Consumer complaint received 2025-06-10 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: CA

Complaint narrative:
This information concerns Mr. XXXX  Loans ( XXXX XXXX XXXX, XXXX XXXX XXXX Loan No. XXXX ( herein " the loan '' ). Furthermore, pursuant to the loan agreement, Mr. Cooper Loans is responsible for paying all insurance and taxes via the Escrow Account. The following information documents the misappropriation of {$1600.00} from the aforementioned loan 's Escrow Account : On XXXX of XXXX, XXXX XXXX Loans removed {$1600.00} from the loan and distributed it ( via XXXX XXXX ) to a third party insurance company that the loan has no affiliation with. On XX/XX/year>, I was notified by my insurance company ( via mail ) that the insurance premium was not paid by Mr. Cooper Loans. 
On XXXX XXXX, 2025, I notified Mr. Cooper Loans ( via phone call ) and inquired on the lack of payment. During the conversation, Mr. Cooper Loans advised they paid the premium ( $ and additional {$1300.00} to my insurance company ) on XX/XX/year>. During my inquiry, Mr. Cooper recognized the mistake and advised they would rectify the removal of the funds by contact the third party insurance company ( not affiliated with my loan ) and requesting the return of the funds. 
On XX/XX/year> I reviewed the loan 's account and determined the misappropriated funds were not returned. I made telephone contact with Mr. Cooper Loans employee XXXX XXXX ( case # XXXX ), who advised " they '' were working on it. I requested the misappropriated funds be returned to the XXXX Account. 
On XX/XX/year>, I made telephone contact with XXXX XXXX, who advised " they '' were working on it. I requested the misappropriated funds be returned to the Escrow Account. 
On XX/XX/year>, I made telephone contact with XXXX XXXX, who advised the third party insurance company was " cutting a check '' and would be returned to my Escrow Account. I requested the misappropriated funds be returned to the Escrow Account. 
On XX/XX/year>, I made telephone contact with XXXX XXXX, who advised Mr. Cooper Loans has not received the check and " they '' were working on it. I requested the misappropriated funds be returned to the Escrow Account. 
On XX/XX/year>, I made telephone contact with XXXX XXXX, who advised there was no update and they were working on it. I requested funds be returned to my Escrow Account as Mr. Cooper Loans was set to review and reissue a new mortgage payment due to the lack of Escrow funds in the loan. On that same day, I received the new payment ( a monthly increase of {$200.00} ) due to the shortage of funds in the Escrow Account of the loan. 
On XX/XX/year>, I made telephone contact with XXXX XXXX, who advised there was no change. XXXX had no path forward and advised they could not simply " put money back into the account. I requested the misappropriated funds be returned to the Escrow Account. I requested documentation and email contact. XXXX advised email contact was not possible. I requested elevation to another supervisor. 
On XX/XX/year>, employee XXXX XXXX XXXX ) from Mr. Cooper XXXX contacted me via telephone. XXXX advised they could not simply place the money back into my account ; however, advised Mr. Cooper would open a " no interest '' equity account on the loan in the amount of {$1300.00} and take that money to place into the Escrow Account. Mr. Cooper would review the escrow payments. This, advised by XXXX, was the only path forward. XXXX would not give a date with the {$1300.00} would be returned to the XXXX Account ( after opening ). 
In closing, it has been XXXX  months since Mr. Cooper Loans removed {$1300.00} from the loan 's Equity account and have not returned the monies, nor fully rectified the issue. Furthermore, Mr. Cooper Loan 's did not notify me of the mistake when they received notice from my insurance company of non-payment.

Company response to consumer: Closed with explanation