Consumer complaint received 2025-08-15 00:00:00
Product: Mortgage — Conventional home 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: MD

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX, MD XXXX Email : XXXX Phone : XXXX XX/XX/XXXX Via CFPB Complaint Portal & Certified Mail Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX  XXXX DC XXXX Re : PHH Mortgage Violation of Court-Ordered Foreclosure Stay, Misleading Payment History Allegations, and Pattern of Servicing Misconduct Loan No. : XXXX Case No. : XXXX Property : XXXX XXXX XXXX XXXX XXXX XXXX MD XXXX 1. Overview of Complaint This complaint concerns PHH Mortgages written communications and conduct in connection with my foreclosure case, including : A letter dated XX/XX/XXXX stating that my foreclosure sale scheduled for XX/XX/XXXX will not be postponed/cancelled despite a court-ordered stay in effect before that date. 

A letter dated XX/XX/XXXX in which PHH admitted they acted to cancel the sale only after XX/XX/XXXX when they claim to have learned of the stay. 

Misleading assertions in the XX/XX/XXXX letter regarding my payment history, which omit the fact that I have repeatedly attempted to make mortgage payments during an ongoing loan modification process, and that PHH refused to accept those payments unless the modification was denied or approved.

These actions violate Maryland foreclosure law, federal mortgage servicing regulations, and basic principles of fair dealing.

2. Key Facts and Timeline Before XX/XX/XXXX XXXX XXXX issues an order staying foreclosure in my case. PHHs foreclosure counsel and substitute trustee are aware. 

XX/XX/XXXX PHH sends letter stating the XX/XX/XXXX sale will not be postponed/cancelled. This is a direct contradiction of the stay order. 

XX/XX/XXXX PHH claims they requested cancellation/postponement of the sale after learning of my motion to stay and the courts order. 

XX/XX/XXXX Final scheduled publication of the XX/XX/XXXX sale is cancelled. 

XX/XX/XXXX Sale does not occur, but only because I intervened directly with PHH, counsel, the CFPB, and the Maryland Attorney General. 

XX/XX/XXXX PHH issues a letter to the CFPB and me, acknowledging the XX/XX/XXXX cancellation and stating that my account is past due from XX/XX/XXXX to XX/XX/XXXX without disclosing that I have made repeated good-faith payment attempts during the loan modification process which PHH refused to accept.

3. Misleading Nature of PHHs XX/XX/XXXX Letter The XX/XX/XXXX letter contains a materially misleading statement implying I have not made payments for two years. This is not accurate. I have : Submitted multiple requests to PHH to accept monthly payments while my loan modification application was pending.

Been told by PHH representatives that payments could not be accepted until the modification was either approved or denied.

Acted in good faith by attempting to meet my obligations, only to have PHH block those payments and then use the resulting delinquency as justification for foreclosure.

This practice refusing payments during loan modification and then citing nonpayment as a reason to foreclose has been found by courts and regulators to be an unfair servicing practice. It creates an artificial default and compounds the borrowers vulnerability.

4. Legal Concerns PHHs conduct raises several legal and regulatory issues : Violation of Court-Ordered Stay Maryland Rule 14-211 prohibits foreclosure activity while a stay is in effect. PHHs XX/XX/XXXX letter was an affirmative statement of intent to violate this order. 

Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) 12 U.S.C. 5531 prohibits mortgage servicers from misrepresenting material facts, including payment status, and from threatening foreclosure when not legally permitted.

Violation of 12 C.F.R. 1024.41 ( f ) ( 2 ) Servicers may not move for foreclosure judgment or conduct a sale while a complete loan modification application is pending, and they must maintain accurate account status.

Constructive Refusal of Payment By rejecting payments during the modification review, PHH contributed to or created the delinquency they now cite. Courts have found such conduct to be wrongful and in some jurisdictions grounds for estoppel against foreclosure.

5. Pattern of Misconduct PHHs behavior here aligns with its prior history of servicing abuses, including : XXXX $ XXXX multi-state settlement over wrongful foreclosure threats and servicing failures. 

XXXX DOJ Consent Order for illegal foreclosures on servicemembers. 

XXXX v. PHH Mortgage ( CA ) fraud and wrongful foreclosure verdict. 

XXXX XXXX coalition objection to PHH settlement over often-illegal payment fees. 

6. Requested CFPB Action

Company response to consumer: Closed with explanation