Consumer complaint received 2025-06-20 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: NJ

Complaint narrative:
I own a single family home in XXXX GA XXXX. I purchased this home in XX/XX/XXXX. I paid my homeowners insurance myself in the past, and am currently paying it myself directly to the insurance company, XXXX XXXX. I paid my property taxes in XXXX and XXXX on time directly to the XXXX XXXXXXXX XXXX XXXX department. My loan was sold to my current loan servicer, Mr. Cooper in Fall XXXX or XXXX XXXX. I have a fixed XXXX loan. This loan never had an escrow account with the previous lender. In XX/XX/XXXX I was unable to pay the property taxes of {$6.00}, XXXX to XXXX XXXX. XXXX XXXX added {$200.00} interest and {$340.00} penalties to the amount owed for a total of {$7400.00}. Mr. Cooper put that amount I now owe them into an escrow account. The amount of that {$7400.00} divided by XXXX months should make the escrow payment {$620.00}. XXXX per month bringing my payment of principle and interest of {$1800.00} and the property taxes escrow amount of {$620.00} to a monthly payment of {$2400.00}. I have never missed a mortgage payment since purchasing this home in XX/XX/XXXX. 

In XX/XX/XXXX, in order to find a better homeowners insurance rate, and reduce my expenses, I shopped around and selected XXXX XXXX. While I was doing this, the current insurance I had lapsed even though that company told me I was still covered for 30 days. The lapse caused Mr. Cooper to pay bridge insurance in the amount of {$560.00} which I have told them repeatedly I will pay in XXXX lump sum so that I only have a payment of {$2400.00} for the XXXX & I and the property taxes I owe them for XXXX. I have been paying XXXX XXXX monthly {$230.00} every month as an automatic debit from my account. Mr. Cooper has made no insurance payments but has arbitrarily added homeowners insurance to an escrow account making my mortgage unaffordable for me. 

XXXX property taxes are not due until XX/XX/XXXX and a bill from XXXX XXXX will not even be generated until XXXX with the XXXX property tax amount. XXXX XXXX will not take any payment for XXXX before XX/XX/XXXX. 

I am able to pay the XXXX property taxes myself directly to XXXX XXXX. 

I can provide proof that I have been paying my homeowners insurance to XXXX XXXX via automatic debit since XX/XX/XXXX. 


Mr. Cooper has so inflated the escrow account and has deliberately not applied all the payments of principle, interest, and the property tax correctly. 

Please help me resolve this or I will lose my home! Mr. Coopers intractable actions and position have made a problem easily solved with honest and correct applications of my payments the quick and only right solution. I can not pay more than that amount of {$2400.00} or I will not be able to pay this mortgage and will lose my home Is the goal to have me successfully pay my mortgage or to have me default and lose my home? 

Thank you for quick attention to this mortgage servicers overreach and actions. Please investigate other borrowers complaints and litigation against Mr. Cooper pertaining to escrow accounts as this appears to be a pattern of overreach and impropriety that puts homeowners and homes at risk. The last thing HUD needs is a lot of homes in default or foreclosure as the result of this servicer.

Company response to consumer: Closed with explanation