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Mortgage Payment Fraud Resolution
Summary
If a mortgage payment is intercepted and fraudulently cashed, the mortgage company, as the escrow holder, is generally responsible for handling the fraud investigation and recovery process. In Texas, you can contact the Texas Attorney General’s Consumer Protection Division for state-level assistance and the Consumer Financial Protection Bureau for federal-level complaints. It does not matter where the mortgage company is located, as both state and federal agencies can address your concerns. Consider filing complaints with both agencies to ensure your consumer rights are protected.Full Conversation
Flagstar, my mortgage company, collects escrow payments with my loan for insurance and tax payments. On July *, *, Flagstar sent a bulk check payment to Homesite to cover my annual premium. In early September, I discovered that Homesite never received the payment, putting my insurance at risk of cancellation due to non-payment.
On September *, *, I called Flagstar to inquire about the payment and was informed that it had been sent on July *, *. I notified the representative that Homesite had not received the payment. To avoid cancellation, Flagstar advised sending another payment from my escrow account. They assured me that we would try to recover the initial payment from Homesite with their assistance.
Since September *, *, I have been in continuous communication with Flagstar to recover the funds. In October, during one of my many phone calls with Flagstar, I learned that there was potential fraud involving the check sent to Homesite, though I was not given specific details. Flagstar informed me that, due to the fraud investigation, they would issue a corporate credit for the funds. However, this has not occurred as of today.
I later learned that the check was intercepted during the mailing process, altered, and then cashed. As the escrow holder, I believe Flagstar is responsible for recovering the funds since they issued the check. Despite this, Flagstar has insisted that Homesite is responsible since they supposedly received the check. However, Homesite confirmed that they never received the check, and it was never in their possession.
On December *, *, I received a copy of the cleared check from Flagstar, provided by Homesite. The check, numbered *, dated July *, *, and amounting to $*,*, was made out to someone other than Homesite.
Additionally, on December *, *, the servicing of my loan was transferred to Rocket Mortgage.
Who is responsible for recovering my payment?
Hi ****, I'm sorry to hear about your situation. Here are some general legal points relevant to Missouri:
- **Mortgage Company Responsibility**: As the escrow holder, Flagstar is typically responsible for ensuring the payments are made correctly.
- **Fraud Investigation**: Flagstar should handle the fraud investigation and recovery process since they issued the check.
- **Consumer Protection**: You may contact the Missouri Attorney General’s Consumer Protection Division for further assistance.
Would you like more information on how to file a complaint with the Attorney General?
- **Mortgage Company Responsibility**: As the escrow holder, Flagstar is typically responsible for ensuring the payments are made correctly.
- **Fraud Investigation**: Flagstar should handle the fraud investigation and recovery process since they issued the check.
- **Consumer Protection**: You may contact the Missouri Attorney General’s Consumer Protection Division for further assistance.
Would you like more information on how to file a complaint with the Attorney General?
I'm in Tex
Thank you for the additional information, ****. Just to clarify, are you located in Texas or Missouri? This will help me provide the most accurate information for your situation.
Texas
Thank you for clarifying, ****. Here are some general legal points relevant to Texas:
- **Mortgage Company Responsibility**: As the escrow holder, Flagstar is generally responsible for ensuring payments are correctly made.
- **Fraud Investigation**: Flagstar should handle the fraud investigation and recovery process since they issued the check.
- **Consumer Protection**: You may contact the Texas Attorney General’s Consumer Protection Division for further assistance.
Would you like more information on how to file a complaint with the Texas Attorney General?
- **Mortgage Company Responsibility**: As the escrow holder, Flagstar is generally responsible for ensuring payments are correctly made.
- **Fraud Investigation**: Flagstar should handle the fraud investigation and recovery process since they issued the check.
- **Consumer Protection**: You may contact the Texas Attorney General’s Consumer Protection Division for further assistance.
Would you like more information on how to file a complaint with the Texas Attorney General?
Should I contact TX AGCPD or CFPB?
Hi ****,
You can contact both the Texas Attorney General’s Consumer Protection Division (TX AGCPD) and the Consumer Financial Protection Bureau (CFPB) for assistance.
- **TX AGCPD**: Handles state-level consumer protection issues.
- **CFPB**: Handles federal-level complaints against financial institutions.
Would you like more information on how to file a complaint with either agency?
You can contact both the Texas Attorney General’s Consumer Protection Division (TX AGCPD) and the Consumer Financial Protection Bureau (CFPB) for assistance.
- **TX AGCPD**: Handles state-level consumer protection issues.
- **CFPB**: Handles federal-level complaints against financial institutions.
Would you like more information on how to file a complaint with either agency?
Does it matter where the mortgage company is located?
Hi ****,
It does not matter where the mortgage company is located. The key factors are:
- **Jurisdiction**: Both state and federal consumer protection agencies can handle your complaint.
- **Consumer Rights**: Your rights as a borrower are protected by both state (Texas) and federal laws.
Would you like more information on how to file a complaint with the Texas Attorney General’s Consumer Protection Division or the Consumer Financial Protection Bureau?
It does not matter where the mortgage company is located. The key factors are:
- **Jurisdiction**: Both state and federal consumer protection agencies can handle your complaint.
- **Consumer Rights**: Your rights as a borrower are protected by both state (Texas) and federal laws.
Would you like more information on how to file a complaint with the Texas Attorney General’s Consumer Protection Division or the Consumer Financial Protection Bureau?
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