5 Year Escrow Problem Customer

We have an HPML loan subject to the 5 year escrow rule. After our most recent analysis, the customer is claiming we’re stealing his money and there’s no way he owes us the $900 that his account is short (even though his insurance went up causing the shortage). He is unwilling to listen to any explanation about the account and is even going to other banks asking them questions and complaining about us.

Anyone have any suggestions on anything we can do other than getting a time machine and going back and denying the loan? I’ve suggested going to another bank and refinancing the loan, but I don’t think that’s really an option.

Is there any provision that says we don’t want you as a customer any longer and can close the escrow from the loan?

As the old tuna ad goes, "Sorry, Charlie." You're stuck, and he's stuck with the payments as you have calculated them. Just be very sure that your escrow analysis is accurate. If he doesn't come around, you will end up with a collection account and worse, perhaps. Make sure you document everything in case he files a complaint, and be prepared to handle error claims.