Consumer complaint received 2017-10-02
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Onity Group Inc. (PA)

Im writing to you in hopes that you can resolve a horrible and very exhausting situation that Ive been placed in due to the direction which was provided by my mortgage company Ocwen. Ive been experiencing this situation since XXXX XXXX. This is a process that I was told from Ocwens own representatives that would take a 5 day process has now prolonged into 6 months process with no result regarding what OCWENs representatives has advised me would occur when I inquired about placing {$100000.00} on my principal payment in order to lower my mortgage payment. I initially inquired about this due to changes that were occurring in my life. Im beyond upset and disappointed with the poor handling of this matter especially because my own mortgage company Ocwen, has directed me with wrong information and has now subsequently placed me in a financial burden. The agreement and the expectation between Ocwen and I, was if I applied a {$100000.00} towards my mortgage my monthly payment would be reduced accordingly. Ocwen confirmed multiple times that this would occur. However, Ocwen has processed the {$100000.00} and has still till today has not adjusted my monthly mortgage payment. 
Heres some background on this matter. 
Ive been with Ocwen, my mortgage company for years with no issues no complaints. About 2 years ago when the interest was low I called Ocwen and inquired about doing an internal refinance, which I was able to do. Very smooth process. I asked at that time regarding if I would pay off a large sum on my mortgage would they modify my payments without having to go through this entire process. They advised me yes. I also asked regarding the MIP if that would be removed they advised me yes as long as I pay off 30 % of my mortgage it will automatically be removed. 
Fast forward to XXXX XXXX, I contacted Ocwen once again to reaffirm that the above process is still available and Ocwen will fulfill this matter. I was then advised by Ocwens representative that my MIP will be removed and my monthly payments will be reduced accordingly. I was advised to issue the payment and state principal payment on the check then to issue a letter to the recast department requesting to modify my payment, within the letter to include loan number and my brothers name and my name and that the both of us would need to sign the letter. ( The reason for my brothers name to be added is because the mortgage is in my name and my brothers ). I was advised it would take only 5 days to process the request once the payment is made. In XXXX, I called again prior to sending the payment and the request to make sure this was accurate direction provided. Another Ocwen representative that assisted me that day advised me to send the check and the request together to the recast department because sometimes they will misapply payment so its safer to issue the check and request together in one envelope so that the request is clear and done correctly. Which made sense and this is what I did. I was also told that a representative will contact me when they initiate the payment modification process.. 
Im attaching my statement where you can see the amount of {$100000.00} was made on XXXX XXXX, XXXX. I waited about a week after that no call from Ocwen regarding my request however, I noticed from my account that they had processed the payment. I called the following week every day and was advised by Ocwens representative they are working on this process. Eventually after a week or two of being informed they are working on it, this didnt make sense because I was told this should only take a 5 day process and its now 2 weeks. I then called Ocwen and requested to speak to a supervisor where I was told they never initiated the request. I was one the phone with the supervisor from Ocwen who then apologized for this matter and stated he will escalate the issue and get this resolved immediately. I was on the phone with him for about an hour. He advised me that he will handle this matter and get this matter resolved. Since then, I started to call every day to make sure things were being worked on and that they were processing the request. I finally received a letter advising of the modification amount and it will take effect back dating to XXXX XXXX, XXXX. I then received another document, a Modification of Promissory Note requesting that the document is to be signed by my brother and I, as well as notarized and sent back to Ocwen by XXXX XXXX, XXXX. My brother and I fulfilled this request. We both signed and notarized the document and mailed it overnight shipping. I called the supervisor the next day and advised him that I mailed the document overnight which Ocwen should receive and that I would send him a scanned copy via email as a courtesy copy. A couple of days had past and I did not hear from Ocwen. I called to get a status and the Ocwen representative that assisted me that day advised me that the document they have on file is not signed or notarized. I advised the representative that I mailed the original copy which they should have on file and I scanned and emailed a courtesy copy both reflecting signatures and notarization to Ocwen. The representative advised he does not see that Ocwen received the original copy. As Im on the phone, I provided the representative with the tracking number. Ocwens representative stated it was sent to the wrong zip code reason they did not receive it. As I was on the phone, I could not believe this ; I then checked for myself and tracked the document which showed it was mailed to the correct address however no one signed for it so it was sent to the postal service where an Ocwen representative then signed and picked up the document. At that point, I requested to speak to a supervisor. I explained the situation to the supervisor, who realized it was an error on their part, reassured me they will take care of this and my mortgage payment will be reduced accordingly. The supervisor also, advised me its the weekend however, someone in another department has the document however, it has not been scanned into their system. Stated she will reach out to that representative on Monday and assured me not to worry they are in the process of lowering my mortgage payment and this matter will be resolved. I thanked her. She continued to update me that week and assure me that they are working on this process and soon will be lowering my mortgage payment accordingly per the Promissory note. On Saturday XXXX XXXX, I received a call from the supervisor, advising me they are unable to process the request as a law had passed which does not allow Ocwen to process the request. 
I couldnt believe what Ocwen had advised me after all the reassurance and time this process has taken. My brother and I have been planning for this day for years. We worked hard to save and come up with the {$100000.00} to pay on our house as I knew at one point he would move one and get married and have his own house and bills to pay and he would not be able to contribute to the mortgage and bills anymore. We both knew that I was unable with just my income to keep paying {$1800.00} with other bills and taken care of the family. We always contributed together to make sure our bills and mortgage were paid and our family were taken care of. The day for him was approaching and thats why I started to inquire regarding the payment modification and MIP removal. He was closing on his house in XXXX. We thought we would get this process started and this process would be completed by XXXX, which in turn would give me a month to save some money to start taking over and paying the bills on my own with no financial burden as we thought the mortgage would be reduced by a substantial amount, an amount that I would be able to handle and continue with our normal day to day lives without being in a financial burden. Ocwen has directed me and provided me with false information this entire time and to them it has not caused them any harm but has caused my family my brother and I in a whirl wind of financial problems. 
My brother and I could not believe this has just happened to us. My own mortgage company Ocwen, has directed me with wrong information and has now subsequently placed me in a financial burden. The agreement and the expectation between Ocwen and I, was if I applied a {$100000.00} towards my mortgage my monthly payment would be reduced accordingly and the MIP will be removed. Ocwen confirmed multiple times that this would occur. However, Ocwen has processed the {$100000.00} and has still till today has not adjusted my monthly mortgage payment. 
I didnt know what to do my entire life came to a stop in hopes to fix this problem I called my Senators office and was advised to forward them all the information as I am doing here but not with this much detail. The Senators office then filed a complaint with what they advised me is the XXXX XXXX or the XXXX XXXX XXXX in hopes this matter would be amended. I waited for almost another 2 months to two and a half months to obtain a response from XXXX XXXX XXXX XXXX from the XXXX XXXX XXXX XXXX XXXX at Ocwen. ( Ill attach the response ) .For the first time in this entire response was I ever notified that the MIP was unable to be removed due to the explanation she provided as well as advising the Modification of Promissory Note was sent to my brother and I prematurely, as we had not received investor approval. 
Why couldnt the Ocwen representative advise me when I inquired on XXXX XXXX, XXXX, that I should initiate my request initially so a representative could confirm if a recast could actually be done and then issue the payment? If I knew of this outcome I would have never initiated this process and issued a check in the amount of a {$100000.00}. I would have set aside some money from the {$100000.00} in order to make payments on my mortgage and invested the rest in order not to be in the situation that my brother and I are in today. XXXX XXXX stated that the Modification of Promissory Note was sent to us prematurely, as Ocwen had not received investor approval. If this so and was a mistake on Ocwens part then the {$100000.00} should not have been processed. Rightfully, the {$100000.00} should be credited back if this was truly a mistake. This is a prime example that everything that was advised to me upon the direction of Ocwens own representatives was done prematurely. This is not fair and I find this to be outright ILLEGAL and FRAUD. 
Even before filing this complaint I thought let me try and contact Ocwen if they can do an internal refinance considering this situation. I called Ocwen on XXXX XXXX, XXXX in hopes that Im able to do an internal refinance and waive the closing costs considering this entire process. I was advised that I do have the option for such and was directed to speak to a financial representative at XXXX XXXX XXXX XXXX who Ocwen directed me to. When I explained the situation to that specific representative for the first time ever during this entire process was I advised that the MIP is unable to be removed just as XXXX XXXX stated in her response. This gentleman knew what he was advising and I credit him for that. If this was advised to me previously I wouldnt be in this situation. He also couldnt believe that my monthly mortgage payment was not lowered and the handling of this matter. He stated to me he never heard of such a thing. I inquired if there was anything he can do in hopes to assist me. I explained to him the situation of my financial stance at this point along with my brothers and the debt to income scenario. He advised then a regular refinance will not work as he will have to run our income and financials and if theres a debt to income situation then that option will not work. He advised me he has another option which is a streamline refinance where a request for financial records is not requested and the debt to income will not be a factor. However, my interest will increase dramatically from 3.875 % to possibly 5 % maybe more. The MIP will stay however, even with stretching my mortgage out to 30years from 22years where its at now and closing cost which are not waivable and ranges from $ XXXX ( which will cause an increase on what I owe on my principal at this point ) will only save me roughly {$200.00} a month on my mortgage payment. I thanked him for his advice and explaining this matter to me thoroughly. 
I did not find this to be a rectifiable option for me. I will be adding more onto my principal, stretching out my loan back to 30years and increasing my interest from 3.875 % to 5 % if not more. 
When the Senators office received the response from XXXX XXXX they as well could not believe the response. I was advised from the XXXX XXXX to file a complaint with your Department Consumer Financial Protection Bureau. 
I am pleading with you for a resolution to this entire ordeal which Ive been going through with Ocwen, since XXXX XXXX of XXXX. This has been handled incorrectly from the start and has been very excruciating process to deal with. Every one of my conversations with Ocwen is recorded, you can request phone conversations if you are able to. I hope and plead that you are able to assist me in this entire matter and find an amicable resolution to this entire ordeal. 
I truly apologize for this long drawn out complaint but I wanted to express everything that Ive dealt with because of this matter. 
Thank you, XXXX and XXXX XXXX XXXX be attaching the response from Ocwen, mortgage statement where it shows the {$100000.00} was processed, an email where I inquired about the MIP and the signed and notarized Modification of Promissory Note.