Consumer complaint received 2017-02-17
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Specialized Loan Servicing Holdings LLC (CA)

On XXXX XXXX, XXXX SLS assumed my mortgage from XXXX. At the time of the transfer neither hazard insurance ( both homeowners and flood ) and property taxes were not impounded by XXXX. In XXXX XXXX, SLS paid the homeowners insurance creating a significant escrow deficiency ( negative escrow balance ). The insurance was paid by me ( the borrower ) as my insurance was not impounded. In XXXX XXXX a refund of the homeowners insurance was mailed to SLS in order to cover the escrow deficiency and close the escrow account. The escrow refund amount received by SLS was incorrectly applied as a principal curtailment and the escrow account remained open with a negative balance. In XXXX XXXX an escrow account disclosure statement was received as a result several letters were sent to SLS on XXXX/XXXX/XXXX and XXXX/XXXX/XXXX requesting the escrow account be closed and the escrow reimburse funds sent to SLS in XXXX XXXX ( that were incorrectly applied to principal curtailment ) be deposited in the escrow account clearing the deficiency. This request was not addressed or completed. In XXXX XXXX the flood insurance was paid creating another duplicate payment of the insurance. Another request was submitted to SLS to close the escrow account which was denied by letters dated XXXX/XXXX/XXXX and XXXX/XXXX/XXXX because the escrow account is negative. ( It is my position that if the refund in XXXX had been applied appropriately and/or the letters requesting the escrow account be closed I would not have an escrow account with a deficiency ). During XXXX and XXXX a number of calls occurred between SLS and me predominantly to express my dismay that my credit rating was suffering by SLS reporting inaccurate information. On XXXX XXXX I wrote a letter to SLS explaining the problem, as best I could, requesting that SLS remove their negative reports to credit agencies as I was a victim of their incompetency and erroneous accounting. 
I received a response to this letter dated XXXX XXXX. This letter explained some of the erroneous accounting on SLS part and included a spreadsheet of all payments and transactions since inception. The spreadsheet clearly shows that my XXXX principle and interest payment accounted for on XXXX XXXX was never applied to principle and interest. 
For XXXX, XXXX and XXXX SLS contends that I am delinquent by one month. I contend that I am current. I received a statement dated XXXX/XXXX/XXXX showing an amount due of {$3600.00}. This was comprised of principle and interest of {$3400.00} and a late charge of {$170.00}. My contention is that if the XXXX payment is applied correctly the principle and interest for XXXX is current. The late fee is erroneous because I have never been delinquent with my payment. I spoke with XXXX ID # XXXX who told me that the late fee was now {$180.00} and if I paid that my account would be in balance. I refused to pay as I do not owe a late fee. She said she would look through the accounting to see if she could spot where that evolved and indicated that she could see that the XXXX payment was never properly applied. 
I wanted to refinance my mortgage in XXXX but could not because my credit rating was so low. This was directly because SLS reported me as a credit problem. This was totally incompetent and incorrect. SLS had No right to XXXX my credit. As a result I have missed out on lower interest rates and the ability to take cash out. With the change in the interest rate and circumstances surrounding my mortgage, I contend that SLS has damaged me to the amount of approximately {$100000.00} considering the swing in interest and the cash out amount that was obviated.