Consumer complaint received 2025-10-24 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: TOWNE MORTGAGE COMPANY
State: MI

Complaint narrative:
Mortgage servicing complaint narrative What happened From XX/XX/XXXX, through XXXX, we paid every monthly mortgage statement on time on a {$48000.00} loan with payments initially around {$600.00}. Despite years of payments, the principal balance barely moved. In XX/XX/XXXX, we received an escrow refund ; immediately afterward, our monthly payment jumped to over {$800.00} without any change to the interest rate or loan term. No clear escrow analysis or explanation was provided for the increase. 

In XXXX, we were asked to purchase the home in our names. Towne Mortgage did nothing for XXXX years. After XXXX XXXX XXXX contacted them, Towne Mortgage said the only path was a loan assumptionnot a purchaseand presented assumption terms after the delay. By then, the balance had inflated from about {$48000.00} to over {$61000.00} with no documented basis for the increase, even though we had continued making payments. We have repeatedly requested a complete payment history, corrected amortization schedule, and escrow accounting ; we have not received an adequate explanation.We paid every monthly mortgage statement on time on a {$48000.00} loan originated XX/XX/XXXX. In XX/XX/XXXX, we received an escrow refund ; immediately afterward, our monthly payment jumped from ~ {$600.00} to $ XXXX without any change to our interest rate or term. By XXXX, despite years of payments, the principal balance had barely moved, and eventually inflated to over {$61000.00}. In XXXX we asked to purchase the home in our names. Towne Mortgage did nothing for XXXX years. After XXXX XXXX XXXX contacted them, Towne Mortgage said assumption was the only option. We have repeatedly requested a corrected amortization schedule and full escrow accounting and have not received an adequate explanation. 

I request that Towne Mortgage provide a corrected amortization schedule, a complete escrow analysis, and restate my loan balance to reflect all payments made since XXXX. I further request that any overcharges be refunded, my mortgage lien be released upon satisfaction of the corrected balance, and that I be compensated for financial and emotional harm caused by years of mishandling. I also request CFPB oversight to ensure compliance with RESPA, Regulation X, and XXXX Consumer Mortgage Protection Act. 

Unexplained payment increase : Payment rose from ~ {$600.00} to $ XXXX immediately after an escrow refund, with no rate or term change and no itemized escrow analysis. 

Balance inflation : Principal increased from ~ {$48000.00} to $ XXXX despite years of payments and no documentation of advances or fees that justify the increase. 

Servicer delay and limitation to assumption : XXXX Mortgage stalled our XXXX purchase request for XXXX years, then offered only assumption terms, causing harm and confusion. 

Lack of transparency : Failure to provide a corrected amortization schedule and full escrow accounting despite multiple written requests. 

Harm experienced Financial harm : Increased monthly payments, inflated principal, potential extra interest, and fees caused by misapplication or mishandling. 

Administrative burden : Years of follow-up, legal-aid involvement, and time spent seeking basic servicing information. 

Emotional distress : Ongoing uncertainty about title, payoff, and whether our payments were properly applied.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation