Consumer complaint received 2018-04-27
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PHH Mortgage Services Corporation (WA)

Dear Consumer Financial Protection Bureau, Please accept this letter as a request to file complaint against PHH Mortgage Services regarding charges assessed to an escrow account, and request for restitution of charges. Please also accept this letter as a request to file complaint against XXXX XXXX for request of property charge reimbursements, and for dismissal of reimbursement request with prejudice. 
Accounting We hold a conventional home mortgage loan with PHH Mortgage. It was established XX/XX/XXXX and matures on XX/XX/XXXX. The property ( also later referenced as parcel ) under mortgage is the primary residence. Property taxes are assessed via XXXX County. PHH Mortgage Services, since the loans inception in year XX/XX/XXXX, has collected the parcels taxes and held them in escrow, as part of the propertys monthly mortgage payment. PHH Mortgage services biannually issues XXXX County payments to cover the propertys taxes out of the escrow account. 
The mortgage holders received an escrow overage check in year XX/XX/XXXX. They called XXXX County Treasurers office to confirm the property taxes had been paid, which they had. The mortgage holders then called PHH Mortgage Services to confirm the overage check was not a mistake. PHH Mortgage  confirmed the taxes had been paid, the escrow account was not negative or in an Advance position with PHH Mortgage Services, and  that the overage reimbursement was indeed valid. 
The mortgage holders continued to received escrow overage checks until year XX/XX/XXXX. The same process was followed by the mortgage holders with every check received : the XXXX County Treasurers Office was called to ensure taxes were paid, and PHH Mortgage Services was called to ensure it was not a mistake. Every inquiry had the same results : the taxes had been paid and PHH Mortgage Services confirmed the overage reimbursement was valid. 
In XX/XX/XXXX the mortgage holders received a letter from XXXX XXXX XXXX XXXX XXXX XXXX division. The letter stated XXXX XXXX had mistakenly paid property taxes for the parcel from XX/XX/XXXX through XX/XX/XXXX. XXXX XXXX requested reimbursement in the amount of {$13000.00}. 
The mortgage holders were astounded. The mortgage holders did not know the parcels taxes were being paid by any source other than PHH Mortgage Services. There was certainly no expectations XXXX XXXX would ever pay the parcels taxes. Neither mortgage holder had ever held accounts with XXXX XXXX ; not loans, bank accounts or any other form ( s ) of credit. XXXX XXXX had never been requested to pay the property taxes, nor were they obligated to do so. 
The mortgage holders directly contacted the XXXX County Treasures office and inquired to how this might have occurred. A clerck, in the XXXX County Tax Department, noted it could be a result of a misapplied parcel payment. The clerk further explained that XXXX XXXX likely had a typo in a parcel number, and it could have resulted in payments being made on the property taxes accidentally. At the mortgage holders request the clerk put a flag on the property to ensure that only the mortgage holders or their lender ( PHH Mortgage Services ) could pay the property taxes for the parcel going forward. 
The mortgage holders immediately following the phone call with the XXXX County Treasures Office, called PHH Mortgage Services. The mortgage holders alerted PHH Mortgage Services of the likely reason for the escrow refunds that had been occurring. They may be a result of misapplied parcel payments by XXXX XXXX. PHH Mortgage Services was unaware this was occurring. PHH Mortgage Services was able to confirm their system showed they had sent funds to XXXX County for the parcels property taxes biannually. PHH Mortgage Services documented that they had later received refunds from XXXX County Treasury, for overapplied parcel tax payments. The overapplied funds returned by XXXX County were then sent out to the mortgage holders as escrow overage reimbursements. PHH Mortgage Services put a note on the account to ensure the parcels taxes were paid to XXXX County and that should overapplied escrow funds be identified going forward a review would take place. PHH Mortgage Services also immediately started an escrow review on the mortgage holders mortgage account. 
The mortgage holders sought legal counsel regarding the funds XXXX XXXX was requesting reimbursement of. The attorney counseled the mortgage holders to deny the reimbursement request from XXXX XXXX as there was no legal obligation for reimbursement. A letter was sent to XXXX XXXX, via attorney, on the mortgage holders behalf denying the reimbursement. This was at a personal cost to the mortgage holders of {$990.00}. Inherent in the denial for reimbursement was the denial of XXXX XXXX request to speak to the mortgage service company ( PHH Mortgage Services ), who was responsible for paying the parcel taxes. 
The mortgage holders followed up with PHH Mortgage Services once the letter had been sent by attorney to XXXX XXXX XX/XX/XXXX denying the reimbursement. The purpose was to confirm that recent property taxes due on the parcel had been paid by PHH Mortgage Services, confirm an overapplied funds situation had not again occurred, check in to see if anything was found in the audit PHH Mortgage Services was performing on the account, and to notify PHH Mortgage Services XXXX XXXX request was being denied. 
A few days after the mortgage holders called PHH Mortgage Services, PHH Mortgage Services called the mortgage holders. PHH Mortgage Services notified the mortgage holder the escrow account now had a negative balance. The mortgage holder was asked if they wanted to pay the balance due in full or have it divided up into monthly installments, which would be added to the mortgage payment. When the mortgage holder inquired as to why there was now a negative balance, PHH Mortgage Services confirmed that PHH Mortgage Services had contacted XXXX XXXX and issued a reimbursement to XXXX XXXX in the amount of {$13000.00}. 
Again, the mortgage holders were astounded. PHH Mortgage Services had given no indication in any form ( call, email, text, portal message, letter ) they may/would contact XXXX XXXX regarding the reimbursement request. The mortgage holders had never asked/authorized PHH Mortgage Services to contact and/or make a reimbursement to XXXX XXXX regarding the reimbursement request. As noted above, according to counsel, there was no legal obligation for the mortgage holders to reimburse XXXX XXXX. Yet PHH Mortgage Services issued reimbursement to XXXX XXXX in the amount of {$13000.00}, had already added this amount to the mortgage balance as an escrow advance, and had done so without notice and without the consent of the mortgage holders. 
The mortgage holders arranged a call to speak with a PHH Mortgage Services supervisor. The purpose was to voice concern with the process, its legality, and to negate the {$13000.00} PHH Mortgage Services had charged to the escrow account without authorization from either mortgage holder. The supervisor noted it was done and that PHH Mortgage Services acted in its own best interest to protect the asset from a possible lien ( against the parcel ) originating from XXXX XXXX for reimbursement of the mistakenly paid property taxes. 
No documentation was ever provided by PHH Mortgage Services on the {$13000.00} charge. Further, no documentation was ever provided by XXXX XXXX noting PHH Mortgage Services had reimburse XXXX XXXX. The only documentation evident of the {$13000.00} transaction is reflected in the PHH Mortgage Service portal, in viewing the Mortgage Accounts Annual Escrow Statement. 
Conclusion Reasons stand that the mortgage holders did no harm, and also conducted due diligence in : paying into escrow to cover their parcels property taxes ; vetted parcel taxes were paid with the XXXX County Treasurers Office ; vetted the mortgage holder, PHH Mortgage Services, was paying the taxes and processes were being followed in paying the parcel taxes ; never requested payments be made on their behalf on parcel taxes by XXXX XXXX ; immediately notified XXXX County Treasurers office of the unintentional payments by XXXX XXXX to prevent future occurrences ; immediately notified PHH Mortgage Services of the unintentional payments by XXXX XXXX to prevent future occurrences ; sought out and paid for legal counsel to determine if there was legal obligation to repay XXXX XXXX for unintentional property tax payments ; never requested PHH Mortgage Services reimburse XXXX XXXX for unauthorized payment of property taxes. 
Complaint & Restitution The mortgage holders request the following complaints and restitutions be made : The complaint against PHH Mortgage Services : PHH Mortgage Services made a non-obligatory payment to XXXX XXXX and then assessed the amount to the mortgage holders mortgage, in the form of an escrow advance. Prior to PHH Mortgage Services taking any action with XXXX XXXX, the mortgage holders denied XXXX XXXX request for reimbursement and informed PHH Mortgage Services of this denial in a phone call ; the denial notifying XXXX XXXX was sent by mail via attorney. Despite the notice given to PHH Mortgage Services regarding the denial, PHH Mortgage Services contacted XXXX XXXX and made a non-obligatory payment to XXXX XXXX, without the knowledge or consent of the mortgage holders. The amount PHH Mortgage Services paid XXXX XXXX was the amount XXXX XXXX had requested reimbursement for, because of unintentional tax payments XXXX XXXX made on the mortgage holders parcel, {$13000.00}. 

The remuneration request against PHH Mortgage Services : the mortgage holders request the {$13000.00} charged to their mortgage as an escrow advance be stricken from their account permanently, and any payments the mortgage holders made toward the advance be refunded them, without harm. It is further requested that PHH Mortgage Services actions may not result in any harm to the mortgage holders, should attempts be made by PHH Mortgage Services to reclaim the {$13000.00} from XXXX XXXX. 

The complaint being made against XXXX XXXX : XXXX XXXX requested reimbursement in the amount of {$13000.00} for unintentional payment of property taxes on a XXXX County parcel. The mortgage holders did not request XXXX XXXX to pay their taxes and were not aware of the taxes being paid by XXXX XXXX until so notified. The mortgage holders should not, under any circumstances, be held responsible for the actions ( mistake ) of XXXX XXXX. 

The remuneration request against XXXX XXXX : the mortgage holders are denying the request for reimbursement to XXXX XXXX. The mortgage holders seek written confirmation the reimbursement request made by XXXX XXXX is dismissed by XXXX XXXX without reimbursement and that no further request/attempt for reimbursement may ever be pursued. Should PHH Mortgage seek to reclaim the {$13000.00} reimbursement payment it made to XXXX XXXX, no actions may be taken to  seek reimbursement by any party the reimbursement request denial stands under any condition ( s ), without financial remuneration to XXXX XXXX, and with prejudice. 
Enclosures/Documentation In the form of attachments : XXXX XXXX Reimbursement Request XXXXReimbursementRequest $ XXXX Attorney Letter Mailed to XXXX XXXX Denying Reimbursement DenialOfRequestSentToXXXX Attorney bill for counsel and letter to XXXX XXXX IMSB Billing.pdf PHH Mortgage Services Escrow Statement showing additional charge of {$7400.00}, {$1800.00}, {$1500.00}, {$1500.00}, and {$1400.00} totaling {$13000.00} PHHEscrowCharges $ XXXX Respectfully, Mortgage Holders