Consumer complaint received 2019-09-05
Company: Ocwen Financial Corporation
State: SD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
We were paying off our mortgages ( we had a 1st and 2nd mortgage ). The payment was sent and accepted on XX/XX/2019. Payment was posted to the 2nd mortgage on XX/XX/19, but for some reason the other funds were " misplaced '' at PHH Mortgage. We did not realize this until we received a call stating we were 15 days late on our mortgage payment. We explained that couldn't be as we paid it off before it was due. They politely said thank you and that was that. We thought it was a bit weird that we even got the call, as the transaction had happened two weeks prior. We decided to check online. That is when much to my dismay we discovered the loan had not been paid off. We called, and after several minutes of waiting finally got to talked to a customer service rep, XXXX, he kindly stated I am sorry, but we do not show the funds were received. He asked if we could send proof that it was sent. I in turn called my bank to get actual payment date info. I then called back and waited several more minutes before customer service rep XXXX came on the line. We explain when the bank sent the money and if she would check, she would see the other loan had been paid in full. Several things were needed so we asked if our bank could call and talk to them as we did not want to be the in-between person, they could fault for relaying something wrong. On XX/XX/XXXX our bank called PHH and also sent verification that the funds were sent and confirmation that the fund were received. But no result was returned. And no reply to the bank if the payment was ever found and applied to the loan, as XXXX XXXX XXXX ( intermediary bank ) had not received the funds back or any information from PHH regarding this. They sent in a service request and after a week. After several calls the wire was released back to our bank. The funds were received by our bank ( XXXX XXXX XXXX  ) on XX/XX/2019. Our concern now was that is was coming up on 30 days past our payment date and our credit would be affected. Finally on XX/XX/19 we call PHH again, and asked for a supervisor. We wanted the rep to know they didn't do anything wrong, but really wanted to get something done and soon. After waiting we finally talked to a supervisor ( XXXX, who said he was XXXX ). Anyway we explained what was going on and time space we were looking at. He requested proof again, even though we stated it had already been sent. He gave us an escalation department number to have our bank call because they told them it would be up to ten business days to get a payoff. After our bank finally talked to them they agreed if payment was sent on XX/XX/19, they would be sure to post it right away, but they refused to backdate the interest to XX/XX/19. We were basically forced to pay an additional {$480.00} of interest. We don't think this is right. What did they do with the funds for a whole month? 

We have attached documents that were sent to PHH, along with a letter that we wrote to them as well. 

Thank you

Company response to consumer: Closed with explanation