Consumer complaint received 2024-10-17 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Mr. Cooper Group Inc.
State: VA

Complaint narrative:
Dear CFPB, I am writing to formally lodge a complaint against Mr. Cooper, my mortgage servicer, for their repeated failure to comply with the Real Estate Settlement Procedures Act ( RESPA ), specifically 1024.17 ( c ) ( 1 ) ( ii ). I have been attempting to resolve these issues since XX/XX/XXXX, but despite my efforts, I continue to face significant problems with my escrow account and property tax payments and to date Mr.Cooper has not paid my town taxes once since XX/XX/XXXX. 
I closed on my home in XX/XX/XXXX with an FHA loan, at which time my previous mortgage company had partially paid a prorated portion of the town taxes. However, since Mr. Cooper took over my mortgage, they have failed to pay the town taxes repeatedly as required, despite clear stipulations in my closing documents indicating that this should have been handled through escrow. 
On XX/XX/XXXX I sent Mr Cooper a Tax Delinquent Notice via their XXXX email. I notified Mr Cooper that this was the second Delinquent notice I received. This notice shows that no town taxes had been paid for the XXXX fiscal year and the first bi annual tax payment was not paid. I received no response. The amount was {$2000.00} in owed taxes. 
In XX/XX/XXXX I spoke to XXXX customer service agents from Mr. Cooper online through their chat to figure out why my taxes were not paid. The first person I spoke to said my taxes were current and when I said they werent and that I had unpaid taxes I was told that the town tax was not escrowed with them. During closing for the home it was pointed out to me multiple times the house is double taxed with a town tax and a county tax and that both were escrowed with the mortgage and since such time I had been paying into the escrow monthly I knew what portion was for the town tax and what portion was for the County Tax. After pointing this out the customer service agent looked at my loan information, realized the error, and told me they created a ticket to get the town tax added to my escrow account and allegedly disburse the tax payment. They apparently only confirmed that my taxes were current. 
In XX/XX/XXXX I got the bi annual tax bill with the amount of past due taxes in {$2100.00} and current taxes due at XXXX. I sent this notice to Mr Cooper via their requested email. On XX/XX/XXXX I called Mr Cooper to ask why the town tax was not paid. After re-explaining the situation I was told to resend the bill which I did with the below description. I was told this issue would be escalated with the Tax team while they researched. 
I was told to resend this bill. 
I have spoken to customer service twice to resolve this, my loan closing documents show that my house is double taxed with a county tax and a town tax and clearly shows what amount I pay for both into escrow each month. Mr Cooper bought my mortgage and has only disbursed my county tax and my town tax is over a year delinquent. This is very concerning. The first customer service person I spoke to regarding this said it would get added and disbursed a month ago. It appears all they did was confirm county tax was current, which I didnt ask. Attached is the delinquent town tax that I pay to Mr Cooper into my escrow, every month. I am requesting the town tax be added to my escrow, as it should have been the duration of my mortgage after Mr Cooper bought it, and pay the town tax including fees and interest which you would have to contact the town treasurer to figure out what portion is fines and interest. I attached the last breakdown of fees and interest that I sent previously, but these are out of date as another due date has passed and more has accrued. 
Thank you. 
In XX/XX/XXXX, I was led to believe the issue had been resolved and a check was mailed to the town from Mr. Cooper for roughly in the amount of {$4000.00} intended to cover current taxes, back taxes, fines, and penalties. During this time I was mailed an escrow surplus check and told I have an escrow shortage. I deposited the escrow surplus check back into escrow to not have an increase in my monthly payment. 
In XX/XX/XXXX I was mailed another escrow surplus check. I called Mr Cooper to verify this was a true surplus check or if I should deposit back in escrow. After some research I was notified by voicemail that it was a true surplus check and I applied it as a principal payment to my mortgage. 
On XX/XX/XXXX I received the bi annual tax bill showing a past due amount of {$3200.00} and current due taxes of XXXX for a total of {$4200.00}. I called Mr Cooper to ask why I am getting a bill for taxes that were paid in XXXX. A ticket was started to research this. During the call I was notified that my monthly payment would be going up {$140.00} per month due to an escrow shortage. When I asked why, if my taxes were all figured out in XXXX, why am I having a shortage now after being assured the check I received in XXXX was truly a surplus check. The customer service agent looked at the details and told me that when the check was mailed in XXXX and taken from my escrow account, that payment amount of {$2700.00} ( Which was purely back taxes ) was the same amount that was disbursed on XX/XX/XXXX which is triple the taxes that were due. This error almost emptied my escrow and created a shortage and caused the increase in monthly payment. 
On XX/XX/XXXX I called the commissioner of revenue for my town and asked if they had ever received payment because I was assured a check was sent and that I was current. The commissioner told me that no payment has been received since XX/XX/XXXX when a partial amount was paid at closing. I called Mr Cooper to notify them and asked how that can be and the customer service agent told me that this check was returned, and the funds were never reinstated to my escrow account for 3 months while I was being told I have a shortage. 
My escrow account has XXXX entities to pay, not including XXXX. 
XXXX tax of {$970.00} XXXX XXXX XXXX of {$900.00} XXXX XXXX XXXX of {$900.00} Hazard insurance of {$520.00} My town can auction my home when delinquent XXXX year on taxes, this milestone has passed in XX/XX/XXXX. 
These ongoing issues have caused me significant distress and financial strain, and I believe they represent a violation of my rights under RESPA. Despite my repeated inquiries and attempts to resolve these matters directly with Mr. Cooper, I have not received adequate responses or solutions nor returned monies for improper disbursements and payments from my escrow account. I have to really wonder if these actions are not just a violation of my rights as a timely paying homeowner, but outright illegal or theft. 
I respectfully request that the CFPB investigate these practices and take appropriate action to ensure compliance with RESPA. I am hopeful for a resolution that will rectify my escrow account and restore my faith in the mortgage servicing process. 
I request that Mr Cooper pay my year and a half delinquent town taxes that I have been paying to them monthly, interest and penalty accrued at Mr Coopers negligence, current taxes due, and close my escrow account. 
Thank you for your attention to this matter. Please feel free to contact me at the phone number or email address listed above if you require any further information.

Company response to consumer: Closed with explanation