Consumer complaint received 2022-09-07
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Onity Group Inc. (AZ)

In XXXX I submitted paperwork from the Department of Veterans Affairs as well as the Baltimore Municipal Department showing that I was now exempt from paying property tax as i am a XXXX XXXX XXXXXXXX veteran. 

I called at least two times per month between XXXX and XXXX to get a followup from PHH on the new escrow analysis and mortgage payment to reflect this change. 

On XX/XX/XXXX at XXXX XXXX EST I followed up again and and was instructed to send documentation via email showing that I was exempted. I submitted an email to PHH with a form from Maryland State showing the property exemption per a phone call with them and was told to send to XXXX. I called a week later and it was confirmed that this form was received and that they had forwarded to the escrow department for analysis. 
I also received this email as confirmation later that afternoon. 
Customer Care XXXX Fri, XX/XX/XXXX, XXXX XXXX to me Dear XXXX, The exemption has been forwarded to our Tax Department for review. 

For your protection, we have removed any personally identifiable information from your original inquiry. If you have any further questions, please contact us through our website at www.mortgagequestions.com or call Customer Care at ( XXXX ) XXXX during the following hours : Monday to Friday : XXXX XXXX XXXX XXXX XXXX ET Saturday XXXX XXXX XXXX XXXX XXXX XXXX  ET PHH Mortgage Services, XXXX XXXX XXXX XXXX XXXX. XXXX, NJ XXXX The information contained in this communication is confidential and only intended for the personal and confidential use of the individual or entity to which it's addressed. If you are not the addressee ( or authorized agent ) indicated in this message, you have received this communication in error. Please destroy it immediately and notify the sender by reply email as any review, dissemination, copying or unauthorized use of this message is strictly prohibited. 



Original Message Follows : -- -- -- -- -- -- -- -- -- -- -- -- From : XXXX XXXX To : Customer Care XXXX Subject : XXXX XXXX acct # Date : XX/XX/2022 XXXXXXXX XXXX EDT Hello Full exemption property tax. 

Regards, XXXX XXXX XXXX On the XXXXXXXX XXXX XXXXXXXX I was again calling to inquire about the escrow update as I received an email stating that my property tax bill was to be sent out of {$2600.00}. I called immediately to ask why the account had still not been updated as there was no property tax due. I again was told that this would be updated. Per their records the current escrow balance on the account was {$1600.00} as of XX/XX/2022. 

I called PHH on the second week of XX/XX/XXXX to find out that indeed the {$2600.00} property tax payment was still sent. This created an advance payment and overage of {$1000.00}. 

On XX/XX/2022 the State of Maryland refunded the {$2600.00} payment to PHH. This should have created a balance of {$4200.00}. Which would have been more than enough to cover the Home insurance bill due on XX/XX/2022 of {$2500.00}. Instead because This was listed as creating yet another advance payment on the account. 

My issue is that for 4 months PHH never created a new escrow analysis to show the updated amount needed in my account and subsequent refunding me my surplus on the escrow account from the refund of the property tax payment. Instead they applied it to their " advance payment ''. 

A new escrow analysis was not made on the account until XX/XX/2022. In which they then state I have a shortage of {$960.00}. I repeatedly asked for an analysis that showed what my account would have been if they would have actually completed the analysis after confirming receipt of my exemption paperwork from the state of Maryland in XXXX. Almost a month before the property tax bill would have needed to be sent out. 

PHH refuses to provide any information on what the escrow balance would have been if the escrow analysis was completed any time within the 4 months they had been notified of the exemption. I feel they are stealing and I would have actually been owed a refund if PHH had completed the escrow analysis during that time and they are attempting to keep the money. 

Secondly, I have submitted the needed form to PHH almost 3 weeks ago to the mailing address advised asking my account be taken off of escrow completely as I am capable of paying my remaining account with my home insurance myself. They have shady practices and after 14 years with this company I am tired of this.