Consumer complaint received 2025-11-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Confusing or misleading advertising or marketing
Company: Ocwen Financial Corporation
State: MO

Complaint narrative:
HISTORY : I am writing to reiterate the details regarding my mortgage history with PHH Mortgage Services. 

My decision to refinance was solely motivated by the prospect of securing a more favorable interest rate. I was given assurances by PHH Mortgage Services that, given my established history as a reliable customer with an excellent credit rating, they would offer a highly competitive rate. However, the terms of the refinancing agreement, as they were ultimately presented and executed, were not fully disclosed to me and have resulted in a significantly detrimental financial outcome. 

To reiterate the key aspects, the refinancing resulted in a very modest reduction of less than {$150.00} in my monthly mortgage payment. While this initially seemed beneficial, it came at the considerable cost of resetting my mortgage term to 30 years. At the time of refinancing, I had only 8 years remaining on my original mortgage. This extension of 22 years means that, despite a small monthly saving, I will ultimately incur an additional cost of approximately {$390000.00} over the life of the loan, in order to achieve a comparatively small total saving of {$15000.00} based on the reduced monthly payments over the original remaining term. I was not made aware of these substantial implications at the time of the refinancing, and I certainly did not anticipate such a drastic alteration of the loan term. 

It is important to emphasize that my sole objective was to take advantage of a better interest rate ; I was not seeking any additional funds. My understanding was that PHH Mortgage Co. valued my business and was committed to offering competitive terms. I was not informed, nor did I expect, that this would lead to a complete reset of the loan term, effectively exchanging a saving of {$15000.00} for an additional expenditure of {$390000.00}. This outcome appears to be entirely unreasonable, especially considering the initial assurances of competitiveness and my age, ( approaching XXXX XXXX XXXX mark at the time of maturity ). 

Furthermore, the refinancing process itself was unusual and did not involve standard procedures such as an attorney or a closing department. The paperwork was completed during a home visit under unfavorable conditions. Following this, my repeated requests to PHH for my complete mortgage history were ignored, despite written promises to provide it. This lack of transparency compelled me to engage a Missouri title company, which subsequently discovered that the refinanced mortgage had not been properly filed and contained only partial information. I even proposed a resolution to rectify the situation by paying off the small difference and reinstating the original mortgage terms, but this offer was disregarded. My attempts to communicate with representatives who might be able to assist me were consistently met with obstructive responses and a lack of continuity in handling my case.

Given these circumstances, I am deeply concerned that the terms of this refinancing and the manner in which it was conducted may constitute a violation of Usury laws and/or other violations related to predatory lending practices under the governing laws of Missouri.

Thank you for your attention to this serious matter.

Company response to consumer: Closed with explanation