Consumer complaint received 2021-08-05
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: MONEY SOURCE, INC., THE (GA)

I closed on the purchase of a rental property on XX/XX/XXXX of this year, XXXX. After making one payment ( in XXXX ) to the bank that closed the loan, XXXX XXXX, I was notified that the loan had been sold to a new servicer and that the XXXX payment would be due to XXXX XXXX. This was unsurprising news as I have worked in real estate for nearly 20 years and have a solid understanding of the mortgage industry. 

What was surprising was that I received a mortgage escrow evaluation From XXXX in mid XXXX ( not 3 months after closing on the property ) stating that I had an escrow shortage of {$1800.00} in addition to an uncollected tax in the amount of {$480.00}. I could pay this in full or increase my monthly payment by {$190.00}. 

Please note that the original escrows were estimated from the XXXX tax bills, per the norm and that the XXXX tax bills are still not out. So a new, higher tax bill does not explain the short. Additionally, these closing escrows were done by my preferred lender ( XXXX XXXX  ) with whom I close many transactions per year with no issues of this kind. 

I quickly figured out that the " missed tax '' of {$480.00} is actually our county sanitation bill, which is not typically collected in escrow and is certainly not a tax. The analysis document shows what I believe to be an intentionally confusing list of numbers that do not reveal a basis for collecting additional tax funds. Please see attachment XXXX XXXX 1 & 2.

When I called the company for an explanation of these figures and also to ask why an evaluation had been performed so soon after a closing. I was told that the " missed tax '' had spurred the analysis. I explained that it was not a tax but a sanitation bill and showed that it reflects the exact same amount due. When he was then unable to explain the {$1800.00} of the escrowed tax shortage, we were mysteriously disconnected. 

In fact, I was mysteriously disconnected from representatives of this company FIVE times when they found they were unable to provide an explanation for these figures. On one or two of these occasions, I had a representative from XXXX  ( the originator ) on the line with me to help me work through it. She was shocked as well. 

My XXXX rep did try to escalate the situation. I was then contacted by an XXXX Customer Service person named XXXX XXXX, who was not able to provide much assistance or clarification other than following up. This may be because almost simultaneously ( early XXXX ) I was notified that the loan was being sold again, this time to The Money Source. 

I did go ahead and send XXXX a Qualified Written Request asking for a clearer breakdown of the escrow short. I received formal notification that I would receive that within 30 days. I have not. These documents are also attached. 

However, XXXX did call me in an attempt to explain the shortages after discussing with her escrow department. She said that due to new Covid regulations, XXXX wanted to collect 2 additional months of estimated XXXX XXXX of XXXX tax and 3 additional months of XXXX Count tax. While she was on the phone, I pulled up the tax bill and walked through these calculations with her. Our final calculation was not equal to the amount of the short I was being required to pay. When I asked her if she had known all along that this number would not add up, she admitted that she had. I told her I had nothing further to discuss with her. 

So, now we come to The Money Source. The first bill ( for XXXX ) reflected the original payment, however the bill due XX/XX/XXXX showed the {$190.00} increase based on the escrow analysis done by XXXX. Of course I called to argue that. I also wanted to make sure that in a worst case scenario, I would be able to strip the escrows and just pay principle and interest. 
* Side note : I DO NOT consider that a desirable outcome. I paid for loan servicing when I closed on this loan and I expect to get it. It is a hassle to have to pay taxes to City and County twice a year as well as insurance and keep up with documentation as will be requested by TMS.

** I did receive a notice from them saying stripping the escrows was acceptable - see attachment.

TMS did tell me that I would need to pay the escrow short and sanitation as reflected in the analysis by XXXX. I said that they needed to provide me with a breakdown to reflect these estimations. The rep, XXXX, said that they had been requesting docs from XXXX but that she would have TMS do a new analysis which they could provide to me within a week. I did not receive it. 

I called again around mid XXXX. They did not have it and stated they were waiting on the escrow analysis from XXXX and asked me to provide one. I told them that I did not have one that was sufficient and that I did not believe they would be receiving one from XXXX as I thought their analysis was fraudulent. I had also explained this in my previous phone call. The rep said she would escalate the new analysis. I was told it would be due back on XX/XX/XXXX. 

When I called on XX/XX/XXXX, they still didn't have the analysis nor did the person show a request for an escalation and told me they were waiting on docs from XXXX. Again, I explained that XXXX would not likely provide that and argued that they can not increase a payment due to an escrow shortage without providing a statement of that shortage, but was told I am incorrect. The rep said this time they would get it done and the analysis would be due back on XX/XX/XXXX. 

I called again yesterday ( XXXX ) to check the status. Again, there is NO ESCALATION. And they are still saying they are waiting on docs from XXXX reflecting the escrow shortage. I continued to argue that my payment can not be increased, but was told that it was and is and if the full amount is not paid, it will be a default. It will be 2 months from the transfer on XX/XX/XXXX and my 60 days of respite per the RESPA provisions will be up. 

Additionally, I was told that there would be paperwork to have the escrow stripped ( even through I have a letter approving it ) so that is not an option that can be done in advance of the payment date of XX/XX/XXXX. Without question, these delays are intentionally being made to force my hand into overpaying for a mortgage escrow shortage that was invented. 

I fully believe this is the basis of mortgage servicing fraud and that the endgame is to either divert these funds away from people less savvy than myself or force people who are already compromised into foreclosure. Please assist me in stopping this criminal activity.