Consumer complaint received 2019-12-17
Company: Ocwen Financial Corporation
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I recently received a letter in my inbox, dated XX/XX/2019 from the new mortgage servicing company XXXX XXXX regarding the hazard insurance on my property. I previously had lender placed insurance that was disbursed and paid in XX/XX/XXXX of every year. Last year {$1700.00} was disbursed and paid for the hazard insurance. This year {$1900.00} was disbursed in XX/XX/XXXX for the hazard insurance and then recently refunded back on XX/XX/2019. The {$1900.00} was refunded back to the escrow account, but I was informed that there was a shortage of insurance on my account and that my new assessed requirement for hazard insurance would be {$2100.00} monthly for XX/XX/XXXX which subsequently increased my mortgage payment to {$2500.00}. I believe that the insurance assessment was done incorrectly. The new {$2100.00} required amount is being billed monthly instead of annually and I have tried to explain this to the different customer service agents but to no avail. Also I dont know why I was being billed the {$2100.00} when I clearly had {$2300.00} sitting in my escrow account. 
I obtained my own insurance with XXXX XXXX and submitted the documents to the website for review. My new premium amount is {$1100.00} which has been deducted recently from the escrow balance and there is an overage of {$1200.00} sitting in the escrow account. I also have called several times to inform the customer service agents that I do have hazard insurance on the property so they can remove the hazard insurance requirement they placed on my account. I paid the XXXX payment with the {$2100.00} insurance requirement overage. My XXXX payment also includes a {$2100.00} insurance requirement which makes my XXXX payment {$2500.00}. I went from paying {$600.00} including hazard insurance to {$2500.00}. I am currently late on my XXXX mortgage and additional late fees are being assessed but I can not make that high mortgage payment. 
The new assessed hazard insurance requirement calculation is not my mistake but a miscalculation on the part of the new mortgage servicing company and I do not feel I should have to pay for that. It was reasonable to expect an increase to the hazard insurance requirement until I provided the required hazard insurance on my property, but not an increase of 1160 %. I was paying {$170.00} in hazard insurance on top of my regular Principal & Interest of {$430.00} until now. I have never had this happen before and XXXX XXXX refusal to acknowledge the mistake is causing me undue hardship and making me fall behind. I have also spoken to the insurance department of XXXX XXXX and they also agreed that the incorrect hazard insurance requirement should be removed. The only relief the collection department has given me is to tell me that I need to pay the {$2500.00} payments for XXXX, XXXX and XXXX, then they can reimburse me later for those amounts, but I can not afford to pay those amounts when it is clearly not my mistake. XXXX from C/S and XXXX ( XXXX ) from the Insurance department informed me that they would be contacting the escrow department to see if they could make the corrections, but I have not received a call back yet. 
I have respectfully requested that the incorrect hazard insurance requirement be removed from the remaining XXXX and XXXX payments but the mortgage company refuses to comply and I have called several times and checked online and sent a certified letter to their address for errors and complaints. 

I spoke to customer service agents on XX/XX/19, and again on XX/XX/19 and sent a certified letter on XX/XX/19. I have yet to hear back from them.

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