Consumer complaint received 2025-06-13 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: Ocwen Financial Corporation
State: TX

Complaint narrative:
I am writing as a final and desperate attempt to resolve my issue with PHH Mortgage Services. I purchased my home in XX/XX/XXXX and my home loan ( VA GUARANTEED LOAN ) was transferred a few months later to PHH Mortgage Services- ( NOT BY CHOICE ). I set-up Auto pay and made on time payments until XX/XX/XXXX. I XXXX XXXX XXXX XXXX XXXX XXXX XXXX  and unfortunately I contracted XXXX while XXXX XXXX XXXX XXXX  and experienced short term salary reduction due to illness/time off. I contacted PHH Mortgage in XX/XX/XXXX, and the PHH representative offered temporary forbearance since I was impacted by the COVID Pandemic. The PHH representative assured me that I would be able to make partial/full payments during the forbearance period- ( PHH WEBSITE/AUTOMATED PHONE OPTION BLOCKED ANY PAYMENT DURING THE FORBEARANCE XXXXCURRENT DATE-XXXXSEE ATTACHMENT -MESSAGE FROM PHH FROM WEBSITE ). I contacted PHH several times during the forbearance period and the PHH representative cited they could not assist with taking any payments until I completed the forbearance- ( ORIGINAL FORBERANCE LETTER STATES THAT I COULD MAKE PARTIAL/FULL PAYMENT-DECEPTIVE ) and applied for mortgage assistance. I returned to work in XX/XX/XXXX and I was able to resume my previous monthly payments. I immediately completed the Mortgage Assistance Application in XX/XX/XXXX. From XX/XX/XXXX until the current date I have submitted all requested documents and most of the time it was duplicate documents that I had already submitted. I started to send all correspondence thru emails to ensure timely submission of documents and there was still a significant delay in processing my Mortgage Assistance application by PHH Mortgage. On XXXX XXXX ( ALMOST NINE MONTHS AFTER INITIAL REQUEST FOR MORTGAGE ASSISTANCE ) -PHH offered a loan Modification under the VA COVID 19 REFUND MODIFICATION The new terms were OUTRAGEOUS-my loan balance INCREASED, my interest rate INCREASED, my monthly payment INCREASED, and my Maturity date EXTENDED 5 YEARS- ( SEE PHH APPROVAL LETTER DATED XX/XX/XXXX XXXX. I immediately followed the procedure/guidelines provided by PHH to appeal the proposed loan modification. I have submitted EVERY document requested by PHH and I have NEVER missed a deadline and it still took PHH ONE YEAR TO PROCESS THE LOAN MODIFICATION APPEAL. In XXXX XXXX-PHH offered the option for the VASP program- ( last option before foreclosure ). I submitted all trial payments for XXXX, XXXX, and XXXX XXXX ( ALL ON TIME-SEE ATTACHMENT ). XX/XX/XXXX, XXXX PHH BLOCKED PAYMENTS VIA PHONE/WEBSITE even though PHH noted to continue to make payments until loan modification was finalized on the recent loan modification application for the VASP program ( DECEPTIVE ). I called PHH and was transferred to the Home Retention Department XXXX and the number is OUT OF SERVICE!! I contacted the VA Loan Department and was told the VASP program was cancelled as of XX/XX/XXXX. This is disheartening because this is the only option PHH offered even though I emphasized that I could continue to make my monthly payments since XX/XX/XXXX and only needed assistance with the arrears accumulated during the forbearance- ( NOTE-PHH BLOCKED ALL PAYMENTS WHICH RESULTED IN THE LARGE LUMP SUM DUE ).

After reviewing the VA Guidelines for the COVID-19 REFUND MODIFICATION offered by PHH. PHH failed to disclose other options that were available to me after my forbearance plan. I've enclosed the approval letter from PHH Mortgage citing I was approved for a loan modification under the VA COVID -19 REFUND MODIFICATION- ( dated XX/XX/XXXX ). I've also included the VA XXXX ( Circular XXXX dated XX/XX/XXXX rescinded XXXX XXXX AFTER my request for Mortgage Assistance XX/XX/XXXX ) -The VA circular Titled COVID-19 HOME RETENTION WATERFALL AND COVID 19 REFUND MODIFICATION-Page 3-Step A-the VA describes the calculation and notes " IF the target is achievable but the borrower indicates the payment would still be unaffordable, the servicer- ( PHH ) proceeds to step B- ( I WAS NOT OFFERED THIS STEP A OPTION ). Step B-describes the calculations- and also note- '' If the target is achievable but the borrower indicates the modified monthly payment would still be unaffordable- ( I WAS NOT OFFERED STEP B OPTION ), the servicer proceeds to Step C- ( FINAL EVALUATION-THE ONLY OPTION PHH OFFERED ) -the servicer completes a financial evaluation customary for traditional loan modification-I was required to send my household income information, check stubs, my spouse 's check stubs, profit Loss statements-and PHH calculated my mortgage payment MORE than the original payment. According to the VA Guidelines-this should have significantly reduce my mortgage since the new monthly mortgage payment is the amount the borrower would owe on the modified Loan with VA partial claim applies ( SAME TERMS WERE TO BE APPLIED FROM ORGINAL LOAN TO ENSURE PAYMENTS WERE REDUCED SINCE THIS IS THE LAST OPTION ). The VA also notes If this outcome is achievable, the servicers- ( PHH ) offers the XXXX Refund Modification- ( offered in XX/XX/XXXX ) -regardless of the percentage by which assistance would reduce the borrower 's payment- ( increased by payment to {$1700.00}, increased the interest rate to 7.125 and extended the maturity date and loan balance ). I was offered the Final Evaluation and increased ALL the terms of my VA home loan. PHH DID NOT FOLLOW THE VA GUIDELINES NOTED IN THE CIRCULAR- ( XXXX DATED XX/XX/XXXX TITLED COVID-19 HOME RETENTION WATERFALL AND COVID-19 REFUND MODIFICATION ).

In summary-I was not offered Step A & B under the VA Guidelines for the VA COVID -19 REFUND MODIFICATION and was only offered STEP C- ( Final Evaluation ) -which restructured my entire loan to benefit PHH Mortgage. PHH noted the reason I did not qualify for step A/B- ( NO FINANCIALS ) -citing " the Modified Principal and Interest Payment would exceed the targeted Principal and Interest payment per INVESTORS GUIDELINES. The VA implemented guidelines to protect servicemen from servicers using their guidelines to dictate the VA Loan Terms under the VA COVID-19 REFUND MODIFICATION. During this hardship I have continued to hear " it's up to the investors '' for a VA Guaranteed Loan that details the steps/calculation for a VA COVID-19 REFUND MODIFICATION-THIS IS NOT A CONVENTIONAL LOAN MODIFICATION THAT CHANGES TERMS, INTEREST RATES, MATURITY DATE, AND ORGINAL LOAN AMOUNT. I HAVE BEEN WILLING TO MAKE MY FULL PAYMENT SINCE XX/XX/XXXX AND REQUESTED ASSISTANCE WITH THE ARREARS ONLY. SINCE XXXX PHH HAS NOT ALLOWED ME TO MAKE ANY PAYMENTS TO PAY DOWN ANY OUTSTANDING BALANCE-AND ONLY ACCEPTED ( 3 ) TRIAL PAYMENTS UNDER THE VASP PROGRAM-AS OF XX/XX/XXXX, XXXX PHH HAS BLOCKED ANY PAYMENTS- I NEED TO RESOLVE THIS ISSUE IMMEDIATELY. I AM XXXX VETERAN THAT SUFFERS FROM XXXX XXXX-I AM SUFFERING-PLEASE PLEASE PLEASE-!!!

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation