My home loan was with GMAC, and in November it was sold to Midland Mortgage. Today a new coupon booklet arrived showing that my payment goes up in April.
When I phoned Midland, I was told the rise was likely caused by insurance or property taxes. I checked both and neither had gone up, so I dug deeper. It turns out I must keep a cushion of two extra months of escrow on deposit, at every moment, on top of the regular escrow. I asked the representative the reason, and he answered that it is simply company policy. When I asked whether I would earn interest on that money, he said he did not know. He wondered if my former lender had paid me interest, and I replied that it had, whenever it held such funds. GMAC mailed me a check for any excess, so the situation never came up.
Because my loan began in Texas and then moved to Midland in Oklahoma, I do not know how the rules apply across two states, so I am seeking legal advice.
I will post an update.
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