Consumer complaint received 2019-08-14 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Ocwen Financial Corporation
State: VA

Complaint narrative:
PHH started servicing my mortgage on XX/XX/2019. At the same time my mortgage interest would increased resulting in an increase from about {$1800.00} to {$3000.00} a month. Prior to this date, I received letters from my previous service provider indicating the changes and I started the process to refinance my loan, bringing my mortgage down to about $ XXXX {$2400.00} a month and we were set to close in XXXX. I also made the necessary changes in my online banking to make sure the payments were made to the correct back starting in XX/XX/2019. However ; I forgot to change the amount to be paid. On XX/XX/2019 PHH received a payment of {$2000.00} which is what I use to pay my pervious provider and they would apply the additional funds to principal. On XX/XX/2019 I realized I had not change the amount to the new total amount due of {$3000.00} and made an additional payment of {$2000.00}. On XX/XX/2019 I was contacted by the loan officer working on my refinance and was told that a pay-off statement showed I was late on my mortgage and that if I did not get the issue resolved by the end of the month the refinance would not go through and I would have to start the process all over again. I immediately contacted PHH and spoke to a representative who stated they had received that {$2000.00} payment on XX/XX/2019 but since it was not the total amount due, it could not be applied towards my monthly payment and the funds where placed in a suspense account. The representative also confirmed they had received the additional {$2000.00} on XX/XX/2019 and that they did not know where to apply the funds so again they were placed in the suspense account. The representative said he had to put in a work order to have the funds moved from the suspense account and post as a payment towards my mortgage but it would take up to 72 hours. I explained to the representative the issue would effect my refinance and he assured me it would be corrected in the time specified. 
I continuously checked my online statements for changes and seeing no change on XX/XX/2019 I called PHH again only to be told the work order had been placed and they were still waiting on the funds to be moved from the suspense account. I demanded to speak with a supervisor and after a long wait I was connected and had to explained my self all over again. The supervisor said she would look into the issue and that she would get back to me. Again, I explained this had to be correctly immediately or it would effect my refinance and possibly my credit. 
On XX/XX/2019 I received an email stating " There is a technical issue that is preventing us from posting the funds intended for the XX/XX/2019 payment? At this time, sufficient funds have been received for the payment, and it will be applied and the payoff sent as soon as the situation is resolved.?? '' Since then I have made an additional payment of {$3100.00} for the XXXX mortgage but the online portal and the pay-off statement still show a XX/XX/2019 due date and there is {$7100.00} in the suspense account. I have contacted PHH via email and phone multiple times only to be given the same answer. " Please be advised that we are still working to determine the fix to the technical issue that is affecting the account. We have not yet completed the process. 
This issue has delayed my refinance process costing me and additional $ XXXX {$700.00} a month. If the issue effects my credit my loan officer said I would have to wait a minimum of 12 months before applying again and pay again for the appraisal. The refinance process can take up to 3 months so the inability of PHH to quickly resolve their " technical issue '' could potential cost me $ XXXX {$10000.00} not to mention the mental stress and impact this could have on other living expenses.

Company response to consumer: Closed with explanation