Consumer complaint received 2018-06-25
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: WELLS FARGO & COMPANY (CA)

Wells Fargo is my Mortgagee. I established my Wells Fargo mortgage in XX/XX/XXXX with an interest-bearing escrow. At the close of escrow in XX/XX/XXXX, my wife and I elected for Wells Fargo to be sending to us a life check for any interest accrued from the escrow so will be able to reconcile our taxes when Wells Fargo send us a XXXX at the end of the year. Wells Fargo has been sending to us a check since then and IRS form XXXX at the end of each year. In XX/XX/XXXX my wife and I refinanced the mortgage. During the signing of the papers, we met with our Wells Fargo Mortgage Coordinator named XXXX XXXX in her Wells Fargo office in XXXX, California. XXXX went over the papers, explained to us the new loan, including the escrow. XXXX told us that was no changes to the escrow setup we already had and that we will continue to receive a check for any interest accrued from escrow. XXXX told us the only changes were the new mortgage rate and the equity we were taking. We signed the papers and closed escrow. In XX/XX/XXXX and XX/XX/XXXX, Wells Fargo continued to send to us a life check for interest accrued from escrow. I have a copy of Wells Fargo check XXXX. XXXX dated XX/XX/XXXX in the amount of {$10.00} payable to me and my wife in XX/XX/XXXX and IRS form XXXX as well. In XX/XX/XXXX, Wells Fargo did not send us any check but we received IRS form XXXX Interest Income in XX/XX/XXXX. I contacted Wells Fargo XX/XX/XXXX asking why they sent to me a XXXX Interest Income but that I did not receive any check from accrued interest from escrow as we normally do. Wells Fargo replied that they paid the interest back into the escrow account. I replied back to Wells Fargo challenging the merit of their claim, more so they have been sending my a life check since XX/XX/XXXX through XX/XX/XXXX, more so their claim contradict the option that we have elected. I also referred Wells Fargo to this stipulation by HUD : " HUD 4330.1 REV-5, 2-5PROPER USE OF ESCROW FUNDS, Subsection C. Interest On Escrows : HUD regulations neither forbid nor require that escrow accounts earn interest. Where escrow funds are invested, the net income derived from this investment must be passed on to the mortgagor in the form of interest as follows : 1.in compliance with any state and/or regulatory agency requirements governing the handling and/or payment of interest earned on a mortgagor 's escrow account ; and 2.the net earnings from the investment of the mortgagor 's funds after deducting the actual cost of administering the interest bearing account. 

Since then, it has been a song and dance with Wells Fargo. My last letter to Wells Fargo dated XX/XX/XXXX was my 4th letter to Wells Fargo in which I enclosed the above Wells Fargo check to prove to Wells Fargo that they are lying when they claim that they have never sent me a check for accrued interest from escrow. Wells Fargo has been trying to either confuse, muddle up, or twist my letter to them. All we want is for Wells Fargo to continue to send to us in the form of a check, any interest accrued from escrow, so we can be able to reconcile the XXXX Interest Income during our taxes. Why is Wells Fargo refusing to comply, even the above HUD regulation specifies that the interest should be passed on to the " Mortgagor ''. The referenced HUD regulation did NOT specify that the Mortgagee should pay the accrued interest back to the escrow account. I do not trust Wells Fargo anymore, considering al we have heard. Wells Fargo should be more transparent to its customers and this is one way Wells Fargo can achieve that. I do not want to navigate through the escrow account hunting for where and when Wells Fargo have credited my escrow and I do not want to be receiving a fictitious XXXX from Wells Fargo to which I did not see and/or receive the income. I want a check as established. I am paying my mortgage every month on time. I also pay any shortfall on the escrow to bring it to par.