Consumer complaint received 2019-09-07
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (NC)

Filing a new complaint to CFPB which is a result of Company 's ( XXXX XXXX XXXX ) response to my complaint to the XXXX XXXX XXXX ( XXXX ) and is attached in full. The attached documents are include to document inaccurate responses made on behalf of Company. Included as attachments are documentation. See attachment dated XX/XX/XXXX_XXXX Borrower 's Response to Company including : Ms. XXXX states : On XX/XX/XXXX - an escrow disbursement was made for {$1600.00} - hazard insurance. Then, on XX/XX/XXXX an after-hours wire was received in the amount of {$210000.00} to pay off the account, however, payoff was short by {$240.00}. A payoff from XX/XX/XXXX was sent in response to the short payoff wire, and again, on XX/XX/XXXX. See attached. 

BOROWER RESPONSE : The original Payoff Statement that was provided to Borrower and XXXX XXXX XXXX XXXX had a Payoff Amount to Pay in Full : {$210000.00} ( total amount good through XX/XX/XXXX ) and included the following Disclaimer : XXXX XXXX XXXX Payoff Statements include the following : Payoff funds must be sufficient to cover all escrow advances, interest, prepayment penalties, principal, and fees. If additional funds are needed, we will notify you and we must receive funds within two business days. Funds received in our office after XXXX XXXX Eastern Standard Time ( EST ) will be processed the next business dayOnly Cashiers check, certified check, Attorneys Trust check or wire transfer will be accepted for Payoff XXXX XXXX XXXX XXXX sent the wire transfer on XX/XX/XXXX, however XXXX XXXX XXXX did NOT notify Borrower or XXXX XXXX XXXX until the wire transfer was returned to XXXX on XX/XX/XXXX at XXXX XXXX ( 7 days after the wire was sent to XXXX ) - See attached returned wire transfer. However, the response from Ms. XXXX indicates that it was on XX/XX/XXXX that payoff wire was returned due to funds not enough to satisfy balance. 

Upon receipt of the return wire on XX/XX/XXXX, the closing attorney notified Borrower of the return wire from XXXX XXXX XXXX and a conference call was made between XXXX XXXX XXXX, Borrower ( XXXX XXXX ) and the closing attorney XXXX XXXX was made on XX/XX/XXXX to attempt to resolve the return wire and to provide sufficient funds. At no time during this call did XXXX XXXX XXXX communicate the escrow shortage amount. If the shortage amount would have been communicated during this call, Borrower and closing attorney would have immediately wired the amount. It wasnt until Borrow received via USPS on XX/XX/XXXX an updated payoff statement that the shortage amount was known. 

If the Payoff Statement Disclaimer is that " Payoff funds must be sufficient to cover all escrow advances, interest, prepayment penalties, principal, and fees. If additional funds are needed, we will notify you and we must receive funds within two business days. This was not possible as the wire transfer was not returned by XXXX XXXX XXXX to XXXX XXXX XXXX XXXX until XX/XX/XXXX ( funds were sent on XX/XX/XXXX ). It has not been communicated by XXXX XXXX XXXX why did they wait until XX/XX/XXXX to return the entire amount of the wire transfer instead of requesting the additional funds? Instead, XXXX XXXX XXXX failed to communicate the shortage amount during the XX/XX/XXXX conference call and instead generated a new Payoff Statement ( Issue Date XX/XX/XXXX ) which was not received by Borrower until XX/XX/XXXX via XXXX XXXX XXXX. 
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 2 ) Ms. Ms. XXXX states that on XX/XX/XXXX - a credit bureau update was submitted for the late reporting. It was found that the 30-day XXXX late reporting was valid as no further mortgage payment was made and the 30-day XXXX late reporting was also valid, as again no payment had been made. XX/XX/XXXX - payoff funds now received in the amount of {$210000.00} ; account balance is now XXXX. LoanCare also received a social media complaint regarding payoff request. Per the subservicer, LoanCare did send/fax updated payoffs in response to the short wires. This customer also confirmed receipt of a short payoff letter as well. Please see their letter log screenshot below for this loan. We also attached copies of payoffs. The payoff from XX/XX/XXXX was sent in response to the short payoff wire and the XX/XX/XXXX payoff was in response to the customer 's request noted below. The system notes support this and confirm that also the XX/XX/XXXX quote in particular was faxed to XXXX. The notes also support a discussion on XX/XX/XXXX around the payoff shortage wherein LoanCare waived late fees as a courtesy to lessen the payoff shortage. Please note the customer had a slight shortage in escrow in addition at that time. She also was due for XXXX when the hazard was disbursed on XX/XX/XXXX, so there were two monthly escrow deposits ( XXXX and XXXX ) missing from escrow. This contributed to the advance that was created by the XX/XX/XXXX hazard disbursement, which in turn caused the payoff to be short. In addition to the above, LoanCare does not hold on to short payoff wires for any length of time as XXXX, XXXX, and XXXX require funds to be in the custodial account within 48 hours of receipt. The posting process/timing would not allow us to hold onto short payoff wires and stay in compliance with this requirement. If any shortage is more than {$100.00}, the XXXX XXXX returns the wire and contacts the title company with an updated payoff quote ( which was completed in this case ). Additionally, the payoff quotes we provide do state that LoanCare will continue to pay taxes and insurance until paid in full. 

BORROWER RESPONSE : Borrower attempted to payoff the loan on XX/XX/XXXX ; XXXX XXXX XXXX returned the wire transfer to XXXX XXXX XXXX 7 days later on XX/XX/XXXX ( per attached ) Borrower and closing attorney attempted to resolve the shortage documented through several phone calls and emails to have XXXX XXXX XXXX provide a Pay Off Statement that reflected an amount due from Borrower that was reasonable ( i.e. shortage of escrow due to disbursement of homeowners insurance and any late fees applicable through XX/XX/XXXX. The escrow shortage amount issued on XX/XX/XXXX Payoff Statement ( in which Borrower did not receive until XX/XX/XXXX via USPS was in the amount of {$370.00} ). As a result, XXXX XXXX continued to apply interest and fees and issuing new Payoff Statements in which Borrower ended up paying XXXX XXXX XXXX {$210000.00} ( vs. the above amount from Ms. XXXX of {$210000.00} ) per a payoff statement issued by XXXX XXXX XXXX on XX/XX/XXXX ( Borrower received via USPS on XX/XX/XXXX ). 

BORROWER 'S RESPONSE CONTINUED : Ms. XXXX also states, " The payoff from XX/XX/XXXX was sent in response to the short payoff wire and the XX/XX/XXXX payoff was in response to the customer 's request noted below. The system notes support this and confirm that also the XX/XX/XXXX quote in particular was faxed to XXXX '' Ms. XXXX has inaccurately stated these events. The correct sequence of events is as follows : On XX/XX/XXXX XXXX XXXX XXXX wired XXXX XXXX XXXX funds per the Borrower 's Requested Payoff Statement on XX/XX/XXXX and Issued XX/XX/XXXX as per email acknowledgement ( see attached Acknowledgement from XXXX XXXX Servicing ). XXXX received a faxed copy of this Payoff Statement ( as requested on the attached ) and Borrower ( XXXX XXXX ) received a copy via USPS on XX/XX/XXXX with the following information : Request Date : XX/XX/XXXX Issue Date : XX/XX/XXXX Payoff Amount to Pay in Full : {$210000.00} ( total amount good through XX/XX/XXXX ) Disclaimer included : Payoff funds must be sufficient to cover all escrow advances, interest, prepayment penalties, principal, and fees. " If additional funds are needed, we will notify you and we must receive funds within two business days. Funds received in our office after XXXX XXXX Eastern Standard Time ( EST ) will be processed the next business dayOnly Cashiers check, certified check, Attorneys Trust check or wire transfer will be accepted for Payoff From XX/XX/XXXX - XX/XX/XXXX : Neither Borrower or closing attorney ( XXXX XXXX at XXXX XXXX XXXX  ) were aware that XXXX XXXX XXXX would be returning the wire transfer until the closing attorney received the return wire late afternoon on XX/XX/XXXX. And why on XX/XX/XXXX, the closing attorney and Borrower had a telephone conference call with XXXX XXXX XXXX to find out why the wire was returned 7 days later. The closing attorney did not receive the above stated by XXXX XXXX that " XX/XX/XXXX quote in particular was faxed to XXXX '' but rather XXXX XXXX XXXX generated an unrequested Payoff statement issued on XX/XX/XXXX but not received by Borrower until XX/XX/XXXX via USPS. Closing Attorney and Borrower were unaware of the shortage amount at this time and in which not during the phone call we had on XX/XX/XXXX did XXXX XXXX XXXX provide a shortage amount so we could resolve the difference and rewire the funds. XXXX XXXX XXXX requested the closing attorney provide the return wire documentation via email so XXXX could research this matter and contact us within 1-5 days. See below ( and attached email ....