"Richard" wrote...

He explained that it was standard practice to estimate the money
required to meet the taxes and insurance on the property. Gay Weed informed
me that: 1) This review of your escrow account is based on information
believed to be accurate. 2) Countrywide does not guarantee that this
information is correct. 3) This information is subject to change at any
time.

When I asked why they didn't use the real numbers, stored in their own data
base on my old loan, they became defensive.

I wanted to find out who sold home
owners insurance in Texas on a 2300 square foot house, about 100 miles from
the Gulf of Mexico, for $875.00 per year. They couldn't say.

Been there, done that, though with a couple other lenders. Last time it took me
about 4 months to get it straightened out, including letters to the VA office
that handles home loans and to another federal regulatory agency (forgot which
one -- it's been several years).

You have to be persistent, follow up by sending them all pertinent, current
information, and follow through with any "threats" to complain to the regulatory
agencies. Also, insist on a copy of ANY regulation they say "requires" some
[in]action on their part. I found that the method they used by default to
calculate escrow payments was a method specifically DISCOURAGED by the VA
regulation as unsuitable and inaccurate.

Unfortunately, some people do not have the option of closing the escrow account
because of the contract they signed. The only way to fight then is to continue
fighting.


What they did tell me was that Countrywide would have to collect an
additional 2 months of escrow reserve to cover any future shortages. The
RESPA Act allows them to do this. They would get to collect an additional
16.6% of my money, store it away to draw interest for Countrywide, because
they screwed up?

IIRC, there are limitations on this practice, especially if they use the
particularly adverse (for the customer) method of calculating your escrow
payment that the VA discourages. I don't think they can put the 16% on top of
other reserves or "cushions" -- just over the projected $0 account balance that
will be reached when the tax or insurance payment is made.

Again, do your research and be a pest!