Consumer complaint received 2020-06-23
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fairway Independent Mortgage Corporation (OR)

We purchased our home on XX/XX/XXXX and used Fairway MC to service the loan. Fairway transferred the loan to XXXX XXXX. XXXX XXXX took over servicing the account in late XXXX or XX/XX/XXXX. Please see document XXXX, which shows a new loan effective date of XX/XX/XXXX and an escrow payment of {$920.00} with an effective date of XX/XX/XXXX with a transfer date of XX/XX/XXXX. Hence the confusion of late XXXX or XX/XX/XXXX. The taxes were due XX/XX/XXXX. Please see document XXXX attached. The taxes owed if paid on that date would be {$5900.00} ( 3 % discount ). I closed my re-fiance of my home with the VA XXXX XXXX XXXX on XX/XX/XXXX. To my dismay, during this closing time period, it was told to me that our taxes for the home had not been paid for XXXX. I called XXXX in late XX/XX/XXXX to confirm that they had not been paid, though there was ample funding in the escrow account. They could not confirm it over the phone, but said I would have to email them ( XXXX ). As the date I was closing on my re-finance was imminent, I could not afford to wait for a response via email. I was told to send them the information and await a refund. At closing, I confirmed the taxes owed were {$6400.00} including a late fee of {$240.00}. Please see document SEC-PO-Taxes good to XXXX. I paid this amount on top of my closing costs. Please see attached check from the title company and a statement that my taxes have been paid in full for XXXX. I feel that the late fees and loss of discount on the taxes should be covered by XXXX. I am owed the difference of what I paid {$6400.00} and what should have been paid {$5900.00} on XX/XX/XXXX for a total of {$430.00}. XXXX should have paid my taxes in XX/XX/XXXX when they took over the account, because of this, I lost the discount for paying for the taxes and I had to pay late fees on the owed taxes. I emailed this demand to XXXX XXXX on XX/XX/XXXX. They responded on XX/XX/XXXX, stating that because they did not have 30 days notice to pay the taxes, the taxes should have been paid by the previous servicer Fairway. I contacted Fairway ( servicing@fairwaymc.com ) on XX/XX/XXXX. On XX/XX/XXXX, they responded saying that when the loan was transferred, it should have been paid by the new servicer. On XX/XX/XXXX, I requested the documentation that XXXX XXXX used to make their decision. Basically I just want to see the regulation or law that says they should be allowed a 30 day leeway as they seem to believe they get and Fairway disagrees. I have not received a response and am now filing a complaint on XX/XX/XXXX ( complaint numberXXXX ). I was told on XX/XX/XXXX by CFPB that I would need to file a separate complaint to Fairway MC. So I am filing this one today. They should be linked, as only one remedy is necessary. So here we are with two servicers pointing fingers at each other and no remedy for me. I reviewed the regulations and the federal law, which brought me to you. 12 CFR 1024.34 ( a ) says that the servicer shall make payments from the escrow in a timely manner to avoid a penalty. This seems to indicate that since XXXX XXXX was the servicer when the taxes were due, they should have made the payment. There does not seem to be a courtesy of 30 days from when taxes are due. The regulation seems clear. See also 12 U.S.C. 2605 ( g ) " the servicer shall make payments from the escrow account for such taxes ... ''