Consumer complaint received 2016-02-24
Company: WELLS FARGO & COMPANY
State: MD
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
My loan was modified effective XXXX/XXXX/XXXX and it is an interest-only loan with an escrow for property taxes only. I started to make extra payments in XXXX, however, the payments were not recorded properly and the annual interest paid was reported incorrectly for XXXX, XXXX and beyond. I called and wrote to America 's Service Company/Wells Fargo, but there was no reply or action. I sent multiple letters and called ASC. Finally in XXXX, XXXX, I called ASC/Wells Fargo and customer service stated they had no record of any requests and that I needed to send a written request. I sent the proper request on XXXX XXXX, XXXX, seeking a loan history and proper recording of all payments. ASC acknowledged my request on XXXX/XXXX/XXXX. ASC subsequently sent a letter on XXXX XXXX, XXXX and then called my attorney on XXXX XXXX, XXXX explaining that more time was needed to respond. Every time I called subsequently, I was told that ASC was still working on the request, until XXXX when I was told that it would be sent shortly. No one ever returned my calls or inquiries, even though I asked. I explained again that all extra payments should used to reduce principal. ASC/Wells Fargo was and continues to apply payments to future payments and to my escrow account, rather than reducing my principal, and hence interest owed! Every time I called, customer service stated that the problem would be corrected. Finally, XXXX XXXX, XXXX ASC/Wells Fargo sent a letter to me revising interest paid for the years XXXX and XXXX!!. No loan history has been transmitted as of this writing. I still have reason to doubt those figures because the interest due each month is {$1100.00} which would be equal to {$13000.00} for a full year. Without a loan history, I ca n't tell if my payments have been recorded properly. According to my XXXX, XXXX statement, my next payment is not due until XXXX XXXX, XXXX XXXX yes, XXXX!!! ) and my escrow balance is now approximately {$5600.00} ( which is more than twice than that shown on the cash flow analysis used to compute the adjustment to my monthly escrow payment ). During this time, ASC recorded a monthly escrow fee of {$180.00} and then {$220.00}, even though the monthly escrow was not scheduled to change to {$190.00} until XXXX XXXX, XXXX. ( I paid the escrow shortage of {$390.00} ) The escrow cash flow analysis shows that the maximum amount of {$2500.00} will be in XXXX, XXXX which is when the ( {$2200.00} - {$2300.00} ) annual property taxes are due. There is an extra {$3100.00} in this account now. ASC is also not fully applying my extra principle payments, rather the monthly loan statements show funds " unapplied '' that are not being used in my loan payments. Since XXXX, I submitted monthly payments of {$13000.00} and {$18000.00} and {$13000.00} and {$19000.00} BUT my principal hardly dropped. My required monthly payment is {$1200.00} but the extra payments have not been applied according to normal banking procedures. That is the reason that my interest payments are in error and my loan balance is incorrect.

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