Consumer complaint received 2018-07-31
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: WELLS FARGO & COMPANY (SC)

Subject : Loan serving change PMI/escrow policy change ( Revision after Wells Fargo responded inability to answer complaint # XXXX ) To whom it may concern : In XX/XX/XXXX I purchased my home The Loan Originator and servicer was XXXX XXXX XXXX. The original servicing agreement including escrow were set at the min level for funding to pay escrow payments. Shortly, after origination the loan was sold to XXXX XXXX and the servicing to XXXX XXXX XXXX The servicing agreement was not changed. Shortly, there after XXXX XXXX purchased the loan servicing through XX/XX/XXXX Again the loan servicing agreement did not change. The home mortgage loan servicing was purchased in XX/XX/XXXX by Wells Fargo from XXXX XXXX. In XX/XX/XXXX I received a notice from Wells Fargo that my escrow account was not sufficiently funded per their policy .... I reviewed the last escrow analysis performed by XXXX XXXX in late XX/XX/XXXX for upcoming XX/XX/XXXX. XXXX XXXX XX/XX/XXXX analysis aligns with the min required reserve to pay the escrow payments ... Wells Fargo 's policy requires a " cushion '' that is allowed by RESPA 1/6th of total items paid or two months of escrow payments .... Per the rule the loan servicer can chose three paths when a loan service agreement changes hands .... 1 ) require the payee to fund the escrow deficiency in 30 day 2 ) break up the deficiency in monthly payments ... 3 ) do nothing and continue as the previous loan servicing company had. .... I contacted Wells Fargo and asked them to do nothing '' as the escrow analysis for XX/XX/XXXX provided by XXXX XXXX meets min requirement to pay the escrow payments ... I also made note of the HUD guideline/recommendation to not undue burden on the consumer by requiring the max vs the min in funding of the escrow account .... I contacted Wells Fargo on Tuesday XX/XX/XXXX to explain the situation and request they choose the " do nothing '' path .... The representatives I spoke with at Wells Fargo stated my request does not align with their policy. They escalated my request first to a customer service Supervisor and finally to a customer service executive ... The Wells Fargo executive opened a complaint case but response I have received is they have no avenue to meet my request they will follow their policy .... I also have PMI on my loan and had expected it to be removed in the first quarter on XX/XX/XXXX when my equity achieved 20 % per my mortgage agreement and subsequent servicing by XXXX, XXXX XXXX XXXX and XXXX XXXX. Wells Fargo has a policy of 22 % equity ... This policy puts my PMI out until XX/XX/XXXX ... 18 months longer ... at another {$64.00} /month. Wells Fargo PMI policy feeds the escrow deficit. They did offer me an opportunity to have my home re-appraised at my cost and if it meets the 20 % equity they will then remove the PMI .... In totality, this is an undue burden foisted upon me financially ... I can not chose who services my loan it is allowable to sell the servicing on the open market '', but as a consumer/customer I do expect the escrow terms and PMI terms to remain consistent and not adjust simply because a changing of the loan servicer not-withstanding a change in tax rate, insurance cost. Please help to remedy this matter. I find this completely repugnant and disturbing.