Consumer complaint received 2017-03-10
Company: JPMORGAN CHASE & CO.
State: CO
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account

Complaint:
In XX/XX/XXXX of this year I received notification that the interest rate and monthly payment on my variable rate mortgage would be increasing based on an in- crease in my rate from 3.375 % to 4 % and a presumed principle balance of {$520000.00} on my mortgage on the ARM adjustment date. In reviewing my Chase Mortgage transaction history ( attached ) my ARM adjustment date was XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX. My mortgage loan agreement ( attached ) also states in paragraph 4 ( A ) that my ARM adjustment date will be XX/XX/XXXX beginning in XX/XX/XXXX and every XX/XX/XXXX in subsequent years. Not wanting my monthly payment to increase by {$160.00} per month, I made an additional principle payment of {$24000.00} on XX/XX/XXXX to reduce my principle value for the ARM adjustment date of XX/XX/XXXX. 
According to my Chase mortgage transaction history my {$24000.00} payment was posted on XX/XX/XXXX. In addition, my normal monthly payment was applied on XX/XX/XXXX even though I had requested my regular monthly payment be applied on XX/XX/XXXX. ( requested of XXXX, Chase customer service, on XX/XX/XXXX in a phone conversation ). As a result of my principle reduction payment and the early application of my monthly mortgage payment my principle value was {$500000.00} on XX/XX/XXXX. On that same date, for reasons unknown to me, Chase initiated an ARM adjustment using a principle value of {$520000.00} and an interest rate of 4 % resulting in a monthly payment of {$3300.00}. The interest rate is correct but the principle value they used ignores the two payments I made ( that show on the history ledger ) to reduce the principle value of the loan. I 'm in the finance and lending business so I know how to calculate principle and interest payments for a mortgage. I have 19 years remaining on my mortgage. When the correct principle balance of {$500000.00} is amortized over 19 years at 4 % the monthly principle and interest payment is {$3100.00}. I made numerous calls to the Chase customer service department speaking with XXXX and XXXX explaining the error, but they were unable to help me. I was finally elevated to XXXX Senior Service Specialist, XXXX ext XXXX, on Friday XX/XX/XXXX. I explained the entire scenario as I did in this complaint. 
He told me he would investigate and get back to me in 24 to 48 hours. I had not heard from him by Tuesday XX/XX/XXXX so I called but had to leave a message requesting an update. I had not heard from him by mid day Wednesday XXXX XXXX, but again had to leave a message. I called again this this morning Thursday XXXX, but again had to leave a message. In my message I explained that if I did not hear from him today I would have to file a complaint with the Consumer Finance Protection Bureau. He called me back. I again explained everything in this complaint and I reiterated that I believed their systems were in error and my monthly payment should be as I described in this complaint. He disagreed and said they were following the terms of my loan agreement and there was no more he could do. I pointed out what my loan agreement stated and that my ARM adjustment date is XX/XX/XXXX not XX/XX/XXXX. I asked him why my principle reduction payment posted on XXXX XXXX and my monthly payment on XX/XX/XXXX which also reduced the principle were not used in the calculation, and why the ARM adjustment was made on XX/XX/XXXX instead of XX/XX/XXXX as called for in my loan agreement. He did not have an answer and continued to insist they were correct. I asked to speak to his supervisor but he refused. I told him that since Chase mortgage was in violation of my loan agreement and he refused to allow me to speak to his supervisor I would be filing a complaint with the Consumer Finance Protection Bureau.

Company response to consumer: Closed with explanation