Consumer complaint received 2022-03-05
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Guild Holdings Company (CA)

This complaint is in regard to the blatant and malicious violation of federal and state law by our lender, which is causing an extreme financial hardship for myself and my family. Our mortgage lender, Guild Mortgage, is in violation of the Code of Federal Regulations Title 12 : Banks and Banking Chapter X : Bureau of Consumer Financial Protection Part 1024 : Real Estate Settlement Procedures Act ( Regulation X ) 1024.17 ( c ) Escrow accounts and California Civil Code section 2954. ( both attached ). 

Guild Mortgage is purposefully and persistently overcharging our monthly escrow payment amount by approximately {$330.00} each month which is far more than the allowable amount under federal and state law. 

I believe this conduct is malicious and willful, and not based in good faith error for the following reasons : When this refinance loan was originated, we had an approximately {$33000.00} HERO loan attached through our property tax payments. Our previous loan included the annual payments for the HERO loan, which was about {$4000.00} yearly, within our monthly payments as part of the monthly escrow. When we refinanced with Guild, we were required to pay off the HERO loan at closing and the {$33000.00} was included within our monthly mortgage payment. I raised a concern at the time that the estimated escrow amount continued to reflect paying for the HERO loan within the monthly escrow when we already paid off the loan and the payments for it were therefore included in our mortgage amount, effectively making us pay double for the loan each month. I was assure at that time that the escrow department would find this situation during their analysis and make the needed adjustment.

The escrow analysis department of Guild Mortgage did not recognize that the HERO loan included in the property taxes was paid in full by them at closing and we began being charged twice for the same {$33000.00} amount, as it was now included in both our mortgage payment as well as our escrow payment. I called customer service and was told to make the scheduled payment for XX/XX/XXXX even though it included an approximately {$330.00} overpayment, and that the overpayment would be credited later but that the situation should be resolved within a few weeks. 

Of course, the situation was not resolved and remained unresolved as we were forced to continue making the {$330.00} overpayment in both XXXX, XXXX, XXXX and XX/XX/XXXX. This lack of correction by Guild for our monthly escrow amount requiring us to overpay about {$330.00} each month began creating a financial hardship. 

In XX/XX/XXXX, I again contacted customer service sending notice of the ongoing overpayment problem and again submitting our XXXX XXXX Tax Collector details for both XXXX and XXXX showing that the approximate {$4000.00} required annual loan repayment was removed from our assessor bill. We requested that the escrow analysis department reassess our escrow payment amount using the correct projections as verified by our tax collector. Again we were told that their department would make the necessary corrections during their regular annual assessment and the new amount would be reflected going forward. 

In XX/XX/XXXX, Guild Mortgage refunded {$1800.00} in escrow overpayment over a six-month period, clearly acknowledging that their previous monthly escrow amount was in error and we had been overcharged by that amount in that short time period. However, on the XX/XX/XXXX Escrow Account Disclosure Statement ( attached ), while it shows the previous projections from XX/XX/XXXX with two ( incorrect ) county tax payments of {$3900.00} on XX/XX/XXXX and XX/XX/XXXX, it discloses the actual ( correct ) county tax payment of {$1900.00} in XX/XX/XXXX. Further it goes on to improperly project for XXXX county tax payments of {$3900.00} in XXXX and XXXX of XXXX, making our total escrow amount {$8800.00} when it should be only {$4900.00} for the year. We know from the repeatedly submitted documentation as well as from Guilds own actual payments to our county tax office, that the amount they are projecting is {$3900.00} too high. This required overpayment is creating a financial hardship.

Because of the numerous times we brought this problem to their attention as well as the unimpeachable submitted documentation, including their own actual payments to our tax collector and their overpayment refund, we do not believe this is an honest mistake, but a purposeful violation of both the law and our rights. As such, Guild Mortgage should be fined and found to have substantially injured us financially, and thereby encouraged to make fair injunctive relief for our damages.

Therefore, we are requesting that CFPB complete a review of our loan escrow amount projections/charges ASAP, inform Guild Mortgage of their violation of both state and federal law regarding mortgage escrow charges and take whatever corrective action necessary to bring this to a satisfactory conclusion.