Consumer complaint received 2022-05-19
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (WA)

This lender was not my choice. My initial mortgage was sold to XXXX who is using Loancare as it service provider for my mortgage. 

I have independently paid for flood insurance since XXXX but it's only been since early XXXX when I requested that Loancare not include my flood insurance premiums in my escrow nor that they pay the premium from my escrow account. That's when my troubles with my escrow account started and I've had nothing but problems with them ever since. 

On XX/XX/XXXX the {$480.00} premium was paid by Loancare without review of the notes in my file that indicated I would be paying my own premiums. I received notification by email that Loancare had paid the XXXX premium. I had already written my check for the payment and had it ready to mail to my insurance agent. I called Loancare immediate and was told I would have to replenish my escrow account the premium they had paid to avoid an escrow shortage. When I spoke to a customer service representative at Loancare, they told me they could see that I was paying my own premium but discovered that the escrow department did not review the notes prior to payment nor did the departments converse. 

I began requesting my escrow account be waived. My request was denied multiple times stating that my principal balance is greater than or equal to 80 % of my original appraised value. However, no one I spoke to would provide details about the process with which to adjust my appraised value. 

I believe in early XXXX I received a letter indicating that my property was now in a flood zone and would be required to purchase flood insurance. Once I provided proof my escrow account was increased to allow for the payment. I again reinforced that Loancare was not to manage the payment for my flood insurance premium. Finally in XXXX, I was able to make my own flood insurance premium payment. Proof of my coverage was provided to Loancare and it's not been a problem. 

Unfortunately, Loancare has mismanaged my escrow account since the problem with my flood insurance. Finally on XX/XX/XXXX, XXXX from Loancare shared that it would take a Broker 's Price Option ( XXXX ) or an appraisal as Loancare continued to use my initial home value of approximately {$100000.00} with a mortgage value of approximately {$94000.00}. XX/XX/XXXX I was told by XXXX that I would have to use their Broker and their appraiser. That didn't sit well with me as I have not been able to trust Loancare and/or their escrow account. 

On XX/XX/XXXX I submitted a BPO via my portal with XXXX/Loancare. I received an email confirmation it was received. I thought the process had been started. 

I have paid extra to my principal each month when making my monthly payment. My XX/XX/XXXX analysis of my escrow account indicated a shortage of {$140.00} was needed to balance my escrow account. That payment was mailed on XX/XX/XXXX and applied to my escrow on XX/XX/XXXX. Because my payment for XXXX had already been calculated with an increased amount due to my escrow of {$12.00}, only {$10.00} of the {$22.00} additional principal I submitted for my XX/XX/XXXX payment was applied to the principal, despite paying my escrow shortage in full. At one point I discovered using my online portal that the extra principal of {$34.00} I paid had been applied incorrectly and needed to be re-applied. It took a request from me to have that done, which took time for them to process. 

On XX/XX/XXXX, my first half property tax payment was deducted from my escrow account in the amount of {$1200.00}, which caused an escrow shortage of {$240.00}. My XX/XX/XXXX payment absorbed {$180.00} of that amount then leaving a shortage of {$65.00}. I mailed the {$65.00} shortage on XX/XX/XXXX. The {$65.00} wasn't applied to my escrow until XX/XX/XXXX. On XX/XX/XXXX, the {$65.00} was removed from my escrow and re-applied to my principal. XXXX told me that she could see that it was paid, applied and then re-applied and that it would take 5 days to resolve. She also told me that the property taxes were paid in bulk for all the parcels serviced by Loancare and then the Treasurer 's office would disperse to the appropriate parcels. I was provided a check number for tracking purposes. 

On XX/XX/XXXX, per XXXX, I was told that XXXX, the company Loancare uses to pay property taxes had to reissue my tax payment because the county treasurer 's office had returned my tax payment for " incorrect payment method used ''. I spoke to XXXX and XXXX at my county treasurer 's office and they said they had never heard of such a thing. They pulled up my parcel and showed me that my property tax payment had not been received. My parcel reflected that in XXXX XXXX had paid bulk property taxes to my county treasurer in the amount of XXXX XXXX plus dollars of which my taxes had been a part of. Nothing was reflected on my parcel for XXXX. 

I had asked Loancare to investigate why my tax payment was removed from my escrow and not submitted to my treasurer. I was referred to Loancare 's Escalation department and spoke to XXXX. She was to submit a work order to determine why my taxes were not paid and that the process to close my escrow account would be completed by XX/XX/XXXX. I did not hear anything more from Loancare about the investigation. As of this writing I still do not know why my property taxes were not initially paid. 

The first half property taxes were due by XX/XX/XXXX. During the month of XX/XX/XXXX, I kept watching my local county Treasurer 's website for payment of my taxes. They weren't applied to my parcel by XX/XX/XXXX. After calling Loancare again, I was told that XXXX had submitted my tax payment by XXXX  XXXX on XX/XX/XXXX and was given a tracking number. My property tax payment made by XXXX was not received at my county treasurer 's office until mid day XX/XX/XXXX. 

On XX/XX/XXXX, my first half property tax payment was returned to my escrow account. On XX/XX/XXXX my first half property tax payment was again removed from my escrow. In addition, the re-application of my {$65.00} escrow shortage happened on the same day. Again my request to waive my escrow account was denied because of the misapplication of the shortage in the first place. 

On XX/XX/XXXX I spoke with XXXX about the denial letter to waive my escrow account. I was to disregard the letter and was told my escrow account was scheduled to be closed by Friday, XX/XX/XXXX. She transferred me to the escalation department again. However, I have not yet received a response. 

My escrow payment amount was still reflected in my online portal and included in my monthly payment. On XX/XX/XXXX, I spoke with XXXX who indicated that my request to waive my escrow was still going in the right direction and was to be completed by Friday, XX/XX/XXXX. The updated analysis of my escrow account on file still reflected my same escrow payment of {$180.00}. I explained that I did not want to make my XX/XX/XXXX payment until the escrow amount was removed because I had been told repeatedly that my escrow account would be closed. 

On XX/XX/XXXX at XXXX Pacific Standard Time, I spoke with XXXX. My request to close my escrow account was still processing and that my escrow would not be closing until XX/XX/XXXX. There was no reason indicated but it is being closed and I was approved to have the escrow account closed. She could forward me to the Escalation Department and I refused as I had spoke to someone there twice and was unsuccessful in receiving a response. I was told that if I did not make my full payment including my escrow amount, my payment would be considered late and it would reflect negatively on my credit report. So I paid my payment by phone and it was applied that day. Now my escrow account has an {$180.00} balance. 

I asked for a supervisor or a department head. I was placed on a lengthy hold and found out a supervisor was not available. XXXX said she has sent the supervisor an email and he would return my call after XXXX pm Pacific Standard Time on Monday, XX/XX/XXXX and that they would resolve the issue. With no response from the supervisor, I went into my portal with Loancare and sent an email request to have my escrow account waived immediately and wanted my XX/XX/XXXX escrow payment of {$180.00} returned to me in full within XXXX hours. 

It it the evening of XX/XX/XXXX and I have yet to receive a response from Loancare or their escalation department or a response from my online escrow request. 

My telephone contact with Loancare is extensive. I've spoke to a different person each time. I have detailed notes. 

This will be my third complaint with CFPB regarding my escrow account with Loancare. NOTHING HAS BEEN DONE.