Consumer complaint received 2015-07-21
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: PHH Mortgage Services Corporation (MO)

On XXXX/XXXX/15 a regularly scheduled mortgage payment was sent to my servicer. On XXXX/XXXX/15, I checked up on the account only to find that my mortgage payment amount had increased from {$800.00} to {$890.00}. I was not notified of this change ; I was sent the same generic form email that I receive every month letting me know an online statement was available. Upon realizing the short payment, I immediately contacted the servicer, PHH Mortgage, to let them know what had happened. The {$800.00} had been put in suspense, and I was told that once they had received the remaining {$95.00} due, the entire amount would be applied as a regular mortgage payment due XXXX/XXXX/15. I was told this would take the balance of the week to apply. I immediately scheduled the {$95.00} out of checking and it was paid to PHH XXXX/XXXX/15. 

I received calls from an XXXX number I did not recognize. They eventually left a message stating that they were from PHH Mortgage 's collections department and left a number to call ; This was XXXX/XXXX/15. We contacted PHH at the number given and were directed to customer service through the main phone tree. It was at that time that the rep told us that we had an amount, {$95.00}, in suspense and they needed to know where to apply it. We explained what that amount was for, but were told that the payment for XXXX/XXXX/15 had been satisfied ... We directed the rep to apply the {$95.00} to principal, if it was indeed an overpayment. 
The next day, XXXX/XXXX/15, we received a letter USPS dated XXXX/XXXX/15 stating that our account was delinquent and to contact PHH at the same number left by the collections deptartment by voicemail. As the offices were closed that day, Friday, for the XXXX, we were unable to reach PHH until Monday XXXX/XXXX/15. ( We were able to request a waiver of later fees via the automated phone system on XXXX/XXXX/15. ) At that time we had a lengthy conversation with a rep calling herself " XXXX XXXX ''. By that time, a payment due XXXX/XXXX/15 had been sent and they applied it to the amount due XXXX/XXXX/15. The {$800.00} had been applied to principal without direction, and the {$95.00} was in suspense, where is remains to this day. By the end of this conversation, we were assured that the payments {$800.00} and {$95.00} would be reversed from their status as Principal payment and Suspense balance, late fees would be reversed, and we would receive an authorization form for PHH to release information to a party not listed on the loan documents. ( We have asked for this document for three years at this point and never received it. ) We were told, again, to look for the authorization form and corrections to the account by the end of the week. 
We did, indeed receive, the authorization form in the mail that Saturday XXXX/XXXX/15. During the week of XXXX, we also received a letter confirming the waiver of late fees. We assume this was a process initiated by automated request for waiver of fees on XXXX/XXXX/15, as we now have another round of late fees on our account. 
I have made numerous email contacts for updates on the status of the corrections to be made to this account. Allegedly, the process of reversing these misapplications was initiated XXXX/XXXX/15, one day after our contact with " XXXX XXXX '', and at some point I received a followup email stating it would take 7-10 business days for the payments to be applied. Tomorrow is XXXX/XXXX/15, ten business days from the last time we spoke to PHH and more that 7 weeks since this matter was supposed to have been addressed. As I stated, we now have another round of late charges on our account, and no sign that these corrections have been made. I receive XXXX calls a day from PHH 's main number only to be disconnected when I answer the phone. I have sent an email to XXXX, and an Escalation department at PHH. 
We did not choose our lender or servicer and will refinance to get our loan away from this company and XXXX if need be.