Consumer complaint received 2016-06-10
Company: Specialized Loan Servicing Holdings LLC
State: MS
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Specifically, on or about XXXX XXXX, XXXX, after several weeks of frivolous delays and unnecessary phone calls, your service provider, Specialized Loan Servicing ( SLS ) via its supervisor of Customer Resolution Department, XXXX, finally negotiated a resolution to allow the state of Mississippi through its Home Saver Program to forward funds to SLS for full reinstatement of the delinquent mortgage loan inclusive of all past principal, interest, late fees, other payments advance on the taxes and insurance. Inclusive of that resolution was the condition that I prepay the mortgage note for XXXX XXXX along with taxes and insurance for XX/XX/XXXX in order to ensure that the reinstatement quote falls within the limit required by the Homesaver Program. Based upon XXXX statements, I prepaid the XX/XX/XXXX taxes, XX/XX/XXXX home owners insurance and the XXXX XXXX mortgage note of {$920.00} XX/XX/XXXX. 

Pursuant to my discussion with SLS, I prepaid the month of XXXX, XXXX along with pre-paying the taxes and insurance for XXXX. Nevertheless, SLS has sent monthly mortgage statements with the escrow added to the monthly mortgage along with late fees which were to be included in the reinstatement. I have requested copies of these so-called late fees which XXXX has yet to provide and XXXX nor any other SLS rep has been able to directly pinpoint the origin of these late fees. 

Thereafter, after numerous telephone discussions with SLS personnel and XXXX with SLS Executive Department, I was misled to believe that a timely review of the reasons for the added escrow as well as refund of the excess funds in the amount of {$4700.00} would be forthcoming. After several weeks of back and forth and no promised return phone call from SLS, XXXX informed me that due to some record of a delinquent tax or insurance payment in XX/XX/XXXX, the escrow must stay. Such a assertion is false, as I have never been late on taxes or insurance. In fact, SLS and its predecessor ( XXXX XXXX XXXX ) would pre-pay the taxes and insurance prior to them becoming due. This notion is irrelevant considering, the agreed resolution would be for me to pay the XXXX XXXX mortgage note, XX/XX/XXXX taxes and insurance in advance. Therefore there is no need for an escrow, yet SLS has applied the escrow to my loan thereby making my mortgage note go from {$470.00} to {$920.00} which poses a hardship considering I depleted my funds to pay the XXXX XXXX note, XXXX taxes and insurance in advance. Such is a fraudulent misrepresentation, breach of contract, breach of implied covenant of good faith and fair dealings, unfair and deceptive servicing practices under Mississippi law. 

Additionally, SLS acknowledged that it had an excessive amount in the escrow suspense as result of the taxes and insurance that I prepaid. Considering the excess, SLS assured me that it would apply the excess towards the XX/XX/XXXX and XX/XX/XXXX rent so as not to be delinquent. Moreover, XXXX assured me that nothing would be reported to the credit bureau. After these conversations, I received a statement from SLS with late fees and my credit report indicates that monthly mortgage payments for XX/XX/XXXX and XX/XX/XXXX are delinquent. Such is a fraudulent misrepresentation, breach of contract, breach of implied covenant of good faith and fair dealings, unfair and deceptive servicing practices under Mississippi law. 

During the beginning of the month of XXXX, I have conversations with SLS supervisor XXXX in which XXXX assured me that he had requested a new escrow analysis which would take into account the pre payments made by me and thereby significantly reduce my monthly mortgage note. He further suggested that I give SLS permission to use the excess funds in escrow to pay the XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX mortgage notes so as not to incur late fees and late credit bureau reports. Per XXXX direction,

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