Consumer complaint received 2020-04-21
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Onity Group Inc. (NC)

I contacted PHH Mortgage in reference to refinancing my investment property. On XX/XX/2020, an initial loan application and credit check was administered by XXXX XXXX, PHH loan officer. My application was pre-approve based off my credit score ( XXXX ). I inquired about the refinance process, which she stated varies between 30 and 90 days, but she ensured I would close within the 90 day period to prevent re-pulling and affecting my credit score. 

XXXX thru XXXX I worked on completing and uploading personal documentation within the PHH portal, as well as waiting on appraisal information. Around the first week of XXXX, I was introduced to XXXX XXXX, PHH Mortgage Services Loan Processor. Mr. XXXX requested a lot of information the first week and I was quick to return all of the data. On XX/XX/XXXX, the appraisal was completed and submitted to the loan officers via the PHH Portal. The loan process was almost complete, with the exception of insurance documentation and my request to lower the interest rate provided at ( 5.5 % ). 
XX/XX/XXXX, I reached out to XXXX who informed me XXXX would be contacting me in reference to my interest rate inquiry. XX/XX/XXXX, XXXX informed me he needs to pull my credit report because my credit was originally pulled under an old account and he would need to perform another credit check. I was upset because XXXX had ensured I would close in under 90 days and no additional credit check were required. 

XX/XX/XXXX, I reached out to XXXX in reference to the progress of my loan and he informed me he would get back with me. From that point, I was giving the runaround every day. 

XX/XX/XXXX, he followed and informed me he was waiting on an insurance rate update from his supervisor. He followed up with an email that he was waiting on a rate update : XXXX I have a request out for the insurance ( I spoke with them as well, as had previously requested ). When the credit was pulled it affected the rate because of the drop in score. I know youre anxious to have this wrapped up. I am working with the management team to see how it can be addressed. I apologize for the continued delay. I am pushing for a response. 

XX/XX/XXXX, I followed up on the interest rate inquiry and XXXX informed me : XXXX I spoke with my supervisor. They are still working on the rate. I will continue to keep you updated. 

XX/XX/XXXX, XXXX reached out to me to inform me : Hi XXXX Looks like we are still in the process of honoring the rate. Things look good. I have a reminder on my calendar to give you an updated status before I leave the office. 

XX/XX/XXXX, I asked if I would be closing by the end of XXXX and XXXX response : I am trying to push for it XXXX I was advised that our VP and compliance team is reviewing the rate. As soon as I have an update I will let you know XX/XX/XXXX, I followed up to inquire about a status and inform XXXX I would be filing a complaint with Consumer Financial Protection Bureau and XXXX. 
XXXX contacted me via cell phone at XXXX XXXX ET to inform me he was working on another plan since my credit score was too low for approval. He called me at XXXX XXXX and inform me PHH would not be moving forward with my loan. 

PHH has ruined my credit score. My XXXX  score is XXXX, and XXXX is XXXX. My XXXX score was XXXX and my XXXX was XXXX. The first credit PHH inquiry dropped my score and the last hard inquiry this month has dropped my credit score 32 points. When I applied for the PHH loan, which was based off 3 credit score calculations. My overall credit score was a XXXX. 

Now, I can not refinance my investment property through ANY mortgage company. It will take months or even a year to improve my score! I need to take action or PHH needs to work harder to rectify this issue. I truly believe this is mortgage discrimination and now I was denied a loan based off an error in their ( PHH mortgage ( s ) ) overall system. I am aware mortgage companies are preventing XXXX XXXX  from refinancing and XXXX people are disproportionately targeted for high rates. Something needs to be done or I will seek legal consultation.