Consumer complaint received 2026-03-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Incorrect information on your report — Account status incorrect
Company: Ocwen Financial Corporation
State: KS

Complaint narrative:
We purchased our home at XXXX XXXX XXXX XXXX, XXXX, KS in XX/XX/XXXX through a local lender. Our original mortgage payment was approximately {$2300.00} per month, which included escrow contributions toward our annual property taxes of approximately {$7000.00}. Our loan servicing was transferred to PHH Mortgage in XXXX XXXX. Our payment remained unchanged until the first week of XX/XX/XXXX, when we received notice that our payment had increased to approximately {$3100.00} per month. I immediately contacted PHH customer service to determine the cause of the increase. I was informed that PHHs escrow department had determined that my property taxes were {$14000.00} per year, resulting in an escrow shortage and the increased monthly payment. This was clearly incorrect. The actual tax amount is approximately {$7000.00} annually, meaning the XXXX department had effectively doubled the property tax obligation when calculating the escrow analysis. During that call, Support Ticket # XXXX was opened on XX/XX/XXXX, and an escalation representative named XXXX was assigned to the case. I was instructed to submit documentation proving the correct tax amount. I immediately complied and emailed the required documentation to PHH on XX/XX/XXXX. Before ending the call, I specifically expressed concern that I did not want to pay an additional {$700.00} per month for a mistake made by PHH but also wanted to ensure there would be no adverse credit or financial consequences while the issue was being resolved. I was verbally assured that because an escalation ticket had been opened, I should not worry and the issue would be resolved quickly. Written messages from PHH representatives also instructed me to ignore automated delinquency notifications because a stop had been placed on late charges while the issue was under review ( attachments provided ). Approximately XXXX to XXXX weeks later, I missed an unexpected call from XXXX during the workday. Shortly afterward, I began receiving automated notifications stating that my account was considered delinquent. When I contacted customer support again, I was informed that the tax documentation originally submitted would not be accepted and that I needed to obtain a revised document from the county. I again expressed concern that these delinquency notices could damage my credit. I was again reassured that these were automated notices and that I should not worry due to the escalation ticket being open. At this point, I reasonably believed my account was being protected while the issue was under review. I repeatedly requested that XXXX contact me to discuss the situation. PHH representatives informed me that she had appointments scheduled to call me, but they could not provide a specific date or time. As a teacher, I can not drop everything during the workday to answer random phone calls without scheduling. Despite requesting scheduled communication, PHH never arranged a confirmed appointment. On XX/XX/XXXX, I submitted the corrected tax document requested by PHH and again expressed concern that my XXXX payment deadline was approaching while the issue remained unresolved. On XX/XX/XXXX, I received an automated notification that an Early Intervention Letter had been issued. This raised serious concerns, as the language suggested that adverse servicing actions were occurring despite the open escalation ticket. My wife and I contacted PHH that evening. Initially, the representative stated that because the case was open and XXXX had told us not to worry, the automated notices should be ignored. However, as the conversation continued, the representative then stated that the escalation team could not pause the account and that my credit could still be affected or foreclosure actions could eventually occur. This was extremely alarming, as we had repeatedly asked whether any adverse consequences could occur and had been assured that they would not. The representative informed us that the issue should be resolved within XXXX business days and that XXXX would call us by XX/XX/XXXX, but XXXX never called. Instead, on XX/XX/XXXX, I received multiple credit alerts indicating that PHH had reported my account as delinquent, significantly lowering my credit score. Because the issue remained unresolved and we received no follow-up communication, we felt we had no choice but to pay the higher amount demanded by PHH in order to prevent further credit damage or risk to our home. This issue has now been open for approximately 45 days, during which PHH has : Incorrectly doubled my property tax obligation during escrow analysis Required me to obtain multiple documents to correct their error Repeatedly assured me verbally that I should not worry about my account Failed to provide written communication or a timeline for resolution Reported my account as delinquent despite the open servicing dispute This situation is particularly serious because I am currently applying for a {$450000.00} business loan with a required closing date of XX/XX/XXXX. PHHs incorrect credit reporting may directly impact my ability to obtain financing for this opportunity. In addition, I am currently being forced to pay an additional {$700.00} per month for an indefinite period of time to avoid further damage to my credit and financial standing.

Company response to consumer: Closed with explanation