Consumer complaint received 2015-05-29
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account — 
Company: Onity Group Inc. (DC)

Ocwen did not pay hazard insurance for my property when due and the policy was canceled. Ocwen received a request in XXXX 2014 to disburse the annualhazard insurance premium for the property located at XXXX, in XXXX in the amount of {$730.00} and failed to do so. I contacted them onseveral occasions and each time was told that the check would be sent, but it was not. On XXXX XXXX, 2014, I called Ocwen and discussed my escrow and hazardinsurance payment. I also conducted a conference call with Ocwen and XXXX representative XXXX XXXX. After over XXXX minutes on the phone, I wasassured that the check would be sent immediately. It was not. Three months later, on XXXX XXXX, 2014, I contacted Ocwen again regarding the disbursement of thehazard insurance. I hosted another conference call with XXXX XXXX at XXXX. XXXX at Ocwen informed XXXX and me that the check would beexpedited. I requested that my escrow be closed because it was evident that Ocwen was not reliable to pay the hazard insurance. I spent XXXX minutes discussingthe insurance and again Ocwen did not disburse the check. XXXX weeks later, the check still had not been disbursed. On XXXX XXXX, 2014, I called Ocwen again toresolve this issue. Finally, a check was disbursed and received by XXXX. However, the check was for {$730.00} and the new policy was {$930.00}. XXXX atXXXX informed me that her underwriter needed a letter from Ocwen stating that the hazard insurance was not paid due to their actions and not the fault of theborrower. I followed up with Ocwen and left messages for XXXX ( XXXX XXXX and XXXX XXXX ) and XXXX ( XXXX XXXX ) regarding the status of this letter. XXXXand the owner of that XXXX office, XXXX XXXX, both told me that they had not received the letter. I researched other insurance companies to get a moreeconomical rate. On XXXX XXXX, 2014, I decided to work with XXXX. I called Ocwen and communicated the change to XXXX. The price of thepolicy is {$800.00}. XXXX has confirmed receipt of the check, but Ocwen has not closed my escrow nor have they agreed to credit the account {$69.00} annuallyfor the hazard insurance. I had to secure a new policy because of Ocwen 's negligence. They admit receiving the request in XXXX 2014, but did not disburse thefunds until XXXX months later. During this time, I contacted them several times ( spending hours away from my job ) yet, they still did not disburse the funds for thehazard insurance. I also had to spend time researching and selecting a new insurance policy. Ocwen was fully aware of their liability to disburse the check for thehazard insurance and they acknowledge that they received the request. Their actions were deliberate and unacceptable. As a result, they are responsible forpaying {$69.00} towards the hazard insurance. This is the difference between my old policy with XXXX XXXX ( {$730.00} ) and the current policy with XXXX ( {$800.00} ). This is not a courtesy to me, but the cost to Ocwen for their error. 

Considering the numerous of complaints and lawsuits against Ocwen for receiving kickbacks on force-placed insurance policies, my experience is another illustration that Ocwen 's practice of not paying hazards insurance is systemic. Ocwen deliberately holds on to the funds so that insurance companies will cancel the policies and Ocwen will be able to benefit from purchasing force-placed insurance. These policies are always much more expensive. Consumers pay more and Ocwen profits.