Consumer complaint received 2025-06-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Mr. Cooper Group Inc.
State: CA

Complaint narrative:
I contacted Mr. Cooper Mortgage when I saw my homeowner 's insurance was increasing. I immediately informed them that I had negotiated a better rate on my homeowner 's insurance and to be sure to update my account. I also told them I wanted this payment I was making to go straight into escrow in order to prevent any shortages. I made the additional payment of {$2000.00} on XX/XX/year>2025. I informed them the new insurance rate was not {$3500.00} so the additional payment I made would be greater than enough to cover the change from what I was charged the year prior. 

When I received the monthly statement generated XX/XX/year>2025 I saw they had misapplied my funds and were now showing an escrow shortage of {$2400.00} I had to spend a very lengthy amount of time in order to get through to anyone in customer service, as their system is so user UNFRIENDLY that you can not speak with anyone directly in customer service. I did some research and contacted their cheap executive 's offices where I was able to discuss the issue with the escrow department. 

They assured me they would send me a printout of all payments, along with corrections to those misapplied funds. Not only did they fail to correct the application of my {$2000.00} to be applied towards escrow, they had the AUDACITY TO APPLY IT AS both principle AND INTEREST!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 
To wrongfully charge me on money I'm sending well in advance of being due ought to result in a huge red flag to their ILLEGAL business practices. It's theft!!! 

After these morons misapplied my funds, and failed to return them to the proper account ( escrow ), they then failed to update my homeowner 's insurance to the correct amount of {$3500.00} These lazy idiots were still showing my homeowner 's insurance of {$4700.00}. Then, somehow, these idiots passed on the wrong information to my insurance company who then sent me a refund check of {$1200.00} on XX/XX/year>2025. I immediately cashed the insurance check and AGAIN submitted the funds to Mr. Cooper telling them of their error and to be certain to utilize this online payment made on XX/XX/year>2025 to my escrow account AGAIN! I received a confirmation number for the payment CONFIRMATION # XXXX. 

Even after these stupid idiots received everything to rectify my account with accurate dollar amounts and dates, thoroughly spelled out by me, these stupid people still have failed to make any corrections to my account and are NOW THREATENING TO CHANGE MY PAYMENT TO an additional {$600.00} monthly. 

This company ought to be seriously fined and SHUT DOWN for their reckless handling of my money. It is beyond belief any business can make SO MANY ERRORS and fail to correct them with so much help and paperwork showing them proof. They are unscrupulous thieves and I want compensation for all of my stress and hours trying to just pay my mortgage as it was legally written. They are criminals and ought to be prosecuted to the fullest extent of the law to operate a business continuously making errors in their favor. It is quite clear and obvious what their agenda is.

Company response to consumer: Closed with explanation