Consumer complaint received 2024-03-20
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: LD Holdings Group, LLC (CA)

I file this complaint in expectation that you will review the circumstances resulting in an escrow shortage on my mortgage and provide me with the assistance I need to obtain a solution of adding the escrow shortage to the backend of my loan. I have made several attempts to speak directly with a Loan Depot decision-maker, however, no one has returned my calls and the over-the-phone representatives will not provide me with any direct contact information for a Loan Depot decision-maker . 

The issue at hand is : I have been informed by Loan Depot that I have an escrow shortage for real estate taxes in the amount of {$6500.00}. I believe this shortage to be an administrative miscalculation error and I agree that I do owe Loan Depot the entire shortage amount. The problem is : I am not financially able to repay the {$6500.00} in total or in payments. I have no liquid assets and the proposed increased monthly payments exceed the regulated debt-to-income ratio. 

Due to this administrative miscalculation of my property taxes during a Loan Depot refinance, I am requesting Loan Depot to modify my loan to reflect a monthly payment within the regulated debt-to-income ratio. The following is a detailed, yet, succinct chronicle of what lead to this administrative miscalculation : Loan Depot is the originator of my XX/XX/XXXX mortgage for a newly constructed 55+ Tri Ponte Homes home. My initial monthly payment was {$1900.00} with an interest rate of 5.25 % and an escrow payment of {$720.00}. 

In XX/XX/XXXX, I applied for a Loan Depot cash-out refinance so that I could landscape the propertys backyard. I was told it was too early to do a cash-out refi, but, my monthly payment could be lowered. That refi resulted in a monthly mortgage payment of {$1600.00} with an interest rate of 5.875 % and an escrow payment of $ XXXX. 

In XX/XX/XXXX, I attempted, again, to get a cash-out refi to landscape the propertys backyard. I was told that it was still too early to do a cash-out refi, but my interest rate could be lowered and I could get a few XXXX dollars back. That refi resulted in a monthly mortgage payment of {$1600.00} with an interest rate of 4.99 % and an escrow payment of $ XXXX. 

During the first and second refi, there was an administrative miscalculation error* of the property taxes even though the original note withheld the correct amount for the property taxes ( {$720.00} ). It is a mystery to me how that error was made. At that time, I remember thinking, that maybe my property taxes were being paid-off in advance. I made a comment to my loan officer and he said he would look into it and make any corrections needed. 

Subsequently, in XX/XX/XXXX, I applied for a third time for a cash refi from Loan Depot, but my application was denied because my XXXX score was off by a point or two. Thereafter, in XX/XX/XXXX, I applied for a {$50000.00} HELOC from XXXX XXXX XXXX and it was approved. The propertys landscaping is now completed and I am current on my HELOC payments. 

In closing, again, I make the request that my loan be modified by adding the escrow shortage to the backend of my note, along with lowering my interest rate.