Consumer complaint received 2016-03-23
Company: Ocwen Financial Corporation
State: PA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I previously filed a complaint ( Complaint # XXXX ) but I do not know how to respond to Ocwen 's response. They have not addressed the issue as to why the account balance was so irreconcilable with the amortization schedule for the loan. It has also come to my attention that the Mortgage loan by Mellon Bank, N.A. to me was illegal because it charged an interest rate in excess of what was allowable under the law. The maximum interest rate allowed under federal law for a XXXX is based on the maximum interest rate allowed by the State where that bank is located. ( 12 U.S. Code 85 ) Mellon Bank, N.A. was located in XXXX at the time of the loan as evidenced by the Plaintiff 's promissory note wherein Mellon Bank 's business address is shown to be in XXXX, Pennsylvania. The recorded Mortgage document definitively establishes in legally binding fashion that the location of Mellon Bank, N.A. is officially in Pennsylvania, as Mellon Bank, N.A. itself declares in the Certificate of Residence of Mortgagee : " Mellon Bank, N.A., Mortgagee within named, hereby certifies that its principal place of business is at Mellon Bank XXXX XXXX, Pennsylvania XXXX ''. The maximum rate of interest under Pennsylvania law at the time of the loan was 8.5 % ( XXXX ), and illegal rate of interest established by the promissory note is therein declared to be 8.99 %, although the Note 's monthly payment amount of {$450.00} over 180 months was inexplicably charging the Plaintiff an actual interest rate of 9.0107 %. 
I got a mortgage loan with Mellon Bank in XXXX XXXX for {$44.00}, XXXX. The servicing of that loan was transferred to Litton Loan Servicing in XXXX XXXX. Ocwen Loan Servicing then acquired Litton Loan Servicing and according assumed the servicing of my mortgage. My loan was current and never delinquent or in default until I was diagnosed with XXXX and required immediate XXXX in XXXX XXXX. Our first missed payment was for XXXX XXXX. We pursued loan modification with Ocwen and they played games in the processing of the modification saying several times that they were missing documents, etc. They finally came back with a Modification Agreement which included a balloon disclosure of an undetermined amount. My original loan never included a balloon payment, so the presence of a large balloon payment made me first question Ocwen 's accounting of the loan. After reviewing my payments and how the loan should have amortized according to a loan amortization schedule, I discovered that there was a serious principal balance discrepancy of {$2400.00} dating back to when Litton Loan took over the servicing of the loan from Mellon Bank. Unbeknownst to me at the time, that discrepant amount of {$2400.00} was accruing interest charges and grew to be {$3800.00} by XXXX XXXX before my mortgage delinquency began in XXXX XXXX. 
After confronting Ocwen regarding the inexplicably inflated principal balance and challenging them to provide a legitimate accounting of the loan that would justify the inflated principal balance, they maintained that because I did not contest the principal balance amount reflected on the servicing transfer notice sent to me when Ocwen took over Litton Loan Servicing that I became liable for that then-uncontested amount. They said that I must sign the Modification Agreement with the illegitimately inflated principal balance or I would face foreclosure. I was denied a loan modification because I could not accept their unjustifiably inflated principal balance amount. I did subsequently bring the mortgage current and the loan was reinstated and foreclosure proceedings halted. I paid the final payment required by my Promissory Note in XXXX XXXX. After making 180 payments totaling well in excess of what I agreed to, I maintain that the loan has been paid off.

Company response to consumer: Closed with explanation