Consumer complaint received 2022-06-24 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Mortgage Research Center, LLC
State: SC

Complaint narrative:
Escrow Shortage : ( XXXX XXXX  ) This means your escrow account has insufficient funds to make all the necessary payments for property taxes and insurance. 

This can happen for a few reasons : An unanticipated increase in your property taxes or insurance. 
A tax payment is owed by the XXXX of the month, so the disbursement happens a month earlier to avoid the possibility of a late fee. 
If the taxing authority provides a discount for early payments, an earlier disbursement may occur. 
A change in insurance companies occurs during the XXXX escrow cycle. This may cause an earlier disbursement date than previously projected. 

To whom it may concern, From XX/XX/XXXX to the present, I have been in an awkward position with the Veterans United Home Loans Company. I began this letter with the definition of escrow shortage, because everyone that I have spoken to at Veterans United has told me that I dont understand escrow. On XX/XX/XXXX at approximately XXXX a.m. as I was attempting to pay my mortgage online, I saw that my mortgage cost had increased from {$790.00} to {$1200.00}. This is approximately 64 %, and a difference of {$430.00}. Instantly I knew that there was an accounting mistake and I elected to call Veterans United, at that very moment. The young lady that answered the phone, forwarded me to the voicemail of XXXX XXXX whom had taken me through the entire loan process. XXXX also explained to me, if there was anything that I ever needed-I should not hesitate to call him directly. To this day XX/XX/XXXX, XXXX has not returned my phone call. After not receiving a return call, I called again on XX/XX/XXXX and still unable to speak with XXXX. On my third call of the day I ask the gentleman whom answered to phone if in fact I could speak with a supervisor or manager. I apologize for not taking note of his name, but he did say that his manager was named XXXX. He too explained that I could not speak with a supervisor because every supervisor in the company was in a meeting and that I could not hold until its conclusion. This fella was so rude and nasty, that I eventually just hung the phone up on him. He was extremely adamant that my escrow went up because property taxes and insurances fluctuate. When I explained to him that there was no way that a {$130000.00} house would have such a high increase, he again explained that I just did not understand the process. Again, I called VU and asked to speak with manager or supervisor, I was now forwarded to a young man named XXXX. XXXX was customer friendly, and listened to what I had to say, although he was unable to form a resolve. He also felt that I did not understand the process and explained that it was not Veterans Uniteds job to ensure that they were paying the proper amount of property tax or insurance cost! He went on to explain that there was a third party company that paid whatever amount was on the bill sent to them. As we went back and forth about the issue I shared with him that I went to county building and the county auditor said that my taxes for XXXX should have been {$1200.00}, and VU paid {$3400.00}. I also was able to get the estimated tax cost for XXXX which also is {$1200.00}. XXXX held on to the concept that it was not their job to ensure that they pay the proper amount to the county! I explained to him that this is why he and Veterans United wanted me to just blindly pay the increase of {$430.00}! We were able to conclude with a positive note and he said that he would work on this situation and call me back on Friday of that same week. After speaking with him, I was able to get the confirmation letter from the county explaining that they had approved my request for 4 % primary residence status, of which I had been since my closing and it is within my closing documents. Also, the county explained to me and I explained to XXXX that there was going to be a refund given to me-of which would offset any shortage. 

In an effort to expedite this is, once I received the confirmation letter, I put it in the XXXXeterans United document portal. I then called them and again asked to speak with a manager or supervisor. I was connected to XXXX XXXX who explained to me that she was a client advocate. She also explained that she would be with me throughout this process to get it corrected. After repeating everything that I had experienced, and sharing with her that I placed the confirmation letter in the portal, I was able to take a deep breath. She asked me to get a tax estimate with the counties letterhead, so again I had to go to the county building. I emailed the information to her. She suggested that she would work on the situation and get back with me. 

I eventually had follow up conversations with both XXXX and XXXX. They suggested that I should pay new mortgage amount of {$940.00} for the next 12 months. They have on the portal that they gave me an escrow advance. I explained to the both of them, why is it that you all paid the wrong amount, and without correspondence of any kind you increased my mortgage to {$1200.00}, and now that we know that you all overpaid, you want me to bare your mistake. Again, they both felt like I didnt understand. I went on to explain to them that the county has said that there will be a refund issued, why is it that you want to increase my mortgage for a year to pay an oversight that was not done by me. They refused to except responsibility, at which point I asked why then do I have you managing my escrow, if I cant depend on you managing my money properly! They both said that their job is only to pay whatever amount the county sends to them! Before getting off of the phone with each of them, I explained that I will pay my own taxes and insurance moving forward because it is clear that VU does not have my best interest at hand. 

As of XX/XX/XXXX, the payment portal still had my mortgage at {$1200.00}. I went to my bank and purchased a cashiers check in the amount of {$790.00} which is the amount of my mortgage that I have paid for 2 years. I mailed the check certified, and the person that scribbled his name appears to be XXXX XXXX. That signature was on XX/XX/XXXX. My bank shared with me on XX/XX/XXXX that the check has yet to be cashed. 

I called XXXX to establish that I will be paying my own taxes and insurance moving forward. She told me that it could not be done until the escrow shortage was recovered. As of XX/XX/XXXX the escrow shortage as displayed on the payment portal was {$1200.00} ; however, on a letter mailed to me dated XX/XX/XXXX states that the shortage is {$1500.00}. 

As a result of all of this confusion, I reviewed my account with the Veterans United company, and I discovered that they also paid an increased amount for my homeowners insurance of beyond {$200.00}. Which then sparked my recollection of them starting a refinance of my mortgage that I didnt ask for nor did I apply for a refinance. 

Being a Veteran, and using my VA loan with this company I feel like they have intentionally taken advantage of me. As properties appreciate I understand the increases that may come into play. I too, understand that clerical errors happen. What I cant understand, is how a company that states that they are working for the best interest of a particular group, would deliberately disadvantage a member of that group. I have never made a late mortgage payment, I never even complained when I saw that they had attempted a refinance on my mortgage. But for them to tell me that whatever amount is sent to them is what they pay, and its not their job to ensure that the amount is correct, bothers me. To attempt to pay my mortgage and see that it had been increased by 64 % without any correspondence of any kind is worrisome and alarming. Had I not been proactive and gone to the county tax building, Veterans United would have never taken into consideration that something was wrong. The first gentleman that I spoke to said it all, Sir, taxes and insurances increase and cause what is known as an escrow shortage! As of this moment, Veterans United has disadvantaged me and put my financial stability and my home in jeopardy, although I have followed through as agreed in my homes closing documentation. 

Sincerely Submitted, XXXX XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation