Consumer complaint received 2020-05-19
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Onity Group Inc. (CA)

The Bank ( PHH ) is not honoring the terms of my Note. 

I recently made principal payments to my loan totaling {$100000.00}. Eleven payments, totaling {$80000.00} were made on XX/XX/XXXX and four payments totaling {$27000.00} were made on XX/XX/XXXX. According to the terms of my loan, the loan payment for the coming year, beginning XX/XX/XXXX is calculated on the balance owed as of the previous XX/XX/XXXX. 

I received a notice dated XX/XX/XXXX stating that my new monthly payment, due on XX/XX/XXXX would be {$4300.00} based on the loan balance at the time of XXXX. However the Loan Note clearly states that the calculation period ends on XX/XX/XXXX. 

I subsequently made the extra principal payments totaling {$100000.00} on XX/XX/XXXX and XX/XX/XXXX reducing my loan balance to {$670000.00} as of XX/XX/XXXX. 

As per the terms of my loan the new monthly payment for XXXX should be based on the loan balance as of XX/XX/XXXX. The payment that The Bank was requesting is based on the incorrect loan balance as of XX/XX/XXXX and should be based on the balance on XX/XX/XXXX of {$670000.00}, lowering my monthly payment to approximately {$3700.00}. There is a difference in monthly payments of {$580.00}, which for the 12 month period until they honor the new Principal comes to {$6900.00} for excessive interest payments. 

The Adjustable Rate Note clearly states in Section 3C : The Payment Change Date occurs on XX/XX/XXXX of each year. 

The Calculation of New Monthly Payment Changes is clearly stated in Section 3D : Before each Payment Change Date, the Note Holder ( PHH ) will calculate the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Payment Change Date in full on the maturity date in substantially equal installments at the interest rate effective during the month preceding the Payment Change Date. The result of this calculation is called the " Full Payment ''. 

Section 3D clearly states the calculation for the New Monthly Payment Changes is taken effective during THE MONTH PRECEDING THE PAYMENT CHANGE DATE. 

The Payment Change Date is XX/XX/XXXX. The month preceding XX/XX/XXXX is XX/XX/XXXX. Per their response letter, the Bank ( PHH ) calculated the payments based on the XXXX balance of XX/XX/XXXX, not on the correct balance as of XX/XX/XXXX of {$670000.00}. 

I had called Customer Service three times before I made the principal payments. The first two times I called customer service, the service person told me that XX/XX/XXXX was the cutoff date to calculate the new payment. The third time I called, the service person told me that XX/XX/XXXX was the cutoff date. 

Since then I wrote a letter to PHH stating my claim to have the payments lowered and the extra amount of the payments credited to me. I have received three letters from PHH denying my claim and have responded with three letters of my own. Each time PHH has denied my claim, stating different reasons including a fantasy Run Review Date that doesn't exist. 

I have also made several subsequent calls to PHH : XX/XX/XXXX - Unable to connect - Unable to leave a message XX/XX/XXXX - Unable to connect - Unable to leave a message XX/XX/XXXX - I spoke with a supervisor named XXXX who said she was forwarding the complaint to the ARM department. I heard today that they once again denied the claim, this time stating that the cutoff date was on XX/XX/XXXX. Their story changes every time and is not based on the terms of the Note but on their convenience of choosing the date that suits them. 
XX/XX/XXXX - Called XXXX back - No answer. Box full, Unable to leave a message XX/XX/XXXX - They say that the new payments will be effective as of XX/XX/XXXX hence causing me to pay an additional {$6900.00} in unwarranted interest for the year.