Consumer complaint received 2025-08-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: LoanCare, LLC
State: CA

Complaint narrative:
Since XX/XX/XXXX, I have been trying to remove the escrow account from my mortgage. I have never had an escrow account before because I have over 30 % equity in my home and have consistently paid both my property taxes and homeowners insurance independently. 

However, ever since my mortgage was transferred to LoanCare, they have refused to remove the escrow accountdespite my providing clear proof that I continue to pay these expenses on my own. 

In both XXXX and XXXX of this year, I submitted valid documentation showing that I paid my homeowners insurance in XX/XX/XXXX. I also made clear that I intended to continue paying it independently. Despite this, LoanCare has refused to remove the escrow requirement for insurance. 

In XXXX, out of frustration and in an effort to simplify the situation, I reluctantly requested that my property taxes be added to escrow. LoanCare responded with a bill that increased my monthly mortgage payment by {$700.00}. I immediately regretted this decision and later reimbursed them in full for the tax payment they advanced. Still, they have refused to remove the escrow account. 

On XX/XX/XXXX, I submitted a Notice of Error and Request for Information under 12 CFR 1024.35 and 1024.36 ( RESPA ). In response, LoanCare sent a letter stating that my loan is backed by XXXX XXXX and that they would not update my account. 

On XX/XX/XXXX or XXXX, XXXX, LoanCare advanced approximately {$2100.00} from escrow to cover a property tax installment. On XX/XX/XXXX, I called LoanCare and repaid the full {$2100.00} toward the escrow balance. During that call, I again requested removal of the escrow account. I also reminded them that my next homeowners insurance payment is not due until XX/XX/XXXX, and my next property tax installment is not due until XXXX XXXXboth of which I intend to pay directly, as I have consistently done since the inception of my loan. 

On XX/XX/XXXX, I sent a formal letter requesting that LoanCare remove the escrow account based on the following : 1. I reimbursed the full amount advanced for property taxes ; 2. I am current on all mortgage and related payments ; 3. I have 33.5 % equity in my home ; 4. I have always paid my property taxes and homeowners insurance independently ; 5. All payments are up to date, including those for taxes and insurance ; and 6. No further payments for taxes or insurance are due until XXXX and XXXX, respectively. 

In response, LoanCare sent me a letter falsely claiming that I was once approved for an escrow waiver and that the escrow account will not be removed because I failed to pay property taxes and/or homeowners insurance. This is inaccurate. I have never failed to pay homeowners insurance, and the one time they paid property taxes, I reimbursed the full amount.

Despite months of phone calls and written correspondence, LoanCare continues to refuse to update my account or remove the escrow requirement. I have been diligently trying to resolve this matter since XX/XX/XXXX and am seeking a 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