Consumer complaint received 2022-07-30
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Michigan Mutual, Inc. (FL)

On XX/XX/XXXX I closed on my home with MI Mutual Mortgage Company. I requested not to escrow my homeowners and flood insurance. At the day of closing MI Mutual informed me that it was mandatory to escrow the flood insurance but the homeowners were not being escrowed. I had no choice but to escrow the flood insurance as this was the day I was closing. 

I have been paying my mortgage on time every month, principal, interest and flood escrow. In XXXX, XXXX I decided to submit an extra payment of {$100.00} per month in order to bring down my balance. Mi Mutual on its mortgage statement advises any extra payment will automatically be applied to the principal balance. In XXXX, XXXX when my flood insurance came up for renewal Mi Mutual paid the policy incurring a shortfall in my escrow payments. I was never informed that my escrow was short and could not cover the flood payment. Mi Mutual without any communication applied my extra payment to the escrow. On checking my account I realized my extra payment was not applied to my principal so I contacted MI Mutual. This I when I was informed that my escrow was short. I requested an escrow breakdown so I can ascertain how this shortage occurred and why I was never informed prior to the renewal of my flood insurance that there was a shortage. Mi Mutual then reversed the extra payment from the escrow to credit the principal and subsequently again reversed the amount to the escrow. Again without any notification. 

On XX/XX/XXXX I received an email from MI Mutual advising that on XX/XX/XXXX without any prior notice my account was debited with {$2000.00} in order for MI Mutual to pay my homeowners insurance, which was not escrowed. I immediately called Mi Mutual and requested that the payment be reversed as my homeowners is not escrowed and I have been paying my homeowners directly. I was assured that this would be done. To date this is still an issue with Mi Mutual. 

On XX/XX/XXXX I wrote to the CEO and CFO of Mi Mutual to rectify this situation. On XX/XX/XXXX I received through the mail a note without a signature that the matter is being investigated. No communication whatsoever from Corporate management to address the errors made by its employees. Since then I have had no communication from anyone in MI Mutual except a notice advising that my request to waive the flood insurance escrow was denied due to the balance owed to my escrow account, which has been created by their errors in handling my mortgage. 

I would appreciate your assistance in rectifying this situation as I have no confidence in this company and no one seems to care, not even its CEO or CFO and its employees. I need for MI Mutual to correct its errors regarding my homeowners, and to waive the requirement for the flood insurance escrow which should never had been done. Typical of this company you are only advised after the fact. They chose to put me in flood escrow while I was at the Title Company closing, when all before the closing I insisted that I was not going to escrow any funds. 

My Last statement dated XX/XX/XXXX shows that I now have a balance due of {$1400.00}. 

Your kind attention to this matter is greatly appreciated.