Consumer complaint received 2020-07-19
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Mr. Cooper Group Inc. (GA)

My initial mortgage was approx {$1100.00} on a {$140000.00} loan at a fixed rate of 5 % interest. 

The loan was assumed by Mr. Cooper before I made my first payment in XX/XX/XXXX. In XX/XX/XXXX, they asserted, rightfully so, that I had an escrow shortage in XXXX, due to my, admitted, failure to file homestead exemption. My escrow shortage in XXXX of XXXX was approximately {$1200.00} ( see attached ). However, the mortgage company required approximately {$2900.00} to bring that " current '' with an agreed recalculation of my XXXX mortgage being approx {$1200.00} a month until the following XXXX ( a $ 150 monthly increase to my mortgage ). They explained the additional funds were needed for any other " overages '' that may be accounted in the next year. 

That payment was made in XXXX. Yet, the company misapplied that payment to the principal, stating that was their right as I had not alerted them to the application of the payment ( failing to recognize that I had called into the company on the day I made the payment, prior to submitting the payment, ensuring this payment would be earmarked correctly, as I could not add a memo from payment directly from my bank account. 

For the next three months, I called in regularly to assure that I only owed the approx {$1200.00} while they fixed their error. However, at the end of XXXX, I receive a new escrow assessment stating I owed another {$400.00} resulting in an additional monthly increase. When I called in to question this, they stated the laws in GA had changed allowing them to do this reassessment more than once a year. And, because my homeowners insurance increased in XXXX, they needed more money, which I would owe until XXXX, despite the fact that I informed them that my homestead exemption had been filed and my taxes would be dramatically lowered in XXXX. 

When reviewing all of these very complex statements - that have fluctuated from me owing anywhere between {$1200.00} and {$1700.00} a month ... I realized the money they put into my escrow did not match the {$2900.00} I paid in XXXX. It was short approx {$360.00}. There was even a statement ( attached ) which showed one month that no payment was applied to my principal. 

I finally mailed a certified letter or complaint to them in XXXX, with some very basic questions ( attached ), which they finally responded to in XXXX. In their response letter they said their calculations were right ( which honestly, I have not had the time to review and feel I need to hire someone to look over ) and I was just in the wrong. 

So, last month I begrudgingly paid them {$1300.00}, which they said was my new mortgage amount. 

I just received a new statement due XX/XX/XXXX, now saying my mortgage amount is {$1300.00}. Another {$70.00} increase. 

Mortgages are not supposed to change EVERY SINGLE MONTH. I will be hiring someone to assess if money is missing from my escrow still ... and I will be refinancing and pay that refinancing fee just to get out from under the thumb of this company, which has taken more time, energy and frustration than I have time to expend on an ongoing monthly basis. 

I am college educated. I have owned a home before. I have dealt with mortgage companies, and NEVER experienced this type of either inept mismanagement if not flat out fraud. This is not transparent and easy to manage by the uneducated home-owner, let alone the educated one. 

I will be fixing my own issue, but this company seriously needs to be investigated. 

i am attaching their entire response outside of their daily accounting of my mortgage account, which i am turning over to a forensic auditor. If you would like those as well, i am happy to scan and submit. This is so overwhelming, it is heartbreaking, and I hope not what the average homeowner experiences,.