Consumer complaint received 2021-06-22
Company: Ocwen Financial Corporation
State: OH
Product: Mortgage
Sub-product: VA mortgage
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
PHH Mortgage services incorrectly reported my account as being late in XXXX and XXXX  XXXX  120 and 150 days respectively while my account was in a forbearance status. After explaining to PHH the situation and what could be done about it from their end to fix the reporting error, they simply put " Transfer '' on the report, but did not remove the 120 and 150 day marks. 

Upon doing additional research, the CARES ACT, signed into law on XXXX XX/XX/XXXX, specifies how mortgage companies are to report to the credit bureaus on accounts in their present status : whether current, in forbearance, etc. My account was placed into a forbearance status in XX/XX/XXXX because of the COVID19 pandemic, and I communicated extensively with PHH to ensure all requirements were met prior to the trial payment period, during the trial payment period, and after the trial payment period. However, due to PHH 's lack of due diligence in not providing an overnight return envelope for loan modification documents received on XXXX XX/XX/XXXX, signed and notarized on XXXX XX/XX/XXXX and mailed same day by the notary, the documents were not received until XXXX XXXX, 10 days after their requested return by date of XXXX XX/XX/XXXX. PHH subsequently canceled the loan mod and transferred the loan to XXXX XXXX. 

XXXX CARES Act XXXX, which became public law XXXX XX/XX/XXXX, PHH has violated the following : Sec 4021 Fair Credit Reporting, Sec 623 ( a ) ( 1 ), subparagraphs ( i ) ( II ) ( bb ) : The National Emergencies Act has not been terminated. 

Additionally, in reporting my account the above 120 and 150 days late to the credit bureaus, PHH violated paragraph ( ii ) ( I ). As mentioned above, I completed the trial payments as agreed, and continued to make payments while they processed the loan modification paperwork. The account was still in a FORBEARANCE status. 

Below is the exact language from the CARES ACT : Section 623 ( a ) ( 1 ) of the Fair Credit Reporting Act ( 15 U.S.C.

1681s2 ( a ) ( 1 ) ) is amended by adding at the end the following : ( F ) REPORTING INFORMATION DURING COVID19 PANDEMIC. 
( i ) DEFINITIONS.In this subsection : ( I ) ACCOMMODATION.The term accommodation includes an agreement to defer 1 or more payments, make a partial payment, forbear any delinquent amounts, modify a loan or contract, or any other assistance or relief granted to a consumer who is affected by the coronavirus disease 2019 ( COVID19 ) pandemic during the covered period.

( II ) COVERED PERIOD.The term covered period means the period beginning on XX/XX/XXXXand ending on the later of ( aa ) 120 days after the date of enactment of this subparagraph ; or ( bb ) 120 days after the date on which the national emergency concerning the novel coronavirus disease ( COVID19 ) outbreak declared by the President on XX/XX/XXXX under the National Emergencies Act ( 50 U.S.C. 1601 et seq. ) terminates.

( ii ) REPORTING.Except as provided in clause ( iii ), if a furnisher makes an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer, and the consumer makes the payments or is not required to make 1 or more payments pursuant to the accommodation, the furnisher shall ( I ) report the credit obligation or account as current ; or ( II ) if the credit obligation or account was delinquent before the accommodation ( aa ) maintain the delinquent status during the period in which the accommodation is in effect ; and ( bb ) if the consumer brings the credit obligation or account current during the period described in item ( aa ), report the credit obligation or account as current.

( iii ) EXCEPTION.Clause ( ii ) shall not apply with respect to a credit obligation or account of a consumer that has been charged-off..

And because of PHH 's refusal to correct the information reported to the credit bureaus, it has damage my credit. PHH must correct their mistake, or I will take them to litigation.

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