Consumer complaint received 2026-04-14 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: M&T BANK CORPORATION
State: GA

Complaint narrative:
We are submitting this complaint against M & T Bank regarding Loan # XXXX for the property at XXXX XXXX XXXX, XXXX, GA XXXX. We have submitted three formal Notices of Error under RESPA 12 C.F.R. 1024.35 and 1024.36, dated XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. A Third Notice of Error has been submitted to M & T simultaneously with this complaint. ISSUE 1 MISAPPLICATION OF SHORTAGE PAYMENTS ( {$1200.00} UNACCOUNTED ) Our prior servicer, XXXX XX/XX/XXXX, established a shortage repayment plan of {$130.00} per month beginning XX/XX/XXXX, as part of our payment of {$3200.00}. M & T Bank acquired our loan on XX/XX/XXXX and continued collecting {$770.00} per month as the escrow component which is {$640.00} ( base escrow ) plus {$130.00} ( shortage repayment ), confirmed by M & T 's own ledger. From XXXX through XX/XX/XXXX, M & T collected 9 months of shortage payments totaling {$1200.00}. M & T 's XX/XX/XXXX escrow analysis and their XX/XX/XXXX response contain no accounting of how this {$1200.00} was applied toward the prior XXXX shortage of {$1600.00}. Instead, M & T assessed an entirely new shortage of {$4900.00} without crediting funds already collected. This constitutes misapplication of escrow funds under 1024.35 ( b ) ( 1 ) and ( b ) ( 5 ). ISSUE 2 FALSE TAX INCREASE CLAIM IN ESCROW ANALYSIS M & T 's XX/XX/XXXX response letter states that XXXX taxes are anticipated to increase {$2400.00}. M & T 's own attached XXXX tax bill shows {$5600.00} a decrease of {$0.00} from the XXXX actual of {$5600.00}. This factually false statement materially inflates the projected shortage and violates 1024.35 ( b ) ( 2 ). ISSUE 3 MISSING TRANSFER RECONCILIATION M & T has never provided a servicing transfer reconciliation showing the escrow balance received from XXXX versus the balance posted at onboarding, despite two formal written demands. XXXX 's certified ending balance was + {$300.00}. M & T 's stated opening balance was - {$1000.00}. The {$1300.00} gap has never been explained. This violates 12 C.F.R. 1024.33 ( c ) ( 1 ). ISSUE 4 INADEQUATE RESPONSES TO NOTICES OF ERROR M & T 's responses failed to provide the full escrow ledger with debit/credit designations, transfer reconciliation, cushion calculation worksheet, or corrected escrow analysis, violating 1024.35 ( e ). We have paid every mortgage payment in full and on time. The {$470.00} monthly increase effective XX/XX/XXXX is based on an analysis containing documented errors. As of XX/XX/XXXX, we have made five payments at the inflated rate totaling {$2300.00} in excess of our prior payment amount. We request that the CFPB require M & T Bank to : ( 1 ) provide a full accounting of the {$1200.00} collected ; ( 2 ) issue a corrected escrow analysis ; ( 3 ) provide all documentation demanded in our Notices of Error ; and ( 4 ) suspend adverse credit reporting and payment increases pending resolution.

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