Consumer complaint received 2026-06-22 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: M&T BANK CORPORATION
State: CA

Complaint narrative:
Before my loan was transferred to M & T BankXXXX XXXX XXXX my previous loan holder XXXX XXXX mortgage there was an issue with my escrow account. I was notified that my escrow account was had a shortage of {$10000.00} causing my monthly payments to increase almost {$1000.00}. After some back and forth between myself and XXXX I was told by XXXX that they realize there was a mistake made and it would take XXXX days to get this adjusted. Within this time I received a notice from XXXX stating that I was being transferred to M & T Bank. XXXX would not longer help me with this issue as I no longer was going to have an account with them. I reached out to M & T bank immediately after opening this notice to let them know of the situation. I was told that they unfortunately could not help me as my account was not fully transferred over, so they had no information from XXXX to look into. I called almost everyday until they let me know that I was officially an M & T customer. I was told that the information that XXXX sent over was very limited and only included the increased amount for monthly payments and the total escrow amount which was negative XXXX. I offered to send M & T bank all of the information that I had such as my escrow account information showing the multiple duplicate payments that should not have occurred and caused the account to show a negative balance. I explained that I needed a refund from XXXX for these duplicate payments to put my account back into a positive. I explained that the amount of the new monthly payments was not feasible for me to pay and the amount of stress that these huge mistakes were causing me. I asked what options I had, how I could get this fixed as soon as possible, and what M & T bank would be doing as the new account holders to get this resolved. I was reassured by a manager at M & T that everything that happened with my account at XXXX was a clear example of mismanaging an account, but it is in my contract that my loan and my escrow account be managed correctly and accurately from my loan holder, so M & T bank would work on getting this issue resolved within a month to ensure that I would not have to pay a higher monthly payment. I was told that I did not have to provide them with the information I had and that they would use their resources and their staff to get to the bottom of the issue and handle it. They ensured that I trusted them to fix this issue. From that point on I continued to reach out to M & T bank for updates while also reaching out to XXXX XXXX, sometimes daily to get this resolved. At first I was told by M & T bank that they were working on getting this resolved and would update me as soon as possible. When my first payment statement arrived I called and explained the situation to which I was passed to a manager and told that this issue was going to be resolved soon as it was recommended to me that I pay the amount that I was previously paying. I was reassured that this would not affect me, my credit or my payments in the future as they were working hard to get this resolved and when it would be resolved everything should balance out and my payments should be correct. All of this continued until XXXX. I would reach out to XXXX constantly for a resolution, they would tell me they did not have any complaints or requests from M & T bank looking into this. I would call M & T bank who would reassure me that I should continue to make the lower payments and they were figuring it out. They refused to give me any physical proof or written statements regarding their advice and also would not give me any physical proof that they were looking into this issue. The only update that I would receive is that XXXX was refusing to give them any information and when I would offer to give them information they were looking for they would refuse it. In XXXX I began receiving notices from M & T bank regarding financial help and options to prevent foreclosure. When I would call M & T bank about these notices they would assure me that there was no issues and those notices get automatically sent to people who are behind on payments, but once all refunds are back in the account and all the information from XXXX is provided they would fix my account to show there were no missed or partial payments. I spoke to multiple representatives and managers about these notices, my situation, the advice I had been given to only pay the original amount and continued to be reassured that everything was being taken care of correctly and would work out. I was reassured that this would not affect my credit, my account, or future payments as once this was resolved everything would be fixed. I continued to ask for written documentation of this advice or that the amount I was being advised to pay be put on my statements to reflect what I was being advised, but this was never completed. During this time all of my efforts of resolution between myself and XXXX were coming near an end as I was able to get them to begin to start the process for some of the refunds and begin the process of looking into the other refunds. In XXXX M & T bank sent someone out to my home to notify me of possible foreclosure of my home due to a record of me not making full payments in 4 months. This person not only gave a notice, but also requested that I sign a document that my home was being occupied and took pictures of my home. As soon as this representative left I called M & T who let me know that again this just automatically happens and to not worry about it. This did not sit right with me, so I called and spoke to a manager the next day and for the first time I was notified that my account was delinquent. They let me know the total amount of the difference in what I paid and the amount on each monthly statement and let me know that I needed to pay this to avoid foreclosure. I was told that these delinquent payments have been reported every month to the credit bureaus, so they were negatively affecting my credit and that I needed to pay this amount immediately. During this conversation I was not given any information on what M & T was doing to get this resolved and discussed my frustrations about not only being given false information and advice regarding the capabilities of M & T getting the issue resolved, the payment amounts not affecting my future payments or credit, or how my account was being managed. I let the representative know how many hours I had spent doing what they were legally responsible for, managing my account and correcting mistakes that were made, and let them know that I had come to a resolution with XXXX regarding getting all of my refunds which would take my escrow account out of the negative. I was told that nobody from M & T would have given me any of this advice or information, even though I have many of my calls with M & T recorded. I asked for their recordings as everytime I call I am told that the call is being recorded, but was told they would not be providing this information to me. I was told that once all of these refunds were back, if there was an overage to my escrow account I would receive a check with this amount and was advised that I could/ should use this money to pay the delinquent amount on my account. I was also told that once the refunds were in my escrow account that an escrow analysis would be performed which would lower our monthly payments and show the correct amount ( the amount I had been paying ) and reflect this onto my statements. I had many phone calls after this with M & T about why this monthly amount was not correctly months ago. It made sense to me that if there was no shortage my monthly payments would not have changed, once I pay my delinquent amount it will amount to the overage on the account so why not have just made it simple to begin with and changed my monthly payments on my statement and in my account, done what is legally required and gotten the refunds to make my balance positive, and then there would have been no issued with my credit, or with having a delinquent balance on my account. I was told by representatives that it was because there was no record of me ever reaching out about this before or they could have done that, or that I never requested that happen, none of this was true. During this time I was still in constant contact with XXXX over the refunds and worked endlessly to try to pay my delinquent fees for M & T. Eventually I was told by XXXX that all refunds were in the process of being sent to M & T and would arrive to them by XX/XX/XXXX. M & T refused to look into whether they received these refunds or credit my account even after many phone calls of me requesting they do so. It wasnt until XXXX that the funds were released to my escrow account and a new escrow analysis was performed. At this point I had caught up on the full amount for delinquent payments, but now was behind XXXX month payment. I saved up enough to be able to pay the missing month with the amount of the overage from my escrow account. I was told by M & T that they would not release these funds until my account was completely up to date. I had asked about the previous advice I was given from them about using this overage toward my delinquent amount and was told this was not a possibility. I was reassured that this amount would stay the same and would not go back into my escrow account it is separated from my escrow account until I am caught up and then that amount will be sent in a check. I recieved a new escrow analysis this week stating that overage amount was put back into my escrow account. While there is still an overage the amount is much less than before. Along with this, M & T has begun to make it increasingly difficult to get back on track as they are refusing to take late payments or have refused to attempt to take a payment. I scheduled a payment in XXXX and received a notice that the payment did not go through. When I called I was told that it was due to insufficient funds, but when I looked at my banking app the amount for my payment was still in my account and there was no proof that there was ever an attempt to take the funds. I called my bank and confirmed that the payment was never attempted. I reached back out to M & T to make the payment and was told that since it is late and I am already behind a month I would not have to make the XXXX full payments for a payment to process, they declined taking my XXXX month payment. I have saved enough to pay XXXX XXXX and now I was told that I am now XXXX XXXX behind and need all XXXX XXXX to make a payment. Anything less than that will be considered a partial payment which they can not take. Also during this time I have been receiving frequent notices about preventing foreclosure and my delinquent account. I am extremely disappointed in the experience I have had with M & T due to the lack of attentiveness to my account, the consistent lack of valid advice and constant misinformation, and misguidance. I am also at a loss of what to do to get my account on track and no longer delinquent. I also am at a loss of how I can fix my credit after being misguided that these payments would not affect it and now to find out how drastically it has negatively impacted it. What is more frustrating is that it was impacted at no fault of my own but the mistakes of XXXX mortgage companies and their mismanagement and lack of care and dignity when handling my account. This situation has caused me and my family an immense amount of emotional distress as we have been constantly in financial distress for over a year while dealing with these issues. I need a resolution that will positively impact my financial situation and set me on a path where I feel confident that the company that manages my mortgage is not only a company I can trust, but also XXXX that will do what the contract I signed with them promises they will do.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation