Consumer complaint received 2021-01-07
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In XX/XX/XXXX I started the refinance process with Bank of America on a condominium loan. I already had my existing loan with Bank of America, and was seeking a lower rate Refinancing from a 30yr fixed 3.635 % to a 15yr fixed at 3 %. The refinance closed on XX/XX/XXXX. When refinancing, it includes the first months payment along with funding of the escrow account and taxes to be paid to XXXX County. 

Summary : Bank of America never appropriately closed out my old mortgage causing me to be charged ( via auto withdrawal ) in the amount of {$1900.00} for the month of XX/XX/XXXX. Through the past 90+ days, they have provided false information about the funds ( saying that the payment withdrawn on XXXX was for the closing of the new refinance that took place on XX/XX/XXXX - which does not make sense ). After 60 days of research and weekly follow-ups, Bank of American finally admitted that the payment was taken and used to pay taxes against the old mortgage, and that my taxes had been paid twice. Bank of America pays my property taxes on my behalf. Bank of America said I would have to reach out to XXXX Country to get my property tax refund. I called XXXX Country and they said that the funds were returned to bank of America, because they had double paid my taxes. Bank of America said that they will be issuing me a refund, but has not answered my emails about how much I will be refunded.

Below is a summary of some of the emails sent and received. 

XX/XX/XXXX : I received a notification from Bank of America that my previous mortgage ( for the purposes of this message will call XXXX ) had my monthly payment withdrawn of {$1900.00}. 

XX/XX/XXXX : I reached out to Bank of America asking why the old mortgage account ( XXXX ) was not closed, and how could I get refunded for the payment. At this point in time their mistake to not close the old account resulted in two mortgages being open against me. 

XX/XX/XXXX : After no reply, I reached back out to Bank of America via email asking for assistance. This same day I spent an hour on hold and talked two different Bank of America representatives, one of whom confirmed that I should receive a refund from my old account, but to talk to the team that processed my refinance. 

XX/XX/XXXX : Bank of America ( XXXX XXXX who processed my refinance XXXX replied that she was sorry she missed my email and confirmed that she sees two mortgages and there should only be one. The only mortgage should have been paid off with the refinance. She said that I should get the extra payment and escrow balance returned to me. She told me to contact the mortgage services team ( who already told me to talk to XXXX ). I called the title company who confirmed that BoA handled my impound account and the funds were retained on their end for payoff. 

XX/XX/XXXX : XXXX did not know the funds were kepy for payoff and would update me XX/XX/XXXX : I reached back out and noted my concern again. 

XX/XX/XXXX : XXXX contacted me and said that her and her manager ( XXXX ) were waiting on an answer from all management. 

XX/XX/XXXX : XXXX said that their team was working n the numbers between the old loan and new loan they would keep me updated with progress XXXX : Old mortgage ( XXXX ) was finally closed out. 

XX/XX/XXXX : I confirmed the old mortgage was closed out. 

XX/XX/XXXX : I reached out again asking for a refund on my escrow account balance and extra payment since payment was not received. I also requested a cost breakdown. 

XX/XX/XXXX : XXXX said that she could no longer see details on her end, and said Please reach out to the Mortgage Servicing Team, they will be able to tell you how much you will get back, when you will get the check for that amount, and the breakdown you are looking for. 

XX/XX/XXXX : I added XXXX Boss  XXXX to the thread, and said that since I paid their team to refinance my loan, they were also responsible to see this through and get me my refund. It was their team that caused the issue, and it would not be appropriate to as me their customer to go talk to someone else. 

XX/XX/XXXX XX/XX/XXXX : Bank of America XXXX XXXX told me that the extra payment was applied to my new loan and I would not be getting a refund. I told her this was not the case and not possible, since the refinance was complete before the payment was taken against my original mortgage. Also, I told her it would not be appropriate for Bank of America to make decisions on where to put my extra payment. 

XX/XX/XXXX : I was sent an itemized list of the payments credited to my old loan. 

XX/XX/XXXX : I sent an email asking how a settlement applied to my old loan, provides credit to my new loan, since the refinance amount never changed from the documents I signed on XX/XX/XXXX and what is reflected in my new mortgage account balance. 

XX/XX/XXXX : XXXX shared that she determined that the issue was that Bank of America XXXX paid my taxes and I should have received a refund check from XXXX County for {$2800.00}. This makes no sense. The extra payment withdrawn was for {$1900.00}. 

XX/XX/XXXX : I received a call-back from XXXX Country who told me that the refunded amount was credited back to XXXX who Bank of America used to pay my taxes. XXXX Country also noted that the refund would / should come from Bank of America. 

XX/XX/XXXX : I sent XXXX an email saying that I would acquire legal representation if the matter was not resolved by XX/XX/XXXX. 

XX/XX/XXXX : XXXX shared that I would be getting a refund. 

XX/XX/XXXX : I asked for confirmation on how much I would be getting back. 

XX/XX/XXXX : I sent second follow-up asking how much I would be getting back.

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 monetary relief