ComplaintsforCarrington Mortgage Services LLC

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Initial Complaint
02/07/2024
Complaint Type:
Service or Repair Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
In 2023 our homeowners taxes were increased to approximately $6000.00 because we had to prove our home was our primary residence. During this time, we made several house payments with this adjusted amounts. Once our country reviewed everything, our taxes were adjusted and sent back to Carrington. In addition, Carrington received the overage from the country. When we called to seek our refund, Carrington refused to send our overage.
Business response
03/12/2024
*******************
*** **************
**********, ** *****
RE: **** **** **********
Borrower: *******************
Property Address: ******************************************************************
**** *** ********

Dear ************,
The **************************** of **********************, LLC ("Carrington") is in
receipt of your complaint filed with the Better Business Bureau ("BBB") and received in our office
on February 7, 2024. Carrington is committed to responsible lending and servicing, and we would
like to address any concerns you may have. The following is our response to the issue(s) raised
in the complaint.
As we understand the complaint, you stated that the County taxes increased to approximately
$6,000.00 as you needed to complete a homestead exemption with the taxing authority.
Additionally, you advised that once the homestead exemption was applied, the County sent
Carrington a refund, and you allege Carrington refused to issue you the overage. Your desired
resolution is for Carrington to clarify this matter and provide you with a refund in the amount of
$4,000.00.
As a preliminary matter, on or about April 13, 2022, Carrington sent the enclosed Notice of
Servicing Transfer ("Hello Letter") advising the servicing of your mortgage loan was transferred
from United Wholesale Mortgage to Carrington effective April 4, 2022.
Carrington acquired the loan with a total principal, interest, taxes, and insurance ("PITI") payment
in the amount of $1,217.91, with the escrow portion of the monthly mortgage payment in the
amount of $79.63. The records show that the escrow account included homeowners insurance
(policy number ending in 0268) with an annual premium in the amount of $767.00 due in
September 2023 and annual County taxes due in December 2022 in the amount of $188.51.
A review of the records determined that on or about May 27, 2022, Carrington completed the
enclosed escrow analysis in accordance with the *********** Settlement Procedures Act
("RESPA") as it pertains to newly acquired loans. The purpose of the ***** was to advise of
the projected escrow activity for the escrow cycle beginning July 1, 2022 and ending June 30,
2023. More specifically, the ***** projected that the annual homeowners insurance premium
would be in the amount of $767.00 and the annual County taxes would be in the amount of

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$188.51. Correspondingly, the total disbursements for the escrow cycle beginning July 1, 2022
and ending June 30, 2023 were calculated to be $955.51. The total projected escrow advances
divided by twelve (12) equals $79.62 per month and represents the required escrow payment
beginning July 1, 2022.
Please note that a mortgage servicer is permitted by law to collect an escrow cushion. An escrow
cushion is a minimum amount of money held in the escrow account to prevent the escrow balance
from being overdrawn. The reason escrow cushions are permitted is that from time to time,
payments for escrow items may become due in excess of funds available in the escrow account.
Specifically, RESPA authorizes a maximum escrow cushion not to exceed 1/6th (i.e., up to two
(2) months of escrow payments) of the total annual projected escrow disbursements made during
an escrow cycle over twelve (12) months unless state law allows for a lesser amount. Additionally,
when the escrow balance reaches its lowest point during the escrow cycle, that balance is
targeted to be the 1/6th escrow cushion amount (12 CFR 1024.17(c)(5)).
In light of the above, Carrington is authorized to collect no more than 1/6th of the total projected
escrow disbursement for the escrow cycle beginning July 1, 2022 and ending June 30, 2023. The
************ cushion that Carrington may collect is $159.24 for this escrow cycle.
As shown on this *****, this escrow analysis resulted in an escrow shortage in the amount of
$0.01. For an explanation of how the escrow shortage is calculated, please refer to the next
section of the *****, below the Projected Escrow Activity from July 2022 through June 2023,
and note the projected low point balance of $****** for September 2022. Looking at the next
column for the same date under "Required," please note that the low point balance should be
$159.24 (1/6th cushion). The shortage is the difference between the projected low point balance
of ****** and the required low point balance of $159.24, which equals $0.01. The following is a
breakdown of the total payment in the amount of $1,217.90 beginning July 1, 2022.

Principal and Interest Payment: $ 1,138.28
Escrow Payment: $ 79.62
Total: $ 1,217.90

On or about December 19, 2022, Carrington disbursed the County taxes in the amount of
$9,567.47 from the escrow account in accordance with the tax bill received from the
County. Please note at this time, taxes were billed by the County at the fully assessed value
of the property, and there was no homestead exemption on the tax bill received from the
County. We encourage you to reach out to the *********************** with any questions
pertaining to your tax bill and/or exemptions.
On or about January 13, 2023, Carrington performed a new escrow analysis and sent you the
enclosed *****. It is important to understand that Carrington analyzed the escrow account
pursuant to the regular escrow analysis scheduled for properties in **************. The purpose
of the ***** was to advise of the projected escrow activity for the escrow cycle beginning March
1, 2023 and ending February 29, 2024. More specifically, the ***** projected that the annual
homeowners insurance premium would be in the amount of $966.00 and the annual County taxes
would be in the amount of $9,567.47. Correspondingly, the total disbursements for the escrow
cycle beginning March 1, 2023 and ending February 29, 2024 were calculated to be $10,533.47.
The total projected escrow advances divided by twelve (12) equals $877.78 per month and
represents the required escrow payment beginning March 1, 2023.

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In light of the above, Carrington is authorized to collect no more than 1/6th of the total projected
escrow disbursement for the escrow cycle beginning March 1, 2023 and ending February 29,
2024. The ************ cushion that Carrington may collect is $1,755.56 for this escrow cycle.
As shown on this *****, this escrow analysis resulted in an escrow shortage in the amount of
$11,842.59. For an explanation of how the escrow shortage is calculated, please refer to the next
section of the *****, below the Projected Escrow Activity from March 2023 through February
2024, and note the projected low point balance of negative $10,087.03 for January 2024. Looking
at the next column for the same date under "Required," please note that the low point balance
should be $1,755.56 (1/6th cushion). The shortage is the difference between the projected low
point balance of negative $10,087.03 and the required low point balance of $1,755.56, which
equals $11,842.59. The following is a breakdown of the total payment in the amount of $3,002.94
beginning March 1, 2023.

Principal and Interest Payment: $ 1,138.28
Escrow Payment: $ 877.78
Escrow Shortage Payment: $ 986.88
Total: $ 3,002.94

The increase in County taxes and annual homeowners insurance attributed to the escrow
shortage and overall monthly mortgage payment increase from $1,217.90 to $3,002.94.
The records indicate you contacted Carrington's tax vendor, CoreLogic, several times in May
2023 and June 2023 to advise of a tax exemption and an anticipated refund from the County in
the amount of $6,937.65. On or about June 16, 2023, SWBC advised you that no tax refunds
have been received; however, the annual County tax amount was updated to $2,629.82 based
on the anticipated refund, and a new escrow analysis was requested.
On or about June 20, 2023, Carrington performed an out-of-cycle escrow analysis and sent you
the enclosed *****. The purpose of the ***** was to advise of the projected escrow activity
for the escrow cycle beginning May 1, 2023 and ending April 30, 2024. More specifically, the
***** projected that the annual homeowners insurance premium would be in the amount of
$966.00 and the annual County taxes would be in the amount of $2,629.82. Correspondingly, the
total disbursements for the escrow cycle beginning May 1, 2023 and ending April 30, 2024 were
calculated to be $3,595.82. The total projected escrow advances divided by twelve (12) equals
$299.65 per month and represents the required escrow payment beginning May 1, 2023.
In light of the above, Carrington is authorized to collect no more than 1/6th of the total projected
escrow disbursement for the escrow cycle beginning May 1, 2023 and ending April 30, 2024. The
************ cushion that Carrington may collect is $599.30 for this escrow cycle.
As shown on this *****, this escrow analysis resulted in an escrow shortage in the amount of
$6,978.09. For an explanation of how the escrow shortage is calculated, please refer to the next
section of the *****, below the Projected Escrow Activity from May 2023 through April 2024,
and note the projected low point balance of negative $6,378.79 for January 2024. Looking at the
next column for the same date under "Required," please note that the low point balance should
be $599.30 (1/6th cushion). The shortage is the difference between the projected low point
balance of negative $6,378.79 and the required low point balance of $599.30, which equals

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$6,978.09. The following is a breakdown of the total payment in the amount of $2,019.43
beginning May 1, 2023.

Principal and Interest Payment: $ 1,138.28
Escrow Payment: $ 299.65
Escrow Shortage Payment: $ 581.50
Total: $ 2,019.43

The decrease in County taxes attributed to the overall monthly mortgage payment
decrease from $3,002.94 to $2,019.43. Please note at this time, a tax refund from the County
had not yet been received by Carrington.
On or about July 7, 2023, CoreLogic received a tax refund from the County in the amount of
$6,937.65 for the 2022 tax year. Accordingly, on or about July 10, 2023, funds in the amount
of $6,937.65 were applied to the escrow account to satisfy the escrow shortage, and on or
about July 14, 2023, Carrington performed an out-of-cycle escrow analysis and sent you
the enclosed *****. The analysis resulted in a surplus in the amount of $1,265.16 and reflects
a total payment due in the amount of $1,437.93 beginning July 1, 2023. Please note the escrow
surplus was retained due to the loan's past-due status. Specifically, when the escrow
analysis was completed, the account was contractually due for the May 1, 2023 mortgage
payment.
It is important to understand that per RESPA 12 CFR 1024.17(f) if the escrow account analysis
discloses a surplus, the servicer shall, within thirty (30) days from the date of the analysis, refund
the surplus to the borrower if the surplus is greater than or equal to $50.00. If the surplus is less
than $50.00, the servicer may refund such amount to the borrower or credit such amount against
the next year's escrow payments. These provisions apply if the mortgage payments are
current at the time of the escrow analysis.
After a review of several phone calls that took place between you and Carrington in July
2023, our review confirms that there were missed opportunities for better communication.
Not all Carrington representatives you spoke to consistently reiterated that to receive an
escrow surplus refund; mortgage payments must be current at the time the escrow
analysis is completed. We also identified that not all Carrington representatives
consistently reiterated that the anticipated refund from the County would be applied
directly to the escrow account to satisfy the escrow shortage. We sincerely apologize for
the miscommunication and for any frustration you may have experienced as a result. Rest
assured that Carrington representatives strive to address all servicing issues and
concerns raised promptly.
On or about December 8, 2023, Carrington disbursed the County taxes in the amount of $2,649.29
from the escrow account in accordance with the tax bill received from the County.
The records show that on or about January 30, 2024, Carrington performed an escrow analysis
and sent you the attached *****. It is important to understand that Carrington analyzed the
escrow account pursuant to the regular escrow analysis scheduled for properties in *****************. The analysis resulted in a surplus in the amount of $990.06 and reflects a total payment
due in the amount of $1,455.47 beginning March 1, 2024. Please note at the time the escrow
analysis was completed, the loan was current, and the escrow surplus was disbursed to

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you on or about January 30, 2024 via check number ending in 0197. Further, we can
confirm the escrow refund check was negotiated on February 8, 2024.
In closing, Carrington respectfully declines your request for a refund in the amount of
$4,000.00. As of this correspondence, the account is paid through February 1, 2024, and is
contractually due for the March 1, 2024 mortgage payment in the amount of $1,455.47. Enclosed
for your reference is a copy of the payment history along with the transaction codes and
definitions.
If you would like to further discuss the administration of the loan, we encourage you to contact
our *************************** at **************, Monday through Friday, from 8:00 AM to
9:00 PM, Eastern Time.
Carrington takes all customer inquiries and complaints very seriously, and we strive to address
all matters brought to our attention as timely as possible. We would like to thank you for bringing
this matter to our attention and allowing us the opportunity to address your concerns.
Furthermore, please know that Carrington remains committed to the highest standards of
customer satisfaction and will continue to do the utmost to help our customers.
Lastly, please be advised that pursuant to the ************************************ guidelines,
Carrington may suppress the reporting of loan and payment information to the credit bureaus for
a period of sixty (60) days after receipt of a qualified written request and/or a Notice of Error.
We trust that this communication addresses all the concerns noted in the complaint. If you have
any further questions, please contact the undersigned at **************, Monday through Friday,
from 8:00 AM to 5:00 PM, Pacific Time.
Initial Complaint
01/17/2024
Complaint Type:
Customer Service Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Carrington mortgage has ignored all attempts to understand denial of certain home retention loss mitigation options put forth by HUD. I have submitted appeals on October 20, 2023 with no answer by the company. I sent certified letters on December 5, 2023 and January 5, ****, both the company have not answered. I have the right to know why I am being denied certain loss mitigation options. Carrington mortgage services stated that to apply for loss mitigation, I did not need to give any paperwork. Carrington handled the paperwork on their end. When I asked why I was denied a forbearance or a special forbearance -unemployment instead of having to do a full modification, I was sent a letter stating that my loss mitigation application was incomplete. This company,Carrington mortgage, sent over 2 loan modifications without proper paperwork and will not explain what happened?! I would like an answer to my appeal and several certified letters asking for an explanation.
Business response
02/20/2024
Please see attached.
Initial Complaint
01/16/2024
Complaint Type:
Service or Repair Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unable/Refusal of the Company to reschedule a payment,
Business response
02/16/2024
*******************************
****************************************** ********* ***
**************************
RE: **** **** **********
Borrower: *******************************
Property Address: ************************************************************************. ** *****
Case No.: ********

Dear ****************,
The **************************** of **********************, LLC ("Carrington") is in
receipt of your complaint filed with the Better Business Bureau ("BBB") and received in our office
on January 16, ****. Carrington is committed to responsible lending and servicing, and we would
like to address any concerns you may have. The following is our response to the issue(s) raised
in the complaint.
In your complaint, you generally state unable/refusal of the company to reschedule a payment
in the amount of $2,160.00. Your desired resolution is for Carrington to provide a billing
adjustment.
Based on the instant complaint, we cannot determine whether this is a notice of error or a request
for information. It is essential to understand that per the ****************** Protection Bureau
("****") Rule 1024.35(g)(1)(ii), a servicer is not required to comply with the requirements of a
Notice of Error if the notice of error is overbroad. A notice of error is overbroad if the servicer
cannot reasonably determine from the notice of error the specific error that the borrower asserts
has occurred on a borrower's account. Furthermore, the official interpretation of Paragraph
35(g)(1)(ii) provides examples of overbroad notices of error, which include (i) Assertions of errors
regarding substantially all aspects of a mortgage loan, including errors relating to all aspects of
mortgage origination, mortgage servicing, and foreclosure, as well as errors relating to the
crediting of substantially every borrower payment and escrow transaction; (ii) Assertions of errors
in the form of a judicial action complaint, subpoena, or discovery request that purports to require
servicers to respond to each numbered paragraph; and (iii) Assertions of errors in a form that is
not reasonably understandable or is included with voluminous tangential discussion or request
for information, such that a servicer cannot reasonably identify from the notice of error for which
1024.35 requires a response. Accordingly, Carrington has concluded that the instant complaint
and notice of error is overbroad.

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At the outset, the records indicate on or about December 8, 2023, Carrington sent you the
enclosed notice advising there have been changes to your mortgage interest rate and payments
on January 1, ****. Per the terms of your Adjustable-Rate Mortgage ("ARM"), the interest rate
increased from 3.5% to 4.5% and the monthly mortgage payment increased from $2,154.84 to
$2,269.11, beginning with the February 1, **** mortgage payment. For your reference, please
see attached notice of Changes to Your Mortgage Interest Rate and Payments dated December
8, 2023. Additionally, the enclosed Monthly Mortgage Statement dated January 15, **** reflects
the new payment in the amount of $2,269.11, due on February 1, ****.
The records indicate on or about January 16, ****, Carrington received funds via Speedpay in
the amount of $2,160.00. Per your instructions, the amount of $5.16 was applied to the principal
balance. The remaining balance in the amount of $2,154.84 was applied to the unapplied funds
account because it was less than the contractual mortgage payment due for February 1, **** in
the amount of $2,269.11. Please note that if a payment is received less than the full contractual
amount due (partial payment"), and no posting instructions are provided as to how the funds
should be applied to the loan, such partial payment will be deposited into the unapplied funds
account until the remainder of the full amount due is received to satisfy the full contractual
payment. Once a full contractual payment is received, the funds will then be applied to the loan.
The records indicate on or about January 31, ****, Carrington received funds via Speedpay in
the amount of $90.00. On the same day, Carrington applied the funds in the amount of $90.00 to
the principal balance based on your instructions.
The records indicate on or about February 12, ****, Carrington received funds via Speedpay in
the amount of $114.27. On the same day, the funds were combined with the unapplied balance
in the amount of $2,154.84, and the February 1, ****, mortgage payment was satisfied in the
amount of $2,269.11.
As of the date of this letter, the loan is paid through February **** and due for the March 1, ****,
mortgage payment in the amount of $2,269.11. Enclosed is a loan payment history along with the
transaction codes and definitions.
If you would like to discuss the administration of the loan further, we encourage you to contact
our *************************** at **************, Monday through Friday, from 8:00 AM to
9:00 PM, Eastern Time.
Carrington takes all customer inquiries and complaints very seriously, and we strive to address
all matters brought to our attention as timely as possible. We would like to thank you for bringing
this matter to our attention and allowing us the opportunity to address your concerns.
Furthermore, please know that Carrington remains committed to the highest standards of
customer satisfaction and will continue to do the utmost to help our customers.
Lastly, please be advised that pursuant to the **** guidelines, Carrington is required to suppress
the reporting of loan and payment information to the credit bureaus for a period of sixty (60) days
after receipt of a qualified written request and/or a Notice of Error.

3

We trust that this communication addresses all the concerns noted in the complaint. If you have
any further questions, please contact the undersigned at **************, Monday through Friday,
from 8:00 AM to 5:00 PM, Pacific Time.
Initial Complaint
01/11/2024
Complaint Type:
Service or Repair Issues
Status:
Resolved
The complainant verified the issue was resolved to their satisfaction.
Our taxes went down to 2373$. Our insurance went down to ****. They won't give us our escrow balance of ****$. They've known for months and won't adjust our mortgage balance. It should be **** a month. Not **** per month.
Business response
02/14/2024
**************************
***************************************************************************************
RE: **** **** **********
Borrower: ************************
Co-Borrower: **************************
Property Address: *************************************************************************************
File No.: ********

Dear ******************,
The **************************** of **********************, LLC (Carrington) is in
receipt of your complaint filed with the Better Business Bureau (BBB) and received in our office
on ******* 12, 2023. Carrington is committed to responsible lending and servicing, and we would
like to address any concerns you may have. The following is our response to the issue(s) raised
in the complaint.
As we understand the complaint, you allege that your property taxes and homeowners insurance
decreased, but Carrington will not refund you the escrow balance. You state that Carrington has
known about this decrease for months and will not adjust your monthly mortgage payment.
As a preliminary matter, on November 9, 2022, Carrington sent a letter advising that the servicing
of your mortgage loan was being transferred from Prime Lending to Carrington, effective
November 2, 2022. Enclosed is a copy of the letter for your reference. When your mortgage loan
was transferred to Carrington, the account was transferred with the homeowners insurance policy
expiring on July 13, 2023, with a premium in the amount of $910.80. The property taxes were
paid annually and next due in December 2022 in the amount of $3,352.95.
On June 16, 2023, Carrington received the renewal for the homeowners insurance policy with
Allstate for the policy term of July 13, 2023 through July 13 **** with the policy premium due in
the amount of $1,005.70. On June 19, 2023 a payment was disbursed from the escrow account
in the amount of $1,005.70 for the homeowners insurance policy premium.
On August 14, 2023, Carrington received a notice of cancellation of the homeowners insurance
policy with Allstate, due to a customer request, with the cancellation effective August 8, 2023. On
August 16, 2023, Carrington sent a letter advising that your homeowners insurance had expired
and requested evidence that you had obtained new coverage. A copy of this letter is attached for
your reference.

On August 19, 2023, Carrington received funds in the amount of $910.00 via Speedpay. Of that
amount, Carrington applied $900.00 to the escrow account and $10.00 to the principal balance
pursuant to your request.
On August 21, 2023, Carrington completed an escrow analysis due to the escrow deposit
received. That same day, Carrington sent you an Annual Escrow Account Disclosure Statement
(*****). A copy is attached for your ease of reference. The purpose of the ***** was to
advise you of the projected escrow activity for the escrow cycle beginning September 1, 2023 and
ending August 31, ****. Specifically, the ***** projected that the annual county tax bill would
be $3,887.87 and the annual homeowners insurance premium would be $1,004.16.
Correspondingly, the total disbursements for the escrow cycle beginning September 1, 2023 and
ending August 31, **** were calculated to be $4,892.03. The total projected escrow advances
divided by twelve (12) equals $407.66 per month and represents the required escrow payment
beginning September 1, 2023.
The reason escrow cushions are permitted is that from time to time, payments for escrow items
may become due in excess of funds available in the escrow account. Specifically, RESPA
authorizes a maximum escrow cushion not to exceed 1/6th (i.e., up to two (2) months of escrow
payments) of the total annual projected escrow disbursements made during an escrow cycle over
twelve (12) months unless state law allows for a lesser amount. Additionally, when the escrow
balance reaches its lowest point during the escrow cycle, that balance is targeted to be the 1/6th
escrow cushion amount (12 CFR 1024.17(c)(5)).
In light of the above, Carrington is authorized to collect no more than 1/6th of the total projected
escrow disbursement for the escrow cycle beginning September 1, 2023 and ending August 31,
****. The ************ cushion that Carrington may collect is $815.32 for this escrow cycle. As
shown on this *****, this escrow analysis resulted in an escrow shortage in the amount of
$937.20. For an explanation of how the escrow shortage is calculated, please refer to the next
section of the *****, below the Projected Escrow Activity from September 1, 2023 and ending
August 31, ****, and note the projected low point balance of negative $121.88 for ******* ****.
Looking at the next column for the same date under Required, please note that the low point
balance should be $815.32 (1/6th cushion).
As such, Carrington is collecting the shortage, which is the difference between the projected low
point balance of negative $121.88 and the required low point balance of $815.32, which equals
$937.20. This escrow shortage is being collected over a twelve (12) month period starting with
the September 1, *********************************************************** the amount of
$78.10. The following is a breakdown of the total payment in the amount of $1,518.30 beginning
September 1, 2023.

Principal and Interest Payment: $1,032.54
Escrow Payment: $ 407.66
Escrow Shortage: $ 78.10
Total: $1,518.30

On August 23, 2023, Carrington called your homeowners insurance carrier who advised that you
had a new homeowners insurance policy with *************************** for the policy term
of August 8, 2023 through August 8, **** with a policy premium due in the amount of $954.00.

On August 24, 2023, Carrington disbursed a payment in the amount of $954.00 from the escrow
account for the policy premium.
On August 30, 2023, Carrington received the homeowners insurance policy documents with
*************************** for the policy term of August 8, 2023 through August 8, ****.
On December 6, 2023, the property taxes were reported as due in the amount of $2,373.44.
Accordingly, on December 6, 2023 a payment in the amount of $2,373.44 was disbursed from the
escrow account for the property taxes.
On ******* 11, ****, Carrington received a call from you regarding the increase in the monthly
mortgage payment. During this call, you advised that the property taxes had decreased.
On ******* 12, ****, Carrington called you as a follow-up to your call on ******* 11, ****.
Carrington advised that the property taxes have been updated on the account and that a new
escrow analysis would be requested. Regrettably, the representative missed the opportunity
to submit the request for an updated escrow analysis. We sincerely apologize for any
inconvenience you may have experienced.
On February 1, ****, Carrington received a call from you as the escrow analysis had not been
completed. During this call, you were advised that an escrow analysis is scheduled to be
completed within February ****.
On February 2, ****, Carrington called Allstate and confirmed that a refund was issued due to
the cancellation of the homeowners insurance policy effective August 11, 2023. Allstate
confirmed that a refund in the amount of $932.86 was issued directly to you.
On February 2, ****, Carrington completed an out-of-cycle escrow analysis due to the property
taxes and homeowners insurance updates. That same day, Carrington sent you an *****. A
copy is attached for your ease of reference. The purpose of the ***** was to advise you of the
projected escrow activity for the escrow cycle beginning March 1, **** and ending February 28,
****. Specifically, the ***** projected that the annual county tax bill would be $2,373.44 and
the annual homeowners insurance premium would be $954.00. Correspondingly, the total
disbursements for the escrow cycle beginning March 1, **** and ending February 28, **** were
calculated to be $3,327.44. The total projected escrow advances divided by twelve (12) equals
$277.28 per month and represents the required escrow payment beginning March 1, ****.
Carrington is authorized to collect no more than 1/6th of the total projected escrow disbursement
for the escrow cycle beginning March 1, **** and ending February 28, ****. The ************
cushion that Carrington may collect is $554.56 for this escrow cycle. As shown on this *****,
this escrow analysis resulted in an escrow surplus in the amount of $1,487.05. The escrow
surplus was sent to you on February 2, **** via regular mail. The following is a breakdown
of the total payment in the amount of $1,309.82 beginning March 1, ****.

Principal and Interest Payment: $1,032.54
Escrow Payment: $ 277.28
Total: $1,309.82

Please note that Carrington completes the annual required escrow analyses for properties
in ***** in February of each year per RESPA. As such, an additional escrow analysis may
be completed this month.
Further, please note that the annual escrow analyses and payment adjustments are completed in
accordance with your mortgage loan agreement and applicable federal and state laws. It is
important to note that the annual escrow analysis is required by law, and payment adjustments
may be required from time to time to ensure proper accounting of escrow funds and to ensure
sufficient funds for projected disbursements for the payment of taxes and insurance bills. If you
wish to discuss the escrow account further, contact the Carrington **************** Department
at **************, Monday through Friday, from 8:00 AM to 9:00 PM, Eastern Time.
As of the date of this letter, your account is paid through the February 1, **** mortgage payment
and is next due on March 1, **** in the amount of $1,309.82. For your reference, attached please
find a loan payment history along with the transaction codes and definitions.
Based on the foregoing, we respectfully submit that we have properly addressed your concerns.
Carrington takes all customer inquiries and complaints very seriously, and we strive to address
all matters brought to our attention as timely as possible. We would like to thank you for bringing
this matter to our attention and allowing us the opportunity to address your concerns.
Furthermore, please know that Carrington remains committed to the highest customer satisfaction
standards and will continue to do the utmost to help our customers.
If you would like to discuss the administration of the loan further, we encourage you to contact
our **************** Department at **************, Monday through Friday, from 8:00 AM to
9:00 PM, Eastern Time.
Lastly, please be advised that pursuant to the ************************************ (CFPB)
guidelines, Carrington is required to suppress the reporting of loan and payment information to
the credit bureaus for a period of sixty (60) days after receipt of a qualified written request and/or
a Notice of Error.
We trust that this communication addresses all the concerns noted in the complaint. If you have
any further questions, please contact the undersigned at **************, Monday through Friday,
from 8:00 AM to 5:00 PM, Pacific Time.

Sincerely,
***********************
Customer Advocate
Customer response
02/15/2024

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution would be satisfactory to me. I will wait for the business to perform this action and, if it does, will consider this complaint resolved.

Regards,

***********************
Initial Complaint
12/28/2023
Complaint Type:
Service or Repair Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Apparently my mortgage payment was increased from $1,283.85/month to $1,496.80/month effective with my 9-1-23 payment. They state they mailed an escrow disclosure to me on 7-28-23 notifying me of the change, but I did not receive any notice. Please note that I have never had a late payment on my mortgage. I've always received notices of payment changes in years past and have adjusted my payment accordingly. Not knowing of this increase, I submitted my payment in the amount of $1,400 for my 9-1-23 payment, thinking that i was overpaying it by $116.15, which I usually do to try to pay the loan off quicker. Carrington did not apply my payment because it was actually $96.80 short (I was not aware). They did not contact me about this issue or return the payment to me. They held it as unapplied. When I submitted a $1,400 payment for my 10-01-23 payment, they took the shortage and finally applied September's payment, and then did not apply October's payment, or notify me. I have a credit monitoring service, and this was how I found out, when I saw a 30 day late payment appear on credit. I notified Carrington immediately, found out what happened and submitted the amount immediately to correct the situation. I disputed the late payment, since they could see I had indeed made my payment, and they did not notify me of any issues. They have denied the dispute to remove the late payment on my credit, stating that they called and left a voicemail on 9-20-23. When I asked what number they called, they gave me a number I did not recognize and have never used. I have had the same phone number since the loan originated, and it's clearly on my online profile as well. They acknowledge that they did not call my phone number and that it was a different number, but they still refuse to remove the late payment off my credit. Being that they didn't notify me of the payment change or issue to payment amount, I feel they should remove this late payment from my credit
Business response
01/30/2024
*********************
*** **************
******, ** *****
RE: **** **** **********
Borrower: *********************
Co-borrower: *****************************
Property Address: **********************************************************
**** ***: ********

Dear **************,

The **************************** of **********************, LLC ("Carrington") is in
receipt of your complaint filed with the Better Business Bureau ("BBB") and received in our office
on December 28, 2023. Carrington is committed to responsible lending and servicing, and we
would like to address any concerns you may have. The following is our response to the issue(s)
raised in the complaint.
At the outset, please note that Carrington's **************************** Support Department
("LAS") received inquiries on October 16, 2023, and November 20, 2023, which raises the same
issues as this current complaint. Accordingly, Carrington researched the loan, and a response
was sent to your attention on or about November 12, 2023, and December 20, 2023. In addition,
Carrington's **************************** received an inquiry on December 27, 2023, and a
response was sent to the ************************************ ("CFPB") on or about January
25, ****. Also, please note that while the above-referenced responses were previously provided
to you with documents to support the information provided in the letters, we are not attaching
another copy of the supporting documents to avoid unnecessary duplication efforts. For your
reference, attached please find copies of Carrington's responses to the previous inquiries.
After a thorough review of this instant complaint, Carrington is unable to identify any new issues
that have not been previously addressed in detail by Carrington as this complaint appears to be
substantially similar, or even identical to the complaints that Carrington previously addressed;
accordingly, no further response from Carrington is required.
Moreover, because we have now addressed these issues on multiple occasions, Carrington will
not respond to future correspondence raising substantially the same or identical claims.

2

Based on the foregoing, we respectfully submit that we have properly addressed your concerns.
Carrington takes all customer inquiries and complaints very seriously, and we strive to address
all matters brought to our attention as timely as possible. We would like to thank you for bringing
this matter to our attention and allowing us the opportunity to address your concerns.
Furthermore, please know that Carrington remains committed to the highest standards of
customer satisfaction and will continue to do the utmost to help our customers.
Lastly, please be advised that pursuant to the ************************************ ("CFPB")
guidelines, Carrington is required to suppress the reporting of loan and payment information to
the credit bureaus for a period of sixty (60) days after receipt of a qualified written request and/or
a Notice of Error.
We trust that this communication addresses all the concerns noted in the complaint. If you have
any further questions, please contact the undersigned at **************, Monday through Friday,
from 8:00 AM to 5:00 PM Pacific Time.
Customer response
02/01/2024
My argument with this is that the payment I made wasn't returned and Carrington did not contact me that there was an issue with my payment. They just held the payment I made as unapplied. It was a very small amount that it was short; I would have rectified this immediately had they returned payment to me or contacted me. Carrington stated that they did call me and left me a message. They told me the phone number they called. It is not my phone number, and I don't recognize the number. The second dispute I made with them was questioning why they did not call my phone number that they have on file. They have never addressed this issue. *********** with decent customer service would see this error and rectify the problem. This is the worst customer service experience I have ever had.
Initial Complaint
12/26/2023
Complaint Type:
Product Issues
Status:
Resolved
The complainant verified the issue was resolved to their satisfaction.
Your company required proof of insurance on my property. When the insurance was sent you stated you did not receive it so I had the proof emailed on 11/29/2023 to Insurance research @swbc.com since I'm covered.com seems to be a mysterious void of nothingness. The email was sent attention ****. I recieved another letter today again saying they have no proof of insurance. I sent three emails all forwarded from 11/29/2023 showing proof of insurance. I spoke to an agent to transferred me to ********* agent ID ***** who confirmed coverage would be effective and updated but had no explanation why the information was not updated on 11/29 even though she saw the email. She also said she can't give written explanations on why the business failed to update customer information. I want a written explanation on what happed to my email on 11/29/2023 that no one updated. This makes no sense for your company to cause me anxiety and stress due to incompetence. A written explanation doesn't seem like a big deal. That is my resolution request. Loan number **********
Business response
01/26/2024
***********************
******************************************************************************
RE: **** **.: **********
Borrower: **************************
Co-Borrower: ******************************************************** Address: ****************************************************************************
**** **** ********

Dear ************:
The **************************** of **********************, LLC (Carrington) is in
receipt of your complaint filed with the Better Business Bureau (BBB) and received in our office
via email on December 26, 2023. Carrington is committed to responsible lending and servicing
and we would like to address any concerns you may have. The following is our response to the
issue(s) raised in the complaint.
As we understand the complaint, you state that you received a notice from Carrington requesting
evidence of homeowners insurance. You further state that the evidence of insurance was sent;
however, Carrington advised that it was not received. Thereafter, the evidence of insurance was
emailed on November 29, 2023; however, you received another letter advising that evidence of
insurance was not received. You indicate that you sent three (3) emails, all forwarded from
November 29, 2023, reflecting proof of insurance. You further indicate that you spoke with an
agent who confirmed coverage was received and advised that the account would be updated.
Lastly, you state that the agent could not explain why the account was not updated on November
29, 2023. Your desired resolution is for Carrington to explain why the account was not updated
on November 29, 2023.
At the outset, the records reflect that your homeowners insurance policy expired on November
11, 2023. Because Carrington did not receive the renewal policy or evidence that you obtained
new coverage, the attached letter dated November 15, 2023 was sent to you requesting evidence
of insurance. After review of the account, we confirmed that the renewal policy was not received
until November 29, 2023. Specifically, Carringtons insurance vendor, Southwest Business
Corporation (SWBC), received your insurance agents email on November 29, 2023 providing
the renewal policy for the term November 11, 2023 to February 11, ****. Upon receipt of the
renewal policy, SWBC failed to update the account with the coverage information. As a result, the
attached letter dated December 15, 2023 was sent to you requesting evidence of insurance.
Carrington sincerely apologizes for any inconvenience you may have experienced due to this
matter.

2

On or about December 26, 2023, you contacted SWBC and advised that your insurance agent
previously emailed a copy of the renewal policy on November 29, 2023. Accordingly, the
representative confirmed the renewal policy was received and the account will be updated. Please
note that the account was updated on or about December 29, 2023 to reflect the current insurance
coverage. Attached for your reference is a copy of the renewal policy.
Based on the foregoing, we respectfully submit that we have properly addressed your concerns.
Carrington takes all customer inquiries and complaints very seriously and we strive to address all
matters brought to our attention as timely as possible. We would like to thank you for bringing this
matter to our attention and allowing us the opportunity to address your concerns. Furthermore,
please know that Carrington remains committed to the highest standards of customer satisfaction
and will continue to do the utmost to help our customers.
If you would like to further discuss the administration of the loan, we encourage you to contact
our *************************** at **************, Monday through Friday, from 8:00AM to
9:00PM, Eastern Time.
Lastly, please be advised that pursuant to the ************************************ guidelines,
Carrington is required to suppress the reporting of loan and payment information to the credit
bureaus for a period of sixty (60) days after receipt of a qualified written request and/or a Notice
of Error.
We trust that this communication addresses all of the concerns noted in the complaint. If you have
any further questions, please contact the undersigned at **************, Monday through Friday,
from 8:00AM to 5:00PM, Pacific Time.
Sincerely,
*********************
Customer Advocate
Customer response
01/26/2024

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution admits fault on the part of Carrington mortgage and their affiliates. I accept the response of fault.

Regards,

***********************
Initial Complaint
12/16/2023
Complaint Type:
Product Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Carrington Mortgage has the money of three claims (2013, 2014, and 2020) All of repairs are completed and they refuse to send my money.
Initial Complaint
12/15/2023
Complaint Type:
Service or Repair Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
I just closed on my home with Carrington. 1. I received mail and after mail asking for insurance proof. They were given multiple times the copy of the cashed check. When I called in to inquire about this, I was basically treated like garbage.The #1 above took me about 30 minutes to get someone given the phone number on the letter.2. The second problem that exists is the my monthly amount is 200 plus dollars more than my closing amount. When calling in to try to speak with someone on the phone - no one picks up.#2 above took me about 30 minutes to call in. Than the agent transferred and hung up on me.
Business response
01/18/2024
*********************
*************************************
******, ** *****
RE: **** **.: **********
Borrower: *********************
Property Address: ***************************************************************
**** **.: ********

Dear ****************,
The **************************** of **********************, LLC (Carrington) is in
receipt of your complaint filed with the Better Business Bureau (BBB) and received in our office
on December 18, 2023. Carrington is committed to responsible lending and servicing, and we
would like to address any concerns you may have. The following is our response to the issue(s)
raised in the complaint.
As we understand the complaint, you stated you recently closed on your home and received mail
requesting proof of insurance, which you have provided multiple times. You also stated that your
monthly mortgage payment is more than $200.00 than what you were advised at closing. You
expressed difficulty getting anyone on the phone and dissatisfaction with your experience when
you called in about the issues.
As a preliminary matter, the records indicate that the account originated on October 23, 2023, in
the amount of $551,812.00 in favor of Carrington Mortgage Services, LLC, evidenced by the
attached Note and Deed of Trust executed by you. When your loan originated, it was escrowed
for property taxes and homeowners insurance. The following is a breakdown of the total payment
at loan closing in the amount of $3,929.04

Principal and Interest Payment: $3,442.59
Escrow Payment: $ 486.45
Total: $3,929.04

The homeowners insurance premium paid at closing was in the amount of $3,459.39. *************************** was projected to be paid from the escrow account in the amount of
$3,459.39, next due in October ****. The attached initial escrow disclosure statement projected
to pay the property taxes from the escrow account in the amount of $1,189.05 due February ****,
and in the amount of $1,189.04 due June ****.
On November 16, 2023, a notice of cancellation was received for a homeowners insurance
policy with the cancellation effective November 16, 2023, which prompted the letter dated
November 20, 2023. This letter advised that your policy had expired, and we required

2

evidence that you had obtained coverage. A copy of this letter is attached for your
reference.
On November 17, 2023, a new homeowners insurance policy was received for the policy term of
November 1, 2023 through November 1, **** with a policy premium due in the amount
$3,486.66.
On November 24, 2023, Carrington completed an escrow analysis in accordance with the Real
Estate Settlement Procedures Act (RESPA) as it pertains to the yearly requirement for loans in
********. That same day, Carrington sent you an Annual Escrow Account Disclosure Statement
(*****). A copy is attached for your ease of reference. The purpose of the ***** was to
advise you of the projected escrow activity for the escrow cycle beginning January 1, **** and
ending December 31, ****. Specifically, the ***** projected that the annual county tax bill
would be $2,378.10 and the annual homeowners insurance premium would be $3,459.39.
Correspondingly, the total disbursements for the escrow cycle beginning January 1, **** and
ending December 31, **** were calculated to be $5,837.49. The total projected escrow advances
divided by twelve (12) equals $486.45 per month and represents the required escrow payment
beginning January 1, ****.
Please note that a mortgage servicer is permitted by law to collect an escrow cushion. An escrow
cushion is a minimum amount of money held in the escrow account to prevent the escrow balance
from being overdrawn. The reason escrow cushions are permitted is that from time-to-time
payments for escrow items may become due more than funds available in the escrow account.
Specifically, RESPA authorizes a maximum escrow cushion not to exceed 1/6th (i.e., up to two
(2) months of escrow payments) of the total annual projected escrow disbursements made during
an escrow cycle over twelve (12) months unless state law allows for a lesser amount. Additionally,
when the escrow balance reaches its lowest point during the escrow cycle, that balance is
targeted to be the 1/6th escrow cushion amount (12 CFR 1024.17(c)(5)).
In light of the above, Carrington is authorized to collect no more than 1/6th of the total projected
escrow disbursement for the escrow cycle beginning January 1, **** and ending December 31,
****. The ************ cushion that Carrington may collect is $972.90 for this escrow cycle. As
shown on this *****, this escrow analysis resulted in an escrow shortage in the amount of
$2,972.95. For an explanation of how the escrow shortage is calculated, please refer to the next
section of the *****, below the Projected Escrow Activity from January 1, **** and ending
December 31, ****, and note the projected low point balance of negative $2,000.05 for
November ****. Looking at the next column for the same date under Required, please note that
the low point balance should be $972.90 (1/6th cushion). As such, Carrington is collecting the
shortage, which is the difference between the projected low point balance of negative $2,000.05
and the required low point balance of $972.90, which equals $2,972.95. This escrow shortage is
being collected over a twelve (12) month period starting with the January 1, **** payment,
resulting in a monthly shortage collection in the amount of $247.74. The following is a breakdown
of the total payment in the amount of $4,176.78 beginning January 1, ****.
Principal and Interest Payment: $3,442.59
Escrow Payment: $ 486.45
Escrow Shortage: $ 247.74
Total: $4,176.78

3

Please note that the annual escrow analyses and payment adjustments are completed in
accordance with your mortgage loan agreement and applicable federal and state laws. It is
important to note that the annual escrow analysis is required by law, and payment adjustments
may be required from time to time to ensure proper accounting of escrow funds and to ensure
sufficient funds for projected disbursements for the payment of taxes and insurance bills. If you
wish to discuss the escrow account further, you may contact the Carrington Customer Service
Department at **************, Monday through Friday, from 8:00 AM to 9:00 PM, Eastern Time.
On or about November 27, 2023, it was found that a new homeowners insurance policy
was recently issued and that the homeowners insurance policy on file had a different
policy number than the policy number listed on the notice of cancellation received. As
such, Carrington removed the cancellation status on the account and updated the escrow
account with the correct homeowners insurance policy.
On December 15, 2023, Carrington received a call from you. In a review of the initial phone call
from this day, the representative you spoke with provided you with incorrect information, stating
you would need to speak with a mortgage lender to confirm the monthly mortgage payment
amount. Subsequently, the phone call ended abruptly when the representative advised that they
would connect you with a mortgage lender. The records do not reflect that the Carrington
representative terminated the call.
During a different phone call on December 15, 2023, you spoke with a representative who
reviewed the escrow account with you and processed payment in the amount of $3,000.00, which
was applied to the escrow account for the escrow shortage.
On December 18, 2023, Carrington completed an escrow analysis to account for the payment
made to the escrow account. That same day, Carrington sent you an *****. A copy is attached
for your ease of reference. The purpose of the ***** was to advise you of the projected escrow
activity for the escrow cycle beginning January 1, **** and ending December 31, ****.
Specifically, the ***** projected that the annual county tax bill would be $2,378.10 and the
annual homeowners insurance premium would be $3,459.39. Correspondingly, the total
disbursements for the escrow cycle beginning January 1, **** and ending December 31, ****
were calculated to be $5,837.49. The total projected escrow advances divided by twelve (12)
equals $486.45 per month and represents the required escrow payment beginning January 1,
****.
In light of the above, Carrington is authorized to collect no more than 1/6th of the total projected
escrow disbursement for the escrow cycle beginning January 1, **** and ending December 31,
****. The ************ cushion that Carrington may collect is $972.90 for this escrow cycle. As
shown on this *****, this escrow analysis resulted in an escrow surplus in the amount
of $2,999.99, which was sent to you via regular mail on or about December 18, 2023. The
following is a breakdown of the total payment in the amount of $3,929.04 beginning January 1,
****.

Principal and Interest Payment: $3,442.59
Escrow Payment: $ 486.45
Total: $3,929.04

In conclusion, the letter dated November 20, 2023 you received which advised that your
policy had expired and we required evidence you had obtained coverage was cancelled.

4

An updated escrow analysis was completed, and an escrow refund in the amount of
$2,999.99 was disbursed to you on or about December 18, 2023.
Please know that our customers can reach a Carrington loan counselor, customer service
representative, or other essential Carrington resource via phone, mail, or email. Specifically, our
customers can reach our *************************** by phone at **************, Monday
through Friday, from 8:00 AM to 9:00 PM, Eastern Time. However, Carrington is not open during
certain federal holidays, and therefore, borrowers would generally receive a voice recording that
states Carrington is closed in observance of the federal holiday.
As of the date of this letter, your account is paid through the February 1, **** mortgage payment
and is next due for the March 1, **** mortgage payment in the amount of $3,929.04. For your
reference, attached please find a loan payment history along with the transaction codes and
definitions.
We sincerely apologize for any inconvenience you may have experienced. Carrington takes all
customer inquiries and complaints very seriously, and we strive to address all matters brought to
our attention as timely as possible. We would like to thank you for bringing this matter to our
attention and allowing us the opportunity to address your concerns. Furthermore, please know
that Carrington remains committed to the highest customer satisfaction standards and will
continue to do the utmost to help our customers.
If you would like to discuss the loan administration further, we encourage you to contact our
*************************** at **************, Monday through Friday, from 8:00 AM to 9:00
PM, Eastern Time.
Lastly, please be advised that pursuant to the ************************************ guidelines,
Carrington is required to suppress the reporting of loan and payment information to the credit
bureaus for a period of sixty (60) days after receipt of a qualified written request and/or a Notice
of Error.
We trust that this communication addresses all the concerns noted in the complaint. If you have
any further questions, please contact the undersigned at **************, Monday through Friday,
from 8:00 AM to 5:00 PM, Pacific Time.
Sincerely,
***********************
Customer response
01/18/2024
The complaint was received here on 1/18/2024 - over a month past the original complaint to BBB. To get to a BBB complaint, the pain threshold was through the ceiling already.
Though, I appreciate the attempt at their gathering of information on the problem, they do not have multiple calls that I made in which I was hung up on due to the agent not being able to solve my problem. They did not comment on the multiple letters I received. The agents could not distinguish the difference between my ***** address at ******************************************* and my other address at *********************************************************
Multiple calls were made in which I was either on hold for hours and when answered disconnected.
The lady that attempted to solve my problems on the phone in late December did address some of the problems, but I was confused when I received a random check back for $2999.99 after paying $3000.00 to cover the miscalculated payment.
I am not confident that Carrington has resolved issues due to:
1. Having me pay $3000 for escrow coverage and than turning around and sending me 2999.99. ????
2. The amount of time it took Carrington to respond and address with the BBB complaint
3. The amount of calls I had to take (I estimate about 6+ hours of time total on phone trying to get ahold of anyone and/or speaking with someone).
Note: This is a VA loan.
Business response
02/20/2024
*********************
*************************************
******, ** *****
RE: **** **.: **********
Borrower: *********************
Property Address: ***************************************************************
**** **.: ********

Dear ****************,
The **************************** of **********************, LLC (Carrington) is in
receipt of your complaint filed with the Better Business Bureau (BBB) and received in our office
on January 18, ****. Carrington is committed to responsible lending and servicing, and we would
like to address any concerns you may have. The following is our response to the issue(s) raised
in the complaint.
At the outset, please note that Carringtons ******************* received your initial inquiry on
December 18, 2023, which raises the same issues as this current complaint. Accordingly,
Carrington researched the loan and responses were mailed to your attention on January 17, ****.
For your reference, I am attaching a copy of Carringtons response to your previous inquiry.
After a thorough review of the instant complaint, Carrington is unable to identify any new issues
that have not been previously addressed in detail as this instant complaint appears to be
substantially similar, or even identical to the complaint previously addressed by Carrington.
Please refer to the attached copy of Carringtons previous response dated January 17, **** as
a response to this instant complaint. Although Carrington is unable to identify any new issues that
have not been previously addressed, we want to provide additional information regarding your
concerns.
Regarding your concerns about your experience communicating with Carrington, please note that
our customers can reach a Carrington loan counselor, customer service representative, or other
essential Carrington resource via phone, mail, or email. Specifically, our customers can reach our
Customer ****************** by phone at **************, Monday through Friday, from 8:00
AM to 9:00 PM, Eastern Time. However, Carrington is not open during certain federal holidays,
and therefore, borrowers would generally receive a voice recording that states Carrington is
closed in observance of the federal holiday.
The complaint did not specify the date(s) when you called. Therefore, we encourage you to
provide specific details, such as the telephone number and date when you attempted to call
Carrington, for us to investigate further. You may submit specific details and additional information
in writing to expedite receipt of this information. You may send via fax to ************** or via
email to **************************************.

2

Regarding your concerns of the time it took for Carrington to respond to your BBB complaint,
please note that the BBB website advises that complaints are generally closed within thirty (30)
days. Your BBB complaint was received on December 18, 2023 and Carringtons response was
provided on January 17, ****. Carrington uses this time to research your concerns and provide
a response.
As of the date of this letter, your account is paid through the February 1, **** mortgage payment
and is next due on March 1, **** in the amount of $3,929.04. For your reference, attached please
find a loan payment history along with the transaction codes and definitions.
Based on the foregoing, we respectfully submit that we have properly addressed your concerns.
Carrington takes all customer inquiries and complaints very seriously, and we strive to address
all matters brought to our attention as timely as possible. We would like to thank you for bringing
this matter to our attention and allowing us to address your concerns. Furthermore, please know
that Carrington remains committed to the highest customer satisfaction standards and will
continue to do the utmost to help our customers.
If you would like to discuss the administration of the loan further, we encourage you to contact
our Customer ****************** at **************, Monday through Friday, from 8:00 AM to
9:00 PM, Eastern Time.
Lastly, please be advised that pursuant to the ************************************ guidelines,
Carrington is required to suppress the reporting of loan and payment information to the credit
bureaus for a period of sixty (60) days after receipt of a qualified written request and/or a Notice
of Error.
We trust that this communication addresses all the concerns noted in the complaint. If you have
any further questions, please contact the undersigned at **************, Monday through Friday,
from 8:00 AM to 5:00 PM, Pacific Time.
Sincerely,
***********************
Customer Advocate
Initial Complaint
12/14/2023
Complaint Type:
Billing Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
My mother and I are first-time homebuyers and our mortgage was sold/transferred to Carrington a few months ago in September/October. In November, I called to make our monthly payment, and the rep * informed me of a credit and asked if I wanted to use it for Novembers payment, after repeatedly asking and confirming that it was indeed a credit, I agreed to use it. I made a partial payment that day. It is December, I called to make my payment and was informed that my November payment was not received and I would have to pay both ******************** The representative was rude, talked extremely fast, and did not answer my questions. I was informed that I should not have received a credit, Carrington sent my payment to the wrong account and proceeded to hold me accountable for a mistake made by them. I escalated the call, and the rep in escalations, A seemed to give more insight, was a bit more patient, and all was supposed to be well. Supposedly, their system was not updated, but that is not my problem. Days after that call, we were sent an intent to foreclose, they reported us to the credit bureau & refused to send us any confirming documents. Our credit score decreased by 110 points. Again, all due to a mistake that Carrington made. We just want paperwork. They have no problem sending bills, emails, and making harassing calls, but will not give us what we need to have a record for ourselves. WE WANT DO*UMENTATION *ON*ERNING OUR PAYMENTS. We have no access to our information online yet. I have never heard of a company that does not give physical correspondence to the consumer.This is only one of the many issues we have with Carrington. The systems are never updated, you receive wrong information & the representatives are disrespectful. I started recording the calls to obtain proof of the constant lies and differing information we received. I cannot wait until we are done with them.
Initial Complaint
12/03/2023
Complaint Type:
Order Issues
Status:
Answered
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
We purchased our home in 12/2022. Recently our loan was sold to Carrington Mortgage. Friday 12/1/2023 they sent an updated escrow statement and are claiming we are 50% underfunded and are raising our mortgage rate $1200 effective 1/1/2024. This is insane and a gross misuse of power. We did not sign to do business with this lender and now theyve decided they want more in our escrow than a prior company and we feel they are trying to run us out of our home. Even though we have equity, they will not allow us to waive our escrow so we are just at the mercy of this company. To have our payment go up $1200 per month with only one months notice is predatory.
Business response
01/03/2024
*********************
**********************************************************************
RE: **** **.: **********
Borrower: ***************************
Co-borrower: ***********************
Property Address: ********************************************************************
**** **.: ********

Dear ****************,
The **************************** of **********************, LLC ("Carrington") is in
receipt of your complaint filed with the Better Business Bureau ("BBB") and received in our office
on December 4, 2023. Carrington is committed to responsible lending and servicing, and we
would like to address any concerns that you may have. The following is our response to the
issue(s) raised in the complaint.
As we understand the complaint, you state that Carrington acquired the servicing rights for the
mortgage account and allege ******************** stated that the escrow account was underfunded by fifty
(50) percent. Further, you allege that the monthly mortgage payment is increasing effective with
the January 1, **** mortgage payment. Furthermore, you are expressing interest in removing
the escrow account. Your desired resolution is for Carrington to adjust the monthly mortgage
payment amount.
On or about October 10, 2023, Carrington sent the enclosed Notice of Servicing Transfer advising
the servicing of the mortgage loan was transferred from ********************* to Carrington,
effective October 3, 2023. Please note that loan servicing transfers are common in the industry,
and the servicing rights may be transferred to another company to service the loan; however, the
servicing transfer does not change the terms of the loan documents. As the current servicer for
this loan, Carrington is obligated to service the account according to the terms of the loan
documents and applicable federal and state laws.
Carrington acquired the loan with a total monthly mortgage payment comprised of principal,
interest, taxes, and insurance ("PITI") payment in the amount of $4,447.90. The escrow portion
of the total monthly mortgage payment was in the amount of $1,644.45.
Specifically, Carrington acquired the loan with homeowners insurance policy ending in **** and
next due in December 2023 with an annual premium in the amount of $9,071.00, flood insurance
policy ending in **** next due in December 2023 with an annual premium in the amount of

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$2,197.00, annual county taxes next due in December 2023 in the amount of $4,072.61, annual
school taxes next due in December 2023 in the amount of $5,867.97, and annual special taxes
for water next due in December 2023 in the amount of $1,368.81.
The records indicate on or about October 3, 2023, Carrington received a policy change for
homeowners insurance policy ending in **** from **************************** Company with
an annual premium in the amount of $9,071.00 for a coverage term of December 16, 2022 through
December 16, 2023.
The records indicate on or about November 3, 2023, Carrington received a renewal policy for
homeowners insurance policy ending in **** from **************************** Company with
an annual premium in the amount of $10,601.00 for a coverage term of December 16, 2023
through December 16, ****. Subsequently, on or about November 6, 2023, Carrington disbursed
the annual homeowner's insurance policy premium from the escrow account in the amount of
$10,601.00.
In November 2023, Carrington's insurance vendor, ****************************** ("SWBC"),
made several attempts to verify the annual flood insurance policy premium for policy ending in
**** with ****** ******************************** via fax and telephone, as the premium
online only reflected the annual premium amount to renew the policy in the amount of $2,220.00.
SWBC was unsuccessful in reaching the insurance carrier. Subsequently, on or about November
23, 2023, Carrington disbursed the annual flood insurance premium from the escrow account in
the amount of $2,220.00.
A review of the records determined that on or about November 30, 2023, Carrington completed
an escrow analysis in accordance with the *********** Settlement Procedures Act ("RESPA") as
it pertains to newly acquired loans. That same day, Carrington sent the attached Annual Escrow
Account Disclosure Statement ("*****") to you. The purpose of the ***** was to advise of
the projected escrow activity for the escrow cycle beginning January 1, **** and ending
December 31, ****. More specifically, the ***** projected that the annual homeowners
insurance premium would be in the amount of $10,601.00, the annual flood insurance premium
would be in the amount of $2,220.00, the annual county taxes would be in the amount of
$4,072.61, the annual school taxes would be in the amount of $5,867.97, and the annual special
taxes would be in the amount of $1,368.81. Correspondingly, the total disbursements for the
escrow cycle beginning January 1, **** and ending December 31, **** were calculated to be
$24,130.39. The total projected escrow advances divided by twelve (12) equals $2,010.86 per
month and represents the required escrow payment beginning January 1, ****.
Please note that a mortgage servicer is permitted by law to collect an escrow cushion. An escrow
cushion is a minimum amount of money held in the escrow account to prevent the escrow balance
from being overdrawn. The reason escrow cushions are permitted is that from time to time,
payments for escrow items may become due in excess of funds available in the escrow account.
Specifically, RESPA authorizes a maximum escrow cushion not to exceed 1/6th (i.e., up to two
(2) months of escrow payments) of the total annual projected escrow disbursements made during
an escrow cycle over twelve (12) months unless state law allows for a lesser amount. Additionally,
when the escrow balance reaches its lowest point during the escrow cycle, that balance is
targeted to be the 1/6th escrow cushion amount (12 CFR 1024.17(c)(5)).

3

In light of the above, Carrington is authorized to collect no more than 1/6th of the total projected
escrow disbursement for the escrow cycle beginning January 1, **** and ending December 31,
****. The total escrow cushion that Carrington may collect is $4,021.72 for this escrow cycle.
As shown on this *****, this escrow analysis resulted in an escrow shortage in the amount of
$10,545.50. For an explanation of how the escrow shortage is calculated, please refer to the next
section of the *****, below the Projected Escrow Activity from January **** through December
****, and note the projected low point balance of negative $6,523.78 for January ****. Looking
at the next column for the same date under "Required," please note that the low point balance
should be $4,021.72 (1/6th cushion). The shortage is the difference between the projected low
point balance of negative $6,523.78 and the required low point balance of $4,021.72, which
equals $10,545.50. The following is a breakdown of the total payment in the amount of $5,693.10
beginning January 1, ****.

Principal and Interest Payment: $ 2803.45
Escrow Payment: $ 2010.86
Escrow Shortage Payment: $ 878.79
Total: $ 5693.10

It is important to note that the annual homeowner's insurance premium increased from
$6,227.04 to $10,601.00 and the annual flood insurance premium increased from $2,197.00
to $2,220.00, which attributed to the overall monthly mortgage payment increase from
$4,447.90 to $5,693.10.
Please note that federal law requires escrow accounts to be analyzed at least once a year or
more frequently, as needed. Payment adjustments may be required from time to time to ensure
proper accounting of escrow funds and to ensure sufficient funds are available for the payment of
taxes, if applicable, and insurance premiums when they become due. As mentioned above, after
Carrington performed the escrow analysis, there was an escrow shortage and therefore, the
overall monthly payment increased to cover the escrow shortage and the projected escrow
payments. Accordingly, Carrington is unable to change the monthly payment.
The records indicate on or about December 1, 2023, Carrington received a renewal policy for
flood insurance policy ending in **** from ****** ******************************** with an
annual premium in the amount of $2,195.00 for a coverage term of December 9, 2023 through
December 9, ****.
On or about December 4, 2023, annual special taxes for the water were disbursed from the
escrow account in the amount of $1,616.56.
The records indicate on or about December 4, 2023, you requested that the escrow shortage be
spread out over a more extended period.
On or about December 7, 2023, annual county taxes were disbursed from the escrow account in
the amount of $4,913.64.
A review of the records determined that on or about December 11, 2023, Carrington completed
an out-of-cycle escrow analysis, per your request. That same day, Carrington sent the attached
***** to you. The purpose of the ***** was to advise of the projected escrow activity for the

4

escrow cycle beginning February 1, **** and ending January 31, ****. More specifically, the
***** projected that the annual homeowners insurance premium would be in the amount of
$10,601.00, the annual flood insurance premium would be in the amount of $2,195.00, the annual
county taxes would be in the amount of $4,913.64, the annual school taxes would be in the
amount of $5,867.97, and the annual special taxes would be in the amount of $1,616.56.
Correspondingly, the total disbursements for the escrow cycle beginning February 1, **** and
ending January 31, **** were calculated to be $25,194.17. The total projected escrow advances
divided by twelve (12) equals $2,099.51 per month and represents the required escrow payment
beginning February 1, ****.
In light of the above, Carrington is authorized to collect no more than 1/6th of the total projected
escrow disbursement for the escrow cycle beginning February 1, **** and ending January 31,
****. The ************ cushion that Carrington may collect is $4,199.02 for this escrow cycle.
As shown on this *****, this escrow analysis resulted in an escrow shortage in the amount of
$10,932.84. For an explanation of how the escrow shortage is calculated, please refer to the next
section of the *****, below the Projected Escrow Activity from February **** through January
****, and note the projected low point balance of negative $6,733.82 for January ****. Looking
at the next column for the same date under "Required," please note that the low point balance
should be $4,199.02 (1/6th cushion). The shortage is the difference between the projected low
point balance of negative $6,733.82 and the required low point balance of $4,199.02, which
equals $10,932.84. The following is a breakdown of the total payment in the amount of $5,206.65
beginning February 1, ****.

Principal and Interest Payment: $ 2803.45
Escrow Payment: $ 2099.51
Escrow Shortage Payment: $ 303.69
Total: $ 5206.65

Please note the ***** reflects the escrow shortage in the amount of $10,932.84, which
will become part of your payment and will be collected for thirty-six (36) months from
February 1, ****. The records indicate the annual county taxes increased from $4,072.62
to $4,913.64 and the annual special taxes for water increased from $1,368.81 to $1,616.56,
which attributed to the overall escrow shortage increase from $10,545.50 to $10,932.84.
On or about December 14, 2023, annual school taxes were disbursed from the escrow account
in the amount of $6,302.01.
Notwithstanding the above, please note that if the mortgage account is current, you can request
to cancel a portion of the escrow account. If you wish to cancel the homeowners insurance,
county tax, special tax, and school tax portion of the escrow account, you can submit a signed
written request via regular mail to Carrington Mortgage Services, LLC, Attention: Escrow
Department, P.O. Box ****, *********, ** ***** or via fax to **************. Please note that
the property is in a required flood zone, and the flood insurance portion of the escrow account is
required to remain as an item disbursed through your escrow account.
Based on the foregoing, we respectfully submit that Carrington properly serviced the loan and
performed escrow analyses, as needed, in accordance with applicable law. As of the date of this

5

letter, the loan is paid through November 2023 and is contractually due for the December 1, 2023
mortgage payment in the amount of $4,447.90. Enclosed is a loan payment history along with the
transaction codes and definitions.
Carrington takes all customer inquiries and complaints very seriously, and we strive to address
all matters brought to our attention as timely as possible. Furthermore, please know that
Carrington remains committed to the highest standards of customer satisfaction and will continue
to do the utmost to help our customers.
If you would like to further discuss the administration of the loan, please contact our ****************************** at **************, Monday through Friday, from 8:00 AM to 9:00 PM,
Eastern Time.
Finally, please note that pursuant to the ************************************ ("CFPB")
guidelines, Carrington is required to suppress the reporting of loan and payment information to
the credit bureaus for a period of sixty (60) days after receipt of a Qualified Written Request and/or
Notice of Error.
We trust that this communication addresses all of the concerns noted in the complaint. If you have
any further questions, please contact the undersigned at **************, Monday through Friday,
from 8:00 AM to 5:00 PM, Pacific Time.

Sincerely,
***************************
Customer Advocate

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