Consumer complaint received 2025-11-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Ocwen Financial Corporation
State: MD

Complaint narrative:
Improper Escrow Denial, False Late-Payment Claim, and Incorrect XXXX XXXX by PHH Mortgage . 

I am filing this complaint against PHH Mortgage Services regarding my request to remove escrow from my mortgage account which PHH has not done to date. PHH denied my request based on reasons that are false, unsupported by documentation, and inconsistent with federal mortgage servicing rules under RESPA, TILA, and CFPB regulations. 

1. PHH falsely claimed I was 30 days late within the past 12 months.

PHH stated my escrow removal request was denied because I was allegedly 30 days late within the past 12 months. This is completely false.

All three credit agencies ( XXXX XXXX and XXXX  ) show a 100 % perfect on-time payment history with XXXX late payments. 
I asked PHH multiple times to provide written proof of any late payment, and they were unable to produce any documentation. Their claim is unsupported and misleading. 

2. PHH refused to provide the guidelines they claim to be following.

In their written response, PHH stated the decision was based on internal guidelines, but they refused to provide these guidelines or explain the specific requirements.

Federal mortgage servicing rules require servicers to provide clear, written explanations when denying consumer requests related to escrow accounts. PHH did not comply.

3. PHH improperly inflated my Loan-to-Value ratio ( LTV ) by adding a deferred, noninterest-bearing principal balance.

PHH added a deferred principal balance ( a noninterest-bearing, non-amortizing balance from a previous modification ) to my current principal balance to calculate LTV.

This is improper and violates standard LTV calculation rules under federal servicing guidelines, including XXXX, FHA, and GSE standards, which all require LTV to be calculated only using the active unpaid principal balance. 
Deferred balances can not be included because they do not accrue interest, are not actively due, and are not part of the amortizing unpaid principal. 
By adding the deferred balance, PHH inflated my LTV to justify denying the escrow removal. 

4. PHH did not disclose the current market property value they used.

PHH did not tell me what property value they used to calculate LTV or how the value was obtained ( XXXX, XXXX, XXXX, etc. ). 
Federal mortgage servicing rules require servicers to provide clear explanations when a consumer request is denied based on property value or LTV thresholds.

5. PHHs denial is based on incorrect information and violates federal servicing standards. 

PHHs refusal to provide documentation, failure to support their claims, and inaccurate LTV calculation constitute servicing errors.

Their actions violate the accuracy, transparency, and disclosure requirements under CFPB mortgage servicing rules ( Regulation X and Regulation Z ). 

6. Escalation to Maryland OFR is already in progress.

I currently have an open complaint with the Maryland Office of Financial Regulation regarding this same matter.

I am submitting this CFPB complaint again because PHH is not providing truthful or accurate information and has failed to correct these issues despite being given multiple opportunities. 

Requested Resolution : Remove escrow from my mortgage account as requested ; Correct my account records to reflect accurate payment history ; Recalculate LTV using only the active unpaid principal balance ; Provide full written disclosure of any internal guidelines used in their decision ; Provide the property valuation and method PHH used to determine LTV ; Ensure PHH complies with all federal servicing regulations going forward.

I am attaching supporting documents, including : PHHs denial letter ( same in file ) All three credit bureau reports showing 100 % on-time payments ; Mortgage statements showing the deferred noninterest-bearing balance; * Current market appraised value of my house Thank you for reviewing this matter and ensuring PHH complies with federal law and accurately handles my mortgage account.

Company response to consumer: Closed with explanation