Consumer complaint received 2015-05-19 00:00:00
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Ocwen Financial Corporation
State: OH

Complaint narrative:
Ocwen Loan Servicing LLC:1. Applied payments that we made to our mortgage balance. They have conducted an audit and all the payments made the payments still have not been applied. Arrearage payments are to be applied to the mortgage as well. 
2. We have been charged interest on an incorrect mortgage balance due to payments not being applied. 
3. We have been paying on an escrow agreement in XXXX XXXX - made by the previous loan servicer which is due to complete in XXXX XXXX. Ocwen is not honoring the agreement even though they have been accepting the payments since XXXX. I have personally discussed this with Ocwen in XXXX. I was told they saw the additional escrow, knew what it was for. I asked them if they were responsible for the entire loan including the history form Litton Loan Servicing and was told be the representative that they were and assured me everything was in order. From time to time Ocwen charges a late fee, in error, for a payment we sent on time. Maybe they 're attempting to add that - which would be wrong. 
4. Ocwen was told that the balance was incorrect and asked them to investigate whether all payments had been applied. I was told all payments made to the mortgage were applied to the mortgage balance. All payments have been accepted, but not applied to the mortgage balance. 
5 From the audit Ocwen performed per their XXXX XXXX Letter to us, it was discovered that all arrearage payments I made by the ch XXXX bankruptcy court were not applied to the mortgage balance. It was shown received, but not applied. It looks like they stole the money. Not applying it now is still a huge problem. It also made and is making us pay interest on an incorrect balance costing us to pay more money than we should. Is n't this against the law? 
6. Payments in arrears were made to the account that were not applied to the mortgage and submitted to the chapter XXXX court in XXXX ( falsely ) as proof of a past due arrearage total. I have discovered proof after the XXXX XXXX letter. Ocwen audited the account in XXXX XXXX and should have applied the payments to the mortgage but did not. 
7. Ocwen has claimed in the XXXX XXXX letter that we have a short fall of the agreement made in XXXX and needed to increase the mortgage balance or pay off the shortfall separately. Ocwen has provided no proof of missed payments ( month and year of each missed payment that resulted in the shortfall ). We would have had to miss XXXX payments in order for the amount they were requesting to be true. We wanted them to show what payments were missed, but they have not. 
8.I was turned down for a business loan in XXXX because Ocwen reported to the credit bureau that I filed a chapter XXXX bankruptcy in XXXX. I disputed it and it was investigated. Ocwen responded to the credit bureau that their information was correct and it remained on my credit report. I called Ocwen and was told they did not report a bankruptcy so I reapplied for the business loan again in XXXX and was turned down because Ocwen reported a ch XXXX bankruptcy to the credit bureau. Ocwen denied it. Then approximately a month ago, Ocwen sent a letter stating that they have removed all notes regarding the bankruptcy. So they did n't tell the truth about not reporting false information to the credit bureau. 
9.Other agencies need to know what happened, including the Chapter XXXX Bankruptcy Court XXXX As there are other violations, such as paying their bankruptcy attorney fees with money that should have been applied to the arrearage, late fee charges, increased the mortgage .... Ocwen audited the loan in XXXX. They saw it and did nothing to correct it. You ca n't just keep the money and make us pay for it all over again.

Company response to consumer: Closed with explanation