Consumer complaint received 2024-11-10 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: MI

Complaint narrative:
My loan was transferred to Mr Cooper in XX/XX/XXXX- formerly serviced by XXXX XXXX. Mr Cooper erroneously sent me a refund of my escrow account in XX/XX/XXXX upon my loan being transferred from XXXX. Knowing how incompetent and fraudulent Mr Cooper is, I contacted them to ask about the check ( {$790.00} ck # XXXX date XX/XX/XXXX ). The service rep with Mr Cooper explained they made a mistake and if I were to cash the check it would bounce. I immediately asked for my escrow account to be closed, refund the account funds and allow payment of taxes and insurance to be paid by myself, the mortgagor. On XX/XX/XXXX, I received a letter from Mr Cooper they received my request and would respond. On XX/XX/XXXX I contacted Mr Cooper and confirmed over the phone that the escrow account was removed and a refund of {$1100.00} was mailed to me. I deposited the check of {$1100.00} on XX/XX/XXXX. Today, XX/XX/XXXX, I received a notice from Mr Cooper that I have an escrow shortage and my new monthly payment will now be {$730.00}, which includes escrows in the amount of {$78.00} plus a shortage of {$39.00}. My monthly principal and interest payment is {$610.00}. How do I have an escrow shortage and escrow payments if Mr Cooper removed my escrow account and refunded the escrow balance? Someone with authority needs to investigate Mr Cooper for fraud, for incompetency, for misapplication of funds, for charging borrowers fees that should not be charged, for basically being a company that is doing WRONG and not right. I experienced similar issues with Mr Cooper ( fka NationStar ) over 10 years ago. I had been making extra payments and they did not apply them to my mortgage- rather putting funds in escrow. They also reported me as late pay numerous times which resulted in a negative impact on my credit. It was not until I refinanced in XXXX with a new lender did my credit improve - instantly. I filed a complaint back then and of course big companies pay no fines, do no right when they do wrong and everything is swept under the rug for consumers to deal with the aftermath. Mr Cooper ruins consumers credit and in this case is now illegally collecting escrow funds when they have no authority since my escrow account was dissolved by Mr Cooper. Taxes and Insurance should no longer be collected with my principal and interest payment to Mr Cooper, I the consumer are solely responsible for making payments of taxes and insurance on my own. Just look at the confusing documents sent in a matter of 3 months - can you make sense of it?? What do you think the average consumer thinks the monthly payment is? And if they don't pay the correct amount guess what happens ... Mr Cooper slaps on late fees. Mr Cooper is incompetent of handling a basic mortgage collection of funds - confusing consumers by sending multiple documents and statements all reflecting different mortgage payments amount. Mr Cooper sets up consumers to default or make inaccurate payment amounts.

Company response to consumer: Closed with explanation