Consumer complaint received 2017-05-24
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: CARRINGTON MORTGAGE SERVICES, LLC (GA)

Today, I called in on behalf of a borrower ( I have a Power of Attorney on record ) to explain how I mistakenly sent an extra mortgage payment meant to be posted at another mortgage company for a different client. I explained that a full payment of {$660.00} for   XXXX   XXXX     was already made  two  weeks ago and the account was current. The extra {$750.00} payment they received last week was a mistake. It was clearly a mistake because prior payments were {$660.00}.     In my effort to make things easier, I proposed that they applied the {$660.00} towards the   XXXX   payment and simply carry the {$88.00} into  XXXX . We would send in the difference next moth so that an entire payment would be applied towards    XXXX   XXXX    payment. I was told they could n't hold any money in suspense and that all monies had to be applied somewhere. And since there were late fees, that is where the overage would automatically be applied. I told her that if it was a small overage ( less than {$1.0 0} ), I w ould be fine with that. But the {$88.00} overage was substantial for this rental property and that it was better used towards   XXXX   XXXX   payment. I was told there was no way to do this and that I would have to make a refund request and wait  17-20 da ys.     I spoke to  two  different people on the matter who both put me on hold to speak to a " supervisor ''. Both told me that I would have to write a letter, attach a copy of my bank statement showing the {$750.00} payment ( to prove the funds cleared ) in order for me to get a refund. With the first woman, I was under the impression that I would get a partial refund. But the second woman told me that I would have to request a full refund. The instructions seemed so unnecessarily bureaucratic.     Because of their inconsistent responses and the fact that  Carrington  Mortgage seemed to be much harsher today than in years past, I called their " Customer Advocacy '' department to find out their thoughts on the matter. The man told me that since it was my mistake that I issued the wrong payment to them, they were entitled to keep the money. Further, because I made the payment by electronic  Billpay   (  which does not allow for instructions ) the overage would automatically be applied towards late fees. I could not change how the overage was applied. He did not even discuss the full or partial refund option.     I cut that phone call short because I could see the conversation was going nowhere and that he was actually being more hostile than the first  two  women I spoke to! The account was not only current, it was now a month ahead because of the mistaken {$750.00} payment! And yet I was being treated as if the account were delinquent.     In my extensive experience with various mortgage companies, people who overpay  ( a ccidental or not ) are accommodated fairly. The preference that any overage be applied towards the principal or the following month 's payment ( regardless of late fee status ) is generally an easy process and granted. I did it with  XXXX  recently and they were really nice about it. It only took three days to get it done. Best of all, it requires no complicated or bureaucratic refund process.      Carrington  Mortgage has been more accommodating in years past. Current employees are much harsher with its payment policies to the point where I think they are now violating rules of how mortgage payments should be applied. I have never had any mortgage service company " punish '' its customers for overpayment by telling them they need to request a refund and then wait  17-20 d ays for that refund.     Also, I have not had any mortgage company " customer advocate '' tell me before that because a customer overpaid by mistake that they are entitled to keep the money AND apply the funds as they see fit. That is wrong. This is not a late situation at all, the account is current.     Most consumers do n't have the experience I have in making hundreds of mortgage payments and interacting with dozens of mortgage servicing companies over the last 15 years. Each mortgage servicing companies are somewhat different in the details but most operate in a reasonably accommodating and standard fashion especially in overpayment situations. Problems are usually resolved with a phone call and an adjustment to the account, not the bureaucratic process I am going through now.      Carrington  Mortgage employees insist that I request a refund which will take 17-20 days. It is either that or be forced to accept that they will take the {$88.00} for late fees which would be better used towards   XXXX   XXXX   payment. This is a rental property where margins are very small and {$88.00} means a lot here which is why we prefer to carry it over to the next month 's payment. The hostile attitude by the " consumer advocate '' was shocking and disappointing.     I do n't believe what Carrington Mortgage is doing now is fair or appropriate. I feel it violates ethical rules of conduct for mortgage servicing companies. I base my complaint on my years of managing properties and making mortgage payments on behalf of many clients over the years.     I am trying to be flexible in trying to resolve this overpayment issue but the conversations I had has not given me confidence that things will work out well. Even if they do provide the refund, it is still  17-20  days lost where we do n't have access to the money. It could all be so simple if they just let the {$88.00} sit in a suspense account but they do n't permit that anymore.