Consumer complaint received 2017-11-07
Company: NATIONSTAR MORTGAGE LLC
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
As of XXXX/XXXX/XXXX, my mortgage was transferred from XXXX to NATIONSTAR MORTGAGE LLC d/b/a Mr. Cooper. I was working with XXXX to resolve an issue with my escrow account. Since the beginning of my loan with XXXX, my property tax and my hazard insurance was handled through escrow. Effective XXXX/XXXX/XXXX, XXXX approved removal of my hazard insurance from escrow ( reference letter dated XXXX/XXXX/XXXX ). After XXXX/XXXX/XXXX, escrow only handled property taxes and I paid hazard insurance. The following year around XXXX of XXXX, I applied for a loan modification. One of the loan modification prerequisite was I pay a reduced mortgage amount for 5 months known as a trial period. These payments must be paid on time before I receive the loan modification official documents to be accepted, signed and approved. I successfully completed on time all trial period loan payments. The loan modification documents were sent to me for review, approval and signature. If my loan modification is accepted, signed and approved, one of the conditions of the loan modification is the hazard insurance must be re-added back into escrow. 
Because of this loan modification requirement to re-add hazard insurance to escrow and the increase of my projected monthly mortgage amount, I decided to reject the loan modification. This loan modification would actually make my monthly mortgage worse. Loan modification documents were not approved and signed. Per my XXXX XXXX and single point of contact ( XXXX XXXX XXXX ), everything will fall back to like it was prior to loan modification request. I will resume paying my original mortgage payment prior to the trial period. Also since the loan modification was never signed and approved, my escrow should still be the same. Escrow should continue to handle property tax and I handle hazard insurance. 
THE PROBLEM IS MY ESCROW ACCOUNT WAS CHANGED. XXXX RE-ADDED HAZARD INSURANCE TO ESCROW. THEY NEVER COMMUNICATED THIS ACTION TO ME. Since the loan modification was rejected and never approved, escrow account should not be touched. 


PROBLEMS : 1 ) XXXX added the hazard insurance back into my escrow. I need to understand why? Since the loan modification was rejected and never approved, why was this done? There was no communication to me that hazard insurance was being added back. I contacted XXXX several times to get hazard insurance removed. They refused to remove it because it is in there system I was late on monthly payment. This bring me to problem # 2. 
2 ) I dont understand why I am in the system as being late on any mortgage payment. Since XXXX took over my mortgage account, all payments including trial period payments were PAID ON TIME. Please reference history of payments. If any payment was late, they would not have sent me official loan modification documents for approval. I need to clearly understand why I am showing late on payment? What need to be done to correct this error in this system and clear my name? Also, if anything was sent to credit bureaus, this need to be cleared up? I was told by the XXXX specialist all my timely payments from trial period payments will update system and bring everything back to current correct status. APPARENTLY THIS DID NOT HAPPEN. 
3 ) Hazard insurance was duplicate paid. Because hazard insurance was added back to escrow with no communication to me, the escrow account paid hazard insurance and I also paid hazard insurance. Again, need to understand why hazard insurance was added back to escrow? Escrow should not have been touched ( per XXXX XXXX XXXX XXXX XXXX. I contacted XXXX XXXX about the hazard insurance duplicate payment. They are refunding to me XXXX of the payments. This hazard insurance in escrow need to be resolved ASAP to avoid any future duplicate payments. 
4 ) I received annual escrow analysis dated XXXX/XXXX/XXXX. This analysis is next year mortgage payment projections and any escrow shortage or overage. Because of hazard insurance being added back to escrow, this analysis included projections for hazard insurance payments. Again, why was hazard insurance added? What need to be done to clear my name and resolve this? How do I get another CORRECT annual escrow analysis done? This is critical because it affect next year mortgage payments and if there is any shortage or overage. 

THIS ESCROW PROBLEM WITH HAZARD INSURANCE BEING ADDED HAD FOLLOWING IMPACTS : -- duplicate payments -- unfair and not accurate payment information reflected in systems -- by paying the hazard insurance from escrow, decreased money in escrow account. 
-- inaccurate and unfair annual escrow analysis was done that impact next year mortgage payment projections and determination of escrow shortage or overage. 

XXXX was contacted many times to resolve this. I am now with a new mortgage company. Please let me know what need to be done to resolve this? All supporting information is in the system. I contacted my new mortgage company ( Mr Cooper mortgage company ) 3 times. I was told they are still boarding my information from XXXX. The new date is now XXXX/XXXX/XXXX. I need this escrow problem resolved. This give me a XXXX and a half to get this resolved.

Company response to consumer: Closed with explanation