Consumer complaint received 2016-05-05
Company: Prospect Mortgage, LLC
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
I purchased a home in XXXX XXXX XXXXXXXX4.25 % 30 year through a lender that uses XXXX to sub-service their loans. In XXXX XXXX the XXXX reduced MIP by XXXX basis points. I did a FHA Streamline Refi in XXXX XXXX through the same lender ( MIP reduction plus new interest@3.25 % 30 year ) and Cenlar remained the sub-servicer. Later in XXXX I noticed something was weird with my loan breakdown screen in XXXX. Someone determined that the MIP was being incorrectly collected, issued me a refund check and for the past year, each month they collect too much from escrow and refund some back. Then, this month ( XXXX XXXX ) I receive a statement from XXXX saying that I now have a shortage amount in my Escrow account and that I owe them money ( over {$5000.00} ) within 30 days and my mortgage payment is going up staring XXXX XXXX. I have been calling Cenlar trying to work with them to figure it out, they transfer me to Lakeview Loan Sevicing 's Refi Department ( I have never heard of them but apparently they bought the loan from the original lender ) and Lakeview tells me they do n't know why XXXX transferred me to them as they only originate loans ( they also use XXXX to sub-service just like the original lender does ). Because I can see my old, paid off FHA purchase through my XXXX account as well as the newer refi through my cenlar account, I noticed that besides the MIP error they made, it looks like what they collected for escrow/taxes is much less on the refi than it is on the original purchase. XXXX has admitted on calls with me that there were errors at closing, but says its not their issue. I do n't believe that I should have to pay for errors that the lender/escrow company made. I believe that the loan amount should go up a small amount monthly ( from what I estimate, around {$200.00} to make the tax withholding the same as it was on the original purchase ( as taxes generally do n't change in a 6 month period ) ) to make sure there are enough funds in the escrow account to cover taxes, etc. But with errors by the lender/escrow company and my fully executed loan docs showing what I am currently paying as correct, I should n't have to pay the deficient balance, the lender or escrow that made the error should. Also, my original purchase loan amount was {$3200.00} ( never late ) - since the refi it was {$2400.00} ( never late ) now they are saying that it will go up to $ {$3200.00} staring in XXXX XXXX? How can that be correct? I reduced MIP and interest rate on the same ( if not less ) loan amount and now my payments are the same again? Someone needs to fix this. NOW. I have timelines, names, etc. of who I spoke to at XXXX. What is also interesting is that they say the last notes on the account are from a man, but I only spoke to XXXX women, so I am suspect that they are also changing things on their end because I have been on top of this and trying to get the responsible party for the numerous errors in disclosure/escorw/closing, etc to cover this and make it right.

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