Consumer complaint received 2025-02-11 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: MORTGAGE CENTER, LC
State: MI

Complaint narrative:
I mailed a {$5000.00} check to Mortgage Center to be applied to my Mortgage Principal. 
As previously instructed, I attached Mortgage Centers standard deposit slip and filled in the line for ( Additional Principal ). This is not the first time that I have followed this procedure using their deposit ticket and filling in the line for ( Additional Principal ). 

XX/XX/XXXX Mortgage Center received my $ XXXX check. 

XX/XX/XXXX I noticed that on XX/XX/XXXX an auto draft mortgage payment was pulled from my checking account and applied to my XX/XX/XXXX scheduled mortgage payment, one month early. 
I also realized that my $ XXXX principal payment was not totally applied to my principal, instead it was used to make an additional payment for my XX/XX/XXXX scheduled payment. 

XX/XX/XXXX I called Mortgage Center and talked with XXXX. 
I told XXXX about my $ XXXX principal payment not being totally applied to my mortgage principal and I also inquired about why my auto drafts for Mortgage Center payments are being pulled ahead of schedule. 
XXXX fixed the $ XXXX deposit and applied it all to the principal, she also added that they do not review the supplied deposit tickets ( like the one that was mailed with the $ XXXX check ) for how to apply the money on the mortgage. 
XXXX also said that they were currently pulling payments one month ahead because an additional payment was made the last time that I had made a principal payment by mail and the payment was used to make a future payment and not totally applied to my principal. 

XX/XX/XXXX After reviewing some of the history of the misappropriation of my intended past principal payments, I see that there has been some past missed scheduled auto draft payments because my past principal payments were applied to future mortgage payments forcing Mortgage Center to eventually skip some of the monthly scheduled auto drafts. 

XX/XX/XXXX I called Mortgage Center and talked with XXXX. 
I explained to XXXX that the additional future principal payments were made in hopes of shortening the term of the mortgage loan and by applying the money to future payments then eventually skipping scheduled auto draft payments defeated the purpose of making the principal payments. 
I asked XXXX to have this mortgage reviewed from its inception and to provide me with a proposal to correct this issue in writing and e-mail it to me. 
XXXX said that we should have a response back from them by Friday XX/XX/XXXX. 

XX/XX/XXXX I Called Mortgage Center and talked with XXXX. 
I told her that I did not receive a call back on Friday and I asked if they were going to look into the loan from inception and provide me with a corrective action. She said that after 60 days they can not go back to fix the payments and principal payments because that would change the 1098 form but from now on, they have my mortgage flagged to put my principal payments on the principal. I asked what has changed and when did it change? I have been writing on the deposit slip to apply the check to the principal for years, they still have to open the envelop, dont they look at the deposit slip that you provide? 
She said that she didnt know. 
I made a $ XXXX principal payment and the check posted on XX/XX/XXXX and Mortgage Center applied it to the XX/XX/XXXX mortgage payment and the rest of that money went on the principle. 

They continued to do this in XXXX. 

I put {$1000.00} dollars on the principle and the check posted on XX/XX/XXXX and Mortgage Center applied it to the XX/XX/XXXX mortgage payment and the rest of that money went on the principle. 

I put {$1000.00} dollars on the principal and this check posted on XX/XX/XXXX and Mortgage Center applied it to the XX/XX/XXXX mortgage payment and the rest of that money went on the principle. 

I put {$5000.00} dollars on the principle and this check posted on XX/XX/XXXX and they applied it to the XX/XX/XXXX mortgage payment and the rest of the money went on principal. I caught this one and had them fix it by backing out the early XX/XX/XXXX payment and I had them apply all of the {$5000.00} to the principal. 

Because Mortgage Center was making monthly payments with my intended principal payment checks, they started skipping some of my auto draft mortgage payments because I was getting too far ahead on the monthly payments. They did not pull an auto draft payment for XX/XX/XXXX or XX/XX/XXXX As of XX/XX/XXXX I am still one month ahead on my auto draft payments. 


By adding additional principal moneys to each auto draft monthly required payment and by writing checks periodically to be added to the mortgage principal, it was my intent to pay this mortgage off early. The way that Mortgage Center has managed my principal moneys by making future mortgage payments and then skipping some of the monthly auto draft payments has extended my payoff date. 
I want my mortgage principal balance to be adjusted to reflect the principal payments that should have been applied correctly on the dates that Mortgage Center cashed the individual checks. 
Im not sure how to get the skipped auto draft payment amounts reapplied to the mortgage principal on the dates that they were skipped but I would gladly make those back payments because that would reduce my current amount owed. 

Please note : since the inception of this loan on XX/XX/XXXX with Mortgage Center I have also added an additional {$100.00} to each monthly auto draft payment to be applied to the principal.

Company response to consumer: Closed with non-monetary relief