Consumer complaint received 2019-04-15
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: MONEY SOURCE, INC., THE (WI)

The Money Source mishandled my escrow account. I am now being held financially liable for an escrow overage that has occurred based on the company 's untimely payment of my City Tax   payments in a consistent manner. 
In the State of Wisconsin annual land valuations are completed in late summer with property tax bills for that year released in XXXX and payments due either in full on XX/XX/XXXX of the following year, or in two increments with payments due on XX/XX/XXXX and XX/XX/XXXX of the following year. I closed on my mortgage in XX/XX/XXXX. Because this was an FHA loan escrow of insurance and taxes is required. XXXX property taxes were paid upfront at closing to allow for the escrow account to accrue for the following year payments. XXXX City Taxes  were paid from escrow by the Money Source in two payments in XXXX and XX/XX/XXXX as due. They also paid out an escrow overage to me in XX/XX/XXXX. In XX/XX/XXXX the Money Source then also paid my XXXX City Taxes in full, even though they had not yet come due. XXXX property taxes have a due date of either full payment by XX/XX/XXXX, or two payments due by XX/XX/XXXX, and XX/XX/XXXX. Because the Money Source chose to pay my City Tax bill in full on XX/XX/XXXX, one full month early, this caused an escrow overdraft of {$220.00}. In the month of XX/XX/XXXX my annual escrow disclosure was completed and reflected a shortfall of {$3000.00} based on 2 upcoming City Tax payments due in XXXX of the full annual amount of property tax, which had already been paid. I disputed this escrow disclosure and have attached the letter of dispute that I sent, along with all of the attachments to the company via registered mail. Upon following up with the company I was treated very poorly by both Customer Service and the Tax Department. I have put in countless hours of contact with this company. They finally agreed to review my escrow and release a new annual escrow disclosure. This update did address issue of improper City Tax  amounts due in the XXXX calendar year, but the company continues to maintain no wrong doing on their handling of my escrow account. 
My issues with the handling of my escrow are that the Money Source initially paid my XXXX City Tax   bill in 2 increments as due in XXXX and then proceeded to change their handling of my property tax payments by paying my XXXX taxes one full month early, in full, in XX/XX/XXXX. Had they waited until the end of XX/XX/XXXX when the payment was actually due, the account would not have overdraft. Had they stayed on course with incremental payments, I would have had a positive balance of {$1900.00} after the first incremental payment. If they had paid in full in XX/XX/XXXX, I  would still have had a positive balance in the hundreds. When the Tax Department made the payment in XX/XX/XXXX and realized the account would be overdraft they made no attempt to contact me regarding my wishes on how to handle this account. This is fraud. A Financial entity can not choose to provide a loan without the consumer 's knowledge and consent. Something they essentially chose to do. Had they contacted me I would have chosen to have them pay the taxes in a more timely manner in two increments to avoid overdraft. When I addressed this they blamed my township stating I had not completed the necessary township documents indicating how my City Taxes should be paid. No municipality would have a stake in the handling of payments, this is the job of the financier. When I discussed the City Tax bill with the Money Source I was told by three ( 3 ) different employees- 2 in customer service and 1 in taxes, that the Money Source is not billed for City Taxes. I was told first that they are " invoiced '', and second and third that they receive a " Statement of Amounts due ''.

My original mortgage terms were for a monthly payment of just under {$1100.00}. I am now responsible for a monthly payment of {$1200.00}. 
Also of note is that I initially contacted the Money Source in XX/XX/XXXX to inquire about payment of my upcoming City Taxes  due in XXXX. I was told at that time that no action is needed on my part and that the Money Source would handle timely payment. In XX/XX/XXXX I again contacted the Money Source to inquire about the escrow overage check that was mailed to me and inquired whether I should pay that to my township towards property tax, or to insurance. I was told that was the amount that was owed based on money in the escrow that was over the required cushion and estimated payments due. Record of these contacts are included in attachments. I can also provide phone records of the number of contacts made to resolve this recent escrow issue if needed. I requested that the company pull the recordings of my contacts, especially with my contact with " XXXX '' from the Tax Department because of his very inappropriate conduct with me by phone. He went so far as to tell me that I do not know what I am talking about, I am wrong, and he initially refused to pull up my information to assist me with my concern. 
I find it very interesting that a national financial conglomerate is fraudulently mismanaging federally-backed home loans with obviously unskilled and incompetent staff, leading to burdensome financial obligations on the consumer. This, at a time when the housing crisis is balancing precariously on the verge of comeback, concurrent with near historic unemployment rates only gradually inching down ; placing mortgage payments at, oftentimes, hundreds of dollars higher than original mortgage terms on a class of [ mostly ] low to moderate income, or high risk consumers who have federally backed home loans for these specific reasons. I have an FHA Loan simply because I purchased a manufactured home that would have required too high of a down payment and closing costs for a conventional home loan- which I did qualify for through my bank.