Consumer complaint received 2016-11-07
Company: MONEY SOURCE, INC., THE
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
On XX/XX/XXXX I refinanced my FHA loan with the XXXX to lower the interest rate from 4 % to 3.4 %. The loan office XXXX greatly miscalculated the monthly escrow amount and put my monthly property taxes at {$40.00} a month, totaling $ 480 year. However the correct amount should be around {$330.00} a month totaling {$3900.00} a year for property taxes. This is now going to cause a shortage to where I have to come up with over {$3000.00} within 12 months to cover this year property taxes, and the monthly mortgage payment will go up by at least {$300.00} a month to correctly cover future property taxes. 
On XX/XX/XXXX XXXX I spoke with customer service rep. XXXX at the XXXX and she informed me that on the original loan though them they were taking out {$350.00} a month for property taxes but now on the new loan it went down to {$40.00} a month. She was unable to provide an explanation on why they decreased it and so she transferred me to their XXXX department. 
I then spoke with XXXX who informed me the property taxes where off because they were less in XX/XX/XXXX. However he was not able to explain where they decrease the monthly property tax amount from {$350.00} to {$40.00} a month on this new loan. Furthermore I explained to him that I told the loan office at time of refinancing that I did received a supplemental tax bill and the property taxes are going up. I also noted 99 % of people in XXXX that do not pay {$40.00} a month or ever close to that for property taxes, and it made no sense for XXXX to lower it to {$40.00} a mo. He then messaged for a supervisor to call me. 
XX/XX/XXXX XXXX I received a call from a XXXX named XXXX at the XXXX XXXX department He stated he is " confused '' to why they decreased the monthly property tax from {$350.00} to {$40.00} a mo. and also agreed with me that is ridiculous that it was set for only {$40.00} a month. I then stated you guys need to do whatever you need to do on your end to make this right and I do not want the monthly payment to go up and do not want an additional bill to cover the loan shortage. He informed me that he needs to now speak with a supervisor in Customer service and a supervisor in their refinancing dept. to figure out what happened, and how to fix this. He then advised me that someone will be contacting me. 
XX/XX/XXXX XXXX I received a call from XXXX XXXX XXXX XXXX XXXX XXXX Department ( XXXX While not admitting wrong doing, or able to provide an explanation on the Escrow calculation errors. She was apologetic for these errors with the loan, and asked what I would like to happen to resolve this. I then stated I would like to be reimburse the {$5500.00} for the closing cost, the monthly payment shall not be any higher then original monthly payment, and loan must not be extended. She then explained she will need to speak with her XXXX to go over everything that happened with loan, and will then call me back. 

CFPB please note : Since this issue is still not resolved, I 'm submitting this complaint to you. I need your expertise, oversight, and any additional support that you XXXX provide

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with monetary relief