Consumer complaint received 2025-08-30 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: BANCO POPULAR DE PUERTO RICO
State: FL

Complaint narrative:
Banco Popular de Puerto Rico ( BPPR ) illegally manipulated, altered or changed the Escrow account on a VA loan to try to enrich themselves. I took a mortgage loan guaranteed by the Veteran Administration on XX/XX/XXXX. As loans go, this loan was sold from financial institution to financial institutions until, at some point on or about XXXX, ( BPPR ) acquired the mortgage note for the VA mortgage of my property. BPPR notified me that they had acquired the note on my mortgage and they would be servicing the loan. 

Around the beginning of XXXX, to my surprise, BPPR informed me that there was a debt with the XXXX ( local municipal property tax government agency ) and that I needed to address the matter. I contacted BPPR to discuss this debt as I thought there was an error with their information. I paid the taxes together as a whole ( property tax, insurance, mortgage ) and I was current. The information about the debt came from XXXX so I explained that I would visit the XXXX and that I was disputing the alleged debt. 

The alleged property tax debt amounted to approximately {$35000.00}. Of that amount, less than {$4000.00} were actual tax, the rest were late fees and costs. I communicated to BPPR how I had visited the XXXX and was negotiating the alleged debt. 

In XX/XX/XXXX, I inform BPPR 's mortgage staff my intentions to payoff the loan and requested the payoff amount. I was willing to make a payment over the phone, if they took it. BPPR reported that the balance would be approximately {$12000.00}, but that I had to request it in writing. 

In XX/XX/XXXX, BPPR refused to accept my monthly mortgage payment, claiming the amount of the payment was a partial payment, not the monthly required payment amount. When I asked what had changed, BPPR explained that they had increased the mortgage note to cover the debt owed to the XXXX. BPPR explained that they had paid the XXXX approximately {$27000.00} of the nearly {$36000.00} and that their plan was to extend my mortgage for six ( 6 ) years to pay off the debt. I immediately informed BPPR that under no circumstance would I agree to extend the mortgage loan and, since that would be a modification of the loan, I was not willing to do that. I also pointed out that BPPR was under no obligation to pay my debt to XXXX. Furthermore BPPR was not in any type of jeopardy with respect to the mortgage since the VA was guaranteeing this loan. BPPR then, illegally, in violation of the Real Estate Settlement Procedures Act ( RESPA ) and theTruth in Lending Act ( TILA ), increased my Escrow account balance, showing an Escrow deficiency of-XXXX. BPPR never informed me nor requested prior approval to pay the {$27000.00} to the XXXX, this was a completely voluntary payment without my consent. 

Approximately towards the end of XX/XX/XXXX or beginning of XX/XX/XXXX, I paid the payoff amount for the mortgage note. At that point, the contractual relationship between BPPR and I was satisfied. Although BPPR accepted the payment, they did not apply {$0.00} to the principal so they can keep the loan active and has refused to issue the payoff on the note. 

As a result of my negotiations with XXXX, in XX/XX/XXXX, I was granted an amnesty that eliminated any and all debt with the XXXX. I have spoken to BPPR several times to inform them the information in my escrow account is not correct and their actions do not follow RESPA and TILA. BPPR is also illegally reporting negative information to the Credit Bureau monthly. The VA administration has contacted me asking about the alleged debt that BPPR keeps reporting. 

I have lost several opportunities to sell the property because of this issue.

Company response to consumer: Closed with explanation