Consumer complaint received 2024-10-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: JPMORGAN CHASE & CO.
State: MI

Complaint narrative:
On XX/XX/XXXX I was notified by PrimeLending that the servicing of my mortgage was being transferred from them to JP Morgan Chase Bank. The loan number under XXXX had been XXXX and the new loan number under Chase was to be XXXX. In the letter it specifically stated : " The servicing of your mortgage loans is being transferred, effectiveXX/XX/XXXX. The means that after this date, a new servicer will be collecting your mortgage loan payments from you. Nothing else about your mortgage loan will change ''. Unfortunately that last sentence turned out to be false. During the timeframe while my mortgage was being serviced by XXXX I did not have, nor require, an escrow account. I pay my real estate taxes and personal property insurance directly. The property I own is a Townhouse and the XXXX XXXX XXXX ( XX/XX/XXXX ) directly pays for the insurance for flood and structure, which are collected from payments made by all 18 owners that are part of the XX/XX/XXXXon a quarterly basis. The problem that I am experiencing is that after the mortgage servicer was transferred over to Chase, Chase established an escrow account for the flood insurance and has been deducting money without permission or cause from my checking account to pay for it. The flood insurance is already paid for by the XXXX, so this is an unnecessary duplication of insurance coverage. I have contacted representatives at Chase on at least 10 occasions to get this addressed and they failed to do so. 

I filed Complaint number XXXX with the CFPB on XX/XX/XXXX regarding this matter. On XX/XX/XXXX Chase responded to my complaint with the following : We acquired the servicing of your loan from XXXX XXXX XXXX XXXX on XX/XX/XXXX, but when the loan was loaded into our system of record, an escrow account was added in error. Our investigation confirmed that funds were collected at your loans closing to pay for flood coverage, as there is a separate flood policy for each condo unit. We also confirmed that your homeowners association pays for the property flood insurance policy as part of a condo master policy. We sincerely apologize for this error in oversight of your flood insurance. We have since removed the escrow account, and we mailed you a check on XX/XX/XXXX, for {$150.00} to refund you the remaining escrow balance. In addition, we updated your total XX/XX/XXXX payment amount to {$2800.00}, which will be comprised of only the principal amount of {$2300.00} and interest amount of {$490.00}. We have enclosed copies of the letters we sent you on XX/XX/XXXX, and XX/XX/XXXX, for your records, which explained the changes we made to your escrow account. 

This resolved this matter until I received a letter from Chase in the mail today, XX/XX/XXXX, resurrecting this very same issue and Chase advising me that they are updating my account to start escrowing my flood insurance premiums. Just as it was before, this is totally unnecessary and I am demanding that Chase cease and desist from taking this action. This is wasting everyones time.

Company response to consumer: Closed with explanation