Consumer complaint received 2026-04-24 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Ocwen Financial Corporation
State: NV

Complaint narrative:
NOTE : This is a NEW complaint. Prior complaint # XXXX was improperly closed by PHH on XX/XX/XXXX using an " unauthorized third party '' response without resolving any of the underlying issues. I am XXXX XXXX, the sole borrower of record, filing solely in my own name. No third party is involved in this filing. Loan : XXXX ( XXXX ) Property : XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX Servicer : PHH Mortgage Services ( NMLS # XXXX ) Prior CFPB Complaint : # XXXX ( improperly closed XX/XX/XXXX ) BACKGROUND : My VA-backed manufactured home was destroyed by fire on XX/XX/XXXX ( Fire Incident Report # XXXX, XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX. The structure was fully demolished under county Demolition Permit XXXX ( XX/XX/XXXX ). The property is now vacant land. My homeowner 's insurance issued {$240000.00} in loss proceeds. My loan transferred from XXXX XXXX ( XXXXXXXX XXXX XXXXXXXX ) to PHH Mortgage on XX/XX/XXXX. PHH HAS BEEN DELIBERATELY DELAYING THIS CLAIM FOR OVER SIX MONTHS. Every time I make progress, PHH invents a new obstacle. This delay is causing me {$20.00} per day in storage fees, risks my XXXX XXXX final inspection scheduled for XX/XX/XXXX, and has forced me to spend {$110000.00} of my own personal savings. The pattern of delay is not accidental it is a systematic refusal to fulfill PHH 's legal obligations under RESPA and VA servicing guidelines. PRIMARY ISSUE 1 PHH CASHED MY {$160000.00} VA INSURANCE CHECK, CLAIMED THEY LOST IT, RELEASED ONLY {$40000.00} AFTER FEDERAL PRESSURE, AND NOW CLAIMS THEY ONLY HAVE {$67000.00} IN RECEIPTS ALL OF WHICH IS CONTRADICTED BY THEIR OWN ACTIONS : XXXX XXXX mailed VA insurance loss draft check # XXXX for {$160000.00} to PHH via overnight mail on XX/XX/XXXX. PHH received and cashed this check on XX/XX/XXXX. PHH did not credit these funds to my account. When I called, PHH Executive Resolution rep " XXXX '' left a voicemail on XX/XX/XXXX stating they were " still searching for the check '' despite having cashed it 9 days earlier. PHH told me to wait 10 business days. I filed CFPB complaint # XXXX on XX/XX/XXXX. Following that complaint, PHH released {$40000.00}, describing it as a " good faith gesture '' then closed my CFPB complaint, claiming " unauthorized third party '' without accounting for the remaining funds. PHH 's " good faith gesture '' proves they had the money the entire time. It was never lost. PHH only acted under federal regulatory pressure, then immediately closed the complaint to stop scrutiny. PHH is now claiming it has only {$67000.00} in Phase 1 receipts. This is directly contradicted by PHH 's own actions and is another deliberate delay tactic. Here is why PHH 's claim is not credible : PHH already released {$40000.00} in loss draft funds. A servicer can not legally release loss draft funds without first reviewing and approving the underlying receipts. PHH 's own disbursement proves they received, reviewed, and approved the full Phase 1 documentation before releasing that money. The Phase 1 receipts ( {$80000.00} fire debris removal, demolition, land grading, dust control, and site preparation ) were sent to PHH by THREE independent parties : my insurance adjuster, XXXX, and were held by XXXX XXXX prior to the servicing transfer. XXXX XXXX 's inspector XXXX XXXX reviewed, inspected, and signed off on the full {$80000.00} in Phase 1 work before the loan was transferred to PHH. Under RESPA 12 CFR 1024.38 ( b ) ( 4 ), PHH was legally required to obtain all documents, inspection reports, and receipts from XXXX XXXX at the time of the servicing transfer. PHH can not now claim documents are missing when it was PHH 's own legal responsibility to obtain them. Any gap in PHH 's records is PHH 's failure not the borrower 's problem. PHH 's claim that they only have {$67000.00} in receipts after already releasing {$40000.00} based on those same receipts is not credible. It appears to be a manufactured excuse to withhold the remaining insurance funds without legitimate basis, constituting further deliberate delay. The math is straightforward : Total VA insurance check cashed by PHH ( XX/XX/XXXX ) : {$160000.00} Released after CFPB complaint filed : ( {$40000.00} ) Still held by PHH with no legitimate accounting : ~ {$120000.00} I am demanding a complete written accounting of every dollar of check # XXXX and immediate release of the remaining ~ {$120000.00}. PRIMARY ISSUE 2 I WAS FORCED TO PAY {$110000.00} OUT OF MY OWN PERSONAL SAVINGS FOR A REPLACEMENT HOME BECAUSE PHH DELIBERATELY WITHHELD MY INSURANCE FUNDS PHH MUST REIMBURSE ME IN FULL : Because PHH withheld my insurance funds for months with no legitimate explanation, I had no choice but to use my own personal savings to purchase a replacement manufactured home so I could rebuild my life after the fire. I should never have had to do this. These are insurance funds that PHH is holding and is legally required to release. I paid the full purchase price of {$110000.00} entirely out of my own pocket : {$15000.00} certified deposit paid XX/XX/XXXX {$99000.00} ACH payment confirmed XX/XX/XXXX TOTAL : {$110000.00} STATUS : PAID IN FULL ( confirmed by XXXX XXXX XXXX XXXX XXXX XXXX ) The home purchased is a XXXX XXXX by XXXX ( 3 bed, 2 bath, 1,475 sq ft ). It is sitting at the factory right now because PHH will not release the remaining insurance funds. I am being charged {$20.00} per day in storage fees. As of XX/XX/XXXX that is 54 days and {$1000.00} in storage fees I should not be paying. Every single day PHH continues to delay costs me another {$20.00}. XXXX XXXX has scheduled a final inspection for XX/XX/XXXX. If PHH does not act before that date I will lose that inspection window and face additional costs, delays, and potential penalties. PHH 's deliberate delay is directly responsible for this risk. This {$110000.00} is fully within the approved {$240000.00} VA insurance loss settlement for this property. PHH is holding my insurance money. PHH 's own delay caused me to spend my personal savings. PHH must reimburse me in full immediately. VIOLATION 1 FAILURE TO ACCOUNT FOR INSURANCE FUNDS/ DELIBERATE DELAY ( RESPA 12 CFR 1024.34 + VA SERVICING GUIDELINES ) : PHH cashed VA insurance loss draft check # XXXX for {$160000.00} on XX/XX/XXXX. PHH has never provided a full written accounting of these funds. PHH released {$40000.00} only after federal pressure, then closed the complaint. PHH is now claiming incomplete records as a new delay tactic despite having already disbursed funds based on those same records. It has been over XXXX months. This is not an administrative error this is deliberate delay. VIOLATION 2 IMPROPER CLOSURE OF PRIOR CFPB COMPLAINT # XXXX : PHH closed my prior CFPB complaint using an " unauthorized third party '' response without addressing the {$160000.00} in missing funds. The complaint was filed solely by me, the borrower of record. PHH used a procedural technicality in bad faith to avoid federal scrutiny of their mishandling of my VA insurance funds. VIOLATION 3 FORCE-PLACED INSURANCE ON VACANT LAND IN BAD FAITH ( 12 CFR 1024.37 + UDAAP ) : On XX/XX/XXXX, PHH received official XXXX XXXX Assessor documentation confirming the property is vacant land. PHH rejected it. Three days later, on XX/XX/XXXX, PHH sent a " FINAL NOTICE '' threatening to force-place hazard insurance at {$1300.00} per year. PHH 's own notice states the policy " covers only the STRUCTURE of the home. '' There is no structure. PHH knew this when they sent the notice. This is a knowing, bad faith attempt to charge a VA borrower for insurance on a non-existent structure. VIOLATION 4 COERCION AND ILLEGAL THREATS TO RAISE VA MORTGAGE PAYMENT ( UDAAP Dodd-Frank Act 12 U.S.C. 5531 ) : Every time I call PHH to lawfully inquire about my insurance funds, PHH representatives threaten to raise my monthly VA mortgage payment by {$300.00}. This is deliberate coercion designed to stop me from pursuing my legal rights. A servicer can not threaten financial punishment to deter a borrower from asking about her own money. This is an Unfair, Deceptive, and Abusive Act or Practice under the Dodd-Frank Act. VIOLATION 5 RE-DEMANDING DOCUMENTS PHH WAS REQUIRED TO OBTAIN FROM XXXX ( RESPA 12 CFR 1024.38 ( b ) ( 4 ) ) : PHH has demanded that I resubmit Phase 1 receipts and Demolition Permit BS-25-1019 that were already held by XXXXXXXX XXXX and sent to PHH by multiple parties, including my insurance adjusteXXXX and XXXX Under RESPA, PHH was legally required to obtain all documents from XXXX at the time of transfer. PHH can not use missing transfer documents which are PHH 's own failure to collect as a reason to withhold my funds. VIOLATION 6 PHH INSPECTOR FAILED TO CONTACT BORROWER AS SCHEDULED ( 12 CFR 1024.38 ( b ) ( 1 ) ) : PHH 's inspector was scheduled to call me on XX/XX/XXXX to arrange the Phase 2 inspection. He never called. I was forced to pay XXXX XXXX {$1500.00} out of my own pocket to certify the completed slab. PHH 's failure to maintain proper inspection procedures caused this cost and PHH must reimburse it. VIOLATION 7 FAILURE TO DISBURSE INSURANCE PROCEEDS PROMPTLY ( RESPA 12 CFR 1024.34 ) : PHH has failed for over six months to properly disburse VA insurance proceeds. This failure has caused : {$110000.00} in out-of-pocket expenses, {$1000.00} in storage fees growing at {$20.00} per day, risk to the XX/XX/XXXX, XXXX XXXX inspection, and ongoing inability to deliver and set the replacement home. TOTAL FINANCIAL HARM CAUSED BY PHH 'S DELIBERATE DELAY : VA insurance funds PHH holds, unaccounted for : ~ {$120000.00} Replacement home paid from personal savings : {$110000.00} XXXX XXXX inspection ( PHH inspector no-showed ) : {$1500.00} Storage fees 54 days x {$20.00} ( as of XX/XX/XXXX ) : {$1000.00} Storage fees ongoing : {$20.00} every single day PHH delays A formal Notice of Error has been sent to PHH via certified mail under RESPA 12 CFR 1024.35. The VA Regional Loan Center has been notified. All supporting documents are attached.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation