Consumer complaint received 2015-10-01
Company: Ocwen Financial Corporation
State: ID
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Ocwen enrolled us in a forbearance type modification program without reason or our with our approval. 
In XXXX, our mortgage company ( Indy Mac ) granted us a loan modification. Our interest rate was set at 2 % for the first five years. Before the first five years was up, our loan was transferred to Ocwen Loan Servicing , LLC . We were informed of the changes, and continued with our mortgage payments to Ocwen. As the end of the five years approached we received several letters from Ocwen informing us of our increased payment. Our mortgage interest, as agreed to and signed off with Indy Mac, was to increase to 3.0 % XXXX XXXX, XXXX. Another increase to 4.0 % is scheduled to occur on XXXX XXXX, XXXX. On XXXX XXXX, XXXX the final interest increase would go to 4.75 % and remain there until our mortgage loan was paid in full in XXXX. On or about XXXX XXXX, XXXX, we were contacted by our current mortgage holder, Ocwen, and asked if our interest increase would pose a hardship. They offered to send paper work for us to submit for a HAMP modification. Several days later we received that paperwork. We filled out the forms for a HAMP modification and submitted the completed forms to Ocwen, as requested by them. On XXXX XXXX, XXXX Ocwen prepared and mailed documents to us informing us they had received our " loss mitigation application ''. The documents clearly state, " after careful review of the information we provided, Ocwen is not able to offer a HAMP modification. On XXXX XXXX, XXXX, Ocwen also prepared and sent to us documents indicating that they were offering us an opportunity to enter into a Trial Period Plan for a mortgage modification. Upon receiving these documents, we promptly called Ocwen to ask questions about our concerns regarding their modification agreement terms. We were informed that the modification agreement was an extended payment plan of 40 years at 3.0 % interest. We immediately informed Ocwen that we, under no circumstances, were interested in extending our loan to a 40 year payoff nor participating with their offer. The next day we phoned Ocwen and spoke with a representative. We made it clear that we were not interested in their modification offer, and we would continue with our scheduled payments. We were informed that our denial of acceptance needed to be in writing. We wrote the denial letter and faxed it to Ocwen on XXXX XXXX. We called Ocwen on XXXX XXXX, XXXX to confirm they had received our denial of modification letter. We were told it was received on XXXX XXXX, XXXX. We paid our regularly scheduled XXXX mortgage payment ( interest increased from 2.0 % to 3.0 % ) as laid out in our original loan modification received in XXXX. We recently received our Ocwen mortgage statement for the month of XXXX. This most current statement reads that we have missed our trial modification plan payment, and indicates we are in forbearance. We have never missed or been late on a mortgage payment to Ocwen. The absurdity of Ocwen 's actions are incomprehensible. Please investigate immediately and inform us of the necessary actions we must take to stop this fraud!

Company response to consumer: Closed with explanation