I refinanced about a year ago, and the terms of my new loan do NOT require any mortgage insurance (PMI).  Despite this fact, I recently discovered that my bank has been withdrawing about $XXXX a month from my escrow account for the past twelve months.  And - based on the statement they mailed to me last month - they planned to continue to do so for another year (or longer - as long as they could get away with it, I presume).

(Like most escrow accounts, my escrow account is supposed to be used for home insurance and county taxes.  According to my statements, these payments appear to have been paid out correctly.)

When I called the bank, I was told that they couldn't just return my money and stop any future withdrawals.  Instead, they added a "replacement reserve" entry to my monthly payment, a credit which matches my "mortgage insurance" entry that just started appearing on my statement.  (Neither of these items were on my statement until this month's bill.)  Additionally, I have a XXXX new item on my statement - a "shortage" of about $XXXX.  That's right - my bank wants *me* to make up for the XXXX shortfall in my escrow account, a situation that *they* caused by incorrectly withdrawing my money!

The only reason there is a shortage at all is because of their incorrect withdrawals (last year) combined with their estimates for the coming year (which they shouldn't be doing in the first place), which together cause the "projected" balance to drop below the required minimum.

(I'm aware that my taxes and house insurance have risen slightly.  But this should only raise my payment by about $XXXX per month, not $XXXX.)

I've tried talking with multiple bank representatives, and they've explained the "replacement reserve", but they don't seem to be able to remove the so-called "shortage".  I've been told to just pay the extra XXXX shortage this month, and that the PMI would be removed next month, but I've already been told a bunch of things that didn't happen to this point (including that this would already be fixed by now).