Consumer complaint received 2019-09-29
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: Onity Group Inc. (GA)

Closing Date : XX/XX/XXXX Loan Amount : {$290000.00} Summary of actions taken : In XXXX of XXXX, I sought affordable financing options for my property through mortgage refinance with originator XXXX XXXX XXXX. Please note the following changes as it pertains to XXXX XXXX XXXX : On XX/XX/XXXX Ocwen acquired and became successor in interest to XXXX XXXX, the successor of Mortgage originator XXXX XXXX XXXX. As a result of this acquisition Ocwen Financial Corporation is a successor Corporation and is liable for the illegal practices alleged in this complaint. 

My application for mortgage refinance was approved under the advertising and representation of what was understood as a typical Adjustable Rate Mortgage ( ARM ) product. This emphasis of an ARM was conveyed through a summary document presented. 

During the loan closing procedure, details were revealed that the ARM product being offered contains features that would base the interest rate on the London Market Interbank Offered Rates ( LIBOR ) with the primary focus placed on this particular disclosure in addition to a XXXX, fixed rate, Interest Only period with pre-payment penalties up to XXXX years after origination. These product features were not discussed nor mentioned prior to the actual closing appointment. 

With the understanding of key terms as presented by representatives at closing, I concurrently performed a best case review attempt of ALL documentation prior to placing signatures on any items considering the expeditious fashion in which the closing was conducted and the wealth of information contained in the loan package. 

Beyond the XXXX, fixed rate, Interest Only period and in the years following the start of the current amortization period, I became extremely concerned that although a tremendous downturn was experienced in the LIBOR index due to mortgage market adversity, the interest rate on the ARM was never adjusted to reflect those changes in any way when this should have been the case based on market performance as indicated in various rates tables. The Product disclosure document specifically states that the interest rate will be based on the aforementioned index. A copy of the Adjustable Rate Mortgage Loan Disclosure is attached.

I was able to contend through careful and independent examination of loan documents, specifically the ARM product disclosure, that deceptive practices were evident by the mortgage lender providing misleading information and through inadequate disclosure of the actual loan terms and conditions as well as leveraging contradictory language contained in several loan documents. Due to the complex nature of the misleading documents presented and the length of time transpired which the LIBOR index data was made clear, the harm resulting from these deceptive practices of the mortgage company was fully recognized by me in recents year.

I further concluded that the Mortgage company violated FTC section 5 by leveraging the persistent use of misleading loan documents through inaccurate titles or labels for most notably the Adjustable Rate Mortgage Loan Disclosure, Adjustable Rate Rider, and the Addendum to the Adjustable Rate Note, each of the aforementioned documents in Title specifically referenced the 5 year, Interest only period, yet there were elements that referred to the amoritization period which is clearly deceptive.

To resolve this I sought redress through a personal lawsuit filed in Federal Court charging the mortgage company with FTC Act section 5 violation but the case was dismissed due to no private right of action. As the government agency that is equipped with enforcement to address such violations I am submitting this complaint to the CFPB to investigate further.