Consumer complaint received 2025-03-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: HOPE BANCORP, INC.
State: NJ

Complaint narrative:
I am submitting a formal complaint against my mortgage servicer, XXXX XXXX XXXX, located at XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. I hold a mortgage with them ( Account # XXXX ), and they have mishandled my escrow account in several serious ways, despite repeated efforts on my part to resolve these issues directly.

First, XXXX XXXX XXXX  has improperly charged my escrow account for hazard insurance in the amount of {$11000.00}. This charge appears on the Annual Escrow Account Disclosure Statement dated XX/XX/year>. However, I already maintain an active homeowners insurance policy with XXXX, and XXXX XXXX XXXX has been notified of this. I pay this XXXX premium directly from my personal bank account. There was no need for the bank to escrow or disburse funds for additional hazard insurance. I believe this is an improper charge and potentially a force-placed insurance policy that was unnecessary, since I have always maintained valid coverage.

Second, XXXX XXXX XXXX failed to make a timely property tax payment from my escrow account, resulting in a tax penalty of {$160.00}. This penalty was assessed and charged to my account in XX/XX/year>, even though there were sufficient funds available to pay the taxes on time. This late fee was not my fault and is a direct result of the banks poor servicing and payment practices. 

I submitted a written letter with a wet signature to XXXX XXXX XXXX outlining these problems, and I followed up with multiple phone calls to their customer service and escrow departments. Despite these efforts, the issues have not been resolved. The bank has neither refunded the hazard insurance payment nor reimbursed me for the tax penalty. They have also failed to correct the escrow account or stop future escrow collections for my already-covered insurance.

I am requesting the following : 1. A full refund of all improper charges to my escrow account, including the {$11000.00} hazard insurance disbursement and the {$160.00} tax penalty.

2. A correction to my escrow account and monthly mortgage payment amount, to remove any shortages created by these wrongful charges.

3. A confirmation from XXXX XXXX XXXX that they have acknowledged my insurance coverage and will no longer escrow or disburse funds for hazard insurance going forward. 
4. A formal investigation by the CFPB into XXXX XXXX XXXX mortgage servicing operations, as these errors reflect systemic issues in how they manage escrow accounts and borrower communication. The banks failure to respond to my documented objections, combined with these costly errors, raises serious concerns about compliance with mortgage servicing regulations. 

Thank you for reviewing this matter. I am attaching supporting documentation including my XXXX insurance policy and the escrow account statement showing the improper charges. I hope the CFPB will ensure that XXXX XXXX XXXX is held accountable and that I am reimbursed promptly.

Company response to consumer: Closed with explanation