Consumer complaint received 2025-11-18 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: M&T BANK CORPORATION
State: VA

Complaint narrative:
This complaint is being submitted as a continuation and escalation of a prior CFPB complaint ( ID : XXXX ) concerning M & T Banks unlawful escrow practices and refusal to honor my legal property tax exemption. I am a 100 % Permanently and Totally disabled U.S. Navy veteran, medically retired on XX/XX/year>. Under Virginia law ( Va. Code 58.1-3219.5 ), I am fully exempt from property taxes on my primary residence, retroactive to that date. M & T was notified of this exemption starting on the day of my retirement and repeatedly over the following XXXX months, via phone, mail, and fax. 

In the original complaint, I detailed how M & T : Disbursed escrow funds prematurely for insurance not yet due, Created artificial escrow shortages, Refused to apply refunds until I paid an inflated monthly mortgage, Ignored my formal Notice of Error under 12 C.F.R. 1024.35, And refused to honor my legal tax exemption, despite clear proof. 

Although M & T responded to the CFPB in XXXX claiming the matter was resolved, the servicer has since committed additional, serious violations : On XX/XX/year>, after receiving my official tax exemption letter and while under active CFPB scrutiny, M & T again disbursed property taxes I do not owe creating a new illegal escrow shortage, for the THIRD time. 
On XX/XX/XXXX, I notified M & T again of the exemption and of my temporary financial hardship due to bank fraud, yet they refused to apply the exemption retroactively, issue a payment coupon, or offer any form of hardship accommodation, In fact when my account was compromised on Friday XXXX XXXX. I called M & T Bank and offered to send them police report as proof. Not to mention when I said " I know you are waiting for the XXXX payment, but unfortunately but someone has gotten ahold of my bank account information and XXXX XXXX if looking into and all will be restored by Wednesday. '' To which she replied " Well now I wasn't wondering '' or to that effect. 
M & T ran a new escrow analysis using this unlawful disbursement, inflating my mortgage again and declaring a shortage they caused, I was told by M & Ts Mortgage Assistance Department that they dont assist with negative credit reporting and late is late even though the alleged delinquency was caused entirely by their violations. When I challenged this, they hung up on me, In XX/XX/year>, I was advised by M & T Banks representatives that I could deposit the refunded escrow funds back into my escrow account and that doing so would allow them to correct the balance and return my monthly mortgage payment to the appropriate, non-inflated amount. 

However, when I asked directly whether M & T would adjust the amount owed before I made a full payment, I was told flatly : No, you will still owe the current amount. 

This contradicted their earlier guidance and imposed an artificial financial hardship on me as a XXXX veteran with verified tax exemption status. I was being instructed to pay an inflated monthly mortgagea balance caused by M & Ts own unlawful disbursementsbefore they would correct the error they had already acknowledged. 

Worse, during the so-called resolution process : I was originally told that once the insurance refund checks cleared and were placed back into escrow, I could make the escrow current, and the payment would be adjusted. 
But the very next day, after the checks cleared, I was informed the opposite : I would be required to pay the full inflated monthly mortgage before any adjustment would be made. 
This reversal came after M & T had received and cashed the escrow refund checks, and despite the fact that the shortage was based on disbursements that should never have been made under 12 C.F.R. 1024.17 ( k ). 

When I tried to make the payment for XXXX through their Mortgage Assistance Department, I was transferred three separate times : 1. First transfer : The line connected to a male agent and then immediately dropped. He never called me back.

2. Second transfer : I was told I would receive a callback from another representative. That call never came.

3. Third transfer : The person finally answered but was openly rude and dismissive, refusing to assist meaningfully.

These examples reflect a pattern of refusal to assist, lack of follow-through, and complete breakdown in basic communication. 

Since initiating this process in XXXX, I estimate that the Mortgage Assistance Department has hung up on me approximately 15 times. In many cases, I waited on hold for extended periods, only to be disconnected, transferred without warning, or routed to voicemails that were never returned. 

This pattern of behavior reflects a clear failure to maintain continuity of contact as required by XXXX C.F.R. XXXX ( a ), which mandates that servicers provide a single point of contact and maintain consistent assistance for borrowers facing hardship or delinquency. 
I remain in a rigid cervical, thoracic, and lumbar brace, with XXXX narcolepsy, and am under no-driving orders from my neurologist. I am unable to access services or income without mail-based coordination, and M & T was made aware of this XXXX status but refused accommodation or response. 

These are not isolated mistakes they are the continuation of a servicing pattern that began months ago and worsened after M & Ts CFPB response. They are now on record willfully violating : RESPA and Regulation X ( 12 C.F.R. 1024.17, 1024.35, 1024.40 ), FCRA ( false credit reporting based on servicer-caused delinquency ), ECOA and the Fair Housing Act ( refusal to accommodate a XXXX in servicing obligations ). 

I have already submitted a rebuttal to M & Ts CFPB response, and am now filing this new complaint due to : 1. Ongoing legal violations, 2. Continued harm to a XXXX veteran, 3. And evidence that M & Ts original response was both incomplete and misleading.

Under 12 C.F.R. 1024.17 ( k ) ( Regulation X ), a mortgage servicer may only disburse escrow funds for items that are due and payable at the time of disbursement. This standard is not discretionary ; it is a federal compliance requirement. 

The term payable means the amount has become legally owed and must be satisfied to avoid penalty. 
The term due refers to the calendar date by which the obligation must be fulfilled.

At the time M & T disbursed my property taxes on XX/XX/year>, neither of those conditions were met. In fact, M & T was fully aware by documentation in its possession and prior communications that I had been legally exempt from property taxes since XX/XX/year> and have been notifiying them of this ever since. I offered to send them my VA letter. Copy of my application that was notarized and pending, and verbally that I am exempt under Va. Code 58.1-3219.5. Therefore, the taxes were not legally owed, and the obligation was no longer enforceable. M & T had no lawful authority to disburse those funds, and doing so violated Regulation X. 

When I originally discussed the original 2 previously made early payments in the first complaint the woman who assisted me at the time said this directly during a phone call with my M & T point of contact, I asked : Would you pay a bill you dont owe?

The representative responded : Im sorry, I can not answer that.

That evasive response speaks volumes. Even M & Ts own staff could not justify disbursing escrow funds for taxes that their records showed I did not owe and which had already been proven exempt under law. Despite this, M & T moved forward with the disbursement, triggering a new escrow shortage, recalculating my payment, and then refusing to correct the record unless I paid the inflated amount in full. 

This is not a misunderstanding or delay this is a knowing, post-response violation of federal law, and an unlawful use of escrow funds.

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