Consumer complaint received 2017-03-21
Company: LoanCare, LLC
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Loancare A Service Link Company purchased my loan from XXXX XX/XX/XXXX. My mortgage payment to include hazard insurance, PMI, and County taxes ( everything listed and covered in escrow account ) was {$1500.00} upon their purchase of the mortgage from XXXX. I received a letter from Loancare XX/XX/XXXX stating that I had an escrow shortage of approximately {$210.00}. I contacted Loancare via phone on XX/XX/XXXX informing them that I had changed my insurance carrier to XXXX who had notified me that they have forwarded the coverage documents to them ( Loancare ) already and that the insurance with XXXX is approximately {$150.00} less annually and my County taxes had an increase for XXXX ( yes XXXX ) for the entire year of XX/XX/XXXX, which meant that I could n't possibly have a shortage in escrow after reviewing it and doing the math on a few occasions. In fact, I have an overage. I was told that the escrow account would be analyzed and they would follow up with me. After 2 weeks I did n't hear from them and phoned and I was informed by the customer service representative to call back in another week. I did and was informed that the account was correct after their analysis. I asked to speak to someone in the department that did the review and was informed per the customer service representative that the department that did escrow analysis did not speak with customers and that I could only speak to a customer representative. I asked to speak with a manager and was informed that they would only tell me the same thing which was on the computer screen that the customer representative was reading from to inform me of the outcome. I asked for another review and was directed to send an email with my concerns which I did again on XX/XX/XXXX. I restated my concern about the escrow account being incorrect and that there is not a shortage in escrow and to send me a line item review of how they arrived to the decision that there is a shortage. I phoned again today, XX/XX/XXXX and was informed that the review would n't be complete until XX/XX/XXXX which is the deadline for the extension to pay the month of XX/XX/XXXX mortgage, that was given as a result of my complaining about the payment being incorrect ( as the escrow shortage has now been applied to my monthly payment ). I explained that if the review will not be complete until the XX/XX/XXXX then the payment would be considered late as I am waiting for the analysis again. I was told yes there would be a late charge and that I will still have to pay the shortage if Loancare decides that I have a shortage again. I believe this is fraudulent and away for the loan company to acquire additional revenue. I ca n't imagine how many customers they are doing this to and getting away with it. An audit should be conducted to analyze their transparency and processes in this area of accounting. I smell fraud all over this as XXXX myself.

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