Consumer complaint received 2016-03-08
Company: Dovenmuehle Mortgage, Inc.
State: TX
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
I received a letter telling me my mortgage was going up to XXXX per month from XXXX. The reason I 'm being given is that my escrow was short. According to the servicer 's records, in XX/XX/XXXX, my starting balance in my escrow account was XXXX. I refinanced my home XX/XX/XXXX with XXXX XXXX, whom allows their mortgages to be serviced by Dovenmuehl. At that time, my interest dropped by .75 %, as well, my MIP went. From XXXX per month to XXXX. My previous mortgage had just gone up to around XXXX due to an increase in hazard insurance premiums from XXXX to XXXX, which was our reason for the streamline refinance outside of the obvious savings we would get with the lower interest and lower MIP. Further, once our refinance went through, we switched our hazard insurance to XXXX to get a lower premium of XXXX. This took place on XXXX/XXXX/XXXX. Our current policy expires in XXXX of XXXX. During our refinance, our HUD indicated that our taxes were XXXX. It apparently went up a bit. 

My issue is that the escrow department has miscalculated or someone has paid something from my escrow that should not have been paid and now, they want me to pay either XXXX to have my payment only go up approximately XXXX per month ( XXXX ) or to pay the higher monthly amount of XXXX. 

I 'm no XXXX .... And there is no way you can tell me that my MIP of XXXX ; county tax of XXXX ; and hazard insurance of XXXX totals XXXX, which is what my escrow balance would be before paying out MIP, tax, and hazard insurance .... 

What it appear occurred is that they are showing that my hazard insurance is due, which was already paid in full for the year, plus the difference in taxes paid compared to the amount showing on the HUD. 

Either way, in XX/XX/XXXX, my balance was XXXX. Deduct the XXXX for insurance in XXXX and my account would have been XXXX. Then, Add to that XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX escrow payments of XXXX ( XXXX x XXXX = XXXX ) and the total escrow would be XXXX. Reduce that amount by XXXX ( 3 months of MIP OF XXXX ) and the total is XXXX. Now take that amount and deduct the XXXX in taxes paid in XX/XX/XXXX and the amount is XXXX. Then, XX/XX/XXXX 's payment would bring the escrow balance to XXXX after deducting MIP. XX/XX/XXXX 's payment would bring it back to XXXX AFTER DEDUCTING MIP. We are now in XXXX. So, if you add the XXXX XXXX XXXX less MIP ) we are back up to XXXX. Since our hazard insurance is not up for renewal until XX/XX/XXXX, we would have 6 months paying XXXX after our MIP is deducted. This would get our escrow balance to XXXX. This more than covers our XXXX premium and leaves a balance of XXXX. Adding 3 months at XXXX per month again brings our balance back to XXXX. Since taxes are due before XX/XX/XXXX payment will be processed, we 'd still be negative, and I agree that we should not go too far negative. However Using the same math and having XXXX by XX/XX/XXXX if you added XXXX to our escrow payment every month, after insurance is deducted and once XX/XX/XXXX 's payment is received and after taxes were paid, you would have an excess balance of XXXX .... Our payment would be manageable and would be XXXX ( XXXX P & I + XXXX escrow ) ... .. In other words, there is absolutely no reason that some XXXX came up with a XXXX higher payment ....

Company response to consumer: Closed with explanation