Consumer complaint received 2018-05-28
Company: Ocwen Financial Corporation
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
Dear I am writing this letter to you because our mortgage company Ocwen had once again mishandled our hazard flood insurance. Once again costing us more money. Ocwen services our mortgage including paying our home owners insurance, taxes and hazard insurance. Two years ago they had allowed our flood policy to lapse. Theyve done this after Ive repeatedly had called them to let them know it was due. Ive even had them on a three way call with my insurance agency XXXX at least two times. They had informed XXXX and me that the payment was being shipped out, just to find that it wasnt. 

Because of their unwillingness to pay our flood insurance my policy had lapse and causing me to lose my prefer status with the insurance agency. This had caused my flood policy to skyrocket from {$400.00} per year to over {$3800.00} per year. This had caused tremendous emotional and financial pain to my fiance and myself. Not only have this caused me to pay a higher flood policy, but it had caused a domino effect financially. Because of the enormous increase of the flood policy, this had caused a shortage in our escrow account. The shortage in our escrow account had caused our mortgage payment to increase, not once but three times. 

Ironically after Ocwen had allowed our flood policy to lapse I had start receiving email to sign up for Ocwen Flood Insurance. 

Every time that we had called Ocwen about our problem we get a run a round. Everyone have a different story, and nobody knows what the las representative and said or even told us. 

This past XX/XX/XXXX we was forced to shop around for a new flood policy because the cost of our current policy increases every year. We had found XXXX XXXX XXXX XXXX. They had a much better policy then our current carrier. We had notified Ocwen about the change. Once again Ive had Ocwen and the insurance agency on the phone together gathering any information that they had needed. They had confirmed that they will be sending XXXX XXXX XXXX a check. Sadly in XX/XX/XXXX Ive received a letter from the insurance company for non-payment of the flood policy. Once again they had failed us. 

When I called Ocwen about this issue I was told that they had not received a request for payment from XXXX XXXX XXXX and that they had paid our former insurance agency on XX/XX/XXXX. I was told that the representative would call me back the next day but they did not. I had to call then back. I was connected with a different representative. After going back and forth with the representative she had told me that she was able to find some documents for my new insurance agency but they wasnt signed by the agency or myself. I told her that was impossible and asked if she could forward that to me. She had reply that she couldnt. 

On XX/XX/XXXXnIve had spoken with XXXX from Ocwen and was told that he doesnt know why my previous flood carrier was paid on XX/XX/XXXX when he can clearly see that my new policy with XXXX XXXX XXXX was active as of XX/XX/XXXX. 
When Ive asked if I can pay my flood policy myself, they told me no. It have to be in escrow. Then they fail to pay it again. 

I have to say that I am convince that this is being done deliberately or Ocwen is just incapable of performing their job as a mortgage servicer. They had caused me so much money and acts as its not a problem. 

Will you please inform me what recourses that I may have including legal to resolve this issue? By law Ocen had failed us by mishandling our hazard insurance. 

Mishandled hazard insurance : If a servicer administers an escrow account for a borrower, a servicer must make timely insurance and/or tax payments on behalf of the borrower. Ocwen, however, has allegedly failed to make timely insurance payments to pay for borrowers home insurance premiums. Ocwens failures led to the lapse of homeowners insurance coverage for more than 10,000 borrowers. Some borrowers were pushed into force-placed insurance.

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