Consumer complaint received 2024-11-28 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Ocwen Financial Corporation
State: TX

Complaint narrative:
XX/XX/XXXX XXXX Loan # XXXX Consumer Financial Protection Bureau & Veterans Administration REGARDING : PHH Property Insurance Monitoring and Egregious Application of Force-Placed Insurance with current Property Insurance Coverage in place In XX/XX/XXXX, my home, autos, and all its contents were destroyed in a Tornado. Texas XXXX XXXX, the insurance company Ive had for my home and autos since I purchased the property in XXXX, has been very responsive with a smooth claims and disbursement process which helped accelerate the rebuild process. 
PHH and its insurance monitoring process are seriously broken. After over a year with a Texas XXXX XXXX Builders Risk Policy, my same insurance company PHH has begun to ask for different documentation while refusing to accept my Builders Risk Policy all of the sudden as I approach the finishing stages for my home. I am currently paying my mortgage which includes Escrows for property insurance. Its been so difficult dealing with PHH from the start of my disaster which included incorrect credit reporting of a 90-day delinquency while on a Disaster Forbearance. Ive been paying my Builders Risk Policy and Rental Policy Premiums out of pocket because PHH is ineffective in helping borrowers while in a disaster. Now, 16 months after the total loss when my home is 90 % complete, PHH has forced place insurance using my cumulative escrow balance of over {$3000.00}. Im a XXXX Veteran, who is very involved in the rebuild process with the lack of contractors in a rural area, so my mother is helping with the PHH calls to try to resolve each obstacle XXXX and the Insurance Monitoring Department put in front of me. 
This insurance ordeal started a year after the tornado, in XX/XX/XXXX, PHH began to send generic letters with no specific language other than stating, There is no insurance or the policy expired. As stated earlier, I have had continuous coverage with Texas XXXX XXXX since the day I closed escrow. Each time we call PHH and resend the information, I make a follow-up call to ensure the documents were received and cleared with my current insurance coverage. Then a few weeks later, I get another letter stating, There is no insurance or the policy expired. Ive summarized the events below because the letters never specify anything. When I call, someone dictates what needs to be done or they will force place insurance. I believe Im being scammed out of my insurance escrows which continues to accumulate as I pay out of pocket for my Builders Risk Policy. 
XXXX. XX/XX/XXXX, I received the letter, No Insurance Coverage. I called PHH who stated that I needed to change the property to non-owner occupied while the Builder Risk policy was in place since I live in a temporary rental. Immediately, I sent something in writing to the Customer Servicing Department stating that I was not living on the property. I then followed up with Customer Service and the Insurance Monitoring Department, they said the occupancy was updated and the policy was now acceptable. 
XXXX. A few weeks later, I received another letter, no insurance coverage. PHH stated the address on the insurance Declaration page did not match the address in their system. Again, same insurance company and the same information which they accepted for over 3 years since I closed escrow in XXXX. They waited until I was in disaster mode to address this. I live in a rural community which does not have true addresses. XXXX had the address the XXXX  XXXX and XXXX used. Nevertheless, I complied by getting documentation from the county to have PHH update the address in the system. Once I forwarded all the documents, as usual, I followed up with a call a few days later. They said the address was updated and the policy was acceptable. 
XXXX. On XX/XX/XXXX, I noticed they charged for force-placed insurance even though I complied with every single previous request, and they confirmed that my existing insurance which is a Builders Risk policy was acceptable. When I called, they said they needed the policy again because it was previously rejected. I sent the Builders Risk policy for the 4th or 5th time with a letter demanding that this be escalated for an immediate refund of the force-placed insurance which was charged against my escrow account balance. This escrow account should have monthly insurance payments from XX/XX/XXXX and ongoing. 
XXXX. On XX/XX/XXXX, I received a voicemail message from a supervisor who I guess received the escalation request. He stated, we received the Texas XXXX XXXX Builders Risk Policy, the property address is not on the Declaration page, it's on the amendment page and needs to be corrected. Please keep in mind that there is no property address mentioned on the Declaration page, however, it is on the following page. 
XXXX. When I returned the call to PHH Insurance Monitoring, of course, I got another representative. I kindly ask if she can review the notes since Im returning the supervisor 's call. The representative stated since this is a Builders Risk Policy, we need something stating that he does not live on the property and we need to call customer service. This is a repeat of what I complied with in XXXX. Now it seems that PHH is playing games to keep me in this force-placed insurance situation. I asked to be transferred to a XXXX  because I will not continue to be faced with different obstacles and roadblocks each time I call. 
XXXX. On XX/XX/XXXX, I received the return call voicemail from a supervisor around XXXX XXXX, I guess since they are in XXXX they can call whenever they prefer. This voice message states, we have the Builders Policy, but it does not state what is covered. I did not return the call because I should not have to explain the contents of a Builders Risk policy versus a Homeowners policy to the PHH Insurance Department. It does not have the same coverages because the structure is incomplete. Once the property is completed, the policy will convert back to a Homeowner Policy as normal. 
XXXX. On XX/XX/XXXX, the Insurance Department told me to contact Customer Service to change the loan type to Land Only instead of Single Family Residence then they can accept the Builders Risk Policy. This is when I admittedly became upset. PHH has sent XXXX  to the property to certify the progress as insurance checks were disbursed. The last physical inspection with photographs was at 80 % complete. Why would I change the property type to Land Only at this point in the rebuild process, especially on a Veterans Administration Loan which may impact VA protections and VA Insurance? I asked for something in writing stating this requirement be cause every day it changes. 
XXXX. On XX/XX/XXXX, I made a last attempt to resolve the force place insurance dilemma by calling the PHH Insurance Monitoring division asking for an On Shore XXXX I explained that this was escalated to a few XXXX  however I continue to get a different answer/request each time I call as if I speaking to people off the street and getting nowhere. 
XXXX. On XX/XX/XXXX, I received a message from PPH Insurance Monitoring Department and was asked to call back to discuss what is needed. I did not return the call since I had spoken to XXXX XXXX who assured me he would take care of canceling the force placed and updating the policy in the system. 
XXXX. On XX/XX/XXXX, I received a message from XXXX XXXX from the Research Department who stated that we need to submit a Demolition Certificate for PHH to accept the Builders Risk Policy. I asked why are they asking for a Demolition Certificate 16 months after the disaster and after the mortgage company received and released insurance claim proceeds, with sign off from a PHH inspector on the progression of the building process as the insurance funds were released to complete the rebuild process. Since this is the 1st time Ive heard of a Demolition Certificate, where does the Demolition Certificate come from? XXXX did not know. I asked for something in writing because Im not confident I can do anything to appease the PHH Insurance Monitoring Department, since Im getting a different request to get documentation weekly, now daily. 

As I rebuild, we are going backward to the disaster event in XX/XX/XXXX as I try to fight the PHH Insurance storm. At this point, I can no longer trust anything regarding the PHH Insurance Monitoring process, they refuse to put anything in writing to make official and final requests They make different requests each time I call and I can never speak with the same person. When we comply with the demand, we immediately get another request. A few demands changed before I even had a chance to respond. I have saved the voicemail messages referenced and PHH supposedly has recordings of all calls. This is harassment and desperate treatment after suffering a total loss of everything I own. 

I am requesting assistance and intervention to resolve the issue with the force-placed insurance and also to have my escrow account reconciled from XX/XX/XXXX through the current state in order to locate and account for those funds held on my behalf correctly. I fear that I will lose this money if I dont address this with the regulators. Ive been paying out of pocket for my own Builders Risk Policy as well as a Renters policy while also continuing to pay insurance escrows monthly. This has cost me more money, and now they are charging for force-placed insurance which has no benefit to me only to the mortgage company. The maneuvers and practices of PHH Insurance Monitoring and Escrow Handling need to be fully investigated. 

Your assistance to resolve this matter would be greatly appreciated. 

Respectfully, XXXX XXXX with assistance from XXXX XXXX who conducted and documented the phone conversations and has voicemail recordings.

Company response to consumer: Closed with explanation