Consumer complaint received 2017-08-23
Company: Ocwen Financial Corporation
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Dear Ocwen LLC XX/XX/XXXX Our purpose of writing you is regarding our Loan Modification ; we entered into with you in XX/XX/XXXX. During this very stressful time, you offered us a Loan Modification knowing we had a First and Second mortgage. We asked several times doing our numerous conversations, if the loan modification included both loans. Your response to us was yes, and we would not have any other delinquencies on the loan if we paid the loan per the loan modification. This would save your home. It was our understanding you would defer our second loan until the end of the loan. Now we are being told the deferred payment was part of the Modification, and our 2nd mortgage was not included in the modification. This is a classic bate and switch tactic, in which Ocwen has become notoriously known for. Our loan modification was initiated as part of the HAMA program. In this program, it clearly states page 11, the home owner would not be charged any upfront fees, nor incur any additional cost in order to enter into the modification. At the time of the modification, you requested we pay {$13000.00}, which we did. This was wrong for you to do this per the HAMA program guidelines. In addition, you added a deferred amount of {$93000.00} to the first lien position. What sense does this make if you were truly trying to assist us? You added more on our first mortgage then what we owed. This is obviously a hidden upfront fee. Our original mortgage was {$310000.00}. We had paid on for six years. The balance at the time was obviously less then the original loan amount. When you advised us of a deferred amount it was expressed in your communication the modification would address both the 2nd and 1st. Other wise why would we want to added more on our loan? Know we are being told, you sold our second high interest loan to XXXX XXXX XXXX who in turned, sold it to another company, and that company sold it to another company. It finally ended up at XXXX XXXX XXXX, who has an outstanding not due by us. They are saying we owe them {$100000.00}, not even taking into consideration we had paid the loan down through the previous servicing company. I have several requests of you, to resolve this nightmare : 1. Extinguish the deferred payment on the first lien position. And provide us with a payoff amount reflecting this. Advise us if you have received any compensation on either of our lien as a result of our entering into this loan modification, per the HAMA program. Second Lien Elimination Payments : To reduce the borrowers overall indebtedness and improve loan performance, additional incentives will be provided to extinguish junior liens on homes with first-lien loans that are modified under the program. Per Page 15 of the HAMA program. 2. Provide us a full historical financial audit of the loan or loans as they were being serviced by you, from day one. 3. Verification of the payment of {$13000.00} we paid to you in as part of the modification agreement. Refund all of this {$13000.00} payment as it should have never been charged by you per the HAMA.
4. Im requesting a full disclosure of all recorded phone calls on this loan from day one.
5. Explanation as to why you are still charging us for mortgage insurance when our loan balance is well bellow 80 % of the loan amount who hold on the property. We are requesting a full refund of overpayments charged by Ocwen of our Mortgage insurance. 6. We are requesting a full audit of our escrow account and any overpayment to be refunded as well. 7. I want to know what was the balance of the first lien at time of the modification. Thank you for your anticipated cooperation on this matter. CC : Consumer Financial Protection Bureau.

Company response to consumer: Closed with explanation