Consumer complaint received 2016-06-09
Company: JPMORGAN CHASE & CO.
State: TX
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Settlement process and costs

Complaint:
On or about XXXX XXXX, 2016, I received an offer from JP Morgan Chase to refinance my existing mortgage loan with XXXX closing costs to me and a lower interest rate. After discussing the offer, the refinancing process and terms with a Chase representative on the phone, I completed the initial loan processing package and returned the documents to the Chase representative via email. 
One of the documents I completed was Exhibit A ( Escrow Account Notice ) where I chose the option to have " the funds in my existing escrow account returned to me. '' My understanding of this option meant that I would ( a ) establish the required balances of the tax and insurance escrow accounts for the " new '' loan from cash that I would provide at closing, and ( b ) once the " old '' loan was paid off with funds from the " new '' loan ( i.e., none of the " old '' loan escrows would be applied to the payoff ), the tax and insurance escrow account balances from the " old '' loan would be refunded to me. Essentially, I would be funding the " new '' loan escrows, but would be getting that money back when the " old '' loan escrows were available in a few weeks after closing. 
Additionally, in my conversation with the representative on the phone, I was left with the impression that the first option described on Exhibit A was not even available to me ( even though both the " old '' and " new '' loans were there Chase ). 
On XXXX XXXX, 2016, I closed on the " new '' loan and provided {$2200.00} of funds to pay for ( a ) the " new '' loan tax and insurance escrows ( {$1700.00} ) ; ( b ) stub period of interest ( {$38.00} ) ; ( c ) the monthly escrow payment that would be due on XXXX XXXX ( {$430.00} ). 
On XXXX XXXX, 2016, I received a check in the amount of {$17.00} from Chase. Since there was no explanation of what the check represented, I waited a few more days to receive a check for the full amount of the " old '' loan escrows ( {$1700.00} ) On XXXX XXXX, I called Chase and was told that the {$17.00} check represented a full refund of the escrow balances of my " old '' loan after they had been applied {$1700.00} to principal at the time of pay-off. In other words, Chase had done exactly the opposite of what I requested. Please see Exhibit C which is a Loan Transaction History received from Chase. 
After hearing that, I wrote an email to the Chase representative I had been working with as well as the title company. Such email exchange is attached as Exhibit B and is where I stand today. Basically, on XXXX XXXX, XXXX XXXX XXXX admits that Chase made an error, but indicates there is no way to correct it and refund me {$1700.00}. 
Therefore, my complaint has to do with the fact that I had specifically chosen to receive a refund of my escrow balances on the " old '' loan and NOT to use those funds to pay-off any portion of my " old '' loan. Chase did exactly the opposite and now indicates that there is no way to correct the error. They have referred the matter to someone in their Resolution & Complaints Office ; however, I feel that without your assistance, I will continue to be stone-walled, further delaying the return of my funds. I would, therefore, appreciate your assistance in resolving this matter. I have now waited six business days to be contacted by someone in Chase 's Resolution and Complaints Office, but no such communication has occurred. 

I am agreeable to amending the loan documents -- at absolutely no cost to me -- and would like to be refunded the full amount of my " old '' loan escrows ( {$1700.00} ). Thank you, in advance, for your assistance in this matter. If you need additional documentation or information, please feel free to contact me at the email address provided. 
Thank you,

Company response to consumer: Closed with monetary relief