Consumer complaint received 2024-04-22
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc. (CO)

I am filing a formal complaint against Mr. Cooper due to the consistent gross misconduct of my escrow account. My Veterans VA loan was sold to Mr. Cooper with first payment XX/XX/XXXX. For the past two years, Mr. Cooper repeatedly made errors and has NOT acted in my best interest with their known deceptive escrow practices and miscalculations analysis practices. I have lost complete trust with this Lender due to lack of accountability, miscalculations, repeated escrow errors paying my taxes and insurance premiums. Plus, the Cyber Security Data Breach and failure to protect my sensitive personal information ( XX/XX/XXXX was a victim of credit card identity theft ). Lender fails to align annual escrow practices to confirm to State of Colorado property tax due dates. Analysis XXXX 's end date is XXXX  months prior to XXXX XXXX due date. 

As a homeowner, I am concerned Mr. Cooper is knowingly interfering with State and Federal property tax due date guidelines. This exposes homeowners to unnecessary financial risks and crisis. I honestly believe Mr. Cooper is in violation of State of Colorado tax laws, RESPA and the HPA are federal consumer financial laws Sections 1031 and 1036 of the CFPA. The shortfalls, though, are causing financial strain for Colorado Residents. who have already had their budgets stretched from inflation in the past few years.

Due Dates : The State of Colorado property tax annual due dates are XX/XX/XXXX and XX/XX/XXXX. 
Homeowners insurance premium : XX/XX/XXXX Annual Escrow Analysis Statement History : XX/XX/XXXX statement indicated an escrow shortage. 
In XXXX, received four statements due to multiple calculation errors. 

XXXX. Unreasonable advantage, as defined in the CFPA, concerns the reasonable reliance by the consumer on a covered person to act in the interests of the consumer. This basis for finding abusiveness recognizes that sometimes people are in a position in which they have a reasonable expectation that an entity will act in their interest to make decisions for them, or to advise them on how to make a decision. Where people reasonably expect that a covered entity will make decisions or provide advice in the persons interest, there is potential for betrayal or exploitation of the persons trust. Therefore, Congress prohibited taking unreasonable advantage of reasonable consumer reliance.

2. Under Sections 1031 and 1036 of the CFPA, it is unlawful for any covered person to commit or engage in any unfair, deceptive, or abusive acts or practices. 12 U.S.C. 5531 ( a ), 5536 ( a ) ( 1 ) ( B ).

3. RESPA and the HPA are federal consumer financial laws. 12 U.S.C. 5481 ( 12 ), ( 14 ). Under Section 1036 of the CFPA, it is unlawful for any covered person to offer or provide to a consumer any financial product or service not in conformity with federal consumer financial law, or otherwise commit any act or omission in violation of a federal consumer financial law. 

Concerns 1. Unreasonable advantage to determine the appropriate target balances ; determine whether shortages, surpluses or deficiencies exist.

My projected Annual Escrow Analysis Statement balance not accurately reflecting homeowners actual escrow balance. XXXX, Mr. Coopers 3rd party vendor analysis statement only calculates payments through XXXX. The new projected payment is due XX/XX/XXXX. This calculation method is not realistic and does not include XXXX & XXXX escrow payments. This method is unfair to many homeowners actual account balance prior to XX/XX/XXXX tax due date set forth by the State of Colorado. Homeowners are already struggling to maintain higher payments due to skyrocketing property taxes and insurance premiums. Adding additional incorrect escrow shortage amounts to the monthly mortgage payment will have a rippling effect of foreclosures and/or seeking alternative payment assistance. XXXX XXXX has a huge military presence. 

I recognize my mortgage payments can fluctuate yearly due to increases in property tax and insurance premiums. Understand the escrow formula calculation process and minimum XXXX-month premium. Have a history of additional escrow payments throughout the year to avoid an escrow shortage.

On XXXX, I spoke with an Escrow Customer Service Rep to confirm my personal XXXX  calculations were correct. prior to receiving my XXXX Annual Escrow Analysis Statement. I closely monitor my cushion fund to avoid shortfall and overages with property tax and increases.

My current escrow account balance {$1900.00} Annual premium totals ( insurance premium {$2700.00} + property taxes {$3400.00} ) = {$6100.00} {$6100.00} divided by XXXX months = {$510.00} On XXXX my escrow account balance will have {$3000.00}. 

After paying my remaining XX/XX/XXXX tax bill of {$1700.00} tax bill my remaining balance will be {$1200.00} {$510.00} payments x 2 month = {$1000.00} *** I technically do not have an escrow shortage On XX/XX/XXXX verified with XXXX at XXXX XXXX XXXX XXXX XXXX that Mr. Cooper sends 1 large electronic payment for all XXXX XXXX XXXX residents within 5-7 days of due date. 


On XX/XX/XXXX I spoke with XXXX in Mr. Coopers Escrow Department. Specifically questioned why the analysis cut off dates are 2 months before XX/XX/XXXX due date. She informed me that Mr. Cooper uses XXXX, an outside 3rd party company for insurance/analysis . XXXX reports a XXXX payment due date. 

XXXX reviewed the XXXX XXXX XXXX Accessors Website and confirmed XX/XX/XXXX tax statement. I informed XXXX Mr. Coopers uses electronic payment method and requested a new analysis with correct totals. 

Received notification a week later XXXX 3rd party company found no errors found with analysis statement. ( my online Mr. Cooper account does not list any additional analysis statements ). I believe XXXX lacks incentive to correct their mistakes. Expressed frustration with XXXX repeated errors on my escrow account. Questioned why Mr. Coopers leadership team does not take accountability for their third-party vendors mistakes. 

Concern In XXXX and XXXX Duplicate insurance premiums paid ( My Broker provided insurance changes notification ) Lacks accountability or QA for processing payments to incorrect insurance company. 
The lender, as a result of neglect, failed to pay my insurance premium prior to XX/XX/XXXX due date and I did have sufficient escrow funds. Premium paid on XX/XX/XXXX. 

Contacted Federal Trade Commission State of Colorado Attorney General 's Office Department of Veterans Affairs XXXX