Sun West Mortgage Company Complaint

Sun West Mortgage Company, Inc. Mortgage department,

FHA mortgage Loan servicing, payments, escrow account Idaho

We refinanced our home with -, who sold our mortgage to SunWest Mortgage. We set up our mortgage on automatic payment, so there have been no late fees. An escrow account was set up as part of the refinance. We were supposed to have two months " buffer, '' and during the refinance, $480.00 was placed in the escrow account, with $300.00 escrow payment due each month to cover Homeowner 's Insurance, FHA Insurance, and County Taxes. We just completed our first year, and our property taxes went up by $100.00 for the year. As of today, we had over $700.00 in our account, which is more than the 2-month buffer. SWMC raised our mortgage from $1300.00 to $1400.00 and they claimed they want our " starting balance for the new year '' to be $1100.00, which is about 4-5 times the original 2-month buffer.

has no claims ( and has never had a claim in 10 years ), so its rates are n't going up. That leaves an anticipated increase in property taxes. From the time we refinanced until this year, there was a $50.00 shortage in our taxes, which they just took out this month. Currently, we were told we have a $ - balance, and our taxes are due in -. SWMC wants to pay the taxes early ( in - ), claiming that when they do so, we will be in the negative because they will also pay FHA at the end of the month. They raised our Escrow to $310.00 ( from $300.00 ) to cover the difference in taxes. Then they added another $ -/mo on top of the adjusted escrow payment each month. The new escrow payment is high enough that it will cover ALL payments ( taxes, property insurance, and FHA insurance ), and by this time next year, the buffer will still be there. Basically, SWMC wants to add another $500.00 slush fund at our expense, yet they have absolutely no mathematical or legal justification to take this extra $500.00. The Math : FHA Insurance $150.00 - 12 months = $1800.00. Property/Hazard Insurance ( 12 months ) $650.00. Property Taxes ( 12 Months ) $1300.00 TOTAL YEARLY REQUIRED ESCROW $ - Monthly escrow amount needed to cover $3800.00 charges : $ -/month Current Principal and Interest payment : $1000.00 + $320.00 ( adjusted for tax increase ) TOTAL NEW PAYMENT : $130000.00 SWMC NEW Payment : $1400.00 If the $ -/month payment shown above covers ALL escrow expenditures IN FULL, and borrowers still have the 2 month required buffer, how can they legally raise our payment an ADDITIONAL $ -/mo. ( $ -/yr ) above the newly adjusted, higher escrow amount?