Consumer complaint received 2015-04-12
Company: Ocwen Financial Corporation
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Monthly Mortgage Payment Amount : Per the mortgage agreement for the property listed above, principle, interest, and escrow ( for PMI only ) is fixed at $ XXXX/mo for the life of the loan. Per the agreement, Ocwen does not pay the taxes on the property ( this was confirmed by Ocwen after a complaint was filed with the Consumer Financial Protection Bureau XXXX ), and the PMI is escrowed at a fixed premium ( $ XXXX/mo ). Payments on the loan have been paid on-time and in full ( or excess of the monthly requirement ) for the duration of the loan ( see attached payment history ). 

The early XX/XX/XXXX, I contacted Ocwen via their customer care phone line to inform them that the monthly statements I was receiving indicated the incorrect monthly payment amount was incorrect ( {$2300.00} ). On XX/XX/XXXX, I received a letter from Ocwen indicating that they felt there was no mistake, and that the payment had increased as the result of a review which they determined increased the escrow amount due to a change in taxes or premium. 

On XX/XX/XXXX, I sent written notification to Ocwen ( with excerpts from the mortgage agreement ) stating their research is incorrect, and that the loan payments can not increase if I have met the terms of the loan, and directed them to revise the statement amounts to reflect the payments required by the mortgage agreement. Instead of correcting the issue, Ocwen placed a notation on my credit report indicating that despite being paid in excess of the required amount, the loan was in dispute. 

On XX/XX/XXXX I contacted Ocwen 's customer care line to follow up on my direction to restore the account and remove the notation on my credit score. During the conversation, the representative indicated that Ocwen despite the account being paid in-full and on time for the duration of the loan, their accounting showed a negative escrow balance ( i.e. Ocwen has an internal accounting error ) which they expected me to correct with higher monthly payments. He then pressured me to wait for resolution from their research department. 

On XX/XX/XXXX, I sent written direction to Ocwen directing them to remove the notation from my credit report, along with back-up showing the notation on the credit report. 

On XX/XX/XXXX I received a letter from Ocwen ( XXXX letters were received XXXX ea. for this and the outstanding PMI removal ) indicating that it would be an undetermined amount of time before the issue is resolved ( see attached ). 

PMI Removal : On XX/XX/XXXX I sent Ocwen a request to remove the PMI for the property referenced above. Based upon the value established by a licensed appraiser, the property exceeded the 20 % equity to principle balance ratio requirement established by XXXX. 

In a letter dated XX/XX/XXXX, Ocwen indicated the loan was not eligible for PMI removal per the XXXX XXXX requirements. Based upon the XXXX requirements, the loan is required to season for 24 months prior to being eligible for PMI removal. 

On XX/XX/XXXX I requested the PMI be removed on the property referenced above ( the loan having seasoned for 24 months ). On XX/XX/XXXX, Ocwen customer care indicated the appraisal needed to be updated to be eligible for PMI removal. On XX/XX/XXXX an updated appraisal of the property was send to Ocwen. Subsequent to these requests, Ocwen indicated that an appraiser of their choosing must perform the appraisal of the property in order for the appraisal to be valid for PMI removal. 

On XX/XX/XXXX, an appraiser from XXXX XXXX ( Ocwen 's representative ) performed an appraisal of the property referenced above. Ocwen received a copy of this appraisal on XX/XX/XXXX indicating that based upon the property value, the equity to principle balance well exceeds the 20 % required by XXXX. 

On XX/XX/XXXX, an identical Ocwen letter indicating that it would be an undetermined amount of time before the issue is resolved was received.

Company response to consumer: Closed with explanation