NFCU Mortgage Refinance And Escrow Accounts

I've been an NFCU customer since I was 8 years old - I opened my first account with birthday money. In the 33 years since then, I have been a loyal NFCU customer (mortage, car, banking), but my latest interaction with NFCU has left a bad taste in my mouth.

I am currently applying for a mortgage refinance with NFCU, and I have been informed that my existing NFCU mortgage escrow account will be used to pay down my existing loan, and that I am therefore on the hook to pay for the taxes and insurance that would have normally been paid with the escrow money.  I was also informed that it was not possible to roll the existing escrow money from my old mortgage account into the new account.

I have no credit issues, no defaults, no short sales, no liens - the property is as clean as it gets, as is my credit history.

Does anyone else have any experience with NFCU refinance processes ? Is this normal ? It seems to me like I'm paying NFCU for the privilege of using my escrow account to give themselves two extra interest paymnents. Am I better served by refinancing with another financial institution and just getting NFCU to cut me a check for the escrow money ?

TIA for any information.