I bought a house with a 2 year ARM in Nov of 2005. My monthly payment on my first mortgage was $1661.00 a month with taxes and insurances rolled in. Approximately 5 months later my payment went up to $1771.00 per month. They told me my taxes and insurance had gone up. I payed without complaining or asking questions. About 6 months later my payment went up another $200.00 to $1970.92. when I asked for justification no one had any strait answers. I have requested documentation explaining the extra charges and they can not provide me with any documented information at all.
Today I went online and got a breakdown of the charges. I called my insurance agent and inquired as to the total amount that SPS remits annually in accordance with my loan. The numbers did not add up. My agent quoted me 1801.00 per year for flood/hazard and homeowners. And she was adamant that is the full cost for coverage for my house, which is in disagreement with the amount, $2,479.00, which SPS claims they pay in my behalf.
In addition to being fraudulently overcharged for insurance SPS has also added a monthly "shortage charge" of $113.56 which nobody is willing to justify or explain. With the insurance and the "shortage charge" that total annual amount in discrepancy is $2,041.72, which has fraudulently inflated my payments by $170.14 per month.
On top of all this I received a letter that in Jan my mortgage is going to go up another $400.00 a month due to the rate reset, that is another 3 points which is not in agreement with the industry maximum of 2 points.
I have a sterling payment history and can not attribute the actions of SPS to anything but corporate fiduciary malfeasance.
Big Bear Lake, California