Consumer complaint received 2015-05-02
Company: Ocwen Financial Corporation
State: PA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
1.XX/XX/XXXX regular mortgage stmt due XXXX, regular amt due = {$1200.00}. Note on stmt that starting XX/XX/XXXX new amt. due will be {$1100.00} and a separate letter will be sent explaining. This new amt due is the result of us demanding OCWEN reassess our escrow since our taxes were reduced and after many months complaining this was supposed to be the result ... lower monthly pymt. 
We paid {$1200.00} for XXXX due date. 

2.XX/XX/XXXX regular mortgage stmt due XXXX, showed new amt. due = {$1100.00}, again a note on stmt that starting XX/XX/XXXX new amt. due will be {$1100.00} and a separate letter will be sent explaining. Never rec 'd a letter. We paid {$1100.00} for XXXX due date. 

3. XX/XX/XXXX - statement was all wrong. 
a. Due date should have been XXXX, it said XXXX - only 4 days later. This never happened before. 
b.stated amt. due was {$1200.00} - wrong - it was supposed to be {$1100.00} as per previous XXXX stmts. 
c.Showed they cashed our {$1100.00} and applied to principle only - not XXXX pymt which we did not authorize, was their mistake, and never done before. 
d. They now expected us to pay {$1200.00} backdated to XXXX in order to be considered current. 
4. Called XXXX -the date we got stmt in the mail -and spent over XXXX minutes with XXXX different cust.svc. reps with no satisfaction. They did not acknowledge it was their mistake, continued to state we still owed XXXX pymt, they could not correct their mistake of applying to principle only, and could not prevent reporting to credit agency if we did n't pay extra pymt. I demanded to speak to supv, was placed on hold, then told they would call be back within XXXX hours, which they never did and I have a phone record to prove it. 

During these calls I also demanded a new escrow evaluation since they told us in XX/XX/XXXX that their analysis in XXXX was wrong and they would re-evaluate it XX/XX/XXXX and mail the new results. I called XX/XX/XXXX since we never received the new escrow analysis and they said they would send it. They never did. I finally rec 'd a copy on XXXX - after these phone calls. 
Also, in separate letter, received escrow refund check for {$1700.00} with no explanation after these calls. 

5. XXXX called - automated message said {$1100.00} was due which was the correct amount so assumed maybe they fixed the problems. 

6. XXXX regular mortgage stmt due XXXX stated we owed XXXX payments = {$2400.00} and that the new mortgage pymt of {$1100.00} was going to start XX/XX/XXXX and a letter would be sent to explain. We called again, again spoke with several cust svc reps who did nothing but ask for us to pay our mortgage over the phone with a credit card, or at least pay the late fees over the phone with a credit card. We demanded a supv. and they said they would have to call us back within XXXX hours. 
7. They did call back the next day but missed us. We called them, and were told the same thing - they would not fix the problem, they do not acknowledge it as their mistake, if we do not pay 2 months of mortgage they will report it to credit agencies and charge late fees. 

7. XXXX received certified letter from OCWEN stating we were past due in our XXXX mortgage pymt in the amt of {$1200.00} + XXXX late fee. 

8. At this point we are afraid that any money we send they will apply to principle and we will never be considered current and our perfect credit that we have worked hard for will be ruined. Their practices of back billing for their mistakes, not correcting accounting mistakes, and then double billing the client are unethical. Their threats to report to credit agencies is unethical and bullying in light of the problem originating from their accounting mistake. They held on to escrow funds much longer than reasonable and only responded when threatened several times - indicating possible mishandling of escrow monies. We are unlikely to be the only customers affected by these practices.

Company response to consumer: Closed with explanation