Consumer complaint received 2026-05-19 00:00:00
Product: Mortgage — VA mortgage
Issue: Incorrect information on your report — Account information incorrect
Company: Ocwen Financial Corporation
State: PA

Complaint narrative:
I am submitting this complaint regarding Onity Mortgage Corporation ( formerly PHH Mortgage Corporation ) for ongoing contradictory servicing conduct, foreclosure activity, and derogatory credit reporting while my mortgage account has been under active loss mitigation and an approved Trial Period Plan modification. This complaint is not duplicative of prior complaints because it is based on newly issued XXXX mortgage assistance and foreclosure/reinstatement documents that demonstrate simultaneous modification activity and foreclosure advancement. On XX/XX/XXXX, Onity Mortgage formally approved my account for a Trial Period Plan under a Loan Modification program with monthly trial payments of {$910.00} due beginning XX/XX/XXXX. The Trial Period Plan documents repeatedly reference active mortgage assistance, modification approval, escalation rights, and foreclosure alternatives. The package also states that no foreclosure sale would occur during portions of the appeal/review process. At the same time, the Trial Period Plan package acknowledged : ongoing loss mitigation review, mortgage assistance eligibility, appeal rights, and continuation of the modification process. However, less than two months later, Onity Mortgage issued a reinstatement quote dated XX/XX/XXXX stating : The account is in foreclosure we may continue with foreclosure proceedings and demanding certified reinstatement funds. The reinstatement quote simultaneously : references mortgage assistance personnel, provides reinstatement curing instructions, identifies a suspense balance credit, and states that the next regular payment would become due after reinstatement. This creates a contradictory servicing posture where the account was simultaneously : under an approved Trial Period Plan modification, in active loss mitigation, subject to reinstatement review, treated as an active foreclosure account, and being negatively reported to XXXX, XXXX, and XXXX. I dispute the validity of the servicing/accounting used to establish and continue the alleged delinquency beginning XX/XX/XXXX. I also dispute the continued derogatory reporting and foreclosure escalation while active mitigation and modification activity remained ongoing. On or about XX/XX/XXXX, this reporting caused my credit score to drop approximately XXXX points, creating immediate credit harm while the account remains under active dispute, loss mitigation, and Trial Period Plan modification. The reinstatement quote also contains significant escrow-related balances, including approximately {$9400.00} in escrow charges, additional collection/attorney fee language, and references to continuing foreclosure costs. This is particularly concerning given the long history of servicing disputes, escrow issues, modification delays, payment-blocking concerns, and inherited servicing inconsistencies originating with XXXX XXXX prior to transfer to PHH/Onity. Additionally, the reinstatement quote reflects a suspense balance credit, which raises additional questions regarding how payments and funds were being held, applied, or accounted for during the modification and delinquency process. This is causing active, measurable harm, including an approximately XXXX credit score drop, while Onity continues to report the account negatively despite unresolved servicing, escrow, modification, and foreclosure-related disputes.

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