15 March 2008
Why the mortgage industry is in trouble
Two words: dubious math.
I am advised by the folks who hold my note yes, George Kaiser, I'm looking at you that my "account has gone through an escrow analysis cycle" and their projected expenditures for the upcoming twelve months will deplete the funds in escrow by a total of eight cents. To compensate for this deficiency, they are raising my monthly payment by $1.80.
In actuality, I think they've slightly underestimated my property taxes for the year, so I'm not going to send off one of my famed Letters of Protest. Still, there remains annoyance at slightly above vestigial levels, due to the fact that they're getting 0.3x, where x equals the actual principal-plus-interest payment, to screw around with for several months before they actually cut checks to the county and the insurance agent.Posted at 10:40 AM to Common Cents