Consumer complaint received 2022-03-10
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Dovenmuehle Mortgage, Inc. (CA)

On XX/XX/XXXX Tuesday, after I switched my choice to another mortgage company, loan originator and Vice President XXXX XXXX ( XXXX : XXXX ) of XXXX XXXX  threw a bunch of discounts and deals at me. He convinced me to change my choice of lender to XXXX XXXX after telling me via phone call at XXXX from XXXX that I can eliminate taxes and insurance payments from my monthly mortgage payment after they receive my first payment. He also stated I would be refunded my impound/escrow account. See the representation in writing within the attached file titled " XXXX Escrow removal promise from XXXX ''. 


After I received this email, I changed my choice of lender to XXXX XXXX  as the lender to close on my home. 

A month passed by. I completed my first payment. I received a Mortgage Statement on XX/XX/XXXX confirming receipt of first payment. 

On Monday Friday XXXX, XXXX, I contacted the loan servicer Dovenmuehle Mortgage XXXX Inc ( DMI ) via phone call to cancel the impound account. I dialed the number XXXX listed on Page 1 of Account Statement at XXXX XXXX. I spoke to a very nice lady named XXXX XXXX or similar sounding name ). I indicated I was told I can remove taxes and insurance payment from my monthly payment, as well as have the escrow account reimbursed to me. She informed me she will submit a work order, and I should receive a letter via mail within the next 2 weeks with instructions. 

On Thursday XX/XX/XXXX I received an email from XXXX with a letter dated XX/XX/XXXX denying my request to remove the escrow account ( attached file " XXXX Escrow letter '' ). I was shocked, stressed, and agitated beyond words. 


I was extremely shocked. I never imagined my request would be denied. If the loan originator, who is also the Vice President of a multi-million dollar Bank, tells me I can remove the impound/escrow account after making my first payment, of course I would trust and believe the information. 

I replied back to the loan servicer via email to XXXX. I stated, Prior to closing, lender XXXX XXXX  stated that I can remove the impound account and have my escrow fees refunded after making my first payment ( email attached ). Please honor it. My reply is time stamped XX/XX/XXXX XXXXXXXX XXXX XXXX I attached the email dated XXXX where the Vice President XXXX XXXX ( XXXX : XXXX ) of XXXX XXXX confirmed I can remove escrow after the first payment. 

As soon as I could, I notified XXXX XXXX ( XXXX : XXXX ) via text at phone number XXXX before emailing him and CCing the Senior Vice President XXXX XXXX ( XXXX ID # XXXX ). This issue is very important to me. I escalated it to resolve it. 

XXXX text reply shocked me. I texted him about the issue. I also provided a courtesy notice that I intend to escalate the issue. XXXX replies back asking me if I was threatening him. I was speechless with shock. He has 15 years of experience, as a result, there was no doubt in my mind he knew escalating or elevating an issue means involving managers in an issue to resolve it. I did not want loan originator XXXX to be blindsided with an email where his plausible supervisor, the Senior Vice President, is XXXX  Therefore, I provided a courtesy notice. It never occurred to me he would perceive escalating an issue professionally to be threatening. I was really shocked. I just decided to put my personal feelings and confusion aside and focus on the issue at hand. I replied No to his question. I clarified via text that I need his help to cancel the impound. 

Via email, I immediately contacted the loan originator and requested his urgent help on this matter. I referenced his XXXX email that stated This is just to confirm that you can cancel your impound account after you make your first payment. 

The loan originators response had me reeling with shock and betrayal. He said My email was referring to it not being a requirement in California. I felt frozen, shattered, numb, and horrified beyond belief. 

See file titled " XXXX Impounds discussion '' How does This is just to confirm that you can cancel your impound account after you make your first payment translate to My email was referring to it not being a requirement in California? It does not. He clearly said I can cancel the impound account after making my first payment. I trusted the information. On that day XXXX, I would not have changed my choice to XXXX XXXX if XXXX XXXX ( XXXX : XXXX ) did not tell me I can cancel tax and insurance payment after my first payment, as well as have my escrow account reimbursed to me. He knew how important this was to me. 
I first talked to him about this via phone call on XX/XX/XXXX Friday where I told him CALIFORNIA LOAN IMPOUND DISCLOSURE AND WAIVER that he was making me sign states that impound is not required for down payment above 10 %. While I was talking to him on the phone, I got the feeling he had no idea about this. He iterated that the lender requires an impound for down payment less than 20 %. I talked to him about this again on XX/XX/XXXX Monday via text. He said I have to do an impound account if I am putting down less than 20 %. He proceeded to say it is better for me since I am a first time homebuyer and it is more convenient for me because I was not used to making such payments. I was very insulted by the implication that I might forget to make the payments because I am not used to it. 
I thought there was something wrong with my communication skills. I thought I did not explain it well. I blamed myself for not getting my point across. After all, the document I signed said CA does not require an impound for down payment above 10 %. I emailed him again about this issue on XX/XX/XXXX. XXXX. This time, I showed a screenshot and highlighted where in the 51 page loan document CA law said impound is not required for down payment above 10 %. He again responded saying the lender requires an impound. 
After calling him, texting him, emailing him, begging, pleading, and requesting for days to remove the impound, I was mentally and physically exhausted, frustrated, drained, resigned, miserable, and burnt out. The day I chose another lender on XX/XX/XXXX he told me via phone call at XXXX from XXXX that he found out I can stop paying taxes and insurance with my monthly payment, as well as have the escrow account refunded to me after making my first payment. I requested this information in writing. He sent it to me. He calls me again at XXXX from XXXX where he assures me I can remove the impound account. He explained to me that after they sell off the loan to XXXX XXXX, the loan goes to their servicing department. He further explained that after I make the first payment, I would contact the loan servicer to cancel the impound/escrow. If I run into any problem, I can contact him and he will help. I trusted the information. I trusted the promise. I had zero doubt he would keep the promise. I did not anticipate any hurdles related to my request to remove the impound. As a result, on XX/XX/XXXX I was extremely caught off guard and shocked when I received the letter from loan servicer Dovenmuehle Mortgage , Inc ( DMI ) denying my request to remove the impound account. I was 10x more shocked when XXXX told me My email was referring to it not being a requirement in California. I felt misled by XXXX. I felt frozen, shattered, numb, and horrified beyond belief. I trusted his information as the loan originator. He broke my trust. I was distraught, I was drained, emotionally and physically exhausted. I felt very alone. I felt neglected, shattered, and frozen. I was very stressed and unhappy. 

XXXX email on XX/XX/XXXX stated : My email was referring to it not being a requirement in California. I would follow up with servicing to see at what point they will allow you to remove impounds. Its possible that once the file is onboarded to our internal servicing department that there might be more lenience here. Since receiving the email, I have reached out to loan servicer XXXX Mortgage XXXX XXXX ( XXXX ) via phone call and email multiple times about the issue of removing the impound/escrow account. 

I called XXXX at XXXX XXXX on XX/XX/XXXX. This phone number was provided to me via email where Dovenmuehle Mortgage , Inc ( DMI ) notified me that my request was denied. I spoke to a lady who reiterated the information from the XX/XX/XXXX letter. She said I would be eligible to request escrow removal on XX/XX/XXXX after the loan has reached 80 % XXXX. This would require me to pay ~ {$20000.00} towards principal. The loan originator XXXX never told me this information. I felt so betrayed, alone and helpless. I told the lady about the CA law not requiring impound after reaching 90 % XXXX. She told me to send an email to XXXX with Subject Attn : Research. I sent the email Friday XX/XX/XXXX at XXXX. Refer to attached file titled " XXXX Attn Research_ Request to cancel escrow '' On Tuesday XX/XX/XXXX I received an email from a Resolution Specialist who notified me that research has been initiated on the issue. 


On XX/XX/XXXX, I received a message apologizing for the length of time it is taking to research the issue. I was notified they will be reaching out to the Corporate Office regarding this matter. 


On XX/XX/XXXX I received another email from the Resolution Specialist indicating they are taking another look at the request. 


On Tuesday XX/XX/XXXX I logged into the online mortgage portal to view loan information. I opened a chat session to ask if there are any updates to my request to cancel impound/escrow. The representative XXXX informs me a letter dated XX/XX/XXXX has been issued to me denying my request. The letter is identical to the XX/XX/XXXX rejection letter. 

I have been looking forward to removing the impound account since the loan originator confirmed I could on XX/XX/XXXX. So far, I have received 2 rejection letters, 2 emails telling me they are taking a look at this issue, and one message telling me they are in the process of researching my removal request. It has been an agonizing three weeks. I appreciate the commitment and effort the people at XXXX Bank and loan servicer Dovenmuehle Mortgage , Inc ( DMI ) are putting into resolving this issue. I am plagued by the possibility of bad news even after all this wait, after all the effort, after all the patience, agony, and misery I have been going through, Every day I wait in agony hoping for a resolution that is not another denial letter. I am haunted and traumatized by the possibility that the loan originator gave me information without completing due diligence. I wonder if he knew there was a possibility my request would be denied. He seemed unconcerned, not surprised at all via text or email when I told him the loan servicer DMI denied my request. He has told me he had clients who were able to have the escrow removed after a few months. Did he check if it was because they met a requirement? Was there any stringent requirement those clients met which allowed them to remove escrow? I believe it was the loan servicers responsibility to find out all the facts. Did he tell me what I wanted to hear so he could get his commission for closing the loan? I read that a mortgage consultant makes 1 % to 3 % of the loan amount. He was likely paid between {$5000.00} and {$15000.00} or more because I chose to close with XXXX XXXX 

On Tuesday XX/XX/XXXX, I called Senior Vice President XXXX XXXX at XXXX XXXX I did not leave a message. He called me back the next day XX/XX/XXXX at XXXX. I tell him the phone call is about my request to remove the impound/escrow. He recalled that I copied him in an email about this. I explain to him that I have received two letters denying my request, and I have received emails and messages indicating they are taking a look. It has been 3 weeks. I wondered if XXXX could help expedite the resolution given his position as XXXX XXXX XXXX. XXXX was very courteous and professional during the phone call. He told me he will speak to Operations and see what can be done. 

On Wednesday XX/XX/XXXX, when taking a look at the loan documents, it looked like I agreed to have the property taxes/insurance impounded. This was news to me. I did not know I was agreeing to have my taxes and insurance impounded. The loan originator never told me anything along the lines of This is where you are agreeing to have your taxes and insurance impounded. I did not know I had the ability to refuse to have an impound account. I suspect the loan originator did not know this either. I feel further betrayed, misled, and neglected by the loan originator. 

I called Senior Vice President XXXX XXXX on Tuesday XX/XX/XXXX about the issue of canceling impound. He returned my call at XXXX XXXX. He indicated he reached out to Operations. They told him it will take longer to resolve this. He said he will reach out to Operations and let me know if there are any updates. 

I called the XXXX phone number XXXX listed for Dovenmuehle on XX/XX/XXXX Wednesday. I spoke to XXXX. She reiterated the same information the two denial letters told me. She also told me they will send the property tax payment to the XXXX XXXX XXXX Collector from the impound account. She indicated there will be an update on tax payment to XXXX XXXX by XX/XX/XXXX Monday. 

It has been over 30 days since I first reached out to loan servicer Dovenmuehle Inc Corp. I feel extremely misled, betrayed, abandoned, and neglected by the loan originator. On XX/XX/XXXX he clearly said This is just to confirm that you can cancel your impound account after you make your first payment. If your first payment is in XXXX then by XXXX you should be able to receive a refund of your escrow account. I believed and trusted the information. He assured me through two separate phone calls that I can remove the impound. He also told me he will help me if I face any setbacks or hurdles. His position as a Vice President of a multi-million dollar bank further made me believe he would be able to resolve any situation that arises. But when my request was denied, he simply said My email was referring to it not being a requirement in California. I am not happy with his actions. I am frustrated, exhausted, dissatisfied, and unhappy. I feel wronged. I feel misled. I feel deceived. I feel betrayed. I deeply regret trusting the loan originator.