Consumer complaint received 2024-03-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: CrossCountry Mortgage LLC
State: TX

Complaint narrative:
CrossCountry mortgage is a fraudulent company. They recently changed loan servicers supposedly effective XX/XX/XXXX. During the change, they also transferred the escrow account they forcefully opened specifically for the purpose of the Lender placed hazard insurance policy they got last year which covered the period of XX/XX/XXXX to XX/XX/XXXX. They were paid in full for this policy last year in XXXX. I requested then for them to close the escrow since the policy was paid for and they refused to do so making up excuse after excuse. I received a notice from the loan servicer stating that my insurance had been cancelled effective XX/XX/XXXX due to the change in loan servicer which no one told me this would be the case. As to why they would then transfer the escrow account if I no longer have a lender placed policy that's active is fraudulent in itself as it should have been refunded for the 3.5 months remaining of the policy that I did pay in full for and then closed out and refunded back to me. Instead this new loan servicer is charging me escrow payments for a non existent policy. However, the main problem is that when I received this notice and was told that this policy was cancelled, I went ahead and got my OWN homeowner 's policy through XXXX. I uploaded a copy of my Evidence of Insurance to CrossCountry and told them that this is a policy that I purchased and am paying directly. All they needed to do was close the escrow and refund me for the overpayment in the account. These calls with them is recorded by the way. The lady I spoke to on Monday updated my account to show that I have my own policy now and told me that I had to call the old loan servicer for the refund of the 3.5 months of they got paid for the policy that was cancelled which I have and that's being worked on. After telling multiple people at CrossCountry mortgage that I am making these payments directly to XXXX and that this escrow account is to be closed and refunded back as I no longer need a lender placed policy, they went ahead and without authorization by me sent a payment to XXXX when this is not a Mortgage paid policy but rather a homeowner policy that is to be paid directly by the homeowner. They know this and they also know that I am not to have an escrow account for insurance as I put 20 % down to avoid the escrow account. I pay insurance and property taxes directly which I have. I already paid XXXX to XXXX and an auto pay is setup for the remaining months due. They had no right to touch the funds in my escrow as this was not a lender placed insurance policy. I also advised multiple times to not send in a payment as I am paying them directly. The whole purpose of me getting this insurance was to close the escrow account they forcefully opened as there is no longer a lender placed policy active on my mortgage. This company is a fraud and is in breach of my loan contract. Nowhere on my evidence of insurance states that a payment is due by the mortgage company and like I said, I specifcally told two representatives at CrossCountry that is being paid by me directly. This company is purposefully trying to keep an illegally transferred/opened escrow account to continue to overcharge me in escrow payments. I am tired of the fraudulent activity done by this mortgage company and they need to be heavily investigated. They changed loan servicers because I filed multiple complaints about them here on CFPB. 

I have attached my evidence of insurance from XXXX which clearly shows that a monthly payment in the amount of {$300.00} is setup by electronic check from my bank account. Nowhere does it say on this document which is what was provided to CrossCountry mortgage to submit a payment on behalf of homeowner. They are again trying everything to keep this escrow account open purposefully to continue to overcharge me on escrow. This payment was not authorized and should have never been disbursed. CrossCountry is an incompetent mortgage company that is incapable of following instructions. 

I have also attached the application for the insurance where it clearly states under the Policy Distribution/Billing section that the Policy is sent to the Insured ( ME ), Initial premium notice is sent to me and renewal is sent to me because I am the policy holder and the insured on this policy. 

I have also attached the pay plan I agreed to with XXXX to cover my monthly payments and auto pay for this policy. I clearly explained this to CrossCountry mortgage.

Company response to consumer: Closed with explanation