Consumer complaint received 2024-06-20 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: KS

Complaint narrative:
1. My mortgage was sold by XXXX XXXX to Mr Cooper in XX/XX/XXXX. At XXXX XXXX, I always paid my escrow shortages in full as soon as I received notification of the analysis, and my mortgage payment remained {$1300.00} for years. 
2. On XX/XX/XXXX I received notification that my escrow analysis had been completed by Mr. Cooper and showed an escrow shortage of {$390.00}. The analysis included an increase in my property taxes and insurance to {$1800.00}. It stated " Based on our projection, as of XX/XX/XXXX the escrow portion of your monthly mortgage payment will increase '' 3. As a result of the property tax and insurance increase, my new mortgage payment was listed as {$1300.00} if I took no action. 
4. I made the escrow payment for the full amount of {$390.00} on XX/XX/XXXX. Since I paid the escrow shortage in full, and because the escrow analysis took into account the increase in taxes and insurance to {$1800.00}, I expected my payment to remain {$1300.00}. 
5. My mortgage payment auto-debited on XX/XX/XXXX was {$1300.00}, an increase of {$26.00} over the prior month. 
6. I called Mr. Cooper on XX/XX/XXXX and reached a live person after a frustrating menu experience and stating to the system " File a formal complaint ''. 
7. The customer service rep said that my monthly payment increased because my taxes and insurance increased. I stated I thought the point of an escrow analysis is to notify me of the escrow shortage following a tax+insurance increase, and that if I paid the shortage in full I should not have an increase. 
8. Since I did not receive resolution, I opened a ticket with Mr. Cooper online on XX/XX/XXXX with the escrow analysis statement sent to me, proof of my escrow shortage payment, and the question is what exactly is the nature of this increase coming from if my shortage payment already covered the tax and insurance increase they determined from the escrow analysis. 
9. Mr. Cooper finally responded to me with a letter dated XX/XX/XXXX that was written in broken XXXX, made no sense, and did not answer my specific question. It stated " We have completed review of your escrow account and confirmed that we update you amount total amount has been {$1300.00} [ sic ] and there is no shortage available for this loan... .Additionally, Generally, when the mortgage company informs you that your escrow payments are increasing, it is because of an increase in your property taxes or insurance premiums. The frequency of increase in your escrow payment depends on how often the taxes are reassessed or the premiums are recalculated. '' 10. My taxes and insurance are reviewed biannually. I did not receive notification of this mortgage payment increase. Remember, I received an escrow analysis saying my payment would increase IF I didn't pay the escrow shortage, which I did pay immediately. 
11. I have no idea where this {$26.00} monthly increase is going to or how it was calculated, nor will Mr. Cooper provide this information.

Company response to consumer: Closed with explanation