Complaint Review: Roundpoint Mortgage Servicing Corporation

I made a $4000 payment last month.  My required monthly payment is $1954.  Instead of crediting the extra payment amount to the principle balance, they doubled my interest (my interest payment went to $1910.60 - which, obviously, if that were my monthly interest payment, I would never make any progress on this loan, with the escrow), and doubled my escrow contribution.  This receipt says my next payment is due in January, so - what they did is treat this payment as if it were this month's payment, and then next month's payment sent next month.  My contribution to principle was merely doubled, just as if it were two payments a month apart.

This is illegal and violates the terms of the mortgage.  The terms say that there is no prepayment penalty, but effectively doubling my monthly interest rate is a substantial penalty.  I will be seeking legal assistance if they do not correct this immediately, tomorrow.  I am extremely upset by this outright duplicitous practice.

Imagine if I did not carefully inspect my payment receipt - I could proceed in full faith as if my extra payments were having the desired effect, when, really, the only effect they would ever have would be to double my monthly interest rate.  These clowns ought to be investigated.  Who knows how many homeowners out there are currently being taken to the cleaners, and by the time they find out, they'll have no legal recourse.