Consumer complaint received 2018-12-11
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC (NY)

1. This letter serves as a formal complaint against Rushmore Loan Management Services. My complaint stems from the increase in my monthly mortgage payments. In or around XX/XX/XXXX I received an escrow statement from Rushmore Loan Management with a revised payment amount of {$390.00}. In or around the beginning of XX/XX/XXXX I received another revised escrow statement from Rushmore Loan Management with a revised payment amount of {$350.00}. ( SEE ATTACHED ESCROW STATEMENTS ) 2. I am XXXX XXXX owner of the property located at XXXX XXXX XXXX in XXXX, New York zip code being XXXX. The property is a 2 family dwelling located in a high crime area that requires extensive renovation. Renovations that I can not afford due to my financial circumstances and according to the value of the property it is not worth the current mortgage amount of approximately {$40000.00}. 

3. XXXX/XXXX was the initial lender of mortgage on the property and the balance owing was approximately {$26000.00}. I had a deduction in my income and fell behind on approximately 4 payments with the lender. My monthly payments were approximately {$480.00} with no tax payments or insurance included in the mortgage payment. The interest rate was approximately 7.11 %.. 

4. In or around XX/XX/XXXX the loan was transferred to XXXX XXXX XXXX. The mortgage had increased significantly to approximately {$40000.00} with an interest rate of approximately 4.862 %. This amount was said to include arrear payments for arrear mortgage, City of XXXX, and XXXX County property debts. After a series of attempts the mortgage was modified to {$270.00} and later revised to {$280.00} Payments would include property taxes and insurance. ( SEE ATTACHED AGREEMENT ) 5. In or around early to mid XX/XX/XXXX I contacted XXXX XXXX XXXX and devised a written complaint regarding a foreclosure notice received by the City of XXXX. In late XX/XX/XXXX, XXXX responded with a written rebuttal addressing my concerns. In summation, XXXX XXXX XXXX advised all payments to the City of XXXX and XXXX County were paid in full. ( SEE ATTACHED LETTER FROM XXXX ) 6. Since XX/XX/XXXX, I had not received any delinquency notices from the City of XXXX and XXXX   County. I had continued making timely payments of {$280.00} To XXXX XXXX XXXX. 

7. On XX/XX/XXXX Rushmore Loan Management became my new servicer, but on XX/XX/XXXX I contacted Rushmore Loan Management Agent, XXXX and explained that all payments were current but being forwarded to XXXX XXXX XXXX. In the beginning of XX/XX/XXXX I began making payments to Rushmore Loan Management in the amount of {$280.00}. 

8. On XX/XX/XXXX I contacted Rushmore Loan Management Services Tax Rep., XXXX at XXXX due to a foreclosure notice I had received from the City of XXXX. I was told that all tax payments were current on the property and she could not see why I received the notice. I faxed the notice to XXXX and was told the investigation would take 3 business days. ( SEE ATTACHED FORECLOSURE NOTICE ) 9. On XX/XX/XXXX I contacted Rushmore Loan Management Services Tax Rep.,  XXXX to conduct a follow-up of the investigation and was advised the investigation would conclude XX/XX/XXXX. However I advised that I would conduct a follow-up on XX/XX/XXXX, since I would be out of town. 

10. On XX/XX/XXXX I contacted Rushmore Loan Management Services Tax Rep., XXXX who advised that Rushmore Loan Management Services was requesting a payoff from the City of XXXX. I requested a conclusive analysis as to the result of their investigation. I was advised that I could not receive the report but I could call back. 

11. I made no more attempts to contact Rushmore Loan Management Services, nor did the servicer contact me. The City of XXXX property auction commenced on XX/XX/XXXX. A third party who has interest in the property was filing for bankruptcy and was able to list the property under their bankruptcy to remove it from the foreclosure list. 

12. Moving forward, I continued to receive monthly billing statements in the amount of {$280.00} and continued to make timely payments to the lender/servicer. To this date, I am not delinquent on my mortgage payments to Rushmore Loan Management.

13. In closing, I am financially unable to pay the increased amount of {$350.00} by XX/XX/XXXX. There is apparent error in the calculations and/or payments forwarded to the City of XXXX. As stated in paragraph 4, my mortgage amount increased significantly since XXXX XXXX XXXX  retained my account with a mortgage balance being approximately {$40000.00}. Approximately {$15000.00} has been allegedly used to pay off any arrear mortgage, City of XXXX, and XXXX County property debts. I have received escrow statements displaying the amount of taxes and insurance paid by the initial servicer ( XXXX XXXX XXXX ). ( SEE ATTACHED XXXX ESCROW STATEMENT ) 14. In reference to paragraph 10, Rushmore Loan Management Tax Rep. XXXX stated they were requesting a payoff from the City of XXXX. How could this be possible, when taxes were substantiated by XXXX XXXX XXXX? In addition, I have not received any notices of a property tax increase. 

15. According to XXXX XXXX XXXX, they had initially paid any/all outstanding arrear debts on the property. In addition, I had been making timely monthly payments to XXXX XXXX XXXX   and Rushmore Loan Management Services. I should not have received any foreclosure notices from the City of XXXX. There is an apparent error between XXXX XXXX XXXX and Rushmore Loan Management.

16. According to RESPA 12CFR1024.17 ( k ) escrow payments were evidently not disbursed in a timely manner and the servicer is liable to provide escrow disbursements in a timely manner. In order for me to receive a tax foreclosure notice, payments were not provided to the City of XXXX in a timely manner which would caused me to be responsible for the citys additional foreclosure fee of {$550.00}. This statement is also factual referring to paragraph 10, where Rushmore Loan Management was requesting a payoff from the City of XXXX. Why? When all debts that were associated with my account were current. Was Rushmore Loan Management up to date with all aspects of my account before the account was transferred to them? Please be advised of the latest comparison of Escrow Accounts between Rushmore Loan Management and XXXX. 

17. According to RESPA Transfer of Servicing 12 CFR 1024.17 ( e ) If the new servicer changes either the monthly payment amount or the accounting method used by the old servicer, then it must provide the borrower with an initial escrow account statement within 60 days of the date of transfer. My loan was transferred to Rushmore Loan Management XX/XX/XXXX. In addition, in early XX/XX/XXXX I received a revised escrow statement decreasing the monthly mortgage payment {$48.00}. This clear evidence of miscalculations and errors. 

18. According to RESPA Timely Payments 12 CFR 1024.17 ( k ) the servicer must pay escrow disbursements by the disbursement date. In calculating the disbursement date, the servicer must use a date on or before the deadline to avoid a penalty and may make annual lump sum payments to take advantage of a discount.

19. Property insurance payments have increased annually from XXXX with XXXX XXXX XXXX to {$200.00} with Rushmore Loan Management Services a {$92.00} increase. Insuring the same property for the same amount of approximately {$40000.00}. Why the increase??? Rushmore Loan Management Services surely did not maintain the same terms and accounting method as XXXX XXXX XXXX with the increase of the mortgage and insurance. Transfer of Servicing 12 CFR 1024.17 ( e ) If the new servicer changes either the monthly payment amount or the accounting method used by the old servicer, then it must provide the borrower with an initial escrow account statement within 60 days of the date of transfer. On XX/XX/XXXX Rushmore Loan Management became my servicer. ( SEE ATTACHED HAZARD INSURANCES ) 20. On XX/XX/XXXX I was told that the bank was requesting a payoff from the City of XXXX. Why? When the City of XXXX was claimed to have been paid in XXXX when XXXX took over the mortgage. In the attached letter XXXX claimed there were no outstanding dents on the property. In addition, On XX/XX/XXXX when I initially contacted Rushmores Tax Dept. I was told the account was substantiated. There has been a clear Error made on the banks behalf and it is their duty to investigate that error. 


21. I can not afford the revised payment effective XX/XX/XXXX. I have struggled from XXXX to XXXX to make my mortgage payments affordable and finally achieved my goal. I do not want to lose my home, but aware of my current finances which would not allow me to pay an extra {$64.00}. The property is in need of a roof, gutters, foundation work, and many updates. Most importantly, the property situates in a high crime area which many developers may be apprehensive of buying. It would be economically feasible for the lender to work with me by retaining the same monthly payment. 


22. This is clearly how the foreclosure crisis exists in our economic society banks are entitled to increase the borrowers mortgage without requesting supporting documents to ascertain if the borrower can afford the increased payment. Contrarily, a bank requests supporting documents to decrease the borrowers payments once that borrower has defaulted on their mortgage. This is a very twisted process that has been ongoing for many years and many borrowers fall victim to this same type process.