This entry is courtesy of my friend Tom P., a Maplewood Resident and also a fellow KW agent.
We hope you find this useful!
“My mortgage was bought from my mortgage company about two years ago by Bank Of America. I pay into escrow to cover taxes and insurance. When I noticed that out monthly payment went up a lot, I called. The rep at Bank Of America explained that my taxes and insurance had gone up so the escrow payment would be higher. When I asked for the breakdown there was about $110.00 unaccounted for. I pointed this out, and was told by the rep that the unaccounted for money was going into a “reserve requirement fund”. I asked about the fund and was told that the fund was in place in case my taxes and insurance went up. I then pointed out that that the taxes and insurance had indeed gone up, and the increased payment to my escrow covered the difference. The rep then asked if I wanted the “reserve requirement fund” removed. I told her yes, and mentioned that I was never given notice of this fund. Her response was “I apologize for that.” DOUBLE CHECK YOUR MORTGAGE, FOLKS. If Bank Of America holds 1 million mortgages and tacks on a $100 “reserve requirement fund” fee to all of them, that’s 1.2 billion dollars. Suspected fraud or complaints about banks can be filed online here: http://www.helpwithmybank.gov/