Consumer complaint received 2021-08-16
Company: Ocwen Financial Corporation
State: TX
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
To : PHH Mortgage Services XXXX XXXX XXXX XXXX NJ XXXX Subject : Notice of Error From : XXXX XXXX Account Number XXXX XXXX To Whom It May Concern, I am a XXXX XXXX veteran. I have tried unsuccessfully to get a hold of a mortgage service. Customer relations manager and home retention department state, I can only submit a complaint to notice of error. My mortgage was in a COVID Forbearance period. Following this, the loan modification presented to me by representative XXXX, agent ID ( XXXX ) did not follow the current VA law and guidelines. PHH raised my interest rate 0.5 % and forced me to pay back all the forbearance money owed immediately. 

This does not follow the current law which states : The VA partial claim program involves the mortgage servicer making a claim on the VA for a portion of the outstanding mortgage balancein this case the portion equal to the forborne payments. 
The borrower then owes the partial claim amount to the VA at 0 % interest and only due at the end of the mortgage loan. 
There are no monthly payments required from the borrower to the VA for repayment of the partial claim. After the VA pays the partial claim, borrowers restart their pre-hardship mortgage payments to the mortgage servicer with the same monthly payment as before the forbearance. 
The partial claim program is available for VA-guaranteed borrowers who are exiting COVID-19 forbearance plans and who were current or less than thirty days past due as of XX/XX/XXXX. Borrowers must indicate to the mortgage servicer that they can resume their former monthly payment. The partial claim loan can not exceed 30 % of the loans unpaid principal balance. 
The VA issued a final rule setting out a partial claim program that, effective XX/XX/XXXX, allows homeowners to resume their new regular monthly mortgage payments without first having to pay the past mortgage payments that were forborne under the COVID-19 program. See 86 Fed. Reg. 28,692 ( XX/XX/XXXX ). 


In addition, the best option according to federal law is the VA Disaster extended modification. According to the VA servicer handbook XXXX, XXXX XXXX XXXX XXXX  ( Disaster Extend Modification ) and in accordance with 38 C.F.R. 36.4315. This state, The rate must not exceed the borrowers current interest rate. The loan can be extended by the equal number of months the loan is delinquent due to the disaster. The limit of the term extension is 12-months without prior approval from VA. Servicer waives the delinquent interest. 

In addition to this an exception is granted for the following requirements in 38 C.F.R. 36.4315. ( a ). 38 C.F.R. 36.4315 ( a ) ( 4 ) : At least 12 monthly payments have been paid since the closing date of the loan. 

Taking all of these factors into consideration. I tried to reject the current offer and need a mortgage servicer to contact me directly. It appears, based on fact, following the current law with my mortgage loan, my loan shall go in accordance with federal law and the VA Disaster Extended Modification. The loan shall be extended 12 months, interest shall be forgiven, interest rate must not exceed current borrowers interest rate ( 2.75 % ). 

In conclusion, I was told, no mortgage servicer will call me or provide any contact information. XXXX ( PHH ) is not following the current law ; they should be held accountable for their actions. 

I request my loan be modified in accordance with the current law. I also request a full audit for PHH. If the company is doing this to me, there must be doing this to countless other XXXX veterans. 



Sincerely, XXXX XXXX

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