Escrow is typically for Taxes and Insurance. Did you local property taxes increase? Also, you can shop for a better homeowners insurance policy if that rate has increased. The lender should be able to tell you why the increase. They could have underestimated escrow in the first year and are trying to catch you up on Escrow payments now. Get your closing documents out and review the HUD settlement statement for the cost they calculated there. - Also - from the HUD website - http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respa_hm - If you are a consumer with a question or complaint related to your mortgage or mortgage servicer, please call at (855) 411-2372 (or (855) 729-2372 TTY/TDD), or by fax number (855) 237-2392, or contact the CFPB’s Consumer Response team.