Consumer complaint received 2016-07-02
Company: Caliber Home Loans, Inc.
State: TX
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
We are wanting to remove our escrow from our current mortgage, so we can pay a lump sum for our property tax and home insurance like we 've previously done with past mortgages. We have excellent credit, excellent payment history and we can afford paying a lump sum for our property tax/insurance. We called in and we were advised that we could remove the escrow, by submitting a written letter to remove escrow and to show evidence that you have successfully paid property tax and insurance on our own with no issues. I asked what would cause my escrow waive to be declined and the mortgage personal said if I do n't have a good history of paying my taxes/insurance ontime. We were told this was the process by a few people at Caliber Home Loans. When I called in to see the status they mentioned Escrow Waiver is up to XXXX. I called XXXX and they mentioned it was not up to XXXX and it was up to the Mortgage company. We have been conflicting information and no one seems to know the policy or how to administer the policy. I called Caliber Home Loans again and mentioned what XXXX said about them being the sole owner of making a decision on escrow waive. They said the would escalate this. After several days, I got info that my escrow waive would be declined because I do n't have the Loan To Value ratio. This contradicted what was told to me first, that all I had to do was submit a letter with evidence of good tax/insurance payment. Also, according to fannie mae 's website it states the following : The servicer must ... 
Evaluate whether it is appropriate to waive the escrow account requirement based on the following : the mortgage loan documents and applicable law, the borrower 's prior mortgage loan payment history, the borrower 's overall credit history, the LTV ratio of the mortgage loan, and the borrower 's financial ability to handle the lump-sum T & I payments. 
Deny a request to discontinue escrow requirements for a mortgage loan if the borrower has previously defaulted on the mortgage loan, a blemished credit history on other credit obligations, or limited cash reserves. 
Maintain the following information in the mortgage loan servicing file and make it available to XXXX upon request : the borrower 's written request ; the servicer 's basis for the waiver decision ; and the waiver of escrow deposits disclosure provided to the borrower, if applicable. 

So, according to XXXX a servicer can deny a request to discontinue escrow requirements for a mortgage loan if the borrower has previously defaulted on the mortgage loan, a blemished credit history on other credit obligations, or limited cash reserves. 

I 've been struggling with both Caliber Home Loans and XXXX on getting answers. I do n't see any where in the policy of what the Loan to Value ratio must be. I do n't see Loan to Value being a criteria to deny escrow waiver. 

I 've paid my own property taxes and insurance on my own with previous mortgages with no issues. I do n't have a PMI with my current mortgage, so I do n't understand what the issue is to honor the escrow waiver. Also, I was told by XXXX after 2 years, escrow can be removed, but I do n't see this in the XXXX policy? Another contradiction. 

I do n't understand why there are policies for escrow waive, when the mortgage company and XXXX does not seem to know the policy XXXX themselves. Also, it provides me a better financial power to pay my own taxes and insurance on my own. We have our own savings we dedicate for these type bills and our monthly mortgage bill would be significantly lower. Are there any rights for the home owner about escrow ( especially if it is going to make it more affordable for the home owner )? 

Very Respectfully, XXXX

Company response to consumer: Closed with explanation