Consumer complaint received 2023-01-22 00:00:00
Product: Mortgage — Reverse mortgage
Issue: Trouble during payment process — 
Company: Ocwen Financial Corporation
State: NV

Complaint narrative:
Complaint against XXXX XXXX XXXX dba XXXX XXXX XXXX aka XXXX XXXX XXXXXXXX owned by Ocwen Financial Corporation, PHH Loan Number XXXX, FHA Case Number XXXX PHH has and continues to engage in including but not limited to improperly servicing my mortgage loan, Breach of Contract, Elder Abuse ( financial exploitation ), Fraud, not acting in Good Faith with me, failure to account since close for the {$12000.00} PHH is holding of my money per PHH Loan Officer and PHH Closing Document aka contract with me, failure to use the {$12000.00} PHH is holding of my money to pay my homeowners insurance as each comes due per PHH Loan Officer email to me and PHH Closing Documents aka contract with me, and XXXX XXXX XXXX XXXX XXXX  against me causing me XXXX  and XXXX XXXX 

As a condition to close loan, PHH required {$12000.00} be withheld from proceeds to me to be held by PHH and administered by PHH as what PHH called a XXXX aka XXXX XXXX XXXX that PHH would timely pay from my property taxes and homeowners insurance as each came due per PHH Loan Officer email to me and PHH Closing Documents aka contract with me.

I was concerned about {$12000.00} withheld from the refinance proceeds to me to be held by PHH and administered by PHH so I sent the PHH Loan Officer an email XXXX XX/XX/2022, which was before the loan cloed. The PHH Loan Officer sent me an email on XXXX XX/XX/2022 in response to my 3 XX/XX/2022 email about the {$12000.00} that PHH required they would withheld from the refinance proceeds to me as a XXXX aka XXXX XXXX XXXX  that PHH would hold, administer and would timely pay from it my property taxes and homeowners insurance as each came due. 

I emailed PHH Loan Officer XXXX XX/XX/2022, asking Please explain exactly how this money being withheld pays my homeowners insurance and real estate taxes for me instead of me paying them. 

PHH Loan Officer wrote me via email XXXX XX/XX/ 2022, Just like a regular mortgage company, our servicing department will use the funds to make these payments on your behalf so you dont have to. See enclosed. 

The PHH Loan Officer then wrote me via email XXXX XX/XX/ 2022, you will receive both a monthly statement and a year end statement of the PHH-withheld and administered {$12000.00} XXXX. See enclosed. 

In good faith I reasonably relied upon the PHH Loan Officers written representation to me of Just like a regular mortgage company, our servicing department will use the funds to make these payments on your behalf so you dont have to. and you will receive both a monthly statement and a year end statement and moved forward to close the loan. 

The loan closed XXXX XX/XX/2022. 

I have NEVER received any accounting, let alone the a monthly statement and a year end statement as promised by th PHH Loan Officer in writing of the PHH-withheld and PHH administered {$12000.00} XXXX since the loan closed. 

After close of refinance, on XXXX XX/XX/2022, I made written request upon PHH via fax for their promised monthly accounting of this PHH-withheld and administered {$12000.00} XXXX. On same paper, I also asked PHH When will I receive copy of closing package signed by all parties? See enclosed. The PHH fax number is on the CERTIFICATION OF OCCUPANCY I wrote my request upon. I received NO reply. 

Today 's balance of the {$12000.00} XXXX-withheld and administered by PHH remains at {$12000.00} because PHH has FAILED, in violation of the PHH Loan Officer email and the PHH closing documents aka contract with me to use that {$12000.00} to pay my homeowners insurance as it came due.

PHH has used NONE of the {$12000.00} XXXX-withheld and administered by PHH of my {$12000.00} to pay my hazard aka homeowners insurance as it came due.

My hazard aka homeowners insurance renewal premium was due XX/XX/2022 per XXXX XXXX, my homeowners insurance company. 

On XXXX XX/XX/2022, I AGAIN made written request upon PHH via email for the PHH promised monthly accounting of this XXXX-withheld and PHH administered {$12000.00} XXXX. See enclosed. The PHH email is on the CERTIFICATION OF OCCUPANCY and other PHH documents. I received NO reply. 

On XXXX XX/XX/2022, I made a ANOTHER written request upon PHH via email for the PHH promised monthly accounting of this PHH-withheld and PHH administered {$12000.00} XXXX. See enclosed. I received NO reply. 

I was becoming increasingly worried that this PHH-withheld and PHH administered {$12000.00} XXXX had been stolen from me so I then contacted Senior Law Project of XXXX XXXX XXXX Senior Law Project, and began working with XXXX XXXX XXXX XXXX. XXXX XXXX told me he called PHH but received no reply. XXXX XXXX, XXXX. then informed me he had sent a Certified With Return Receipt letter to PHH. 

On XXXX XX/XX/2022, MXXXX XXXX, XXXX. mailed me a copy of the letter he had sent to PHH Certified With Return Receipt. See enclosed. In it he attached my above emails to PHH expressing my increasing concern and worry. 

I remain sick with worry and frantically afraid. 

On XXXX XXXX 2022, XXXX XXXX, XXXX. of now XXXX Nevada XXXX XXXX, which is the name XXXX XXXX XXXX had changed to, mailed me a copy of the letter he had sent to PHH, stating to PHH e had received NO response from PHH to his XXXX XX/XX/2022, Certified With Return Receipt letter. See enclosed. 

Also enclosed is the PHH XXXX XXXX XXXX MORTGAGE ADJUSTABLE RATE LOAN AGREEMENT, pages XXXX and XXXX and XXXX and XXXX of XXXX of the PHH Closing Documents, Article XXXXDefinitions XXXX XXXX PROPERTY CHARGES means certain Property Charges consisting of property taxes including special assessments levied by Municipalities or State law, hazard insurance premiums, and applicable flood insurance premiums. XXXX. Property Charges means property taxes, hazard insurance premiums, flood insurance premiums, ground rents, condominium fees,, planned unit development fees, homeowner 's association fees, and any other special assessments which may be required by local or state law. XXXX Lender shall use the amounts set-aside to make timely payments of the XXXX Property Charges listed iXXXX Section XXXX. See enclosed. 

Also enclosed is the PHH EXHIBIT 1 XXXX XXXX XXXX ADJUSTABLE RATE MORTGAGE PAYMENT PLAN Page XXXX of XXXX of the PHH Closing Dpcuments aka contract with me documenting total of PHH-withheld {$12000.00} XXXX. See enclosed. 

According to the enclosed PHH TAXES/INSURANCE PAYMENT NOTICE in the PHH Closing Documents, Per the terms of your loan, the payment of property taxes ( taxes ) and all applicable property insurance premiums ( insurance ), collectively ( property charges ) will be paid via A Full-Funded Life Expectancy Set-Aside. 

Also enclosed is the PHH XXXX XXXX XXXX XXXX  FOR TAXES AND INSURANCE also in the closing documents. It states, A XXXX Is an amount withheld from the mortgage proceeds for the payment of specific charges : property taxes, homeowners insurance Based on the review of your loan application documentation, a Fully Funded XXXX in the amount of {$12000.00} is required. 

In the Monthly Statement from PHH for XX/XX/ 2022, XXXX statement clearly indicates PHH ADDED, in violation of the PHH Closing Documents aka written contract PHH has with me, the real estate tax payment due to the loan. The PHH Closing Documents aka written contact PHH has with me is that property taxes was to be paid by the PHH from the PHH-withheld {$12000.00} XXXX funds. 

I remain sick with worry and frantically afraid. 


In XX/XX/2022 my home insurance was up for annual renewal and a {$740.00} premium was due to renew it. To renew my homeowners insurance {$740.00} was due XXXX XX/XX/ 2022 per my homeowners insurance company, see their enclosed letter. According to the PHH XXXX XXXX 's email and Closing Documents my homeowners insurance renewal was to be paid from {$12000.00} XXXX funds withheld and administered by the PHH of which {$12000.00} had been withheld from me from refinance loan proceeds to fund the Lender-held and Lender-Administered XXXX. 

In the enclosed letters from my homeowners insurance company, XXXX XXXX, dated XXXX XX/XX/ 2022 and XXXX XX/XX/2022, each clearly states Minimum Amount Due : {$740.00}. We have billed the following mortgage company for the total amount due shown above PHH MORTGAGE SERVICES XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX Loan Number : XXXX which is the SAME address PHH identified in their loan documents, AND We have already sent your mortgage provider a payment request. PHH and its correct address and the due date is on the correspondence I received from my homeowners insurance company. 

In the 2022 Monthly Statements from PHH 2022, they clearly document PHH FAILED, in violation of the PHH CLOSING DOCUMENTS aka written contract PHH has with me, to pay my home insurance, let alone timely pay it as required by the PHH loan documents aka PHH contract with me. The PHH CLOSING DOCUMENTS aka written contact with me is that it was to be paid by the PHH from the PHH-withheld and PHH administered {$12000.00} XXXX funds XXXX 

See enclosed where I then received in the mail from PHH dated XXXX XX/XX/ 2022, documenting that PHH again violated its PHH CLOSING DOCUMENTS aka written contract with me as it failed to pay my homeowners insurance premium {$740.00} which was due on XX/XX/2022, from the XXXX-withheld and administered {$12000.00} XXXX funds so now I do NOT have homeowners insurance, and PHH is now WRONGLY threatening me with in violation of PHH XXXX XXXX email and PHH Closing Documents aka contract with : The insurance we buy : * May be significantly more expensive than the insurance you buy yourself.

* May not provide as much coverage as an insurance policy you buy yourself. 

I then received in the mail from my homeowners insurance company, XXXX XXXX, dated XXXX XX/XX/ 2022, that We did not receive payment for your policy renewal which was due on XX/XX/2022. As a result, your renewal policy offer expired on XX/XX/2022, and coverage under the policy no longer exists. See enclosed. 

I remain sick with worry and frantically afraid. 

Due to XXXX failure to pay the {$740.00} homeowners insurance from the PHH-withheld and PHH administered {$12000.00} XXXX funds according to PHH Closing Documents aka written contract PHH has with me I NO longer have home owners insurance.

Company response to consumer: Closed with explanation