Consumer complaint received 2025-11-03 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: M&T BANK CORPORATION
State: VA

Complaint narrative:
Summary : My loan was initially with XXXXXXXX XXXXXXXX XXXXXXXX and was sold to M & T Bank back in XXXX timeframe. 
I am filing a formal complaint against M & T Bank for serious and repeated escrow servicing violations that have resulted in financial harm, misapplication of payments, and emotional distress. As a 100 % permanently and totally XXXX veteran recently medically retired, I have been forced to bear the full burden of correcting errors M & T caused. 
Facts and Timeline : On XX/XX/year>, M & T Bank paid a {$3800.00} homeowners insurance bill nearly 30 days early, before it was due on XX/XX/year>, without notice, consent, or a due-and-payable obligation. This triggered a negative escrow balance of over {$1900.00} and led to increased monthly payments. 
A revised policy with a reduced premium of {$2200.00} was sent to M & T. Despite being told not to make another payment, M & T made a duplicat insurance payment on XX/XX/year>, again without notification or verification. 
I personally called XXXX, corrected the policy, and secured refund checks totaling {$3600.00} - money that I've been holding solely for the purpose of correcting the escrow account. 
M & T has refused to accept or apply the refunds unless I first bring the account current, which became past due due to their own unauthorized actions. They also refuse to re-run the escrow analysis unless the full incorrect amount is paid. 
On XX/XX/year>, M & T paid property taxes early, despite a pending tax exemption due to my XXXX, which was eventually confirmed. They refused to delay or coordinate with the city regarding this exemption and only refunded {$23.00}, leaving me to suffer the consequences of their premature disbursement. 
I was only notified of increased monthly payments on XX/XX/year>, after the disbursement was made, violating 12 C.F.R. 1024.17 ( i ) ( 2 ), which requires advance written notice at least 30 days prior to a change in payment. 
I did not withhold mortgage payments out of defiance ; | withheld them because I was instructed to get the refunds applied and re-analysis done first. I wanted the issue corrected in good faith.My Actions : I've made XXXX phone calls, submitted XXXX secure messages through the bank portal, and been hung up on, transferred endlessly, and told by multiple agents that they " don't know anything about the law! '' One representative questioned my credibility by referring to my military tax exemption and insurance refund as " alleged '', despite me providing documentation. 
I contacted XXXX, secured the refunds, and reached out to the XXXX XXXX XXXX, which sent a message to M & T 's VA representative - who never responded. 
Ienlisted the help of a retired accountant neighbor to identify the accounting errors and clarify the regulations, which the bank refused to acknowledge. 
Their Position : M & T claims that if a bill is received, it must be paid, regardless of accuracy or timing. They also claim that they are " allowed '' to pay bills early - even if it causes a borrower to go negative or if the bill is incorrect- and have denied all error responsibility. 
They insist that I must pay the inflated and inaccurate mortgage payment ( {$1500.00} ) before they will accept the escrow refund or correct the error, which violates RESPA and CFPB regulations. 
Also to mention they Mortgage assistance line will hang up on you, not call you back, and if you tell them you are XXXX they will talk so fast you can not understand them. They also treat you like XXXX when you ask for any kind of assistance what so ever. 
M & T Bank has a record of mortgage service violations, and this deserves Federal oversight.

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