Consumer complaint received 2015-06-11
Company: Ocwen Financial Corporation
State: CO
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
Ocwen modified my mortgage under HAMP on XX/XX/XXXX - mod. eff. date was XX/XX/XXXX -1. Ocwen did not credit/apply all payments made by me prior to and after the mod. date - On XX/XX/XXXX, I made payment to Ocwen in the amount of {$1400.00}. This amount represented an overpayment of {$190.00}. That amount was placed into " suspense '' and later used to offset " property inspection fees '', " property valuation expenses '' and the like, instead of being credited to the principal balance, escrow balance or returned to me. On XX/XX/XXXX I made trial payment number XXXX ( of XXXX ) in the amount of {$1200.00} ( confirmation # XXXX ). This payment was never credited/applied to my mortgage. 
Following the modification, I made a payment of {$1400.00} on XX/XX/XXXX ( confirmation # XXXX ) which was to be my XXXX payment under the modification. Ocwen credited/applied {$1200.00} of that payment towards the XX/XX/XXXX payment due, but never credited the remaining {$200.00}. On XX/XX/XXXX, I made a payment in the amount of {$1300.00}, which represented an overpayment in the amount of {$100.00}. That amount was never credited/applied. 
2. Ocwen reduced my escrow account balance from a pre-modification balance of ( {$910.00} ) to a post-modification balance of ( {$1500.00} ). This has been explained by them as a means of adjusting for the modification. As a function of the modification, they applied XXXX monthly installments toward my mortgage account, which included XXXX installments of {$270.00} toward my escrow account - a total of {$1100.00} - then promptly withdrew {$1700.00} to adjust for the {$1100.00} they had credited to the escrow account. This means Ocwen took {$640.00}. There is no explanation for theft. Ocwen claims to have capitalized that amount to the principal balance - RIGHT!! Let 's take cash out of the escrow account and convert it into a principal payment?? Get real!! 

3. Ocwen assessed a large number of late fees and other fees prior to, during, and since the modification, all of which were supposed to have been waived as part of the modification. As a result, Ocwen shows me with a balance of {$45.00} ( meaning I have paid {$45.00} more than was due them, and they have never refunded the overpayment ) in late fees ( for a period of more than 2 years ), and a balance of {$100.00} in " suspense '' ( for the past 14 months ). 

4. Ocwen has NEVER provided a breakdown of the sum which was added back to the principal balance during the modification adjustments. My pre-modification principal balance was {$140000.00} ( not including the application of payments which were not applied as complained above ). The post-modification balance was {$140000.00} - a difference of {$3000.00}. They also show principal balance payments totaling {$290.00} in the process, which would reduce the total amount added to the principal as a result of the modification to {$2700.00}. Ocwen has never stated or shown how they arrived at the amount they added back into the principal. 

XXXX XXXX, XXXX of the Consumer Ombudsman in XXXX, Iowa, has been reviewing my previous complaint on this matter, which lacked in specific details. Please forward this to him to avoid a redundancy in effort. Thank you!

Company response to consumer: Closed with explanation