Consumer complaint received 2025-03-08 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: TX

Complaint narrative:
I called Mr Cooper regarding the following concerns on XX/XX/XXXX, spoke to a representative who hung up on me mid sentence and did not call me back. I called again the morning of XX/XX/XXXX and spoke to XXXX who asked me to hold while she reviewed my account then hung up on me after I held ( with no hold music ) for about XXXX seconds and did not call back. I spoke to XXXX who escalated the call to XXXX XXXX with the escalations team and was finally able to have a complete conversation. XXXX XXXX was very calm however appeared to lack compassion and seemed very disconnected. She did offer a solution that does not fully help me but at least helps with a potential plan to move forward. The increased amount of my mortgage is still unaffordable based on my net income so I am praying that Ill be able to make this work. I sent a payment of {$3500.00} on XX/XX/XXXX which Mr Cooper applied to principal instead of contacting me due to the payment being less than the required monthly payment due XXXX XXXX. This is an indication that I was not aware of this additional change to my monthly payment. 

I received a refund in XX/XX/XXXX for the escrow overage balance on my loan. In XXXX, I opened a letter I received from Mr Cooper telling me that I have an escrow shortage of {$6400.00} and that my mortgage payment is scheduled to increase from {$3400.00} monthly to {$4300.00} ( just under {$1000.00} per month difference ). 
Here are the pertinent factors pertaining to my home : The house is in XXXX XXXX, XXXX  new construction completed XX/XX/XXXX, purchase closed XX/XX/XXXX with Guaranteed rate, servicing transferred to Mr Cooper XX/XX/XXXX, Escrow analysis performed XX/XX/XXXX and XX/XX/XXXX. 
I called Mr Cooper on XX/XX/XXXX and spoke to a representative on the escrow team. They told me that they require an escrow analysis every 12 months so they performed an escrow analysis in XX/XX/XXXX using data received from the prior Servicer Guaranteed rate, and determined there was an overage of a bit over {$6000.00} and issued a refund check to me without validating what the current tax bill is. They used aged tax bill information in their analysis. In XX/XX/XXXX, XXXX XXXX issued the regular scheduled tax bill. Mr Cooper performed another escrow analysis and determined there is now a shortage of {$6400.00} resulting in an increase in my escrowed monthly mortgage payment by {$940.00} per month. This is causing financial hardship for me. 
Mortgage Servicers should not be performing an escrow analysis using bill data that is greater than 6 months old. In this case, the Servicer knew that the county where my house is located updates the tax roll in XXXX or XXXX each year so in XX/XX/XXXX, they knew that the bill may change yet did not validate current information or disclose to me that their analysis was based on the tax data available when my loan closed XXXX  months prior. As well, this is a new construction property, and the Servicer is aware the tax bill is likely to change based on prior tax potentially being assessed on undeveloped or undeveloped land data. 
Servicers are causing undue hardship to homeowners by not validating the proper information and observing the timing of the billing to ensure they are using current bill information based on when the tax is due for the location of the property. This Servicer caused confusion to me as the homeowner and they are not disclosing the inaccuracy of the data they are using when they perform this impactful analysis process. This MUST change. 
I would like to ask for the CFPBs assistance with advocating on behalf of homeowners by performing an investigation into Mr Coopers escrow analysis practices. Todays climate presents significant housing challenges for the average consumer when it comes to housing. Affordable housing is on the decline and the last thing that any consumer needs is a mortgage servicer that is tone deaf to the needs of their clients. Please help me.please.

Company response to consumer: Closed with explanation