Consumer complaint received 2020-07-05
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: BANK OZK (GA)

I am filing a complaint against Bank of Ozarks as I believe they are attempting to or in the process of engaging in malice, predatory behavior on my mortgage loan. Their actions and incompetence have caused a negative impact on my near perfect credit score which has dropped significantly. I have organized this complaint into five parts. 
The details are as follows : PART 1 : THE BACKGROUND AND PROBLEM -I received a notice in XXXX that my XXXX mortgage would increase from {$750.00} to {$1100.00} an increase of 47 % ( forty-seven percent ). I contacted the company to find out why. I initially corresponded with XXXX XXXX. I asked XXXX XXXX what caused the increase and after extensive research by XXXX XXXX   which began on XX/XX/20 until XX/XX/20 ( email is attached for reference ) he explained that there was a deficit of {$2900.00} due to the mortgage company having to pay two years of trash/water and they underpayed on the taxes or something to this effect. It still is not crystal clear to me how this happened. However, the mortgage company spreading the deficit out over the next 12 payments is what caused the increase from {$750.00} to {$1100.00}. This part made sense. 

-Despite the explanation, I was in awe that no one at the company reached out to me about this {$2900.00} escrow deficit and that it was now due all at once. As stated it appeared to be almost two years worth of bills from the city and county and that the company waited to the last minute to let me know about. I could not afford a payment of {$1100.00} for the next 12 months as we had not budgeted for an almost 50 % increase in our mortgage payments. XXXX XXXX and I talked extensively between XX/XX/20 and XX/XX/20 and he informed me that an escrow deficit was common and Bank of the Ozarks has a process for this in which they would pause the regular mortgage payments and then allow me to catchup by paying off the escrow deficit and once that was done regular mortgage payments would resume. There would be no impact to my credit with this arrangement. 

-I reached out toXX/XX/XXXXagain on XX/XX/XXXX approximately 6 days before the payment due date for XXXX   mortgage to explore this option. I called XX/XX/XXXX and sent him an email. XX/XX/XXXX got back to me on XXXX and explained to me he would send the request over to the assets department and that I should be getting some paperwork shortly regarding this program. I expected it to be something short and sweet that would just take a few minutes. I expected XXXX to send this immediately. He did indicate they were stressed out because of COVID19 and there may be a delay. I did not expect it to be too long. On XX/XX/20 I had not heard back from XXXX  or anyone at Bank of Ozarks and made my previous regular payment of {$750.00} to the bank on XX/XX/20. I sent XXXX an email on XXXX   informing him of this payment and letting him know that I was looking forward to this paperwork from the assets people and that I had not heard from anyone yet. 

-I received an email from someone named XXXX XXXX on XX/XX/20 ( I assumed correctly that this was the assets person? ) and he attached something called an application for assistance and his email stated the following : Good morning, Please find attached an application for assistance and a list of the items needed to underwrite the loan for loss mitigation options.I do not need originals so please just scan back to my email.This process takes 30 + days in normal circumstances but due to hgh volume of submissions related to the Pandemic 19 crisis I would allow for 45 days to get an approval.I recommend making payments during this time as there is no guarnatee of an approval.Thank you. I look forward to working with you. 

- My husband and I reviewed the loan application and noticed that it was a FULL re-underwriting of the loan. In other words a BRAND NEW loan application from scratch. We decided that this after all may not be a good fit for us. This was in stark contrast to what XXXX XXXX told me this would be. After my husbands and I review I decided to call XXXX XXXX to get some additional clarification on what this was and how it would show up on my credit report ( according to XXXX this particular program did not show up on the report as a forbearance or anything like that ). This conversation with XXXX was very long he seemed empathetic, friendly, and really wanting to be helpful. I explained that we are not necessarily experiencing hardship at the moment, but we did have some anxiety around our future employment due to COVID and was not comfortable with a new underwriting process just for this issue. I told XXXX XXXX we would just go ahead and ask family for the money and pay off the deficit in full because I was uncomfortable going through a whole underwriting process again which included paying some upfront fees and a modification to my credit report ( in contrast to what XXXX told me! ) At this point in the conversation, XXXX XXXX mentioned that due to COVID19 that they had a new program in place where borrowers could pause their mortgage payments for up to 60 days and pick them back up again at the end of that period. He stated that I could take advantage of this program to take care of the escrow deficit. This would pause my regular mortgage payments and during this time I could go ahead and pay off the escrow in full. In this way, I did not have to go through a reunderwriting process again. I asked XXXX XXXX what would the impact be on my credit. He said he did not know but he did not think it would be negative. He stated that it was up to the credit bureaus to determine how they were going to report this IF they reported it at all. He emphasized that there probably would not be any reporting at all. XXXX XXXX gave me the perception that this was manual process that he would personally handle and that there would be no impact to my credit score or report. He even told me to inform him of every time I made a payment towards the escrow balance so that he could manually go in and credit the account. 

-I told XXXX that I would be making two payments of approximately {$1500.00} to cover the escrow deficit during the time the payments were paused ( remember the escrow deficit was {$2900.00} ). XXXX XXXX and I exchanged emails and talked about this through XX/XX/20. Here is the message that I received from XXXX XXXX : Hello MyNAMEREDACTED, It was a pleasure speaking with you. Please find attached the EXT. agreement we discussed. Please sign and return back to me via email.Please mail the ORIGINAL back to the address in my email signature.During this time frame from XX/XX/XXXX you can pay your escrow in full. When you make a lump sum payment towards escrow send me an email so I can make sure it processes properly. 
- XXXX XXXX sent me a one page agreement to digitally sign and also to sign and mail in that would enter me into the COVID19 payment program with the understanding that I would use the pause in regular mortgage payments to pay off the FULL escrow balance ( email is attached ). I left my conversations with XXXX XXXX with the understanding that I would make the two installments of approximately {$1500.00} at the regular payment period e.g. anytime between the XXXX and the XXXX. With this in mind we assumed our next payment would be due anytime between XX/XX/XXXX-XX/XX/XXXX and a final installment of {$1500.00} ( less the payment already made on XX/XX/XXXX ) anytime between XX/XX/XXXX-XX/XX/XXXX. There was no particular deadline attached to turn the COVID19 one page form in and we were going to sign and return it at the same time we made our first installment. I figured since I had already spoken and agreed to things with XXXX XXXX that we were already under contract so to speak. We received no additional information from the company that anything else was needed in terms of paperwork or payments or any other deadlines outside of what already was discussed ( emails are attached ). 

- On XX/XX/20 I received a frantic phone call from XXXX XXXX indicating we had an outstanding balance of approximately {$350.00}. I was very busy working when he called me I am a XXXX and was trying to wrap up the XXXX XXXX and not quite paying attention to things. I figured it was maybe a gaffe XXXX XXXX made that he was trying to clean up. I know that they had been under stress and I decided to give grace if he made a mistake. He told me to reach out to someone named XXXX XXXX and make the payment immediately because for whatever reason it showed that I missed a mortgage payment. I had the money on hand and I had no problem with XXXX at the time so without question I made the payment of approximately {$350.00}. I explained to XXXX during this call that we would be making a payment of {$1500.00} towards the escrow on XX/XX/20 and that we would also go ahead and make another payment of {$1500.00} by XX/XX/20. XXXX thanked me for the payment and I thought things were settled. XXXX ended the call by telling me to let him know when I made that payment to XXXX XXXX   and to email him. I made the payment and emailed him a few minutes later. I emailed him the following onXX/XX/20 : XXXX, I just paid the XXXX balance. Will make XXXX  installment on XXXX - XXXX responds with the following : Hi MYNAMEREDACTED, Are you not wanting the extension? Or will you be doing the extension and making an escrow only installment on the XXXX? Current Escrow Balance : ( {$1700.00} ) Please advise. I sent a revised EXT request earlier today.Thank you! 
-At this point I am concerned and very confused as to why XXXX XXXX   would send such a response. I responded with the following : XXXX, I am confused can I call you in a bit? I thought our balance was around XXXX from escrow and that the " XXXX payment '' was to the mortgage not to the escrow balance. Sorry if I missed something when I was talking to you on Friday. My plan is to pay on the XXXX an installment of XXXX ( Im rounding here ) to the escrow and then again sometime between XXXX the second installment of XXXX ( I'm rounding here again ) to absolve escrow balance. Thanks, -XXXX XXXX and I speak and he send me another COVID19 form to sign. This apparently was some extension. I signed it because I just assumed that maybe XXXX had made ANOTHER error somewhere. I also told XXXX that since he is saying that the remaining balance was only {$1700.00} that we would just pay it off sooner rather than later. XXXX agreed and stated that if we did pay we would basically have the month of XXXX with no payments and escrow issue resolved with regular payments resuming XX/XX/20 -I made a payment for {$1500.00} on XX/XX/20 and another payment for {$220.00} on XX/XX/20 ( this totals {$1700.00} that was due ). XXXX indicated that he received the payment and he had forwarded it to the proper personnel. He than stated to let him know when I received the adjusted tax bill for 2020 ( we are expecting a tax decrease ). At this point I assumed the issue was resolved and our mortgage would resume to regular payments beginning on XX/XX/20 - We received a notice in the mail for that our XXXX bill would be {$1100.00}. I waited a bit to reach out to the mortgage company hoping that this was a mistake and something else would come in the mail. Nothing else came. I decided to contact XXXX XXXX on XX/XX/20 to ask XXXX what was going on. I made note of the following high-level points from my conversation and email with XXXX XXXX ( he stated that he did not have the nitty gritty details of the file pulled up ) : 1. XXXX XXXX told me that due to regulations ( unclear if it is federal or state ) even if the mortgage billing of {$1100.00} was a mistake I am obligated to make this payment amount for the next two months because proper notice was not sent to me that the payment would go DOWN. He said that they have to tell me 60 days in advance of any changes to the billing. They did not do that and that this is required by law. Since it is required by law no changes to the upcoming mortgage will be made. I told XXXX  the reason for me entering into the COVID19 arrangements was to go back to our regular mortgage payments after the deficit was paid ( remember from above that the mortgage was {$1100.00} which was an increase of 47 % due to an escrow deficit from unpaid tax and sewer bills the reason for this fiasco was to avoid this new payment schema ). 
2. XXXX XXXX told me that we still have an escrow balance of {$1100.00}. I asked XXXX where this was coming from, he said could not tell me. He said there was a balance somewhere of {$820.00} and then another balance somewhere else of {$360.00}. He said something about the {$360.00} is a cushion of some sort that they have to charge me. At this point I felt from XXXX tone that Bank of Ozarks and XXXX   were becoming predatory, disrespectful, and insulting my intelligence. I asked XXXX how am I expected to pay for a balance that no one knows where it came from? 
3. XXXX XXXX then suggested that in order to make this go away easily that I can enter into another COVID19 payment arrangement. He actually forwarded me the paperwork prior to our call. It was different than the previous COVID19 paperwork and I had not requested this. I immediately responded back with the fact that I had NO IDEA what he just sent me. I mentioned to XXXX that I would just want to go ahead and pay off the remaining escrow balance ( IF IT EXISTED ) if push came to shove I would just ask a family member or put it on the credit card. I felt however that XXXX XXXX was trying to coerce me into getting into another COVID19 arrangement. XXXX XXXX tells me that Bank of Ozarks does not accept credit card payments. I said ok, I guess I will pay by debit card. He then stated that none of that would be necessary and not to jump the gun but to wait until he hears back from their analysis unit regarding what is actually owed. 
4. I just want this whole thing behind me. I am absolutely terrified now because I feel something weird is going on. Bank of Ozarks does not have an electronic system to keep track of anything and so I have to wait on their analysis unit to come back with everything. Again, I do not know what is going on and I feel that due to incorrect billing practices the company is being predatory at this point by forcing us into another unnecessary COVID19 arrangement. In other words, telling me I am on the hook for two payments of {$1100.00} and they cant change this even if it is incorrect due to legal regulations. 

PART 2 : THE NEGATIVE IMPACT ON ME 1. Later that night ( XX/XX/XXXX ) my husband was very concerned about what I told him and told me to check my credit. It appears that on XX/XX/XXXX I actually received a notice from XXXX that my credit score had decreased significantly from XXXX to XXXX. On XXXX report they actually did not have a reason e.g. there were no missed or late payments noted or any inquiries. As a matter of fact, the last note was from Bank of the Ozarks indicating that my mortgage was in good status. I did find that comment unusual but just let it go. Something still did not sit right regarding the drastic decrease in my credit score, so I decided to run my full report with XXXX. According to the report from XXXX, Bank of Ozarks reported me delinquent over 30 days for the month of XXXX. This is disgusting!! I do not make a lot of money, I am already a member of a marginalized group, and I only have my credit score to go off of in this life. I worked so hard for my score! I work out of town and I have to get an apartment in XXXX. This hurts me and my family very deeply to appear as if I am missing payments in addition there is a weird disaster declaration on my credit report. It also does not allow me to leave this mortgage company and refinance ( the current interest rate is quite high 4.75 I also am concerned that the bank is not digitized and is unorganized and I never want to be in a situation again with an escrow deficit ). The current perception on my credit report is that I missed a payment. This is NOT true. 
2. I am unclear now HOW MANY COVID 19 arrangements have been entered on my mortgage it appears that it maybe more than one instance with fees being anywhere from around {$1000.00} to {$3000.00} that were added to the principle of the loan. 

PART 3 : WHAT IS A RESOLUTION FOR ME 1. The error on my credit report needs to be corrected immediately. It is completely FALSE that I was more than 30 days late on a mortgage payment. I WAS ALWAYS in contact with this bank from the very beginning entering into a formal payment arrangement beginning on XX/XX/XXXX. I always made a payment when they requested it. ALWAYS. Why in the world would they STILL indicate that I was delinquent. This reeks of malice intent and in my opinion is a ploy to keep me from shopping around. Who wants to refinance a loan where the credit report indicates a recent missed payment? 
2. Produce and send me an accounting of a full payment schedule for my records indicating both prior and future payments for this mortgage. In addition, I would like a FULL accounting of the total fees that I was charged due to entering into one or more of the COVID19 payment arrangement schemes. Related to this, I would like an explanation of HOW many total COVID19 payment arrangements occurred and the dates and fees for each arrangement. In other words, is this debacle considered one single arrangement or multiple arrangements. I am very concerned about the unclarity around this. 

PART 4 : PERSONAL REVIEW FOR THE BENEFIT OF THE GENERAL PUBLIC Bank of the Ozarks appears to be an up and coming regional bank. They are based in the XXXX U.S. and appears to be marketing itself as a competitor to the local established credit unions such as XXXX XXXX. The initial underwriting process for the mortgage loan was straightforward and as a new home buyer going through the process, they did provide excellent service around this. They are heavily focused on your credit score and employment history ; as a determinant for loan approval. I suppose this is why the process was relatively straightforward for me. I did get a bizarre underwriting question or two that my loan officer easily handled for me. The loan officer was easy to work with and Bank of Ozarks offered more products than my current credit union and to my great regret I decided to go with them for my mortgage. The banks accounting and record keeping systems are not digitized. For example, we still receive paper bills in the mail, my payments have to be made manually every month, there is no account login to keep track of prior payments on the mortgage, and obviously they have terrible record keeping. For example, they did not inform of an almost two-year-old sewer bill that they received. As a consumer, I would probably be concerned about potential data and privacy breaches from this company as well as they attempt to digitize their systems. The bank seems to be in some type of hyper-growth mode and I suspect that is what is fueling the aforementioned predatory behavior mentioned in this complaint. I think the moral of the story is that this is NOT a local credit union. They are an emerging regional bank and looking back may have a specific demographic in mind for their products. If you have good-to-excellent credit and stable employment history, you are better off going with the local credit union for your mortgage needs although you will pay a bit more upfront. I think the relationship I have with the manager at my credit union he would have NEVER put my family in a situation like this over an escrow deficit and would have easily handled this in a way that was manageable to my family and would have done so quickly, as I have been told this is a common occurrence. In addition to the clarifying emails I had to send regarding the escrow deficit and the resolution. I have easily spent 2-3 hours on the phone with these people getting basic information about what they have on file for me. If you do decide to go with this company be sure to keep records and exercise caution with any extemporaneous arrangements, you may have to get into in the future. You are better off sticking with your credit union OR one of the major national banks. My credit score went from XXXX to XXXX dealing with these people. 

PART 5 : CONCLUSION - XXXX XXXX told me the analysis department will get back to me by XX/XX/XXXX with the actual numbers and then they will explain to me what is going on. 
Can someone please help me? 
I have attached all the of the email correspondence as a PDF. 
Thank you,