Consumer complaint received 2023-08-08
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: MONEY SOURCE, INC., THE (KY)

I have contacted XXXX aka XXXX XXXX  via email and phone countless times and have it documented and recorded they require me to keep a escrow cushion, far exceeding the guidelines XXXX Escrow accounts. Moreover I was told last year any overages would be returned at the end of the year, however that was not the case. In XX/XX/XXXX I received an escrow analysis showing a shortage based on an increase in my taxes and property insurance. As a result my payment would increase to account for any shortages. 

In XXXX, XXXX, XXXX and XXXX I contacted XXXX XXXX  both phone and via email. They do not respond via email which results in being told different things among their customer service agents. I have spent over 90 minutes each call trying to understand why I am required to keep more than federal law requires only to be shuffled from person to person to repeat the same thing that I will have a shortage and am required to keep a " cushion '' of almost half in my escrow balance. I have even asked them multiple times to confirm this information as I was certain it violated federal laws. They repeated the same thing, as they read off some talking points going in circles about how escrow worked. I understand very clearly how escrow works. What I don't understand is why my " cushion '' equates to almost six months of escrow payments and none of it goes to the shortages? However I was told that the " cushion '' was not used to pay the shortages even though the shortage is based only on the requirement of having six months of escrow payments in the account. 

FIrst {$2800.00} required balance far exceeds the two months typically required, if that balance is not used to put towards any shortages. 

Based on XXXX XXXX, {$6100.00} is paid out annually towards the Homeowners and taxes each year. The escrow analysis was based on an escrow payment each month of {$470.00} therefore increasing my payment to {$510.00} to account for the shortages even though the escrow account had a balance of {$2500.00} at the start of the year and like last year will be the ending balance. A balance that is never used to pay for shortages but also never returned at the end of the year? 

It wouldn't be an issue if the overages of any escrow was returned each year, but this isn't the case or if the balance remaining was used to pay any shortages. It also would not be an issue except multiple phone calls to the XXXX XXXX  has confirmed everything on my escrow analysis is correct, which is very concerning if not one single employee can see the issue. I have every conversation documented and listened to each multiples times to ensure I was not misunderstanding anything. THis is not the first error XXXX XXXX  has made and not my first complaint. 

In XXXX escrow analysis reduced my payment which I assumed was because I had just purchased the house there was an overestimate for the remaining two months. However for some reason between XXXX XXXX XX/XX/XXXX no quality control check was done to check numbers to notice they didn't include the property taxes as they had previously done. Being a first time homeowner it didn't occur to me the bank would make an error so I just paid what was due. I've learned from this error when my payment in XXXX increased {$500.00} to adjust for any shortages from the previous year. 

In XXXX Not only did the escrow payment increase {$500.00} additional dollars, XXXX bank applied a monthly payments directly to the escrow then reported the payment as late. 
As the attached document shows over in XX/XX/XXXX alone I paid $ XXXX just in escrow which {$2500.00} was an overage and never refunded. While I realize errors happen, although XXXX mistakes usually cost me, I have called so many times and yet can't get a simple correction or acknowledgement that I will not be required to keep 6 months of escrow payments at all times in the account. 

The IRS statement shows a balance of {$1200.00} when it clearly shows by XX/XX/XXXX I had paid an excess of almost {$2500.00} of whch nothing was refunded. Instead XXXX XXXX  increased my payment even higher to adjust for a shortage despite having more than enough funds to cover a shortage. 

IT shows in XXXX over {$250.00} in late payments due to applying payments to escrow, yet by the end of the year XXXX had been paid {$2500.00} additional money which is clear indication money is being sent but errors by XXXX XXXX  cost the customer. 
For XXXX XXXX  to follow escrow and mortgage laws regarding how much " cushion '' is allowed and apply those shortages from all the extra money being held in the escrow account. Instead of increasing payments to account for shortages that do not exist. 

I am unable to attached XXXX recording that clearly show multiple employees over a period of six month reiterating the escrow balance required along with stating overage will be refunded.