Consumer complaint received 2023-07-13
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: REGIONS FINANCIAL CORPORATION (TX)

In XX/XX/XXXX I had a XXXX lapse in my homeowners insurance that was due to XXXX error. The error was quickly corrected by XXXX and XXXX send verification of coverage to Regions Mortgage in XX/XX/XXXX. In XX/XX/XXXX, I started receiving letters from Regions Mortgage that my Mortgage is set to be escrowed. I called to find out why, but after several calls and many hours on the phone with them, they finally told me it was because of the XXXX weeks lapse in my coverage in XXXX. I let them know I do not want my Mortgage escrowed, and explained again to them that it was an error from XXXX, and it has been corrected months ago. The person I spoke with at Regions Mortgage told me I need to write a letter to them to ask for a " release of escrow. '' He also asked me to include the email communication between the XXXX agent, showing a proof of the error, and the escrow would be released. I did as I was told immediately, and waited, and waited. My mortgage payment was coming due, so I went on my online account with Regions Mortgage to make payments, but found out it hasn't been resolved. My payment was almost {$500.00} more than I usually pay, due to the escrow amount that was added. I called and tried to make a payment over the phone, but they refused to take my regular payment. They wanted me to pay the entire amount, with I declined. I asked for the status of the release of escrow, but I was told they are still reviewing it and someone would call me when it's done. The agent got and authorization from a supervisor, and I was able to make my regular payment for only XXXX month, ( XXXX ) they wouldn't allow me to pay the XXXX that was coming due already, and asked me to wait for the result or the request for release of escrow. I waited and waited, but didn't hear back from anyone so, XXXX came and I called Regions Mortgage to check on the status of the release of escrow, since I wasn't able to make my payments online again. After several minutes on the phone talking to a confused representative, she transferred me to a supervisor, who informed me that my request was denied because of the 3 month forbearance COVID relief in XXXX. He went on and explained to me that because I accepted the XXXX relief forbearance offer that Regions Mortgage sent to me back in XXXX, they have denied my release of escrow request. I was speechless and mortified. My questions to him were : XXXX. How come you asked me to send a letter to request the release of escrow lying to me and wasting my time XXXX. How in the world would Regions Mortgage penalized me for a pandemic relief from way back in XXXX, when it wasn't even related to the reason why this escrow was created. XXXX was XXXX ago. 
XXXX. I already paid my taxes and insurance for the year, how do now except me to pay you again ( in escrow ) what I already paid. 

All these doesn't make any sense whatsoever. The supervisor was adamant that they will not re evaluate my request and there is no appeal process. He said Regions do not care that it wasn't my fault that the lapse happened and they don't care about the evidence I submitted showing it was an error from XXXX. He went ahead to say I shouldn't have accepted the COVID relief offer they sent to me, that it was the reason they declined to release the escrow. He claims some article under recorded mortgage that gave Regions the right to do whatever they wish including creating an escrow whenever they wish due to the COVID relief. The supervisor also gave me an option to refinance with them, which I declined considering they are trying to get me to refinance at a higher interest rate from what I had since interest rates are high now. Could that be the reason why they denied my request? So they can force me to refinance at a higher rate? Scam!