Consumer complaint received 2019-10-09
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Onity Group Inc. (TN)

I am submitting this formal complaint regarding OCWEN subsidiary PHH Mortgage Services about my loan transfer to XXXX XXXX XXXX , XXXX subservicing by XXXX  on XX/XX/2019. As of XX/XX/2019 I am still working through this process with XXXX regarding the matter below. I have submitted a written complaint to PHH Mortgage as of XX/XX/2019 and plan to submit a similar complaint to OCWEN as well. 

My family and I experienced a house fire XX/XX/2019 with a total loss in which our home was under constructions for over six months. I reached out to PHH Customer Service Department who put me in touch with the Loss Draft Department. The Loss Draft Department explained the process and sent out the required documents as outlined by the service representative. I completed the necessary steps and submitted all documents including all endorsed insurance checks I received. PHH 's process was working as instructed and outlined on the  XXXX website which made me feel very proud to be a customer. PHH 's thirty plus years of experience were on full display which gave my family and me comfort we had the right mortgage provider with us during one of the most tragic times of our lives. 

During the month of XX/XX/XXXX, the process had begun to unravel after I requested my first home inspection in order to receive the next scheduled contractor 's payment. Again I followed the process and submitted my request for two days of processing, gave the inspector five to six business days to contact me, and an additional four days for the results to be received and processed so the contractor 's payment could be issued. I reached out to the Loss Draft Department more than a dozen times to follow up on the scheduled inspection which only resulted in escalation after escalation after escalation. Finally, an exception was granted to pay a partial disbursement until the inspector could be contacted. The inspection did not take place until the month of XX/XX/XXXX and the results provided early XX/XX/XXXX. I had to pay the contractor thousands of dollars out of pocket until PHH Loss Draft Department was able to send the additional funds.

While frustrated how the first inspection had gone, I did not give up and called in mid-XX/XX/XXXX to see what steps I could personally take to prevent a repeat of the first inspection. Once more the representative gave me instructions of submitting my request now two weeks in advance prior to needing the next contractor payment. I submitted a request XX/XX/XXXX for the final inspection since the contractor 's agreement completion date was XX/XX/XXXX. It was during this inspection I lost all confidence in PHH as a Mortgage provider. I called more than two dozen times that resulted in escalation after escalation after escalation. Finally, I spoke with a team lead by the name of XXXX in which he said he would assist in resolving this issue as PHH tried to represent my first inspection results received XX/XX/XXXX as the inspection results requested on XX/XX/XXXX. After the contractor 's completion date per the agreement had come and gone, I called in numerous of times in which another exception had to be granted for partial payment to the contractor. 

As the month of XX/XX/XXXX approached with no final inspection scheduled, I called on XX/XX/XXXX for a status update. The representative again escalated the matter and told me to call back in two days. As instructed I called XX/XX/XXXX for a status update to learn my loan had been transferred that same day to another provider. Again I spoke with XXXX and he assured me while my loan had been transferred PHH would continue to assist. I did not receive a call from an inspector until XX/XX/XXXX who only completed inspections onXX/XX/XXXX The final inspection requested on XX/XX/XXXX took place XX/XX/XXXX. I call the new mortgage provider and they informed me I had to now go through their process and complete all new documents because they did not have my complete file. I called PHH to inform them of this information and they informed me it could take 30-60 days for a complete loan transfer to work through the system. I have called several times for a call back from XXXX with no response or voicemail. The PHH representatives did all they could, but the PHH management has been an epic failure. 

As of XX/XX/XXXX, XXXX informed me they could not take another Lender 's inspection results and I had to go through their 10 business days process and submit new documents. The contractor final payment of about XXXX XXXX dollars is still stuck in this process and I was forced to take out a HELOC against my home in order to pay him. I believe the CFPB should look into mortgage companies loan transfer practices while a consumer is in the middle of an insurance claim.