Consumer complaint received 2015-03-27
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: MLD MORTGAGE INC (NJ)

[ Summary ] 1. My property tax deposit on escrow account statement is incorrect ( 30 % more ). I submitted all required documents to request the correction but no response was received and no correction action was taken. 
2. My property tax due on XX/XX/XXXX was not disbursed from my escrow account. I had to pay property tax plus penalty myself to avoid adverse actions from local authority. 
3. I requested a cancellation of my escrow account and was denied by the mortgage service company by terms that were never disclosed to me. 

[ Detail ] I refinanced my property in XX/XX/XXXX. I realized the property tax deposit amount in my escrow account statement was incorrect ( $ XXXX/month in the statement, $ XXXX/month from city 's property tax assessment ). 

I contacted the mortgage service company XX/XX/XXXX and was advised that I need to submit a written letter together with city 's property tax assessment to correct this issue. I followed the instruction and faxed all documents to the number provided by the customer service representative over the phone. Despite I followed all requirements, I never received a response or correction since then. I believe that this is a clear violation of U.S. code 2605 ( e ) ( 1 ) " Notice of receipt of inquiry '' and U.S. code 2605 ( e ) ( 2 ) " Action with respect to inquiry ''. 

My XXXX property tax payment due was XX/XX/XXXX, there was not payment disbursed from my escrow account. I found out that I was late on the payment on XX/XX/XXXX, to avoid any potential adverse actions from local government, I had to pay the property tax due plus a {$4.00} late payment interest myself. I believe this is a violation of U.S. Code 2605 ( g ) " Administration of escrow accounts ''. 

As a result, I contacted my mortgage service company on XX/XX/XXXX to request a cancellation on my escrow account and a refund of escrow account balance. I also stated the recent late payment issue. 

I received a letter from the mortgage service company today, the company did not response to my statement regarding the late payment or any remediation. It simply declined my request of cancelling my escrow account because1. The Loan to Value Ratio must be below 80 %. 
2. The Loan must have 12 months of good payment history. 
3. Taxes and insurance that are due within the next 60 days will not be applicable for an escrow deletion. 
4. All XXXX must maintain escrow according to the approved HUD-1 statement signed at closing. 
All these terms was never disclosed to me before of after my closing. I agreed to signed up an escrow account during closing despite my Loan to Value Ratio is far less than 80 %, but there was no disclosure of such terms neither did I sign any document to accept these terms. I believe the mortgage service company and title company are obligated to disclose this information if it is against me, which it serves now. 
Also by holding my escrow account and imposing a monthly charge without any disbursement, the mortgage service company not only violates U.S. Code 2605 ( g ) but also RESPA cushion limit. The total balance in my escrow account is far more than XXXX annual property tax due.