Consumer complaint received 2016-01-27
Company: Ocwen Financial Corporation
State: TN
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
I inquired XX/XX/XXXX about refinancing or obtaining a rate reduction on my current mortgage, which is serviced by Ocwen@9.75 % fixed rate. I was directed to file a mortgage assistance application and submit supporting documents. I did this, after which I was notified by the XXXX alerts that my mortgage terms had been changed and now being paid under a modified payment plan. I immediately contacted Ocwen, they stated that my account was approved for a trial modification. I stated at that time that I had not requested nor agreed to any changes to my mortgage terms. I asked that they immediately correct the credit reporting. I was told that this would be corrected. Since XXXX XXXX, I have been continuously contacting them to correct this reporting, it has now been reported as no payments have been made since XXXX. I have made every payment in full and on time. Ocwen has refused to apply my payments and remove the trial modification, which I never agreed to. Ocwen is stating that by filing a mortgage assistance application it automatically gives them authorization to make changes to my mortgage terms without my approval to such changes. Since I made my payment in full and on time, they are stating that means I have agreed. However, if I did n't make my payments I would be placed in default. I have spoken with XXXX XXXX XXXX, who has also spoken with Ocwen. Ocwen advised them that the corrections would be made and accurately reported. However, no changes have been made and Ocwen insists that they have the authority to modify the loan. They are stating that I have to send a written request asking them to cancel and remove the account from a modified payment plan. I disagree with this. Doing this allows them to keep the inaccurate information on my credit report which has cause severe damage to my credit score. It has impaired me from being able to refinance this loan with another institution. I have had this loan since XXXX XXXX and have never missed nor been late on a payment. I have tried every year since XX/XX/XXXX to refinance and have not been able to. I have never agreed to any changes, trial modification, nor permanent modification ; not verbally nor written. The only document I signed was the application for review. In which it states under the : BORROWER ACKNOWLEDGEMENT AND AGREEMENT Section XXXX XXXX XXXX. If I am eligible for assistance under MHA or any other mortgage relief program, and I accept and agree to all terms of any notice, plan, or agreement, I also agree that : a. The terms of this Acknowledgment and Agreement are incorporated into such notice, plan, or agreement by reference as if set forth therein in full. 
b. My first timely payment, if required, following my Servicer 's determination and notification of my eligibility or prequalification for assistance will serve as my acceptance of the terms set forth in the notice, plan, or agreement sent to me. 
c. The Servicer 's acceptance of any payments under the plan will not be a waiver of any acceleration of my loan or foreclosure action that has occurred and will not cure my default unless such payments are sufficient to completely cure my entire default under my loan. 
d. Payments due under a trial period plan for a modification will contain escrow accounts. If I was not previously required to pay escrow amounts, and my trial period plan contains escrow amounts, I agree to the establishment of an escrow account and agree that any prior waiver is revoked. Payments due under a repayment plan or forbearance plan may or may not contain escrow amounts ; I agree to the establishment of an escrow account and agree that any prior escrow waiver is revoked.

Company response to consumer: Closed