Consumer complaint received 2024-12-02
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: NEW YORK COMMUNITY BANCORP INC (AZ)

Dear CFPB Re : Discrepancy in handling of Escrow Account and {$2200.00} Shortage being applied.

I am writing to formally address a significant issue concerning my escrow account, which has recently come to light following the transfer of my mortgage from Flagstar Mortgage to XXXX XXXX  in XX/XX/XXXX XXXX. Specifically, I have been informed of a {$2200.00} shortage in my escrow account, which I believe stems from a failure on the part of Flagstar Mortgage to properly adjust my escrow account to reflect an increase in my homeowners insurance premium for the XXXX  policy year.

To provide clarity on the timeline and relevant facts : In XX/XX/XXXX XXXX, my homeowners insurance policy, provided by XXXX XXXX, was renewed with a premium increase from {$1400.00} to {$2600.00}. This renewal notice was submitted to Flagstar Mortgage at the time, in accordance with industry standards, for them to adjust my escrow payments as needed.

Despite receiving the updated insurance policy, Flagstar Mortgage did not adjust my escrow payments to reflect the new premium. Instead, my monthly payment was reduced from {$2100.00} to {$2100.00}, which was based on in accurate anaylisis of the previous year. I continued to pay in good faith, the {$2100.00} believing it was the correct amount based on their analysis. and knowing that my insurance policy was provided to them.

I also made additional payments each month to help reduce my principal balance which could have easily been changed to apply toward the correct projected payment had the escrow been adjusted appropriately from the provided insurance policy.

I contacted Flagstar Mortgage to seek clarification and resolution. During this conversation, I was informed that the escrow analysis conducted by Flagstar on XXXX, XXXX, did not reflect the insurance premium increase because the analysis was conducted prior to the insurance increase, despite it being provided at the beginning of the year XX/XX/XXXX. When I questioned this, I was told there was no remedy available from Flagstar since they no longer hold my loan. Furthermore, the proposed options I was givenspreading the shortage over two years or filing a formal complaintwere not viable solutions, particularly given that Flagstar could no longer manage my loan. Basically, we can't help you, it's your problem.

It is my understanding that the escrow process is a critical service that mortgage companies, including Flagstar and now XXXX XXXX, are required to manage competently. Given that I provided the necessary information regarding the increase in my homeowners insurance, I do not believe I should be held responsible for the {$2200.00} shortage that resulted from Flagstars failure to adjust the escrow account appropriately or at the very least a reasonable solution should be offered.

I will be requesting that CFPB take the following actions to resolve this matter : Hold Flagstar mortgage responsible for the {$2200.00} shortage that was caused by their failure to properly adjust the account holding them accountable for their negligence.

Thank you for your prompt attention to this matter.

Sincerely, XXXX