Consumer complaint received 2025-11-04 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: Village Capital & Investment LLC
State: TX

Complaint narrative:
We are submitting this complaint to request protection from any collection actions or negative credit reporting while our escrow dispute with Village Capital remains unresolved. The lender failed to complete the required escrow analyses for XXXX and XXXX, which caused a significant and sudden payment increase. We are actively disputing this matter and seeking a fair resolution, and therefore ask that all collection activity and credit reporting be paused until a mutual agreement is reached between the borrower and lender. 

Even after we reported the issue in XX/XX/XXXX, no payment adjustments or account corrections were made until XX/XX/XXXX, demonstrating ongoing servicing issues and poor coordination between departments at Village Capital. 
Again, the borrower reached out to Village Capital in XXXX, twice, via the online portal with no response. The corrections were not made until the borrower brought the issue to lenders attention with a formal complaint emailed in XX/XX/XXXX. 
Upon Village Capital making the payment adjustment, during an active dispute. Our monthly payment changed from {$3000.00} to {$6400.00} without warning in XXXX XXXXInstead of adjusting the payment gradually as required, the servicer has now imposed a sudden increase of over {$3000.00} per month. 
We called Village Capital on XX/XX/XXXX to place on record that we will continue to pay our standard payment of {$3000.00} plus an additional {$900.00} to start to cover our estimated escrow amount. The representative said she would make the notes on the account but did not disclose that there would be any negative impact to our account. 
On XX/XX/XXXX ( the first business day of the month ), we called to make a {$4000.00} payment because the online portal only allowed the full {$6400.00} payment. During this call, we were told the {$4000.00} would be placed in a suspense account and that fees and collection notices would begin accruing on XX/XX/XXXX, despite the ongoing dispute over the escrow shortage caused by Village Capitals failure to complete timely analyses. 
The servicers delayed corrective action directly worsened the financial impact of its prior errors.This violates RESPA 10 and Regulation X ( 12 CFR 1024.17 ), which require mortgage servicers to conduct an annual escrow analysis and notify borrowers of changes to escrow payments. As a result, the borrower was not notified of increased property tax assessments from the XXXX XXXX XXXX XXXX in XXXX and could not adjust payments accordingly. This abrupt and disproportionate increase creates severe financial hardship and undermines the purpose of escrow regulations, which are meant to prevent precisely this kind of shock adjustment. 
The servicer has stated that any unpaid increase will be placed in a suspense or servicing account, which could lead to negative credit reporting or collectionsdespite the borrowers payments being current under the terms originally provided.

Company response to consumer: Closed with explanation