Consumer complaint received 2025-11-19 00:00:00
Product: Mortgage — FHA 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: PA

Complaint narrative:
I am writing to formally request that my mortgage provider provide a full validation of debt on my account. There are two issues that require clarification. 

First Issue : Reversal of Payments/ Suspense Account I recently received a statement indicating that approximately {$29000.00} had been placed into a suspense account as a result of an agreement between the bank and the Department of Housing to refund certain fees charged for making payments online or by phone. The statement also explains that the refunded amount was first applied to any outstanding balance, and the remainder was placed in the suspense account. 
On Friday, XX/XX/XXXX, at XXXX XXXX  EST, my niece, whom I authorized to speak on my behalf and who called while I was present, asked the representative the following questions : 1. ) What was the full amount of the refund I received ; 2. ) What was the past-due balance, if any, and what portion of the refund was applied to the past-due balance ; and 3. ) What is the full amount remaining in the suspense account. 

However, the representative refused to provide this information and incorrectly stated that the entire amount had already been applied to the loan. To keep the call moving, my niece proceeded to the next issue. 

Second Issue : Forced Loan Modification / Delinquency Reporting In or around XXXX or XXXX, I attempted to make my mortgage payment, but the bank would not allow me to do so. At that time, I was not behind on my payments. The bank informed me that I could not make a payment unless I signed documents to enter into a loan modification, and that my account needed to be delinquent before the modification could proceed. Relying on the banks instructions, I allowed my account to become XXXX to XXXX months delinquent and entered into a loan modification. 

I was told that the delinquent amount would be moved to the end of the loan and that the new payoff date would be around XXXX instead of XXXX. However, the bank now claims that XXXX XXXX rejected the modification and that new documents were sent to me in XXXX. At the time, I believed the bank was attempting to deceive me into signing a new agreement, and I did not sign the paperwork. 

When my niece later inquired about this issue, she was told that because I did not sign the new documents, I was removed from the loan modification. She was further informed that the payoff date had reverted to XXXX and that the past-due balance from the months in XXXX before the modification was now owed. My niece again requested a breakdown of the specific months the bank claims I was delinquent and the total amount allegedly owed. Once again, the representative refused to provide that information. The agent said the matter would be escalated and that a supervisor would call me on Saturday, but no one called. 

Continued Refusal to Provide Validation of Debt On Monday, XX/XX/XXXX, at approximately XXXX XXXX  EST, my niece called again on my behalf and repeated the request for validation of debt. This time, the agent stated that my account was XXXX  months past due. When my niece explained the reversal of payments, the agent then stated the account was {$25000.00} delinquent after the reversal. She again requested validation of the {$25000.00} debt, but the representative did not provide it and instead said that a supervisor would call the co-signer the next day. No one called. 

On Tuesday, XX/XX/XXXX, my daughter, who is married to the co-signer, called and requested a validation of debt. The agent disconnected the call. Immediately afterward, her husband, the co-signer, called and was told that an appointment had been scheduled for someone to call him on XX/XX/XXXX. 

Formal Request for Validation I am submitting this complaint because I am XXXX XXXX XXXX and this has caused me a lot of distress. I have made repeated attempts to obtain a validation of debt so that I can resolve this issue. However, the bank has refused to provide one. At this time, I ask that this letter serve as a formal request for the bank to validate the debt it claims I owe. 
The bank has sent multiple inconsistent letters, including a recent one stating that I missed payments from XX/XX/XXXX through XX/XX/XXXX. I have bank statements proving that this is not true. I need clarity, transparency, and for the bank to comply with the law and provide me with a validation of debt. I request that the bank provide a complete and accurate validation of the debt.

Company response to consumer: Closed with explanation