Consumer complaint received 2024-07-25
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Confusing or misleading advertising or marketing
Company: Onity Group Inc. (CA)

I have a modified mortgage issued via XXXX Mortgage in XXXX, as part of the Obama XXXX  protections and XXXX programs. That mortgage had a low interest rate and when they confirmed my " underwater '' status, XXXX moved {$170000.00} to the back of the loan as defferred principal ( non-interest bearing ) instead of writing off principal. XXXX Mortgage later began servicing the loan and is owned by XXXX. 

I was not making my payments on time in XXXX due to some personal hardships. I was working to catch them up, and in XXXX I made XXXX payments which effectively made me XXXX month past due. 

On XX/XX/XXXX, a XXXX representative contacted me, said that XXXX " noticed that I seemed to be having trouble making my payments on time. '' I explained that I had been experiencing some hardship but was working to catch it up. The agent then suggested that I accept a XXXX agreement. He advised me that if I skipped my next ( XXXX for late XXXX payment ) payment, which then effectively made me XXXX  months past due, XXXX would move my XXXX late payments to the back of the loan or offer me a repayment option after I made payment in XXXX, XXXX, and XXXX. When I attempted to make my payment in XX/XX/XXXX, I was unable to do so. When I called XXXX I was informed that I needed to apply for an entire new loan. Due to the delay in that process, I became another XXXX  months late. 

They offered me a new modification, but I could not see the details until I made XXXX trial payments. I made the payments and received the new agreement on XX/XX/XXXX. 

This new modification reduces my monthly payment amount {$150.00}, moves the now XXXX late payment to the back, and alarmingly - increases my balloon payment by {$100000.00}. 

It took several phone calls to PHH to ultimately determine that the {$89000.00} difference is due to them now charging me interest on what was supposed to be deferred principal. XXXX owns PHH mortgage, and seems to be attempting to force me to recoup the losses for them by negating my previous XXXX modification agreement. 

I believe that this mortgage group, PHH which is owned by XXXX which is owned by XXXX XXXX is targeting modifications they were forced to provide under the make home affordable act. I believe they intentionally coerced me and maneuvered me into a position that made it very difficult for me to get out of it without agreeing to pay them an additional {$89000.00}. 

XXXX has had several class action suits filed against them, for violations including violations of fair lending and improper employment practices. There seems to be no physical location for PHH Mortgage or XXXX. Onity headquarters seem to be based in XXXX XXXX XXXX Florida, as is XXXX. PHH is in some places described as an XXXX owned company. The XXXX XXXX XXXX XXXXXXXX has had to step down from previous XXXX positions for fraud and inappropriate lending practices. I sincerely believe they are making targeted effort to do this, I expect I am not the only homeowner they have targeted.