Consumer complaint received 2015-06-04
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: PHH Mortgage Services Corporation (TX)

PHH was inadequate in providing clear, precise information and was flippant in regards to my XXXX level throughout the process. Each time I called, they never seemed to have my details handy. The day before AND day of closing, both my realtor and I questioned the amount I needed to bring to closing. Even though we XXXX asked for the amount PHH stated was needed to close to be XXXX checked, the title company told me what I needed and I brought exactly what they said. In less than 3 months, PHH reanalyzed my account XXXX and found they did NOT include enough into the escrow to cover all taxes when they stated what I needed to bring to closing. I called and I could either pay {$2200.00} to bring my escrow up to date for incorrectly determined taxes, or raise my monthly payments by over {$300.00} to cover them, making up for the loan officer 's error. Taxes had been underestimated by {$1500.00}. Suddenly I had to deal with my monthly payments increasing from $ XXXX, to $ XXXX for the life of the loan. I called in the middle of XXXX 2014 and asked how to get my monthly payments back down to what they had been stated at closing. I needed to add in the {$2200.00} to my escrow. I paid the {$2200.00} XXXX memo on check stating " Escrow only '' ) and {$900.00} XXXX " XXXX mortgage '' ) XXXX/XXXX/14. I had to call back the XXXX week of XXXX because they posted the money incorrectly. I again had to call back XXXX XXXX because I was getting ready to schedule XXXX 's mortgage payment only to see that my monthly payments never adjusted back down to what PHH stated it would once I paid up the escrow. My next step was contacting the Texas State Attorney General 's Department XXXX XXXX and Mortgage XXXX, hoping that my complaint could be viewed by experts in such areas. The investigator assigned to my case was extremely helpful and explained what she would be doing and her findings. Her review of the facts found that PHH was in violation of Texas state practices on mortgages and they would be requiring PHH to either correct the matter or owe a hefty fine to the state. Upon further review it was determined that PHH had the proper information ; however, PHH omitted it on the final paperwork. PHH Mortgage determined that my initial contact with the State warranted a {$250.00} good will refund, which was insulting. After the lawyers discussed numbers, PHH determined that there was no way to get my mortgage back down to what I agreed/signed for if they kept everything the same. That being said, the taxes that PHH Mortgage did not estimate for was {$1500.00} ; I had to put out {$2200.00} for my escrow to be caught up. The {$1300.00}, not including the good will check is {$250.00} less than what they said they underestimated my taxes for, and {$870.00} less than what I actually paid into trying to make things right. The checks were finally received around XXXX XXXX. Since they would be void after 180 days, they have been deposited, but I am not satisfied that this was the solution to the problem. My budget was based off the reality of life : gas for my transportation, credit card payments, electric bills, water bills, gas bills, trash, car/motorcycle insurance, groceries, pet expenses, and the biggest XXXX - XXXX. I understand that some things are not considered when applying for a loan due to the law, but I consider my XXXX condition because it 's a big factor. My XXXX drives me to be responsible enough with my money to live simply and strive not leave a legacy of debt on anyone 's shoulders. When I put my name on the line, I am the one that needs to live up to that obligation.