Loan servicing, payments, escrow account

Posted on Posted in Complaints, Mortgage

review

Hello, We would like the CFPB ‘s assistance in helping us resolve a perceived Escrow Shortage amount claimed by our bank.
A little over 1 year ago XX/XX/XXXX we purchased a new home and signed a mortgage with Firstrust XXXX.
Around XX/XX/XXXX of this year we received an ” Annual Escrow Account Disclosure Statement ” in which the bank advised they were changing our monthly loan payment amount. The normal escrow deposit amount is increasing from {$1000.00} to {$1100.00}, which represents a $ XXXX monthly increase to cover the actual cost compared to the original estimate. We completely agree and understand this increase.
However, they also indicate there has been a Shortage in amount {$3100.00} and they will begin to collect an additional {$260.00} per month for the next year. We completely disagree with this figure and need help resolving it with the bank.
On Page XXXX of The Annual Escrow analysis letter it states that under Federal law our ” lowest monthly balance should not have exceeded {$2100.00}, or XXXX of total anticipated payments from the account, unless your loan contract or State law specifies a lower amount ”. The next line in the letter states ” Under your loan contract and State law your lowest monthly balance should not have exceeded {$620.00} ”. Based on their own words in their letter, this {$620.00} figure should be the threshold!
Our real estate taxes are always due in XX/XX/XXXX and XX/XX/XXXX and that is when the bank has paid them. Is it possible that their initial analysis was so wrong that after a year they need an additional {$3100.00}?
After taking a closer look at their analysis I noticed that they changed their projected escrow disbursements from XX/XX/XXXX to XX/XX/XXXX and this appears to account for the large, perceived Shortage. There is no explanation as to why they have changed the months in their projections.
IF they remained consistent and projected a XX/XX/XXXX payout, then the projected escrow account balance would {$210.00}. Assuming a minimum cushion of {$620.00} ( noted earlier ), then this would mean a Shortage of {$400.00}, resulting in a $ XXXXmonth increase for the next year. We find this figure to be fair and acceptable. Attached is a spreadsheet showing this calculation.
I have contacted the bank 7 times since the beginning of XX/XX/XXXX have spent over 3 1/2 hours on the phone with them trying to resolve this issue.
On Friday, XX/XX/XXXX at XXXX I finally received a call from the bank. XXXX, the rep I spoke with earlier, left a message saying ” a supervisor reviewed my request to have the cushion removed and that {$620.00} is the minimum required by the State, however, investor XXXX requires a XXXX cushion ”.
This response is contrary to what is listed on the XXXX website and in Firstrust XXXX own document where they state ” unless your loan contract or State law specifies a lower amount ” and they then list {$620.00} as that figure!
Our preference would be to remove the cushion requirement entirely from our account but if necessary, we are open to a one year $ XXXXmo increase to cover any Shortage as described earlier. Our bank account is normally debited the first business day of each month and ideally we would like the bank to delay the {$260.00} increase that we object to until we come to an agreement. We appreciate any assistance you can provide in coming to an acceptable resolution between us and the bank.
Sincerely, XXXX XXXX XXXXEnclosures:1. Initial Escrow Account Disclosure Statement.pdf2. Annual Escrow Account Disclosure Statement.pdf3. Request to waive Escrow cushion.docx4. Request to waive Escrow cushion – XXXX Fax Coversheet.docx5. My Escrow Projections IF paid XX/XX/XXXX.png6. Page XXXX of Mortgage document.jpg7. XXXX cushion FAQ.png8. Timeline of bank communications.docx9. XXXX Call Logs to Bank.png

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