Consumer complaint received 2026-03-07 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: MI

Complaint narrative:
I served in the XXXX XXXX XXXXXXXX XXXX and was recalled to XXXX XXXX from XX/XX/XXXX through XX/XX/XXXX, including a XXXX to XXXX during that time. My mortgage with PHH Mortgage was originated prior to my recall to XXXX XXXX. During my active-duty service, my mortgage went into default. However, I invoked my rights under the SCRA, which should have protected me from penalties, excessive interest, and adverse credit actions during my military service. Despite these protections, PHH Mortgage kept my loan in default status. Upon my return, PHH offered only a loan modification, in which they capitalized the missed payments and accumulated interest into the new balance. This increased my loan principal from approximately {$590000.00} to about {$880000.00}. Under the SCRA : 50 U.S.C. 3937 caps mortgage interest at 6 % per year during active-duty service, and any interest above that must be forgiven, not deferred or compounded. 50 U.S.C. 3953 prohibits foreclosure, default judgments, or adverse modifications during XXXX XXXX or for one year after service ends unless approved by a court. By capitalizing disallowed interest and penalties and treating my account as delinquent, PHH Mortgage appears to have violated these provisions. SCRA Enforcement Complaint Narrative Complainant : XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX ) Service Period : XX/XX/XXXX XX/XX/XXXX Combat XXXX : XXXX ( XX/XX/XXXX XX/XX/XXXX ) Respondent : PHH Mortgage Corporation, as successor servicer to Ocwen Loan Servicing , LLC Overview This complaint concerns violations of the Servicemembers Civil Relief Act ( SCRA ), including but not limited to 50 U.S.C. 3953 and related provisions, arising from mortgage servicing conduct directed at my family while I was serving on XXXX XXXX in the XXXX XXXX XXXXXXXX, including during a combat XXXX to XXXX. During my XXXX, my spouse and family experienced nancial hardship and temporarily fell behind on our mortgage obligations. While I was XXXX to a XXXX XXXX, Ocwen Loan Servicing, XXXX engaged in aggressive and coercive collection efforts directed toward my spouse at our home. These communications included repeated threats of foreclosure and clear representations that failure to accept a proposed loan modication would result in the loss of our home. The pressure placed on my spouse occurred during a period when I was XXXX overseas in a XXXX XXXX and unable to meaningfully participate in the defense of our nancial interests or protect my family from the coercive conduct being directed toward them. As a result of this pressure and the fear of losing our home during my military XXXX, my family entered into a loan modication agreement following my XXXX that capitalized past-due amounts into the principal balance of the loan and added additional interest, fees, and charges that would not otherwise have accrued absent the default escalation and servicing conduct described above. This modication materially increased the overall principal balance of the loan and placed my family in a signicantly worse nancial position than would have existed absent the coercive servicing conduct. SCRA Protections The XXXX XXXX XXXX XXXX provides heightened protections for servicemembers and their families during periods of military service. Among these protections, XXXX XXXX. XXXX restricts a creditors ability to foreclose upon or seize real property owned by a servicemember during military service without rst obtaining a valid court order. The statute was enacted specically to prevent creditors from using the absence of XXXX servicemembers as leverage to pursue collection activity or force unfavorable nancial agreements upon military families. In this case, XXXX conduct created precisely the type of coercive pressure that the XXXX was designed to prevent. By threatening foreclosure while I was XXXX to a XXXX XXXX and directing those threats at my spouse, the servicer leveraged my military absence and my familys vulnerability in order to obtain a loan modication that materially increased the nancial burden on my household. Moreover, the XXXX strictly regulates the waiver of servicemember protections. Under XXXX XXXX. XXXX, any waiver of SCRA rights must be executed knowingly and voluntarily and must comply with specic statutory formalities. Any purported waiver obtained through pressure during a period of military service raises signicant concerns regarding enforceability and statutory compliance. Successor Liability PHH Mortgage Corporation currently services the loan as the successor entity to Ocwen Loan Servicing XXXX XXXX. As successor servicer, PHH bears responsibility for investigating and remedying prior servicing violations and ensuring compliance with federal law. Despite receiving written notice of these concerns, including a detailed correspondence dated XX/XX/XXXX requesting investigation and documentation, PHH has failed to provide a substantive response or demonstrate that any meaningful XXXX compliance review has been conducted. Harm to the XXXX and XXXX The conduct described above caused substantial nancial harm to my family by increasing the principal balance of the loan through capitalized charges and interest that were imposed as a direct result of the coercive servicing activity. In addition to the nancial harm, the conduct caused severe emotional distress to my spouse and family while I was XXXX to a XXXX XXXX. My spouse was left to manage repeated and intimidating collection communications while caring for our children and coping with the stress and uncertainty associated with my overseas combat XXXX. The anxiety and fear created by the threat of losing our home during this period imposed a signicant psychological burden on my family and undermined the stability that the XXXX was intended to protect for military households.

Company response to consumer: Closed with explanation