Consumer complaint received 2016-03-18 00:00:00
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account — 
Company: NATIONSTAR MORTGAGE LLC
State: MN

Complaint narrative:
On XXXX/XXXX/XXXX, I made a normal payment of the due amount ( {$1000.00} ) for the XXXX/XXXX/XXXX due date. 
On XXXX/XXXX/XXXX, I was sent an escrow account statement showing an escrow shortage and a new monthly payment increase to cover the shortage of {$1200.00}, effective XXXX/XXXX/XXXX. 
On XXXX/XXXX/XXXX, I made a payment of {$1100.00} to NationStar Mortgage for the XXXX/XXXX/XXXX payment due date, forgetting that it had increased. Rather than notify me that the payment was {$110.00} short, NationStar unilaterally applied the {$1100.00} to principle and made no notification. This is apparently the normal business practice for NationStar. 
On XXXX/XXXX/XXXX, I made a payment of {$1100.00} to NationStar for the XXXX/XXXX/XXXX due date, again forgetting the amount had increased, and having not received any messaging about an issue with the XXXX/XXXX/XXXX payment. In this instance, the {$1100.00} was held in suspense and not applied to anything. 
On XXXX/XXXX/XXXX, I received a letter stating my loan was past due and I owed {$1300.00}. On this day, I called NationStar and discussed the issue with a loan specialist. After discussing issue and chain of events, the loan specialist reversed the {$1100.00} payment from XXXX/XXXX/XXXX, applying it to the XXXX/XXXX/XXXX payment and unsuspended the XXXX/XXXX/XXXX payment applying it to XXXX/XXXX/XXXX and XXXX/XXXX/XXXX and then I paid the missing amount of {$230.00}. During that call, I discussed the issue of credit reporting that I was delinquent, when I did in fact make a good faith payment, even though it was short. The loan specialist and his supervisor made the statements that they could do nothing about it and it would be reported to the credit bureau 's. In fact, they reported a delinquency to the credit bureau 's, effectively dropping my credit rating significantly. 
My complaint is two-fold : First, NationStar unilaterally applied an {$1100.00} payment to principle without notification, when it was clearly short. I should have been notified or consulted. 
Then on XXXX/XXXX/XXXX, instead of applying the incorrect {$1100.00} payment to the loan, it was put in suspense, again unilaterally, with a notification made by letter 11 days later. 
If the XXXX and XXXX payments had been applied to the loan payments, {$1100.00} for XXXX and {$1100.00} on XXXX, the XXXX/XXXX/XXXX payment would have been covered and I would not have been over 30 days late. 
While the incorrect payment was certainly my mistake, I clearly made good faith efforts to make payments, on time, to NationStar. I also have no history of late payments, much less a delinquency. The damage this has done to my credit could have been avoided and seems unfair. I am seeking to have the delinquency removed. If the company would have communicated more effectively and had applied the payments I did make to my benefit, rather than theirs, my credit would still be intact.

Company response to consumer: Closed with explanation