Consumer complaint received 2018-05-26
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — 
Company: Onity Group Inc. (FL)

To : Consumer Financial Protection Bureau-Complaint About : Ocwen Loan servicing XXXX XXXX XXXX, Fl, XXXX XXXX XXXX XXXX, FL XXXX In XX/XX/XXXX on the XX/XX/XXXX had property damage due to hurricane Irma. Which Ocwen and its employees then and now have been informed have not been fixed due to insurance denial and now mitigation with flood and litigation with wind insurance carrier. Through a public adjuster the claim for wind and XXXX XXXX XXXX are being handled. We have entered a mitigation process with XXXX and are possibly going to be in litigation if the outcome does not result in damages being covered due to Irma. The President of the United States declared this a disaster zone and gave to home owners a 3-month deferment because of Hurricane Irma.  We are still suffering from the effects due to losses by Hurricane Irma. 
We called Ocwen after the hurricane hit XXXX XXXX XXXX. Ocwen loan servicing company was able to offer a deferment due to the disaster. We were given a deferment for payments starting in XX/XX/XXXX ending in XX/XX/XXXX. XX/XX/XXXX, we started making re-payment on the re-payment plan. Which we paid first payment in the amount of {$2100.00}. This amount we calculated and submitted as Ocwen had not added anything on to the payment, and the phone system stated the regular payment amount of {$1300.00}. In XX/XX/XXXX we called when an e-mail came from XXXX XXXX stating we were 90 days past due on loan. Our credit had crashed due to this reporting by Ocwen. I spoke with XXXX XXXX ID # XXXX in first week XX/XX/XXXX ; he stated he would take care of this and in two weeks it would be removed from our line of credit. He stated it was something, Ocwens computers do automatically, the reason he gave. He stated I should call back to make sure all things were cleared by two weeks. I did call back to let Ocwen know when this came off our credit, I spoke with XXXX XXXX, he asked after I let him know that credit reporting was taken care ; if our re-payment payments were comfortable or if they were hard to meet. I stated not easy, but we were doing it. We had paid XXXX in XX/XX/XXXX. I had asked why the computer was giving {$1900.00} for payment as that would make the payment short. He had stated the computer had not been updated and the payment should be {$2000.00} I asked, why? {$2000.00}, when the amount should be {$2000.00}. He had no reason. Once again, he asked if the payment was hard to meet. I stated is was not easy, but we appreciated the deferment, and would get it all paid back as required. He stated we could be put in a suspension of payment and have the rest of the deferment payment added to the back of the loan. Would we like to consider this option? I asked questions about this suspension, he stated that it would change nothing about the loan, it would just add the remaining re-payment amount to the back of the loan. I stated I would like to consider this, if nothing would change. He stated he would send the paper work, it should be at the house in less than two weeks. We didnt need to worry about the next months payment in XX/XX/XXXX. 
This conversation took place XX/XX/XXXX, he needed me to speak with someone else in the disaster department XXXX XXXX who would go over the same thing as he had and put the request in for suspension of re-payments. 
When XX/XX/XXXX came, and no paper work had been received to consider we called and made a payment on XX/XX/XXXX in the amount of {$2100.00}, even though the computer phone system still stated {$1900.00} was the amount of loan repayment required. We paid {$2100.00} on XX/XX/XXXX. 
As of XX/XX/XXXX, there was only {$1000.00} dollars left to pay off the deferment payments to be paid and two regular house payments in the amount of {$1300.00} each. We had paid {$8200.00} in payments in four months. 
We had met and paid more than requested by our lender Ocwen for each payment. Once we knew what the re-payment amount required by Ocwen was, starting in XX/XX/XXXX we added extra {$100.00} to that amount to pay off faster, thus making sure we were never short. 
During these months we had also paid the house taxes {$1700.00}, and the down payment of wind insurance {$1200.00}. Money was tight, but we paid our bills and always have. 
We never called Ocwen and asked for lower payments or missed a payment. 
President Trump declared each person in disaster areas eligible for 90 days deferment on home loans. This was offered by Ocwen and we accepted this, as a major disaster had hit our Key and our home, and the places we worked, were directly affected by Hurricane Irma, and still are. 
On XX/XX/XXXX another e-mail came from XXXX XXXX, once again Ocwen had reported us behind 90 days, I called Ocwen about this and spoke to XXXX. He would send the letter to the creditors stating in declared disaster zone. It would take up to two weeks for this to clear. I explained I knew as this had happened before. He then asked if our payment were hard to meet? I once again gave same answer, given in XX/XX/XXXX, Yes, but we were making it! We were meeting the payment and paying more than asked. He then stated we were in a modification, it had started in XX/XX/XXXX. No, we are not I said. I then stated, we are not in anything, but a repayment of deferment. I then explained we had been offered a suspension ; but never received the paper work. Then I explained to him how another employee said not to make our XX/XX/XXXX payment. We did not follow the other employees advice. We are current on our payments. XXXX re-stated we were in a modification ; we needed to sign the paper work. 
I asked him what a modification was as we did not want to sign anything that would add onto our loan or add more money onto monthly payments. He stated the amounts left for the deferment would be added to the back of the loan. Nothing would change. I asked why hadnt we been told about this modification? He had no answer. He would e-mail me the modification, print two copies sign both and send them in. I stated once we read them we would let Ocwen know. He reassured me there was nothing going to change in our payments or any other cost being added, this was being done to help us. It all sounded good, I restated only the remaining {$1000.00} would go on the back of the loan, and we would go back to normal payments. Yes, he said, that is what will happen. Dont worry ; he stated. I asked why this had been changed to modification as we were offered a suspension of payment plan. XXXX stated this is the program Ocwen uses for deferment, suspension of re-payments/modification and how Ocwen accomplish the suspension repayment for people in our situation. Who were not delinquent ; but had been in a deferment from a natural disaster. I explained we did not ask for suspension /modification and that we were making all payments. He re-stated that the modification had already been done. XXXX XXXX then stated ; we needed to sign the paper work. I stated to XXXX again we had never received any paper work from Ocwen. I asked again why had Ocwen started a modification without us signing anything. He then informed me that the account was behind and that is why reported it had been reported to credit bureau. 
I explained we were on a deferment arrangement due to the Hurricane, not a modification and we had not missed a single payment. He explained the modification had already been applied to account. How could that be I asked again. He put me on hold came back and stated Yes, we were in a deferment, but it had been changed to modification ; which is the same as the suspension. I re asked what a modification meant. It meant the payments left would be added to the back of the loan. I stated that would be {$1000.00} was all that was left of deferment which would be divided over the next two months we would be done in XX/XX/XXXX. He stated that was correct and that amount would be added to back of the loan. He needed to e-mail me the modification paper work to sign. I asked again if this would change anything about the loan again.NO, only extend the payment amount left on the rear of the loan. Not to worry. I asked if any other things would be added onto this modification, as we were supposed to have a suspension done. XXXX once again insisted this is what Ocwen, used in cases like ours. Dont worry, nothing will change in the loan or how we pay the loan or insurances or taxes. 
When we got the e-mailed modification after reading the modification, we felt like we should not sign it. So, I called Ocwen again with my husband listening, I spoke with XXXX  XXXX, she was with the disaster program like XXXX, but XXXX was not available. I asked her just like I had asked XXXX and each person involved in this suspension/modification process. Would we have to escrow. NO, we were not in a real modification, this was a suspension, this is what Ocwen uses for deferment cases like ours. I asked her about the terms changing of the loan, only that the remaining amounts for deferment would be added onto the loan as we had paid all other payments. I explained that this was for XX/XX/XXXX and we had already made XX/XX/XXXX and XX/XX/XXXX payments. She stated the modification would start from date signed, and that the months left would be added to the rear of the loan. I explained the problems we had had with Ocwen when they took over servicing our loan from XXXX, and that Ocwen had never purchased the insurance they forced placed on our home, even though original loan did not require wind insurance. After a year and a half Ocwen sent a check for over {$5000.00}. I called Ocwen about the check and was informed Ocwen never purchased the forced place wind insurance. I was then told we needed to buy that insurance. XXXX, re-stated ; nothing would change in the loan, no escrow would be added, my husband had listened to the entire conversation. I stated again we were not sure we should sign the suspension/modification papers. Do not worry, nothing will change, this is only adding on what you have left of the deferment to the back of the loan.NO, worries XXXX stated, it will all be fine. We both believed her. So, we did sign and mail the modification. Both believing that only what we had left of the deferment {$1000.00} would be added to the back of the loan as all other payment had been made, and that we would not have to escrow anything. 
All lies, and devious and corrupt people. We really needed one thing to go on without a hitch. It was bad enough being taken advantage of by our insurance companies, now our mortgagor also. Then things got even worse. Ocwen did some fancy accounting. 
They took {$4000.00} dollars and moved it to the back of the loan. The deferment payments we had made they took {$1500.00} and applied that to the principal of the loan, then the rest they applied to one mortgage payment. {$9.00} of that money we cant find. 
So, as of this date we are a month ahead on our mortgage payments. We owe over {$3000.00} in Escrow and need to pay {$1800.00} dollars now. Then our payment in XX/XX/XXXX will be {$1800.00} also. Unbelievable, what a corrupt loan servicing company they are. 
In the first week of XX/XX/XXXX I received a call from XXXX XXXX, they service our wind policy. They wanted us to know Ocwen loans wanted to pay the insurance. XXXX told them no. This company knew Ocwen charged us and never bought a policy before, that is how they came to be our insurer. I called Ocwen to see why they were trying to escrow as we always paid our taxes and insurances. XXXX stated, well, you signed a modification and have been 6 months behind on payments. I said really, that is a lie. What payments did we miss? XXXX told me it was too late we had signed the papers, I said then we want them annulled as this is not what Ocwen or your employees stated, this was not a real modification but a suspension. XXXX, XXXX told me to write a letter to the review board. Who? Send a letter to the Escrow review board. Why? I stated, this entire modification is a corrupt lie, I wanted to yell, but didnt. She just stated, you signed papers live with them. We had been duped, lied to and now we have another company to fight. But, how corrupt they had been we were just starting to understand. Ocwen was trying to cover their tracks, and applied monies in ways to make it appear like we were in arrears, that we needed a modification. We did not need a modification! Nor did we ever ask for one! We were interested in a suspension, but those papers never came. We could make the payments and did make the payments. So, follow the money, our payment history is enclosed. 
XX/XX/XXXX payment was made in the amount of {$1300.00}, the phone system stated no payment until XX/XX/XXXX. After making XX/XX/XXXX payment the phone system stated no payment due until XX/XX/XXXX. XX/XX/XXXX payment told no payment due until XX/XX/XXXX. XX/XX/XXXX we now know the payment with escrow will be {$1800.00}. 
Ocwen employees kept asking was the payment okay, was it comfortable. Well, we now really know those are tactics used to align their customers. Had we asked for a modification I think we would have asked for a lower fixed interest rate. Normal payment $ XXXX@7.25 interest, and now the payment will be {$1800.00}, and probably go higher as the interest rates adjust and insurances are added. We continued to call Ocwen and asked how to get the escrow off the account. I spoke with XXXX XXXX during one of the calls in the first week of XX/XX/XXXX. I explained everything to him, and he was going to put a do not collect letter on account for insurances and taxes, as he had look at the accounting and could see we had never missed a payment and all policies and taxes were up to date. It was through XXXX that I became aware of Ocwen fraudulently distributed the payment money to principal and making a payment that moved our mortgage a month ahead. Ocwen took the entire {$4000.00} what 3-month mortgage payments equal and moved it to the back of the loan. Not the {$1000.00} we owed, that we had been assured would be the amount put onto the back of the loan. Why had Ocwen done this, I asked, XXXX ; he could not say. Why had they applied {$1500.00} to the principal, once again he stated he did not know why. He did state we had an overture of monies after XX/XX/XXXX payment and Ocwen applied part to principal and part to the mortgage payment, this made our account a month ahead. Why had Ocwen not informed us? XXXX did not know why. Why, was this money XXXX and {$1300.00} not applied to the amount owed to make the amount moved to back of loan lower? Why were these payments not taken off the amounts owed, as we had paid them to be used? All we owed as of XX/XX/XXXX was {$1000.00}, I stated. XXXX had no answer. How can we be late on payments? Like Escrow keeps stating? XXXX could not answer this either ; he would get back to me. 
I stated this overture and misapplying payments by this farce of a loan servicer Ocwen, and this fraudulent modification, has put our payment history a month in advance, but we are delinquent, I stated? Yes, XXXX replied. This is not possible, I told XXXX. Why did we not get any accounting of this? XXXX was going to investigate things ; and I should call back in three days. Had I not spoken with XXXX and asked why no payment due until XX/XX/XXXX after making XX/XX/XXXX payment, it could have been months until we caught this fraudulent accounting being done by Ocwen. 
Nothing employees at Ocwen said was true about the suspension/modification. Even the moto of Ocwen helping home owners is what we do is the biggest farce I have ever heard. 
Things though just started to heat up. XXXX had asked that I wait 3 days and call back to make sure the do not collect request was completed. I did call back in three days, and got the run around by many employees, finally an escalation member at Ocwen, XXXX XXXX took my call. After explaining everything to him, he had stated he could not do anything, the papers were signed, we had to escrow and that was it. We hung up. XXXX called me back a little while later, he had reviewed things and was putting a waiver, NOS into the Escrow department. He needed 5 days to see what he could do about getting thing completed? I should call him in five days at the number he gave me. We did play phone tag for a few days, when we finally spoke he needed 10 more days. This we feel was a way for Ocwen to have time to purchase our insurance, put it in escrow then call us delinquent. After 10 days I called XXXX ; his pleasant helpful attitude was gone, you are being escrowed for everything, and then he stated ; you are six month behind in your payments,. He said. Once again, I told him the amount of all payments and all other insurances and taxes we had paid. XXXX tried to back track his statements, then he got quiet, I ended the call. 
A letter came from Ocwen, it was a denial of waiver for escrow, imagine that. The company that had been maneuvering things to make legit people who have never missed a payment in 20 years, seem like we were delinquents and a loan risk. The letter stated we were being denied because of poor payment history for the last 12 months. Really the deferment can not count so where do this bad payment histories come from? It also stated we had modified the loan in the last 5 years. No, Ocwen had started that process all by themselves, duped us through deceitful employees into this farce. The loan to value must meet state/investor/Ocwen guidelines. The original appraised value compared to current principal balance would need to be reduced to meet LTV requirement. Really, where did these numbers come from. If this is true, then how could a modification be done since the house has damages that still await being fixed from a natural disaster and Ocwen and their employees all know this from many conversations. Conversations that each time stated ; this call is being recorded. 
When you follow the money, we paid our payments, this suspension/modification was not asked for by us, and it was insisted on by employees of Ocwen, for Ocwen. 
In the first week of XX/XX/XXXX when I found out most of this information. I asked that the modification be annulled. I was told, No, by the Escrow department. XXXX XXXX Who also stated he was a loan servicer. Who knows what department he really works in. 
Ocwens paperwork shows they had been aligning this account since XX/XX/XXXX without any papers or our signatures to do so. If we had not made the payments like Ocwen employees insisted in XX/XX/XXXX, for XX/XX/XXXX payment where would this all be now? Ocwen could have taken our home, and that is what we feel Ocwen is trying to do now through ; fraudulent business, banking and accounting practices, and this should also be recorded as I have stated it very often when speaking with Ocwen employees. 
We thought the deferment a blessing, boy were we wrong. Just to clarify we have not missed a payment in 20years. Deferments do not count in this history from what the credit reporting industry has stated and written, as Ocwen employees stated they did. Maybe I should call XXXX, XXXX and XXXX? Oh, I already did, deferment can not be used in credit evaluations in declared disaster zones by the President. The loan to value, has not gone down. How do we know? The home value didnt tank in the recession. We had more than 100 k equity during the recession ; pretty sure it is the same now, even with damages. Why? Because the location is in the XXXX XXXX! We have damage, but a hurricane impacted house cant be appraised, can it? Once all repairs are finished and all claims settled, the house value will be almost 2 times the loan value. It is at least 50k to 100 k above that in current condition. This house and many in our area are awaiting repair and still part of the disaster zone declared by the President. Just where did you Ocwen come up with these number to state home to loan value? Did Ocwen just get creative with numbers again? Your accounting has not shared with us what you did with house payments we made. That was done without our permission, or knowledge. So, should we trust Ocwen in these statements of our value of the house. 

Ocwen send your numbers and the method used. Also send complete accounting and how you used money paid, the reasons. Why, and how we are ahead and delinquent at the same time. We want that accounting and a complete escrow accounting from the start of last year in XX/XX/XXXX until after the suspension/modification XX/XX/XXXX. We do not trust Ocwen now or the numbers they proport. 
We do trust local realtors who gave me assurance that our house is worth more than the current loan, in its current hurricane damaged condition. 

For the record I did call after receiving the escrow letter to denounce all the misinformation Ocwen tried to allege in the decision to escrow our account. I spoke with XXXX XXXX and referenced the letter XXXX, what a not so lovely person she was to speak with. She insisted we had missed 6 payment, complete lie, she insisted we had no previous positive payment history. I countered never late in 20 years. She stated you signed this paper work, and your home taxes and insurances will be escrowed. Nasty person she is. I schooled her on the fraud being done in the accounting and how Ocwen tried to make it look like we were behind. She almost yelled you were behind for 6 months. I stated she was a liar and that she would be named as a person committing fraud by saying such. XXXX stated we had missed XX/XX/XXXX-XX/XX/XXXX payments. What a foolish thing to say. I stated, we were never late. Her attitude was starting to rattle my nerves. I asked her where she got that information and was she sure ; as this had better be being recorded. XXXX then tried to re-tract her statement. I explained she and all other employees would be named when I sent this letter to Ocwen ; then filed it and all letters and statement and my bank statement with government agencies. I informed her that insisting we were delinquent and basically a risk did not make it true. I informed her by saying such she was defaming us and part of the defrauding we felt was being done Calls from Ocwen do not show Ocwen on the caller ID, instead they appear with two letters and a dash then 3 numbers. An example ; the last calls from XXXX, came under the caller ID, FL XXXX. I asked why calls from Ocwen were coming up on the caller ID this way, he could not give a reason. The same thing happened when the insurance department from Ocwen called my husbands cell. XXXX was on the caller ID. We had contacted the insurance department and asked them if it was necessary to be escrowed, we had explained how Ocwen had been late on many XXXX and never purchased the wind policy. They called in with this number and left a message, a message we did not get for days. Since Ocwen did not appear on the caller ID as usual why should we think a message had been left. We figure it is another bad business practice being done by Ocwen and their employees. 
As of this date XX/XX/XXXX we are one house payment ahead, Escrow shows we owe over {$3000.00} with XXXX due now from what we can understand of the escrow account. 
Payments made by us XXXX We made the down payment on homeowners insurance in XX/XX/XXXX {$300.00}. Ocwen contacted XXXX through XXXX XXXX and paid {$1100.00}, stating they had the right since the loan was modified. We got our down payment back. We have made our down payment, then quarterly payments for XXXX coverage for 20 years. 
XXXX has been escrowed since the first force placed wind policy, that was never paid or bought by Ocwen. The letter I recently received states Ocwen has not paid XXXX flood. It asks that we remit payment or contact my loan company to make sure payment has been made. This is nothing new, for 3 years I would buy the XXXX policy, then once Ocwen finally paid late by 1-3 months or more, I would get a refund for my payment. This is provable through XXXX XXXX insurance, as they have been our Flood insurance company for 16 years. As stated in the first paragraphs of the letter ; we paid {$1200.00} down on Wind policy in XX/XX/XXXX, the second payment of {$600.00} in XX/XX/XXXX. We will pay the next payment in XX/XX/XXXX, and the last payment XX/XX/XXXX. House taxes are paid in full {$1700.00} plus dollars. 
Ocwen has never payed these items nor do we need them paid or escrowed, as we are not any of the thing described in their Denial of Waiver for Escrow letter and basis for the decision not to waive escrow or annul the fraudulent modification. Which we were assured by Ocwen employees, would only be the remaining balance {$1000.00} added to the back of the loan and no escrow. 
XXXX how 3 employees used the same exact words, they all three stated the same things. That three employees stated the same exact words when telling us that the suspension/modification is what Ocwen uses for cases like ours from deferment. That we had no worries, that all terms would be the same. Sounds scripted now that I think back. 
Unfortunately, being emotionally exhausted for months and mentally drained because we have just gone through a category 4 hurricane aftermath. We are fighting insurance companies, their adjusters, engineers, daily weekly and monthly for 8 months straight. As we fight to protect our investment and get the property fixed. We really believed Ocwen, was trying to be a light in the darkness, they turned out to be the extinguisher of all light. 

XXXX XXXX XXXX resident XXXX XXXX XXXX Fl, Owner of property serviced by : Ocwen financial Company