Consumer complaint received 2023-03-06
Company: Ocwen Financial Corporation
State: OH
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My complaint is regarding the PMI cancellation of my home at XXXX XXXX XXXX, XXXX XXXX, OH, XXXX. 
I never received an annual written disclosure with my amortization schedule or my right to PMI cancellation. 
Per the CFPB report attached an Automatic Termination of PMI supposed to take place when the principal balance of the mortgage is 1st reached 78 % of the original value of the secured property. The PHH mortgage service who services all Ocwen bank mortgages clearly stated that they did an evaluation of the property back in XXXX and home value appraised at {$290000.00} which is over 78 % per their calculation. They never cancelled the PMI in XXXX and thereafter I NEVER received any notice/ annual disclosure of my home value or PMI cancellation notice as PHH claims they sent. After requesting PHH for an amortization schedule on XX/XX/XXXX, it came to my email two days later. 
I am a license realtor, and I have a unique home which should be valued at $ XXXX and my original mortgage was {$260000.00}. Comparable homes attached. 
I called PHH on XX/XX/XXXX, regarding an increase in my mortgage payment. After getting nowhere, I asked for a manager and was transferred to XXXX, the escalation manager, id # XXXX. She tried to say that the due to an increase in my property taxes and homeowners insurance is why my payment was higher. I asked her for a cost breakdown of what I was being charged. 
She gave me a cost breakdown and mentioned that the PMI was {$2200.00} annually/ XXXX XXXX  monthly. I asked her why I was still being charged PMI after 20 yrs. and why it wasnt it cancelled when my home value reached 78 % of the original mortgage? She said that in order to have it cancelled I needed to write a letter to request to have the PMI cancelled. She said they mailed me letters every year with the instructions and that I never contacted them. I told her that I never received any such letters. She said a BPO was done in XXXX and the value was {$290000.00} which was 78 % of the original loan amount. I asked why the PMI is not listed on my monthly statement. She replied that it is included in the escrow, ( taxes and/or insurance ). She said she would email me copies of the letters and a payment history. Several emails would not open, so I called back on XX/XX/XXXX and spoke to XXXX. He said I could send a cancellation request to the PMI insurance company ; XXXX XXXX  XXXX XXXX  and gave me the address. He said he did not have a phone number but should look up their website. 
On XX/XX/XXXX I spoke to XXXX at XXXX XXXX XXXX She mentioned that PHH is a terrible company to work with since they are based overseas and difficult to get any cooperation. She said that based on the Homeowners Protection Act, HPA/Dodd Frank , PHH should have automatically cancelled the PMI at 78 % and as a borrower, I cant cancel the PMI and I do not need to write a letter. I mentioned that this what I understood from the CFPB report. She gave me the email for XXXX XXXX since she is in FL and better at responding. 
I emailed XXXX on XXXX XX/XX/XXXX. She forwarded my email to XXXX XXXX XXXX, who then sent it to XXXX XXXX XXXX. The following employees from XXXX XXXX were also copied on the email ; XXXX XXXX, XXXX XXXX and XXXX XXXX. 
On XX/XX/XXXX XXXXXXXX responded that they reviewed the PMI cancellation, and that XXXX XXXX  does not have an AVM or the property does not have an acceptable confidence score and I would need a BPO or appraisal. I feel this is very vague and meant to mislead me. I asked when the last BPO was done and what value was given. I have not received a response from anyone since then. Again, when the company did the BPO ( Brokers price Opinion ) back in XXXX was {$290000.00}. 

Please advise as to what legal recourse I have in this matter. According to my calculation, I have been paying {$2200.00} PMI per year since XXXX. That equates to {$35000.00} total. I spoke to a real estate attorney who said to reach out to your organization to file a complaint. 
I feel PHH is in violation of the HPA/ Dodd Frank law and needs to refund the fraudulent PMI charges plus interest and any damages. If I could have invested that money into my IRA account it could have grown much more and did not have work so until age of XXXX to retire. I do work 60 hours a week. I am sure there are others in the same boat as PHH does not have a procedure as a loan servicer to follow though and have weakness in their system. 
Again, I am a XXXX XXXX  with a good standing in Ohio and comparable properties attached are very accurate. 
Sincerely XXXX XXXX

Company response to consumer: Closed with explanation