Consumer complaint received 2025-07-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Mr. Cooper Group Inc.
State: SC

Complaint narrative:
Our home was purchased with a conventional loan through XXXX XXXX  in XX/XX/XXXX. XXXX XXXX  transferred our account to Mr. Cooper in XX/XX/XXXX. Our account included an escrow account that was transferred at this time. 

XXXX property taxes were paid by the previous owner. Our escrow account paid for XXXX property taxes, which left our escrow account delinquent. An escrow analysis was completed in XX/XX/XXXX and Mr. Cooper increased our monthly mortgage payment from {$1700.00} to {$2600.00} beginning on XX/XX/XXXX. Two payments were sent at that amount. XXXX XXXX called Mr. Cooper in XX/XX/XXXX and XX/XX/XXXX : The purpose of the call in XX/XX/XXXX was to request further information regarding the price increase and requested to remove PMI/MI payments. We were instructed to have an appraisal performed, which was paid for in XX/XX/XXXX but never physically performed. After paying for the appraisal, our request to remove PMI/MI was denied due to not having a full 24 months of payments. An appraisal was never performed and payment was never refunded. 
The purpose of the call in XX/XX/XXXX was to request closing the escrow account, which was closed XX/XX/XXXX per the notices provided by Mr. Cooper.. Despite closing escrow, portions of the monthly payments continued to go into an escrow account. We paid for homeowner 's insurance and property taxes directly from our personal checking account. 

XXXX property taxes were paid from our personal checking account. They were paid on XX/XX/XXXX, incurring late fees. Once property taxes had been paid, we received notice that a forced-placed escrow account was going to be opened due to the late payment. 

Due to the forced-placed escrow account, we did not pay XXXX property taxes from our personal checking account. This resulted in Mr. Cooper paying the property taxes in XX/XX/XXXX, approximately 6 months late, and incurring late fees and penalties of {$870.00}. 

An escrow analysis was performed XX/XX/XXXX, after the late payment of the property taxes. This analysis states that our monthly mortgage payments will be increasing from {$1400.00} to {$2100.00}. This analysis states there is a delinquent projection of - {$11000.00}. This is due to property taxes being paid in XX/XX/XXXX and the future payment of property taxes in XXXX of XXXX. 

Furthermore, we switched insurance providers in XX/XX/XXXX from XXXX XXXX to XXXX XXXX. Our insurance representative contacted Mr. Cooper with a new homeowners insurance policy and requested payment from our escrow account. The representative urgently notified us that Mr. Cooper stated our account is a non-escrowed account and the steps we needed to take for payment purposes. Since we were aware of the forced-placed escrow account, we contacted Mr. Cooper for clarification. 

We have made multiple attempts to contact Mr. Cooper to resolve this issue stated above. The associate we spoke with on XX/XX/XXXX immediately involved the " escalation officer '' due to the conflicting information of whether our account had an escrow account or not. The outcome of this conversation was that our account does include an escrow account and that payment would be submitted for homeowners insurance. 

Payment for homeowners insurance has not been made at this time on XX/XX/XXXX and there have been no other related updates to our account. This has resulted in a delinquency with our homeowners insurance policy, which was supposed to begin XX/XX/XXXX. Our insurance representative has informed us that if no payment is submitted by XX/XX/XXXX, the policy will be cancelled. Please see further information below for fair resolution to this issue.

Company response to consumer: Closed with explanation