Consumer complaint received 2017-07-12
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Freedom Mortgage Company (IL)

The escrow analysis completed on XX/XX/XXXX and again on XX/XX/XXXX, is grossly inaccurate. Please consider this letter as a formal written complaint under RESPA. I have contacted Freedom Mortgage a number of times over the phone to attempt to resolve this matter informally to no avail. <P/>The analysis mistakenly estimates that the property taxes on the property located at XXXX XXXX XXXX, XXXX, IL ( PIN : XXXX ) will amount to more than {$8000.00} for the year XX/XX/XXXX and going forward. This is very clearly incorrect. The first installment of the XX/XX/XXXX taxes, which was paid out of this escrow account, amounted to {$2300.00}. The taxing body, XXXX County, estimates the first installment tax bill as 55 % of the total amount for the prior year. Based on simple arithmetic, the total tax amount for XX/XX/XXXX ( the last full year available ) was accordingly approximately {$4200.00}. This is approximately half of the estimate included in the escrow analysis. Put another way, Freedom Mortgage is estimating an increase of more than 100 % to property taxes within a one-year period. This is obviously incorrect. <P/>A look at properties on the same block as the subject property with similar assessed values offers further evidence that the escrow analysis drastically overestimates the taxes due on XXXX XXXX XXXX for XX/XX/XXXX and going forward. XXXX XXXX XXXX ( PIN : XXXX ), the neighboring house, has an assessed value of {$21000.00} and includes a homeowner 's exemption ; XXXX XXXX XXXX is assessed at {$22000.00}. XXXX XXXX XXXX 's taxes were as follows : {$2800.00} ( XX/XX/XXXX ) ; {$2800.00} ( XX/XX/XXXX ) ; {$2900.00} ( XX/XX/XXXX ) ; and {$3400.00} ( XX/XX/XXXX ) ; the first installment for XX/XX/XXXX was {$1900.00}. XXXX XXXX XXXX ( PIN : XXXX ), another similar property on the same block as the subject property, has an assessed value of {$20000.00}, but without a homeowner 's exemption as the subject property currently has. XXXX XXXX XXXX 's taxes were as follows : {$3100.00} ( XX/XX/XXXX ) ; {$3200.00} ( XX/XX/XXXX ) ; {$3200.00} ( XX/XX/XXXX) ; and {$3600.00} ( XX/XX/XXXX) ; the first installment for XX/XX/XXXX was {$2000.00}. Accordingly, an estimate of more than {$8000.00} for XXXX XXXX XXXX is almost comically overestimated. <P/>On XX/XX/XXXX, the escrow balance on the loan account is {$3900.00} - which is after the first installment of the XX/XX/XXXX taxes has already been paid. Based on a conservative estimate with higher than average taxes, the total amount of payments from the escrow account would not be more than {$5300.00}. That 's only about {$1400.00} more than is currently in the account only four months into the year. Even accounting for the cushion allowable under RESPA, the required escrow payments as listed in the escrow analysis are extremely inflated in violation of RESPA. Again, based current e of the taxes due for XX/XX/XXXX, the appropriate monthly escrow payment would be in the neighborhood of {$440.00}. Please correct these discrepancies immediately and refund any overage due.