Volunteer Mortgage Loan Servicing complaints

Thank you for contacting VMLS regarding your recent Escrow Analysis. You will receive your escrow analysis in the mail soon and it will be available on our website. Your escrow shortage was caused by the difference in the required balance at your low point balance and the projected balance with the monthly payments coming in and the projected disbursements coming out. We paid 2 homeowner’s insurance out of our escrow account last year. Your new homeowner’s insurance is $486.63 more than your 2021 policy. Last year’s escrow analysis projected paying $731.62 in June 2022, with a required escrow balance of $1,322.03. We paid $872.37 in June 2022, leaving an escrow balance of $1,186.05. We paid $1,359 in September 2022, leaving an escrow balance of -$428.00. We received payment into your escrow balance in October and November 2022 brining the balance up to $1,455.44. We had projected needing $1,572.55 in your escrow balance by November 2022. Also keep in mind that your T&I payment last year of $322 was not enough to maintain your escrow balance with the new higher insurance amount. Each month until your next escrow analysis meant you were not funding your escrow account enough to be able to pay your next homeowner’s insurance bill. The increases also changed your cushion, the minimum required low point for your escrow balance. Your new escrow analysis that you will receive in the mail soon, will show that your new required minimum balance for your escrow account is $613.82 and is projected to occur when we pay your taxes in December 2023. Your balance is projected to be $277.58 in December 2023. We need to collect this difference. You can pay the shortage in 12 payments of $28.02 with your monthly payment starting with your April 1, 2023 payment. There are two different calculations going on in an Escrow Review. 1. Add all disbursements projected for the next 12 months, divide by 12 to get your monthly escrow payment. $1,030.68 + $1,359 + $1,293.29 + FHA MIP monthly premiums = $4,438.59 / 12 = $369.88. An increase from last year. This is the lowest your regular monthly escrow payment can be unless you obtain lower insurance or your taxes go down. 2. Compare your projected escrow balance for each month to the required low point (cushion) of your escrow account. If your balance is projected to be higher at your low point, you receive a surplus. If your balance is projected to be lower than the required low point balance, you have a shortage to pay back into your escrow account. The required starting balance of your escrow account is pre-funded, starting at the closing of your loan. Your cushion is 2 months of tax and homeowner’s insurance payments, ($1,030.68 + $1,359 + $1,293.29) /12 x 2 = $613.82. An increase from last year.

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