Consumer complaint received 2015-12-01
Product: Mortgage — FHA mortgage
Issue: Loan modification,collection,foreclosure — 
Company: Onity Group Inc. (CA)

Ocwen rescinded a written short sale approval letter days before our scheduled close date by way of a service transfer which is a direct violation of Making Home Affordable Program Handbook of Servicers for Non-GSE Mortgages Paragraph XXXX. Ocwen did not transfer necessary data and documentation including the information of the authorized advisor who would be the acting listing broker. 
We are trying to close XXXX XXXX, 2015 and the buyer 's lender is ready to fund XXXX XXXX, 2015. However, without formal preliminary HUD approval from Ocwen the transaction can not close. The first has approved the close date of XXXX XXXX, 2015. If the first lender does not receive their money on XXXX XXXX, 2015 as they have approved. The first approval becomes null as " buyer/seller '' did not meet obligations of the written agreement. This is no fault of the buyer or seller, but the fault of Ocwen who serviced/investor released the loan during an active written short sale approval and not complying the rules and regulations of HAFA. 

Dates : XXXX XXXX, 2015 : First lender, XXXX XXXX XXXX, approved the XXXX short sale with a closing date of on or before XXXX/XXXX/15 XXXX XXXX, 2015 : Second lender, Ocwen, approved the XXXX short sale with a closing date of on or before XXXX/XXXX/15 XXXX XXXX, 2015 : Broker and/or Seller ( borrower ) request for preliminary final HUD approval for a close date of XXXX/XXXX/15 per the instructions of the approval letter from both the first and second lender XXXX XXXX, 2015 : First lender, XXXX XXXX XXXX approves preliminary final HUD to proceed with the closing XXXX XXXX, 2015 : Broker and/or Seller ( borrower ) place second request to the second lender, Ocwen, for preliminary final HUD approval per the instructions of the approval letter XXXX XXXX, 2015 : o Broker calls Ocwen to follow up on the status of preliminary HUD approvalo Ocwen bounces the call to a company called XXXX XXXX XXXX who will now be the point of contacto Broker is not authorized to speak to XXXX XXXX XXXX as is told to email/fax in authorization to speak on the account and wait 24-48 hours for authorization to be receipted ino Broker calls CFPB for XXXX assistance ( speaks with XXXX XXXX, XXXX XXXX, and XXXX XXXX XXXX to step in to contact Ocwen. CFPB informs broker that the web is the only way to file a complaint as they can not do anything since broker did not have a " question. " It is with much sadness I write that all the above mentioned CFPB representatives are not trained to be preventative. The protocols that are in place only serve to " remedy '' situations once it becomes a tragedy. The CFPB needs to understand that preventative measures are more beneficial in the long run than trying to cover a larger wound with a band aid that could have been prevented all together. 

I desperately called the CFPB for assistance and went on deaf ears because all the CFPB could offer was an investigation that would take weeks. I had mere hours to remedy this catastrophic event that the CFPB would not recognize until it explodes on XXXX XXXX, 2015.