Consumer complaint received 2016-11-27
Company: Ocwen Financial Corporation
State: OR
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Settlement process and costs

Complaint:
I attempted a modification of my loan on the property located at XXXX XXXX XXXX, in XXXX Oregon with OCWEN. The almost $ 3200-monthly mortgageXXXXXXXX modification request was denied after several attempts since XXXX. 

I continued paying with the hope that a modification would be a certain remedy. In XXXX, I received a phone call with documents ( attached ) that I 'm eligible for a streamline modification. Good News, right? After fulfilling the first two months of payments, OCWEN created another document with balloon payment for approximately {$230000.00} ( attached ). It reads : THIS IS A BALOON MORTGAGE AND THE FINAL PRINCIPAL PAYMENT OR THE PRINCIPAL BALANCE DUE UPON MATURITY IS {$230.00}, XXXX, TOGETHER WITH ACCRUED INTEREST, IF ANY, AN ALLL ADVANCEMENTS MADE BY THE MORTGAGEE UNDER THE TERMS OF THIS MORTGAGE ... THIS WRITTEN LOAN AGREEEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND XXXX NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 

I had a recent conversation with an Ocwen Loan Modification Officer regarding the above language and whether I need to submit the final XXXX documents before the scheduled meeting for XXXX XXXX. He indicated that the documents were formality and that the due date was generated based on time it was mailed out. The due date is before our meeting with XXXX for XXXX/XXXX/XXXX. Ocwen did n't initially share the balloon information or the increasing escrow payments. The new 'balloon ' modification suggests that after interest is calculated, I will have paid more in interest and no principal reduction for an underwater property over the ( shortened ) 20 year term. 

The recent settlement agreement reached by the Consumer Financial Protection Bureau against Ocwen Financial Corporation show that they have engaged in " significant and systemic '' misconduct in the mortgage servicing process. Under the terms of the agreement, Ocwen must provide {$2.00} XXXX in principal reduction to underwater borrowers. Ocwen must also refund {$120.00} XXXX to the nearly XXXX borrowers serviced by Ocwen or its subsidiaries whose homes have already been foreclosed. Finally, Ocwen will be subject to greater regulatory scrutiny going forward. 
In light of their continued fraudulent actions, it does not appear that OCWEN faces any scrutiny. After fours years of attempting to modifying our loan, we were approved for a modification back in XXXX and it was supposed to drop interest rate down to 3.6 % after I made their 3 trial payments - two trial payments successfully until receiving new loan document relating to a balloon payment. 
In addition, we owe the " balloon payment '' even if we sell the property. So the house is n't even worth $ XXXX, the balloon payment amount + the current mortgage of $ 360XXXX plus amount already paid for the last 10 years. And yes, we owe this " balloon '' on sale or refinance or end of term, whatever comes first. Plus, the fine print indicates that we probably have to keep this loan for 20 years or it will be void ( at their discretion, not yours ). Doubtful the mortgagee can sell without interference, so it seems to me, OCWEN has created no-option option for homeowners. 
I am XXXX XXXX XXXX and have nothing except for my wife and home. OCWEN did n't initially tell me the balloon or the increasing escrow payments. OCWEN retains their right to rescind " if '' I miss a payment. However, if the interest remains, the predatory accounting continues. So it appears that after numerous federal investigation for fraud and state regulatory scheme established to help homeowners remain in their home, Ocwen continues its predatory scheme.

Company response to consumer: Closed with explanation