Consumer complaint received 2021-02-02
Company: Ocwen Financial Corporation
State: VA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
I am a retired veteran. I recently took advantage of low interest rates and refinanced my VA home loan through " XXXX XXXX XXXX XXXX ; '' I don't know the means of selection, but " PHH Mortgage Services, acquired my home mortgage in XX/XX/2020 ; with payments beginning XXXX of 2020. 

From the time PHH acquired my mortgage, I've encountered problem-after-problem with PHH actually applying my Flex auto-pay to my actual mortgage loan. 

The first two ( 2 ) month of the auto-pay, XXXX, went accordingly with PHH processing my payment. In mid-XXXX, I began received calls from PHH Collections department. The matter had been discussed and the issue noted to be on the part of PHH, with my payment funds being placed into a type holding account - and not being applied to my loan appropriately. My PHH payment history dashboard, confirmed that payments were made - but not applied. Each month this is discussed and NOTHING is NEVER done to resolve the issue ; each time I speak with the escalation reps, the matter is supposedly being worked. I've confirmed with my banking institution that funds had been withdrawn from my checking account, accordingly on the XXXX ( XXXX ) and XXXX ( XXXX ) of each month, as agreed in the Flex-payment agreement. 

I've spoke with numerous PHH departments regarding this discrepancy ( I was placed on hold and/or disconnected, while being bounced around from department to department ). I spent approx. three ( 3 ) hours on the 1st call ; approx. two ( 2 ) hrs on the second and third call. Each PHH Rep acknowledged to me that funds appear to have been paid on time ; but could not explain why my account reflected Past Due ( approx. 28 days at that time ) - nor could they correct the error. On my PHH dashboard, for the month of XXXX, my account showed a PHH transaction labeled, " Misapplication Reversal '' - that none of the representatives could/would explain to me why they occurred. I was told by the Escalations department that notes had been placed in the system, requesting that my payments be removed from the holding account, and applied to my account. To date this has not occurred ( approx. four weeks from the date of my 1st call ). 

Additionally, I was informed that there was some type system error, which effected my account ( Misapplication Reversal ) - but no one in the departments I spoke, were able to explain nor make adjustments. I called PHH customer service number ; the automated system stated to me that my last payment was received on XXXX XXXX ; and the next payment due was XXXX XXXX ( * obviously something wrong with that statement ) PHH Reps I've spoken with : XXXX ( employee # XXXX  ) / Debt Collections ; XXXX ( employee # XXXX ) / Customer Relations ; XXXX ( employee # XXXX ) /Customer Service XXXX XXXX ( employee # XXXX ) ; XXXX ( employee # XXXX  ) /Escalation Dept ; XXXX ( employee # XXXX  ) /Escalations.

PHH representative state that they are working the issue, but I never receive feedback on the issue ( only letters and phone calls regarding " Past due '' payments ). Every time I call them, it's like the stall process starts all over again. I'm paying my mortgage and feel like a hostage to PHH and their flawed processes. I've been paying my mortgage accordingly ( reflected in my flex auto-pay history ). Request assistance.

Company response to consumer: Closed with explanation