Consumer complaint received 2020-06-24
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Dovenmuehle Mortgage, Inc. (LA)

This overall issue began in XX/XX/2020 with the events described in and partially addressed by Complaint ID XXXX, submitted on XX/XX/2020. In brief, Dovenmuehle failed to properly pay the escrowed premium for hazard insurance, requiring me to pay the premium to avoid the termination of the policy. Rather than refund me the premium directly, Dovenmuehle removed hazard insurance and property taxes from escrow and conducted an escrow analysis. That analysis showed an overage, which represents both the original hazard premium plus additional funds in the escrow account that are no longer needed. 

The issue now is that Dovenmuehle has not sent me that money. 

Dovenmuehle conducted an escrow analysis on XX/XX/2020. I received a letter with the results of the analysis, attached here. It specifies the " escrow analysis date '' as XX/XX/2020. It identifies a surplus of {$2100.00}. It further states, " The surplus amount will be refunded to you in the form of a check that either ( a ) is included with this statement, or ( b ) if your loan is current as of the date of this escrow analysis and your refund check is not included with this statement, it will be mailed yo you within 30 days. '' In response to Complaint ID XXXX, Dovenmuehle provided a letter dated XX/XX/2020. It is attached here. That letter states, " Your escrow analysis statement will arrive under separate cover and will include your overage check in the amount of {$2100.00}. '' The escrow analysis letter did not include the check, as the XX/XX/XXXX letter said it would. Nor did a check arrive within 30 days of the XX/XX/XXXX escrow analysis, as the escrow analysis statement said it would. 

This alone violates the requirement in 12 C.F.R 1024.17 ( f ) ( 2 ) ( i ) that an escrow surplus be sent to the borrower within 30 days of the date of the escrow analysis. Note that Dovenmuehle 's escrow analysis statement clearly identified the date of the escrow analysis as XX/XX/2020. 

When the check did not arrive within the time mandated by federal regulations, I notified Dovenmuehle. Dovenmuehle responded in a letter dated XX/XX/2020 and attached here. Dovenmuehle explained that the check was not sent out because the escrow account did not contain sufficient funds to cover the overage amount. The escrow analysis had been conducted on XX/XX/XXXX assuming the XX/XX/2020 payment. I do not believe that this justifies a violation of 1024.17 ( f ) ( 2 ) ( i ). That section refers only to the escrow analysis date and makes no provision for analyses that are conducted based on a future date. If Dovenmuehle choses to use a future date to perform the escrow analysis and that shows a surplus, then Dovenmuehle is obligated to cover the surplus regardless of how much money is in the account. This is the same result as when a mortgage servicer is required to advance money to make an unexpectedly high escrow payment. Regardless, the XX/XX/2020 letter states, " As your escrow balance is now greater than the overage due to you, your escrow refund will be generated and sent to the mailing address on file. Please allow up to 15 days for delivery of this check. '' More than 15 days have passed since the XX/XX/2020 letter and the check has still not arrived. 

I called Dovenmuehle on XX/XX/2020 and was told that the check has still not been printed or mailed. The only explanation was " human error. '' Human error simply does not explain Dovenmuehle 's persistent refusal to comply with federal regulations and send me the money that Dovenmuehle owes me. Nor does it explain Dovenmuehle 's repeated misstatements that the check was forthcoming. Dovenmuehle is acting no better than a recalcitrant debtor who repeatedly lies to his creditors that, " the check is in the mail. ''