Consumer complaint received 2017-06-11
Company: Ocwen Financial Corporation
State: NV
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
The companies : XXXX XXXXAmerican Home/Ocwen The following events show the predator activities that have impacted our mortgage : In late XX/XX/XXXX, we  negotiated to refinance at a 4 % rate with XXXX XXXX, primarily to avoid a balloon interest increase by XXXX XXXX from 7.6 % to 9.7 %. We were told that in order to increase our credit score they would require 9.75 % interest rate for one or two months and then the rate would go to 4 %. We were also told that an equity amount of {$48000.00} could be taken to help with payments and any other bills. XXXX XXXX charged us {$10000.00} as settlement fees in XX/XX/XXXX. When papers arrived months later, we realized they had just raised the principle amount of the new loan by the equity amount we had taken out. When we questioned this action they reassured us that the reduced interest rate, which would lower our monthly payment, would correct everything. These papers were postdated to XX/XX/XXXX To avoid the balloon payment with XXXX XXXX we felt we had no choice but to sign the papers. This 9.75 % rate continued through XX/XX/XXXX. Obviously not 1 or 2 months as promised ( Charged for more than 1 year ). Finally, the interest rate was placed at 5 % XX/XX/XXXX but the principle was inflated and did not reflect any payments that were made at 9.75 %. We called every mortgage agency we could find, even the FBI, trying to claim predator loan activity. We filled out a complaint form with the Mortgage Lending Division. We did not get any information on our case. Approximately a year later we called their office again and learned that XXXX XXXX and XXXX XXXX had been found guilty and fined. However, their fines were being forgiven because XXXX XXXX told them we were happy getting the loan. Incredibly, we were not asked about this! XXXX XXXX transfers mortgage to American Home : A step interest rate plan starts on : XX/XX/XXXXat 2 % interest rate until,XX/XX/XXXXthis changes to 2.5 %, XX/XX/XXXXthis changes to 3 %, XX/XX/XXXX this changes to 4.99 % We called and sent a letter stating incorrect amounts on the settlement papers. These were ignored and we were told we had to sign the papers or forfeit getting the new plan for a reduced mortgage rate. In the settlement papers they charged XXXX of unpaid interest this interest had been paid in our prior monthly payments and we should not have been doubled charged. The new principle for this loan was {$320000.00}. This is the amount That we started with plus the equity amount we received {$48000.00} which was used to pay the inflated monthly 9.75 % for more than a year We filed papers for a HAMP modification in XX/XX/XXXX ( approx ) and sent requested papers for almost 2 yrs. In XX/XX/XXXX we were told that we had already had 3 Hamp modifications.
Since settlement fees were always charged these were In-House refis not HAMP.
American Home becomes Ocwen : Our loan was sold to OCWEN. A transfer fee was charged to us for the selling of this loan - this amount just suddenly showed up on our monthly mortgage statement. Because of these charges, despite paying the monthly mortgage amount, we apparently are not considered maintaining the account on time. The mortgage is in my husbands name only. He has recently passed away and the mortgage representatives refuse to speak to me. I am pleading with someone to review the files and help me keep my home.

Company response to consumer: Closed with explanation