CenterBank

Center Bank was our previous mortgage lender We did a refinance with another bank and closed expecting to receive a reimbursement check from previous escrow account to set up new escrow account All was arranged per new lender Center Bank deducted our escrow account (property tax savings) from the payoff amount on loan They did not contact me to ask if they may do this (escrow accounts contain property tax and insurance funds to meet obligations, and are the property of the homeowner not the bank) The mortgage loan payoff was not sent to me to show this discrepancy New lender failed to see this deduction (their fault) and loan was closed with no escrow Two weeks later Center Bank sends the final statement with a late fee on last mortgage payment not made as advised in closing documents because funds were to be disbursed without that payment Center Bank claims this is there policy to cash out your escrow into payoff I've never experienced this before, nor has new lende

Center Bank was our previous mortgage lender We did a refinance with another bank and closed expecting to receive a reimbursement check from previous escrow account to set up new escrow account All was arranged per new lender Center Bank deducted our escrow account (property tax savings) from the payoff amount on loan They did not contact me to ask if they may do this (escrow accounts contain property tax and insurance funds to meet obligations, and are the property of the homeowner not the bank) The mortgage loan payoff was not sent to me to show this discrepancy New lender failed to see this deduction (their fault) and loan was closed with no escrow Two weeks later Center Bank sends the final statement with a late fee on last mortgage payment not made as advised in closing documents because funds were to be disbursed without that payment Center Bank claims this is there policy to cash out your escrow into payoff I've never experienced this before, nor has new lende

My desired resolution is that others will not fall prey to Center Bank's policy of using their customer's escrow money as they wish.  I was not aware how they were proceeding with pay off until after we closed on new loan.  Partly fault of Center Bank and partly fault of new lender as it was in their paperwork which they overlooked.  New Lender Union Savings Bank and Prominent Title Co claims they have never refinanced a customer not expecting to have the escrow money returned.  Center bank should have sent me specific info and in fact should have ASKED me how I wanted MY escrow money distributed.  Paperwork or electronic mail should have come directly to me.  They were also not considerate in any way when I called to ask why this had happened.  In fact, rude.  A real resolution would be for Center Bank to pay my property tax due now since the money designated was in the payoff which was not desired. They created a huge financial hardship for me.  I'll be sure to steer all friends/family away from this lender and will also speak to the realtor who guided me there initially.

Attached are the requested documents.  The customer did not previously request the bank provide the payoff directly to them, therefore we replied directly to the title company per the instructions.  I have attached documents pertinent to this transaction. 1) The request from Prominent Title to generate the payoff,2) Borrower authorization,3) Payoff statement provided to Prominent showing the escrow balance was reducing the loan payoff amount4) The banking regulation from the CFPB website that affirms CenterBank was following permissible banking practices. Unfortunately, the bank will not be able to pay the real estate taxes, the customer did receive the escrow funds bank as required by banking regulation. Thank you for the opportunity to reply to this matter.

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.Regarding the escrow being distributed in the payoff as common industry practice:  The new lender said they have never processed a refi with this practice in the past.  The title company said the same as well as the escrow department.  Therefore, the new lender (union savings bank) never mentioned to me that this could happen. I was never offered the payoff info from Union Savings Bank to view as there apparently was not the possibility of the escrow being forwarded to the payoff.  This was their opinion.Also, I received the closing disclosure statement from Center Bank about a week AFTER our closing on December 13 and rather than expecting a refund for escrow in mail, saw that the escrow had been used to payoff the loan instead.  This was the first time I learned of Center Bank doing this.  Very poor customer service.In my opinion, Center Bank had no right to do this without my knowledge.  Escrow money belongs to the customer who should be not just advised, but asked how they would like THEIR money to be distributed.  The payoff statement was sent directly to Union Savings Bank per their suggestion.  Center Bank made no effort to try to resolve this and in fact the representative appeared to have responded as situations as these are a common occurrence. She seemed to have explained this numerous times to other customers.  Poor practice on Center Bank's end without asking their customer how they wish the money to be distributed.  REsponse letter from Lee Lyon mentioned that if I had asked they could have distributed differently.  THEY SHOULD HAVE ASKED ME as I've never experienced a refinance with these circumstances. Center Bank has created a great hardship to me as I still do not have money to pay my property taxes and insurance. Will steer anyone from this bank.[redacted]
[To assist us in bringing this matter to a close, we would like to know your view on the matter.]
Regards,
[redacted]