Consumer complaint received 2022-02-15
Company: Ocwen Financial Corporation
State: CO
Product: Mortgage
Sub-product: Reverse mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX Complaining Party : XXXX XXXX as the Personal Representative of the XXXX XXXX XXXX XXXX XXXX XXXX : Ocwen Financial Corporation XXXX # XXXX and PHH Mortgage NMLS # XXXX Contacts at the Company that I have already emailed separate letters to on XXXX : Ocwen Financial Corporation XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX, Florida XXXX Attn : XXXX XXXX, President and CEO Attn : XXXX XXXX, Executive VP and CFO Attn : XXXX XXXX XXXX, Executive VP and General Counsel Attn : XXXX XXXX XXXX, Executive VP and Chief Servicing Officer XXXX XXXX Mortgage 1 Mortgage XXXX XXXX XXXX, NJ XXXX Attn : XXXX XXXX XXXX and CEO PHH Mortgage Corporation Loss Draft Department XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Texas XXXX XXXX : PHH Loan XXXX Loan Skey XXXX Claim XXXX XXXX XXXX XXXX XXXX, Colorado XXXX XXXX : XXXX XXXX To Whom It May Concern : Please take this as a formal complaint against Ocwen Financial and PHH Mortgage XXXX I have been trying to get this loan paid off now since XX/XX/XXXX ( for 26 days now ), when I sent an insurance check I had received from Travelers Insurance which was made payable to the Estate of my Father, to myself ( the undersigned ) and to Reverse Mortgage ( the Note Holder PHH is the servicer ). We sent in the requisite paperwork which was received by the Loss Draft Department at PHH ( on XX/XX/XXXX ) along with the endorsed check for {$540000.00} The approximate loan payoff to PHH is {$440000.00}, so there is approximately {$100000.00} which would come back to me and my family after the PHH loan was paid off. We had been told that it would take between three and five business days to process the payoff. 
The insurance check was the result of a tragic fire in XXXX Colorado on XX/XX/XXXX which saw over 1000 homes burn to the ground. Incidentally, President Biden toured the area the next week and the fire was declared to be a federal disaster. My fathers home burned down in that fire at XXXX XXXX XXXX in XXXX, Colorado. So, there was approximately {$100000.00} which would go back to my family after the loan was paid off we desperately need these funds. 
I am the daughter of the borrower. His name was XXXX XXXX XXXX. He passed away in XX/XX/XXXX and I was appointed under Colorado law as the Personal Representative of the Estate. My family had the property under contract to sell when the tragic fire occurred. 
As I said, we sent all the required paperwork and check in to the PHH Loss Draft Department by overnight service, which arrived and was signed for on XX/XX/XXXX. When we checked back ten days later, on XX/XX/XXXX we were told by the Loss Draft Department that they had not even processed the payoff and that it would be up to an additional 30 days until the payoff was processed. Further, we were told that we would not earn interest on the overage and that the underlying loan would remain accruing interest until the payoff was processed even though PHH had the payoff check in hand. We were not allowed to speak with a supervisor or anyone else that day.

As you can imagine, this was not acceptable news and it seemed that it would be 40 days until we would receive the balance of the funds and to have the loan paid off. That just didnt seem right or proper or fair, plus PHH was charging interest on the loan when it had the payoff funds in hand and was not allowing interest to be earned on the overage funds no matter how long it took for PHH to respond. So on XX/XX/XXXX, I called the Loss Draft Department at PHH again and got no answers or information which we could rely on. It was a big blank I dont know from everyone we spoke with. We asked to speak with supervisors and were told none were available. We insisted and were transferred to XXXX XXXX ( XXXX ) that day who told us he would be our point of contact and that he would personally reach out to his counterpart in the Loss Draft Department named XXXX XXXX. Now, eight days later, we have not heard back from XXXX XXXX or XXXX XXXX despite leaving two messages each successive day with XXXX XXXX voice mail. Last Friday XX/XX/XXXX, I sent emails with a letter and back up materials to ALL people listed in this complaint, even now, much to my despair, not ONE HAS RESPONDED.

This matter is hard enough without the cooperation from Ocwen or PHH. The house burned to the ground and we cant even get the loan paid off and get the balance of our funds back. We really need these funds from this tragic event. No one at PHH or Ocwen in any department is willing to take this on to get this resolved timely. 
I have waited long enough, please take this letter as a formal complaint against Ocwen and PHH for their delays, for not paying the loan off timely when it had the funds, for still charging interest to the loan when it had the payoff funds, for not allowing the approximately {$100000.00} to earh interest in this interim and to act negligently slowly in responding and processing this payoff. This matter has been at PHH now for 26 days with no response or action taken, this is unacceptable in any situation, but really unacceptable when this is the result of a tragic fire. 

Here is what I request please : -A person ( one person ) who will be our contact until the loan is paid off and will answer the phone when called or call us back and that we can reach by email who will timely respond back to us. 
-Immediate payoff of the loan in its entirety with a copy of the paid note and release of deed of trust sent to us as well immediately. 
-The payoff of the Reverse Mortgage loan to be dated as of XX/XX/XXXX, with interest stopping to accrue on the loan as of that date. This was the date PHH received the funds for the payoff. 
-The balance of the funds from the insurance check, with interest at a reasonable rate ( approximately {$100000.00} ) sent by overnight mail to the address below, with us being provided the tracking number also. 
We request that in a check which is sent back to us immediately made payable to The Estate of XXXX XXXX and XXXX XXXX. PLEASE DO NOT MAIL THE CHECK BACK TO THE PROPERTY, THERE IS NO MAIL SERVICE THERE SINCE THE HOUSE BURNED DOWN. The address for mailing that check back to me is as follows please : Estate of XXXX XXXX XXXX XXXX, Personal Representative XXXX XXXX XXXX  XXXX XXXX, Colorado XXXX Very truly yours, Estate of XXXX XXXX. 


By : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation