Consumer complaint received 2021-12-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Ocwen Financial Corporation
State: CA

Complaint narrative:
On XXXX XXXX, 2021, I received a notice that my mortgage loan was being transferred to PHH Mortgage ( Ocwen Financial Corporation ), effective XXXX XXXX, 2021. 

On XXXX XXXX, 2021, I received a letter from PHH Mortgage, the " Welcome to PHH Mortgage Services. '' Within this letter, which will be attached, PHH Mortgage states, As the new servicer of your mortgage account, we'll : Provide monthly statements Manager your escrow account for paying taxes and insurance, if applicable Send updated regarding the mortgage account Send year-end tax statement. 

I've never been late with my Mortgage. 

On XX/XX/, 2021, I received a notice from XXXX insurance that PHH Mortgage didn't pay my Hazard Insurance. I immediately went online and made the payment of {$1700.00}. I was notified that the payment would not be processed until the following day. 

When I made the payment, and after speaking to the customer service representative at XXXX XXXX, I discovered that we had a lapse in insurance coverage. The XXXX XXXX customer service representative said they made several attempts to collect the premium from PHH Mortgage but were unsuccessful. The lapse in of coverage was from XXXX XXXX, 2021 to XXXX XXXX, 2021. 

On XX/XX/2021, I reached out to PHH Mortgage to see : 1. Why they failed to make the insurance payment on time ; 2. Get reimbursed since I paid for the insurance out of my pocket ; 3. I also informed them that they were lucky that nothing happened to our home during this lapse.

After an hour or more of back and forth transfers between departments, PHH said they had to get approval to reimburse the insurance premium and said they would look into the issue. 

On XX/XX/ 2021, I received a letter dated XXXX XXXX, 2021 ; In this letter, PHH Mortgage stated that due to a lapse in coverage, PHH was going to charge my account {$81.00}. I immediately reached out to PHH Mortgage, and after another hour or so, I spoke to the customer service rep, XXXXX who's id was XXXX. XXXX said he talked to my insurance company, and there was no lapse of coverage. XXXX advised that I would not be charged {$81.00} for PHH Morgage error. 

On XXXX XXXX, 2021, I received a call from XXXX XXXX ; XXXX said that PHH Mortgage sent XXXX a {$1700.00} check, and since I had already made that payment, I would receive a refund check from XXXX. 

On XX/XX/2021, I reached out to PHH Mortgage again ; this was because I received another letter stating that I would be charged {$81.00} for a lapse in coverage.

I once again spent hours on the phone with PHH Mortgage and was transferred back and forth. I spoke to another XXXXXX, ID XXXXXX, and XXXX ID XXXX, they both said they would look into this issue with the {$81.00} charge for the lapse in coverage because PHH Mortgage failed to make the payment on time. 

On XX/XX/ 2021, I received an email from PHH Mortgage ( ERM Department ). 

Dear, XXX Please be advised that the policy renewal was sent to you by the agent and the prior lender. The payment was received late, and there was a lapse of coverage from XXXX XXXX, 2021, to XX/XX/2021. PHH will not be able to waive the insurance premium in the amount of {$81.00}. 

I called the number listed in the email and spent time on the phone with PHH Mortgage ; the supervisor said again that they would look into the matter and get back to me. Each time I spoke to the representatives at PHH Mortgage, I informed them that because they failed to make the insurance payment timely, they should eat the {$81.00} cost and call it a day. 

On XX/XX/ 2021, I received a letter stating that PHH Mortage had charged my escrow account {$81.00} to cover the lapse in hazard insurance, and my monthly payment would increase.

Company response to consumer: Closed with explanation