Consumer complaint received 2021-03-02
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Onity Group Inc. (IL)

In XXXX of XXXX, XXXX XXXX XXXX ( I ), requested a mortgage forbearance from PPH Mortgage ( PPH ). I have a split mortgage with PPH {$570.00} ( # XXXX ) and {$180.00} ( # XXXX ). 
XX/XX/XXXX : I applied for the XXXX XXXX COVID-19 Recovery Mortgage Assistance Program ( Mortgage Assistance Program ) and requested a mortgage forbearance payment of {$2200.00} which included payments for both mortgage accounts ( # XXXX ). ( Exhibit 1. ) XX/XX/XXXX : Received letters from PPH approving the mortgage forbearance for both accounts. ( Exhibit 2. ) The mortgage forbearance effective date is XX/XX/XXXX for 3 deferred payments. The mortgage forbearance payments were due XX/XX/XXXX for the months of XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX in the amount of {$1700.00} ( 3 mortgage payment for # XXXX XXXX and {$560.00} ( 3 mortgage payments for # XXXX XXXX. Note : The defer payments are for the month of XXXX and XX/XX/XXXX, two months only, not 3 deferred payments as stated in Exhibit 1. 
XX/XX/XXXX : Received letters from PPH granting a Notification of Payment Deferral for the month of XX/XX/XXXX for both mortgages in the amount of {$760.00} ( # XXXX ). ( Exhibit 3. ) XX/XX/XXXX : Updated Self-Certification/Statement of Facts for the Mortgage Assistance Program to reflect the new mortgage forbearance balance of {$1500.00} to cover XX/XX/XXXX and XX/XX/XXXX mortgage payments. ( Exhibit 4. ) XX/XX/XXXX : Received a check from the Mortgage Assistance Program in the amount of {$1500.00}. ( Exhibit 5. ) The check was to be endorsed by both parties. 
XXXX XXXX : I signed and sent the check via certified mail to PPH along with the payment coupons and a copy of each forbearance letters ( see Exhibit 1. ) I also included a personal check ( # XXXX ) in the amount of XXXX cents not realizing it was not needed. ( Exhibit 6. ) XX/XX/XXXX : PPH received and applied the entire mortgage assistance check of {$1500.00} as well as the XXXX cents to the first account ( # XXXX ). ( Exhibit 7. ) Note : I included the mortgage coupons and a copy of each forbearance letter so that there would be no mix up. 
XX/XX/XXXX : I received a letter from PPH for the second mortgage account ( # XXXX ) offering another Temporary Hardship Forbearance Plan Agreement to defer 3 payments ( XXXX, XXXX and XXXX ), with 4 payments being due on XX/XX/XXXX in the amount {$750.00}. ( Exhibit 8. ) Note : not sure why I am receiving this letter from PPH. XX/XX/XXXX payment was received by PPH so there was no need for a mortgage forbearance. I never contacted PPH requesting an additional mortgage forbearance as stated in the letter. 
XX/XX/XXXX : I receive a letter from PPH for the first mortgage account ( # XXXX ) offering another Temporary Hardship Forbearance Plan Agreement to defer 3 payments ( XXXX, XXXX and XXXX ), with 4 payments being due on XX/XX/XXXX in the amount of {$1700.00}. ( Exhibit 9. ) Note : PPH had already applied my XX/XX/XXXX and XX/XX/XXXX payments to my first mortgage account, therefore, I am not sure why PPH is offering a mortgage forbearance for XX/XX/XXXX. I never contacted PPH requesting an additional forbearance as stated in the letter. 
XX/XX/XXXX : I called ( 19 mins ) PPH to inquire about the mortgage payments to the 2nd mortgage account in the amount of {$370.00} for the month of XX/XX/XXXX and XX/XX/XXXX ( # XXXX ). I was told by the customer service that the payment of {$370.00} would be removed from the first mortgage account ( # XXXX ) and be applied correctly. 
XX/XX/XXXX : I received a confirmation letter from PPH confirming the XX/XX/XXXX inquiry. ( Exhibit XXXX. ) XX/XX/XXXX : In my PPH online payment history account XXXX # XXXX ), it shows {$370.00} listed as a Misapplication Reversal. ( See Exhibit 7. ) XX/XX/XXXX : In my PPH online payment history account ( # XXXX ), it shows that only {$1.00} was applied to my second mortgage. ( Exhibit 11. ) XX/XX/XXXX : Called ( 42 mins ) PPH again to confirm that the payment for the second mortgage was applied correctly. The payment had not been applied. I was informed by customer service that the payment of {$370.00} would be reversed from the first mortgage ( # XXXX ) and applied to the 2nd mortgage ( # XXXX ). Note : I spoke and worked with customer service for 42 mins to get my account straightened out and was assured that it would be correct. 
XX/XX/XXXX : Received a letter from PPH regarding a Notification of Payment Deferral for all unpaid monthly payments that were due on or before XX/XX/XXXX for the second mortgage ( # XXXX ) in the amount of {$180.00}. ( Exhibit 12. ) Note : that these deferrals were not needed because PPH received my XX/XX/XXXX and XX/XX/XXXX mortgage payments on XX/XX/XXXX. 
XX/XX/XXXX : Received my monthly PPH XX/XX/XXXX statement. ( Exhibit 13. ) PPH applied the reversed payment in the amount of {$370.00} as extra principal to the second mortgage ( # XXXX ) and put {$1.00} in unapplied fund. Note : this was not extra principal. This was my XX/XX/XXXX and XX/XX/XXXX mortgage payments. 
XX/XX/XXXX : Call PPH to inquiry about the 2nd mortgage payment being applied to principal. PPH customer service informed me that they sent me a Notification of Payment Deferral for the month of XX/XX/XXXX, which I informed them I never received and did not ask for. PPH had already received my XX/XX/XXXX and XX/XX/XXXX payment on XX/XX/XXXX. ( See Exhibit 6. ) Note : Per PPH, contact is supposed to be made at the end of each forbearance. PPH has not made any contact with me to discuss any financial hardship or any other mortgage assistant. 
The agreement with PPH was for a 2-month mortgage forbearance that was due XX/XX/XXXX in the amount of {$1500.00} for both accounts ( # XXXX ). I made sure the payment was received by XX/XX/XXXX. It is XX/XX/XXXX, and I am still trying to have my payments applied correctly. PPH deliberately and intentionally did not apply my payments to my account. The only thing going on with my account is the interest that PPH is getting. Note : Per my contract, I have until the XXXX of each month before a payment is considered late.