Consumer complaint received 2025-04-14 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: CA

Complaint narrative:
Summary of Complaint : 1. Unauthorized PMI Disbursements & Lack of Transparency : o Between XX/XX/XXXX and XX/XX/XXXX, a total of eight PMI payments ( {$1700.00} ) were disbursed or listed as estimated, even though my correct monthly PMI obligation is {$210.00}, meaning the total should have been only {$850.00}. 
o In XX/XX/XXXX, XXXX PMI payments were prepaid for XXXX, XXXX, and XX/XX/XXXX, yet my escrow analysis still counted PMI payments for those months as Estimated, artificially inflating my escrow shortage. 
o An additional PMI payment was retroactively applied to XX/XX/XXXX, despite my escrow disclosure confirming the first PMI payment was due in XX/XX/XXXX and was paid on time. 
o No prior documentation or notification was provided before these PMI disbursements occurred, violating standard disclosure practices. 
o These errors led to an incorrect escrow balance projection and an inflated shortage.

2. Artificial Escrow Shortage Created by Servicer Miscalculations : o Due to the double-counting of PMI payments, Mr. Cooper calculated an escrow shortage of {$6700.00} based on a projected low of - {$3900.00} in XX/XX/XXXX. 
o With the corrected PMI disbursement amounts, my XX/XX/XXXX escrow balance should have been {$5100.00}, not {$4200.00} as listed in their analysis. 
o My lowest projected escrow balance should have been approximately $ XXXXnot negativesuggesting my escrow shortage should have been {$4500.00}, NOT {$6700.00}. 
o Despite repeated inquiries, Mr. Cooper failed to correct the escrow shortage, leaving me to pay an inflated amount. 

3. Failure to Respond to Consumer Inquiries RESPA Violation : o I submitted a written inquiry on XX/XX/XXXX, requesting clarification regarding PMI discrepancies ( Ticket # XXXX ). 
o XX/XX/XXXX : Received an automated response stating I would get a reply in XXXX business days, but my ticket was closed without resolution. 
o XX/XX/XXXX : Resubmitted my inquiry via email ( XXXX ) no response received. 
o XX/XX/XXXX & XX/XX/XXXX : Submitted multiple follow-ups via Mr. Coopers website and online messages, but all were ignored. 
o After 60+ days, I finally received only a generic letter explaining how escrow shortages are calculatedbut it failed to address the core issue of prepaid PMI payments being improperly applied. 
o Under RESPA ( Regulation X, 12 CFR Part 1024.35 ), servicers are required to respond to written inquiries within 30 business days. Mr. Coopers failure to provide a timely response is a direct violation of this federal requirement.

4. Financial Impact Due to Servicer Negligence : I was prepared to pay my escrow shortage in full before XX/XX/XXXX, but I lost that opportunity due to Mr. Cooper 's failure to respond within the required timeframe. 
Because I waited for a response that never arrived, my XXXX mortgage payment was marked short, and I was charged a {$260.00} late fee that could have been avoided. 
I ultimately paid the full shortage and late fee anyway to protect my credit, despite still awaiting a resolution or corrected analysis. 

On XX/XX/XXXX, a Mr. Cooper representative confirmed in chat that three PMI payments were prepaid in XXXX, saying : " We prepaid PMI for three months, but that shouldn't impact you you'll need to call Essent Guaranty to confirm they received the funds. '' However, these prepaid PMI payments WERE included in my escrow shortage calculation, directly contradicting their statement.

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with explanation