Consumer complaint received 2016-02-24
Product: Mortgage — Other mortgage
Issue: Loan servicing, payments, escrow account — 
Company: WELLS FARGO & COMPANY (MD)

My loan was modified effective XXXX/XXXX/XXXX and it is an interest-only loan with an escrow for property taxes only. I started to make extra payments in XXXX, however, the payments were not recorded properly and the annual interest paid was reported incorrectly for XXXX, XXXX and beyond. I called and wrote to America 's Service Company/Wells Fargo, but there was no reply or action. I sent multiple letters and called ASC. Finally in XXXX, XXXX, I called ASC/Wells Fargo and customer service stated they had no record of any requests and that I needed to send a written request. I sent the proper request on XXXX XXXX, XXXX, seeking a loan history and proper recording of all payments. ASC acknowledged my request on XXXX/XXXX/XXXX. ASC subsequently sent a letter on XXXX XXXX, XXXX and then called my attorney on XXXX XXXX, XXXX explaining that more time was needed to respond. Every time I called subsequently, I was told that ASC was still working on the request, until XXXX when I was told that it would be sent shortly. No one ever returned my calls or inquiries, even though I asked. I explained again that all extra payments should used to reduce principal. ASC/Wells Fargo was and continues to apply payments to future payments and to my escrow account, rather than reducing my principal, and hence interest owed! Every time I called, customer service stated that the problem would be corrected. Finally, XXXX XXXX, XXXX ASC/Wells Fargo sent a letter to me revising interest paid for the years XXXX and XXXX!!. No loan history has been transmitted as of this writing. I still have reason to doubt those figures because the interest due each month is {$1100.00} which would be equal to {$13000.00} for a full year. Without a loan history, I ca n't tell if my payments have been recorded properly. According to my XXXX, XXXX statement, my next payment is not due until XXXX XXXX, XXXX XXXX yes, XXXX!!! ) and my escrow balance is now approximately {$5600.00} ( which is more than twice than that shown on the cash flow analysis used to compute the adjustment to my monthly escrow payment ). During this time, ASC recorded a monthly escrow fee of {$180.00} and then {$220.00}, even though the monthly escrow was not scheduled to change to {$190.00} until XXXX XXXX, XXXX. ( I paid the escrow shortage of {$390.00} ) The escrow cash flow analysis shows that the maximum amount of {$2500.00} will be in XXXX, XXXX which is when the ( {$2200.00} - {$2300.00} ) annual property taxes are due. There is an extra {$3100.00} in this account now. ASC is also not fully applying my extra principle payments, rather the monthly loan statements show funds " unapplied '' that are not being used in my loan payments. Since XXXX, I submitted monthly payments of {$13000.00} and {$18000.00} and {$13000.00} and {$19000.00} BUT my principal hardly dropped. My required monthly payment is {$1200.00} but the extra payments have not been applied according to normal banking procedures. That is the reason that my interest payments are in error and my loan balance is incorrect.