If I knew after refinancing to a lower rate, my mortage would end up with Bank of America,I would have refused the loan or stay with my old mortgage company. My prior mortgage company was Pennsylvania Housing Finance Agency (PHFA).
I was very happy with their service, with the website, online bill pay...They paid my insurance and property tax ontime even when there was insufficient fund in the escrow account. Escrow account is setup to accrue 1 year of insurance and property tax in 12 monthly payments. However, the insurance and property tax bills come couple of months before due dates. With property tax, I would receive 2% discount if I pay the bill early in full during the discount period, which mean I would not have enough fund in the escrow account to pay the bills.
PHFA paid the bills anyway and never charged me a penny, then collected the fund from the monthly payments. PHFA paid interest on my escrow account, not a whole lot but it showed PHFA did not rip me off by withhholing thousand of dollars without paying interest. With bank of America, there is no interest paid on the account. Now, this is what pissed me off.
Starting next year 2012, Bank of America will start withholing an additional 16% above the total amount that would require to pay my insurance and property tax annually (about $3,400), again no interest will be paid on this amount, $544 a year. So Bank of Americal witholds close to $4,000 from me without paying a penny in intertest. Their reason: Federal allows us to withhold additional fund as reserve.
This is a good example of Corporate Greed! Everyone, feel free to repost my comment on other site.
Product or Service Mentioned: Bank Of America Mortgage.