Consumer complaint received 2023-12-27
Company: Ocwen Financial Corporation
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Trying to communicate with the company to fix an issue while managing or servicing your loan

Complaint:
XX/XX/XXXX  my daughter noticed that my mortgage payment was extremely high ( {$1300.00} ). After investigating she came to the conclusion, that my homeowners insurance company ( XXXX XXXX ) had been steadily increasing my yearly premium. Basically, price gouging for no apparent reason. This was in turn caused me to have a Escrow Shortage with PHHXXXX XXXX XXXX. This also, prompted my daughter to contact XXXX XXXX request a refund, cancel the policy and replace it with another company. She decided to bundle our car insurance and homeowners together, it is paid out of our joint account so this way we can be assured that this new company wont increase the yearly renewal without us being made aware ahead of time. 

On XXXX XXXX, XXXX, I spoke with XXXX ( ID # XXXX ) to make PHH Mortgage/XXXX XXXX  aware of the Homeowners Insurance change and upload the necessary supporting documents. I inquired about the escrow shortage amount, I also was informed that an escrow account was NOT required on my account and after paying the shortage I should submit an " Escrow Removal Request Form '' to close escrow. 

On XXXX XXXX, XXXX, I paid {$2600.00} towards the Escrow Shortage. 

On XXXX XXXX, XXXX  I paid {$1300.00} to PHH/XXXX XXXX. the new mortgage payment amount. 

The breakdown would be ( per PHH/XXXX XXXX ) {$560.00} towards principal and interest & {$810.00} to the escrow account. ( {$1300.00} ) Out of the amount of {$810.00} : {$670.00} was paid to the my County for the FINAL payment of my XXXX Real Estate Taxes. This left a positive balance of {$150.00} left in escrow. 

Having paid all of the required payments and cured the escrow shortage to a positive balance of {$150.00}, I submitted the an Escrow Removal Request Form and requested a Mortgage Payment Analysis ( I'm on a Fixed income and the payment is too high, especially since {$810.00} will be sitting in an open escrow account for up 6  months. and may daughter and I are paying Taxes and Insurance out of our joint checking account on a monthly basis ) ( XXXX XXXX XXXXXXXX ) Since submitting the Escrow Removal Request Form and Mortgage Payment Analysis I have received 3 Denial Letters from PHH/XXXX XXXX saying that they can not Close the Escrow Account or do a new Mortgage Analysis. Now the reason is being used that the Loan-To-Value ( LTV ) is greater that 80 %. The amount owed on my mortgage is {$110000.00}. 

Printed on EACH of PHH/XXXXXXXX XXXX statements at the top my Average Home Value started at : {$220000.00} on XXXX XXXX, XXXX  {$210000.00} on XXXX XXXX, XXXX  {$210000.00} on XXXX XXXX, XXXX  NONE of these amounts were changed until I submitted the Escrow Removal Request Form. This company is deceptive and disorganized! I am being discriminated against because of my race, XXXX  & familial status ( Widow ) and because I'm on a fixed income. 

This is a Violation of the Virginia  Fair Housing Law 36-96.1.1. 

Even using the County Assessment value of my home at {$150000.00} I am still NOT at an 80 % Loan to Value. 

I've called PHH/XXXX XXXX and spoken with several " SO CALLED '' Escalation Managers : XXXX ( XXXX ), XXXX ( XXXX ), XXXX  ( XXXX ) and they are absolutely NO HELP at all. They will NOT let me speak what the Escrow Team Directly and I've sent over supporting documents and I CAN NOT get any type of resolution at all. My late Husband and I promised each other that we would leave this house to our grandchildren and PHH/XXXX XXXX is making it so difficult to close the escrow so I can focus on paying our home off. 

I feel that I am stuck with them! I have recently found out that my Mortgage is not listed on my credit report, which in turn makes it difficult for me to Refinance my loan with another company. Is so unfortunate that a XXXX year old widow on a fixed income should have to go thru this and have my house in jeopardy over something so simple. I call and continually get the run around and they keep changing the rules. 

I have attached ALL SUPPORTING Documents pertaining to this matter. I hope to get a resolution. 

Thank you for your time.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation