Consumer complaint received 2022-12-06
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (CA)

The company continues to refuses to apply my payments the way I have requested them to be applied. When I call, I get " disconnected '' mid sentence and they don't bother to call me back. 

Since XX/XX/XXXX, I have sent XXXX ( XXXX ) payments of {$1600.00}, totaling {$8000.00}. My account had been transferred on XX/XX/XXXX to Mr. Cooper with the first payment due to them on XXXX, but they applied the mortgage payment to XXXX instead of to XXXX as they should have. This was never corrected. Mr. Cooper is unable to show me how those payments were dispersed beyond the first {$3100.00} mortgage payment and a transfer of {$1600.00} to escrow. That leaves {$3200.00} unaccounted for. I was told I have an estimated escrow shortage of just under {$2000.00}, even with the transfer of {$1600.00}. After sitting on hold for more than XXXX minutes, I was told that my escrow shortage was only {$200.00}. I told them to apply {$1600.00} of unapplied funds to the escrow account and requested a new escrow analysis. The remaining {$1600.00} stayed in unapplied funds to go toward the next mortgage payment. They are unable to tell me when and how much interest has been applied to my mortgage account, but stated that it should be XXXX XXXX annually despite nothing showing in my statements. They also stated that my escrow cushion must be twice the monthly escrow amount, which is not consistent with the XXXX amount noted on the CFPB website. When I asked if I must maintain an escrow account or if I may close the account to make my own tax and insurance payments in XXXX, I did not receive an answer. When I asked why the monthly mortgage amount needed to be increased, I was told this was due to taxes. But according to records, my XXXX taxes were {$8900.00} and XXXX taxes were {$9000.00}. Mr. Cooper was unable to share my XXXX insurance fee, but I do not believe it has increased significantly enough to increase my monthly mortgage payment from {$3100.00} to {$3500.00} ( a {$360.00} difference ). 

Although the representative was very cordial and patient, I have found that overall the company has an alarming deficiencies in accounting as evidenced by my extremely confusing payment history provided online. They also fail to allow customers to access itemized accounting of escrow accounts- this must be requested by calling. I believe they use creative accounting to increase monthly payments, therefore earning more revenues from their unknowing customer base. 

It is important to note that Mr. Cooper originally stated my mortgage payment would increase on XX/XX/XXXX, but after my complaint to CFPB, they retaliated by making the mortgage payment increase effective on XX/XX/XXXX instead. 

As of right now, I am completely unsure how and when my {$8000.00} of payments have been applied, when my escrow interest is paid, when my next payment is due, or how much is due. Mr. Cooper 's accounting principles are questionable and the ethics surrounding the application of payments leaves much to be desired. 

Please note the dates and amounts on the attached documents, which support my statements.