Consumer complaint received 2020-09-23
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (FL)

My Escrow Analysis is incorrect and I believe this is due to a computer error. I have repeatedly asked for it to be corrected over the last 30 days to no avail and with no follow up from LoanCare. I need a person to look at the escrow account. Im asking for this to be corrected as it is a mistake on LoanCares part. In addition I suspect this is a systemic error that may be happening to other customers. 

On XX/XX/2020, I received my Escrow Analysis Statement. The Escrow Analysis Statement predicts an escrow shortfall of - {$0.00} as of XX/XX/XXXX. For some reason, it is deducting my county taxes twice, once in XXXX and once in XXXX. The shortfall is caused by the system deducting the taxes in XXXX. 

The system seems to think my taxes are going to be {$11000.00} to {$12000.00} because it is counting them twice. THIS IS INCORRECT. 
According to my tax bill notice that I received from XXXX XXXX and that are due in XXXX, at most my taxes will be {$5200.00}. 

Because the taxes are being incorrectly accounted for, the system predicts that I will have a total shortfall of {$5000.00}. To make up for this predicted shortfall, LoanCare is changing my monthly escrow payment from {$560.00} to {$990.00}, for an increase of {$420.00}. My total monthly payment would change from {$1800.00} to {$2200.00} a month starting in XXXX. 

To be clear my taxes were not paid in XXXX and my current escrow balance as of XX/XX/XXXX, is {$4900.00}. All disbursements for XXXX have been made. At no point will I have a negative balance. 

If I continue to pay my old escrow payment of {$560.00} each month in XXXX and in XXXX, then I will have {$6100.00} in XXXX which would be at minimum {$810.00} more than is needed to pay the county tax bill and would be the remaining balance in the escrow account as of XX/XX/XXXX. 

My hazard insurance premium paid now in XXXX was {$880.00}. If we add that to my estimated county tax bill of {$5200.00} for a total of {$6100.00}, then : My minimum required escrow balance would be {$1000.00}. 

As of XX/XX/XXXX, I would have a shortage of {$210.00} which could be collected in a one time payment and my monthly escrow payment could remain the same, or the monthly escrow payment could be increased to {$600.00} a month, bringing my total monthly payment to {$1800.00}. 

Upon receipt of my escrow analysis on XX/XX/2020 I called LoanCare to point out the error. I was advised to submit a request online to have the escrow account re analyzed which I did. I received an automated reply from their system that they would look into my issue. 

On XX/XX/2020 I called LoanCare to follow up on my request as it had been 3 weeks and I had not heard from LoanCare at all. At that time, the customer representative informed me that my ticket had been closed as the escrow analysis did not show any change. I again explained the issue and the representative indicated that my taxes had gone up by about {$5000.00} and that I needed to have {$1100.00} minimum in my escrow account. I told her this was incorrect as that was much higher than the amount listed on my escrow analysis which states that the minimum balance could not be less than {$980.00}. After looking at my account a bit further the representative advised she would submit another request to hace my escrow account analyzed again and that it would take about a week to do so. 

LoanCare did not call me back to discuss the escrow account. On XX/XX/2020 I called LoanCare again to follow up. I connected with one representative who put me on hold and was then disconnected. I called a second time and spoke to another representative who initially said that my second request for escrow analysis had also been closed as there were no changes. When I pushed back on that, the representative did a little more research and told me that he had been told that the escrow analysis could not be changed until after the taxes were paid on XX/XX/2020 to ensure there was enough funds to pay the county taxes. I told him I found that to be ridiculous as the escrow analysis was wrong and I need them to correct it. They have no problem raising my escrow payment but wont correct a mistake and calculate the correct amount.

That agent has also promised to look into the issue but only after I said I was left with no other remedy to file a complaint with the CFPB.

We again discussed that he sees my taxes have increased by about {$5000.00}, but I again pointed out that doesnt match my estimated county tax bill. He asked me to submit that through the online customer service portal, which I did with a briefer version of the explanation provided here. 

I have yet to hear back and have zero faith LoanCare will correct this mistake or contact me. I strongly suspect this is a simple computer error because if you take the time to look at the facts, the escrow analysis has multiple inaccuracies. All I need is a person to take a good look at this and potentially correct the system error, but so far no one seems to do that. Im concerned, not just for myself, but if Im correct and it is a computer error, how many other customers are being provided with inaccurate escrow analysis statements? I felt I have no choice but to submit this complaint.