Loan servicing, payments, escrow account

Posted on Posted in Complaints, Mortgage

review

To whom it may concern, I received an Escrow account disclosure statement and notice of new mortgage payment dated XXXX XXXX, XXXX. In the statement, the bank has attempted to forecast my escrow account for the 5th year of my mortgage. Technically, they have done it incorrectly because I have FHA Insurance that should be suspended in XXXX XXXX per the terms of the mortgage contract. However my concern is the current principal balance that is posted to my account at the company ‘s website. When the analysis was conducted and the statement sent, the company calculated a shortage of {$91.00}. They allowed for XXXX options, pay the entire amount with a resulting mortgage payment of {$800.00} or pay the shortage over the next 12 months in a new mortgage payment of {$810.00}. This would be effective for the period payment on XXXX/XXXX/XXXX. I chose to pay the entire shortage of XXXX with a resulting payment of XXXX, as I have done in the past. I adjusted my Excel workbook, calculated the payment, maximized my additional principal payment and submitted XXXX payments to the mortgage company. XXXX for the escrow shortage and XXXX for the required payment of XXXX plus XXXX in additional principal. Total payment for XXXX XXXX, XXXX was {$1100.00}. The current outstanding balance shows {$88000.00}. This is incorrect! Referring to my XXXX workbook shows this is different than expected, so I viewed the account summary which shows ” Last payment received on XXXX/XXXX/XXXX {$810.00} ” and shows ” Next payment DUE ON XXXX/XXXX/XXXX {$800.00} ” and also shows transactions for the period. Here are the last transactions specific to the XXXX/XXXX/XXXX payment : Date, Description, Amount, Balance XXXX/XXXX/XXXX PMT REVERSAL {$0.00} {$88000.00} XXXX/XXXX/XXXX PMT REVERSAL {$91.00} {$88000.00} XXXX/XXXX/XXXX APPLIED FUNDS ( Details ) – {$91.00} {$88000.00} XXXX/XXXX/XXXX PRINCIPAL PMT ( Details ) {$91.00} {$88000.00} XXXX/XXXX/XXXX PRINCIPAL PMT ( Details ) {$280.00} {$88000.00} XXXX/XXXX/XXXX PAYMENT ( Details ) {$810.00} {$89000.00} After looking at these items, I see several mistakes and I am no banking consultant or mortgage analyst but I found it odd that the items do not match my Excel workbook which tracks my payments, as well as my outstanding balance, to include some other details. If I recall, I think that WFC is the largest holder of residential mortgage loans and would think that they would be able to correctly determine the outstanding balance of my loan. Maybe they are trying to make an arbitrage profit? I do n’t think that it is fair that I have to watch my account to determine that there are mistakes being made.

In summary, on XXXX/XXXX/XXXX my required payment was XXXX. Effectively, my payment on XXXX/XXXX/XXXX was XXXX, the same as it is showing for the current month, due XXXX/XXXX/XXXX. WFC calculated my payment as XXXX for XXXX/XXXX/XXXX. In doing so, the outstanding balance is incorrect. I have not viewed the escrow account for discrepancies but imagine that there may be some.

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