Carrington Mortgage Mortgage Complaint

Carrington Mortgage Mortgage department,

FHA mortgage Loan servicing, payments, escrow account New York

- sold my mortgage to Carrington Mortgage LLC in - 2015. In -/-/-, I paid - $310.00 to cover an escrow shortage. Carrington 's commumincations advised that I had a $1600.00 shortfall. When I called to discuss this change, they advised that they are allowed by law to hold a 2 month cushion, which I understand. However, when I did an escrow analysis, I determined that they were overstating the shortfall by over $500.00 because they were *paying* my homeowners insurance, town and school taxes one month before they are due, resulting in over $500.00 of the shortage. I called and asked how they could pay the bills before they are even sent out, and they replied that the wanted to make sure the homeowner was not late with a payment ''. While this sounds wonderful, it allows them to hold $540.00 of my money in escrow in addition to the $1100.00 cushion, which is $540.00 that is not available to earn money for me. For example, my homeowners insurance premium


hold just $250.00 from each of those customers, that equates to - in funds that have been collected early, and earning money for Carrington. Understanding that the law allows them to hold a 2 month cushion - $1100.00 ( in my case ) x - = - in Carrington 's account instead of the home owner 's bank. I have owned my home for 16 years and never had any issue with - or -. I am astounded and appalled to know that this company is allowed to practice in a way that causes the consumer to remit funds that are not due for up to 60 days. I am in the process of refinancing, but after speaking with Carrington 's customer servcie department, have zero confidence that the funds in my escrow account will be returned to me in a timely manner. Reading the consumer affairs reports about Carrington lowers my confidence level even further. By the time the refinance is complete, Carrington will have over $2500.00 of my money held hostage in escrow. I would like to know if there are guidelines regarding the process to return money in the event of a refinance, so that I have some ammunition when speaking with the Carrington customer service department.