent for full payment bcuz they could not apply what I paid bcuz it did not match what their system showed I owed and they had also added on a late payment charge. I asked if the re-eval had been completed and the agent said it had and the full amount was still owed. I asked that she send me the Escrow re-eval in the mail. I have since received the Escrow breakdown and it does not appear to have changed. Still attempting to keep my account current, make mortgage payment, and get a clear understanding of why there was an increase I contacted Customer service again. This rep stated it was due to shortage in XXXX and the add on of a {$600.00} escrow cushion. I explained that there was no shortage, I am a XXXX veteran, I have never been charged nor heard of an Escrow cushion, and that there was actually an over payment. She then transferred me to Escrow. Escrow rep then stated it was bcuz of a shortage in XXXX and that I only paid {$600.00} in taxes to XXXX leaving an outstanding balance. I explained I had my taxes before me and that it was paid in full {$1300.00}. She then transferred me to Tax dept, and I explained again. She asked the amount I show paid and confirmed my Parcel ID number. She then stated that they would have to submit another re-evaluation to correct yet another of their mistakes and get the correct Escrow amount. I am still making monthly payments but feel they are not applying the payments so they can add late payment and other charges, I do not understand as to why I would now be getting charged a Escrow Cushion so they can earn interest on money not being applied to my principal nor required for my Taxes nor Insurance, and feel they are attempting illegal mortgage lending practices. I feel that if I was not aware of my Taxes and Insurance payments ( current and past ), I would just be making payments without explanation as to why, and still do not feel Carrington will return with a Totally true explanation as to what I should be getting charged.

Company response to consumer: Closed with explanation