Consumer complaint received 2020-05-05 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Ocwen Financial Corporation
State: OH

Complaint narrative:
I have contacted PPH Mortgage repeatedly about their unscrupulous practices and what appears to be fraudulent servicing of my loan. They have misapplied or not applied numerous payments throughout my loan in order to drive my loan repeatedly into foreclosure. Last year, I reported the same activity. I make payments. They hold onto those payments and don't apply them to the loan ; then they claim I didn't make the payment, which they were holding ; then filed a foreclosure action against me. The foreclosure, which was padded, was paid in full, based on their false claims. Then right after the foreclosure was paid, they started the same activity. 

In XX/XX/XXXX, I received a bill stating I owed {$840.00} to pay off my loan in full. Rather than make two payments, I paid the entire amount that their website, phone and statement said I owed to retire the loan. They took the money, but didn't apply it. The next month, in XX/XX/XXXX, after I had paid the entire amount the bill said was due in XXXX for the entire loan, they generated a new loan statement and said I owed {$420.00} to pay off the loan. I paid that amount, but I called and inquired how I could owe that amount when I had already paid the full amount the bill listed as payment in full. They claimed that they would look into. They claimed I needed to pay an additional amount to retire the loan, but that amount never appeared on any statements. 

Each time I paid the amount the bill stated I owed, they generated a new bill with another amount, which is impossible if I paid the full amount the bill stated would pay off the loan. I repeatedly paid the amount they claimed needed to completely pay off the prinicipal. Finally, I stopped paying because it didn't make sense, especially when each time I called them, their phone rep admitted that they were holding the money and didn't apply it. They couldn't say they were waiting to receive enough money in order to apply it, because they were holding twice the amount of money than the new bill they claimed I owed. In XXXX, they asked if I wanted them to apply the money. Why would I send money to pay off the mortgage in full if I didn't want them to apply it to the account. This same conversation has taken place each month for three months. 

They have repeatedly reported this bill late, although they are literally holding my money, more than what was owed, and falsely reported it as late. They are listing on the bill that I am 125 days late on a bill that I paid off in full all principal due in XX/XX/XXXX. They are still holding my unapplied funds of over {$840.00} dollars, but state that my loan balance is {$420.00}. It doesn't make legal or logical sense. 

This company is crooked and taking advantage of consumers. I am miffed as to why the government continues to allow them to get away with this fraudulent activity. I have recorded every conversation with their reps and they admit that they have been holding my money and not applying it. They continue adding late fees, despite holding my money and not applying it. Why would I keep paying the same bill off over and over again? 

Ask for the records of their website statement for the past six months and for the phone recordings in which they told me they hadn't applied funds. Please determine why after I paid the total amount stated in the bill and on the website to complete the payment due, they keep adding one new payment each month. Each payment was stated on the website as the last payment until I paid it, then the new payment was stated to be the last payment, and it continues every month until I just stopped repeating the scam. 

Your Loan balance is {$420.00} Loan Details 1 Payments remaining XX/XX/XXXX - XX/XX/XXXX Mortgage Payment Applied : XX/XX/XXXX {$840.00} Due Date XX/XX/XXXX Principal {$0.00} Interest {$0.00} Escrow {$0.00} Other {$840.00} Mortgage Payment Applied : XX/XX/XXXX {$420.00} Due Date XX/XX/XXXX Principal {$420.00} Interest {$4.00} Escrow {$0.00} Other {$0.00} This payment was late by 32 days. 


Mortgage Payment Applied : XX/XX/XXXX {$420.00} Due Date XX/XX/XXXX Principal {$0.00} Interest {$0.00} Escrow {$0.00} Other {$420.00} Statement Date : XX/XX/XXXX Account Information Property Address Outstanding Principal Balance ( not payoff amount ) Current Interest Rate Prepayment Penalty Escrow Balance Suspense Balance {$840.00} 6.3750 % No {$0.00} {$840.00} ( I paid {$840.00} ) Statement Date : XX/XX/XXXX Property Address Outstanding Principal Balance ( not payoff amount ) Current Interest Rate Prepayment Penalty Escrow Balance Suspense Balance {$420.00} 6.3750 % No {$0.00} {$840.00} ( where did the {$420.00} come from ) This bill was also generated XX/XX/XXXX Paid Last Month Paid Year to Date Principal {$0.00} {$420.00} Interest {$0.00} {$4.00} Escrow ( Taxes and/or Insurance ) {$0.00} {$0.00} Fees {$0.00} {$0.00} Optional Products {$0.00} {$0.00} Partial Payment ( Unapplied ) * {$420.00} {$840.00} After I complained, they generated a bill also dated XX/XX/XXXX XXXX, but which was put into the account on XX/XX/XXXX and added fees that weren't on the prior bill. 
Outstanding Principal Balance ( not payoff amount ) Current Interest Rate Prepayment Penalty Escrow Balance Suspense Balance {$420.00} 6.3750 % No {$0.00} {$840.00} Explanation of Amount Due Principal Interest Escrow ( for Taxes and Insurance ) Optional Products/Other Regular Monthly Payment Total New Fees and Charges Outstanding Unpaid Late Charges, Returned Item Charges, Shortages and Other Fees Assessed Expenses Past Due Payment ( s ) Total Amount Due {$0.00} {$0.00} {$0.00} {$0.00} {$0.00} {$0.00} {$420.00} {$880.00} {$420.00} {$1700.00} Past Payments Breakdown Paid Last Month Paid Year to Date Principal {$0.00} {$420.00} Interest {$0.00} {$4.00} Escrow ( Taxes and/or Insurance ) {$0.00} {$0.00} Fees {$0.00} {$0.00} Optional Products {$0.00} {$0.00} Partial Payment ( Unapplied ) * {$420.00} {$840.00} Total {$420.00} {$1200.00} Total {$420.00} {$1200.00}

Company response to consumer: Closed with explanation