Consumer complaint received 2022-06-22
Company: Ocwen Financial Corporation
State: LA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I entered a trial payment plan with PHH Mortgage ( Phone XXXX - LOAN # XXXX ) in the amount of $ XXXX for three months with payments due XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. I made the three payments timely. In the process I found out about the Louisiana Homeowner Assistance Fund ( XXXX XXXX XXXX  ) which assists people who suffered losses due to COVID-19 and are in arrears on their mortgage by paying their mortgage current up to {$25000.00}. I submitted my application. The state of Louisiana submitted a request for information on my mortgage to PHH Mortgage on XX/XX/XXXX which PHH confirmed with me several times that they received on XX/XX/XXXX. I initially had an appointment scheduled with my PHH Mortgage Relationship Manager on XX/XX/XXXX @ XXXX to discuss the status of my loan. He never called so I called PHH within the hour to advise them that my Relationship Manager never contacted me. I spoke with an agent who scheduled a replacement appointment for XX/XX/XXXX at XXXX XXXX for me to speak with my Relationship Manager. He gave no explanation for why I wasn't called by my Relationship Manager. Also, during this conversation the agent advised me that a loan modification letter had been mailed to me on XX/XX/XXXX and needed to be signed and returned to PHH by XX/XX/XXXX. Since I had not received the document by mail the agent emailed me a copy. The offer indicates the following : 1. my current balance is {$97000.00}. 
2. my current and continued yearly interest rate will be 3.4375 % XXXX my deferred payment amount ( the amount that I am past due ) is {$4000.00} ( virtually XXXX payments ) 4. my monthly payments under the modification will be {$970.00} 5. my initial escrow amount is $ XXXX 6. my maturity date will be XX/XX/XXXX ( equaling 14 years. I have held a mortgage on this account for 16 years already ). 
7. I will owe a balloon payment of {$81000.00} at my maturity date in 14 years. 

After hanging up with the agent, I logged into my account and saw the option to refinance my loan. I requested assistance via the website, then called PHH aka XXXX aka Ocwen to inquire about refinancing my loan and rolling up the cost to refinance into the loan. I was told by an agent that since I had slow pays and was deliquent that was not possible. I explained that I had received a loan modification offer but did not like the terms. The agent explained to me that what I was reading was not correct. That actually, at maturity in XXXX, I would not owe a balloon payment and that the agents " don't do a great job of explaining it properly. '' She went on to say that if I sold the house I would not have a balloon payment even though the modification agreement states so. She said it is " all the same balance '' - " the {$97000.00} and it just seems confusing, but there won't be a balloon payment. '' Over the next 2 days I recieved a series of calls and emails from different people calling about my refinance request. Each said that I would not qualify due to the slow payments. 

Today ( XXXX ) as scheduled, I spoke with my NEW PHH Mortgage Relationship Manager, XXXX XXXX. XXXX confirmed ( like other agents in the past ) that PHH had received a request for information about my loan from the state of Louisiana 's mortgage assistance program on XXXX. He assured me that he was " certain '' that PHH would respond to the state by the end of the week even though they had not for the last 3 weeks. I advised him that I did not like the terms of the mortgage loan modification. He advised me not to do anything ( do not sign or return it ) about the modifcation yet and to call back next week to follow up on the loan and position with the state program. I advised him that I was concerned because I would need to respond to the loan modification offer in 4 days. He said not to worry because he could request an extension on the offer if need be. Within a couple of hours I received a call from my case manager with the state program. She advised me that PHH sent a letter to them stating that I was under a loan modification and thus the state denied my application. She asked that I contact PHH to request proof that I am NOT under a loan modification. I called PHH and spoke to XXXX ID # XXXX who said that the state of LA denied my application and I told him that he was correct, but only because PHH sent them information that was not correct. I advised him that I have not accepted the loan modification nor sent any signed agreement back yet. XXXX then placed me on a series of holds and said that the state would need to resend their request. I advised him that the state will not resend their request and that he needed to provide me a letter confirming that I was not under loan modification. Here is where it gets tricky. He says that I must now decline the modification offer for them to provide me confirmation. While he places me on hold, I call my caseworker with the state of XXXX and when he returned to the line he repeated that the state must resend their request to PHH again. I then advised him that the caseworker was on the line with us -- he was speechless for what seemed like a year. He placed us on hold and came back and said that I needed to decline the loan modification before PHH would send an update to the state of Louisiana on my account. I advised XXXX that his guidance was completely opposite of what my PHH Relationship Manager had said in our call earlier in the day. He stated that that was my only option and that he was noting my decline to the loan modification on my account. I requested another appointment with my relationship manager. He said the next available one is 7 days away and scheduled it. My caseworker asked how long would it take for an update on the denial of the modification and he said 3-5 business days ( which would put me well beyond the return date of the modification and close to my next payment due date ). XXXX advised me to call back next week to follow up. My caseworker and I disconnected him from the line and she suggested that I call back each day after today to follow-up on the status of my account. 

PHH knows that they could instead tag the 4 payments that I am behind to the end of my loan, but instead they would rather I pay $ XXXX for 14 years ( even though I have already paid for 16 years on this loan with them ) and still owe $ XXXX in a balloon payment to them although my balance is only $ XXXX. I am now noticing that this same practice is one that PHH used when they offered me a loan modification while I was rebuilding my home after the XXXX Floods. This is robbery and preditory lending at its finest.

Company response to consumer: Closed with explanation