Consumer complaint received 2021-07-01
Company: Ocwen Financial Corporation
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
1.PHH foreclosed on my home without following FHA guidelines and State of New Jersey guidelines in order to Foreclose. I am requesting that each question below be answered separately and numbered separately 1. In my file it states that I completed a loan modification in XXXX, Please provide that signed agreement and the terms of that loan modification. I did not believe I completed a loan modification in XXXX. 

2. Please provide proof that PHH served me with the Foreclosure complaint.

3. PHH had to prove that all deficiency with title where corrected and they were not. They also only had six years to collect the debt. Under UCC title 3. Please provide the original deficiency date of the loan and all action date to initiate and finalize the foreclosure. If the initial date was greater than 6 years please provide why PHH was able to violate the six year statue to collect the debt.

4. Under the PHH consent order it was required that PHH have an in person interview, which I did not have before they could proceed with foreclosing. How were they able to proceed with the foreclosure without this interview. 

5. Under the National Mortgage Settlement Act -- it was required that PHH notify me of title issues and how they were going to correct the title issues. I never received this document and PHH was not allowed to begin the foreclosure process until they served me this letter. Please provide proof that I was served with this letter.

6. PHH created an assignment in XXXX which stated they assigned my loan to XXXX XXXX  in XXXX. Please have PHH explain how could this happen when the Trust closed in XXXX, PLease provide payment that XXXX XXXX  purchased the loan in XXXX and XXXX XXXX  assigning PHH the servicing rights to the loan in XXXX. Please provide proof that a " Director '' of the Trust authorized my loan to be assigned to the Trust. 

7. Before they could foreclose FHA required that my loan by registered by PHH into the FHA Single Family Default Monitoring System ( SFDMS ), I am requesting proof that this was completed What are the requirements for a Mortgagee initiating foreclosure proceedings?

When foreclosure is necessary, the Mortgagee must give timely notice to HUD via the Single Family Default Monitoring System ( SFDMS ) and exercise reasonable diligence in processing and completing foreclosure proceedings to acquire good marketable title and possession of the Property. HUD expects Mortgagees to comply with all federal, state and local laws when prosecuting a foreclosure and pursuing a possessory action.

The Mortgagee must perform the first legal action to initiate foreclosure for each state as provided in Appendix 5.0 of Single Family Housing Policy Handbook 4000.1 First Legal Actions to Initiate Foreclosure and Reasonable Diligence Time Frames.

For Borrowers impacted by COVID-19, deadlines for Mortgagees for the first legal action and Reasonable Diligence Time Frames are extended to 180 days from the date of expiration of the foreclosure and eviction moratorium for FHA-insured Single Family mortgages, except for FHA-insured mortgages secured by vacant or abandoned properties.

The Mortgagee must give notice to HUD within 30 Days of initiating foreclosure by reporting the foreclosure status in the monthly SFDMS report. The Mortgagee must report the foreclosure status for the current cycle or following cycle in which the first required public legal action is taken to initiate foreclosure.

As part of the foreclosure proceedings, the Mortgagee must notify and serve all Interested Parties of the pending foreclosure, pursuant to state law. Unless otherwise specified by state law, Interested Parties include all condominium management companies and Homeowners ' Associations ( HOAs ) that are reflected in the mortgage loan/origination documents, recorded covenants/declarations, initial foreclosure referral and/or title search review, or made known to the Mortgagee during the foreclosure proceedings. 

PHH created an assignment in XXXX which stated they assigned my loan to XXXX XXXX  in XXXX. Please have PHH explain how could this happen when the Trust closed in XXXX, Please provide payment that XXXX XXXX  purchased the loan in XXXX and XXXX XXXX  assigning PHH the servicing rights to the loan in XXXX. 

Thank you

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation