Consumer complaint received 2024-12-05
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: TRUIST FINANCIAL CORPORATION (PA)

I have a {$300000.00} mortgage on a {XXXX XXXX XXXXXXXX XXXX XXXX XXXX with Truist Bank. 

MY HOME WAS EXTENSIVELY DAMAGED BY A TORNADO IN XXXXXXXX XXXX 

It took the entire summer to negotiate a fair settlement from my insurance company, but eventually, they agreed my claim for damages was {$55000.00}. 

I have so far received my settlement from XXXX XXXX in three checks. The first was for XXXX XXXX which I rejected as insufficient. XXXX XXXX sent a second adjuster, who agreed the damage was greater than the first adjuster, so the first check was voided and a second check issued for XXXX XXXX. I rejected that offer as well. Eventually, a forensic engineer evaluated my damage and agreed my entire roof needed replaced and XXXX settled for approximately XXXX XXXX 

Upon final settlement, XXXX XXXX supplemented the XXXX XXXX check with a XXXX XXXX  check, with promise of a third check of XXXX XXXX. My policy has a XXXX XXXX deductible, for a total of approximately XXXX XXXX XXXX XXXX XXXX 

The XXXX XXXX check was made out to me and Truist Bank. I had to send it to them, per the terms of my mortgage. Since then, they have acted like its their money, and I have to beg for them to return it, even though my home has been repaired and I need to pay my contractor. 

Given its the XXXX season, Ill make an analogy. Truist Bank is a modern day XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX has been replaced by a high tech, infuriating telephone menu that often does not work. I just live in one of the pauper shacks, paying fees to XXXX XXXX XXXX. 

I fully understand Truists interest in documenting that I repaired my house with the money. I do not understand the need for me to beg ( and trust me, my communications with them do not sound like begging, but that is what it feels like ) for MY MONEY to be returned to me so I can pay my contractor, who completed work on my home XXXX. 

Lets do a little math.my property taxes are {$12.00} kmy insurance XXXX XXXXso over the year I pay XXXX XXXX into my escrow, and my escrow balance never goes below XXXX XXXX make payments twice per year, so my avg escrow balance is XXXX XXXX dont make any interest on that, the bank does.at the fed funds rate of 4 percent ( the minimum they would make, my mortgage is worth XXXX} per year to them ). Lets say they have a XXXX such mortgages, thats XXXX XXXX. Its easy to assume management of escrow accounts is worth XXXX to the industry. They are incentivized to hold overstate their escrow needs and hold their XXXX XXXX for unreasonable periods of time. Now, with normal escrow, they are supposed to make normal payments on a schedule, although in the past Truist has been late with mine. I have received cancellation notices for my insurance, and my property taxes have been paid late. 

They have been holding my insurance check for a month now. The work on my house is done. I called this week demanding to speak with a supervisor, they hung up on me. Yes, I was and am angry. I sent a letter of complaint to their home office in XXXX, XXXX 

After multiple calls this week, Truist is finally sending an inspector today to ensure the work is done on my property. So, hopefully, my situation is being resolved. But, how long will it take to actually get MY MONEY back, who knows? 

I dont object to Truist needing documentation the work on my house is complete. And, they have finally scheduled an inspector to make sure the work on my house is complete. But because there is no regular schedule for this payment of MY MONEY back to me, I feel like they are playing games to hold this money as long as possible because they make money on it.Adds to their incentive to hold this money as long as possible. 

Id love for you to rattle Truists cage over my experience. However, Id also like to make a larger point. Companies servicing mortgages do so in large part to maximize their own cash flow. They have PERVERSE incentives to hold money longer than they should, because it enhances their bottom line..most mortgagees accept this. I do not. 

Id like to offer a solution. On new mortgages, banks should have to pay the fed funds rate, daily, to escrow accounts. That is the minimum, risk free amount they are making. They can keep anything they make above the fed funds rate. Reduce the incentive to keep the money longer than they shouldthey can put any difference in the interest rate they charge, so its transparent to the customer.