Consumer complaint received 2026-04-11 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Ocwen Financial Corporation
State: AR

Complaint narrative:
I am writing to complain about Onity Mortgage Corporation ( formerly PHH Mortgage Services ), the servicer of my mortgage on XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, loan number XXXX. Onity has repeatedly failed to process a facially complete loss mitigation application, is dual-tracking foreclosure against a complete application in violation of Regulation X ( 12 C.F.R. 1024.41 ), and is reporting inaccurate delinquency information to the credit bureaus during an approved forbearance in violation of the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ). TIMELINE On XX/XX/XXXX, PHH granted me a Temporary Hardship Forbearance Plan after I was forced to maintain dual housing due to an employer-directed relocation to XXXX, XXXX. I then submitted a complete Mortgage Assistance Application ( XXXX XXXX XXXX ) with all supporting documents. PHH confirmed receipt on XXXX separate occasions : - XX/XX/XXXX PHH letter titled " The Request for Mortgage Assistance Was Received '' - XX/XX/XXXX PHH letter titled " The Request for Mortgage Assistance Was Received '' - XX/XX/XXXX XXXX XXXX auto-reply confirming receipt of my revised application sent to XXXX and XXXX On XX/XX/XXXX, PHH sent XXXX notice stating my application was incomplete and requesting : ( XXXX ) a completed and signed Financial Form, ( XXXX ) a Hardship Affidavit, and ( XXXX ) XXXX most recent bank statements showing income deposits. The due date provided was XX/XX/XXXX. I resubmitted all requested documents before the deadline. Despite this, on XX/XX/XXXX, PHH sent a notice claiming the documents had not been received and stating, " we will not be able to give further consideration to this incomplete application for Mortgage Assistance and will discontinue processing this incomplete application. '' The same letter added, " Since we did not receive the required documents, we may continue with any pending foreclosure process or other remedies and collection activities. '' On XX/XX/XXXX, PHH then issued a formal Notice of Default / Demand Notice requiring payment of {$13000.00} by XX/XX/XXXX while my loss mitigation application should have been under active review. Advancing foreclosure proceedings while a loss mitigation application is pending constitutes prohibited dual-tracking under XXXX C.F.R. XXXX ( f ) and ( g ). On XX/XX/XXXX, at XXXX PM XXXX, I submitted a THIRD complete application via email to XXXX and XXXX, with copies to XXXX. The submission was XXXX MB and contained XXXX attachments : ( XXXX ) the completed and signed XXXX XXXX / Mortgage Assistance Application XXXX, signed by both borrowers on XX/XX/XXXX ; ( XXXX ) the completed and executed Hardship Affidavit / Letter of Explanation ; ( XXXX ) XXXX most recent bank statements dated within the last 90 days ; and ( XXXX ) XXXX most recent pay stubs from my employer, XXXX XXXX XXXX XXXX XXXX The subject line expressly stated " WITH PROOF OF PRIOR SUBMISSIONS. '' At XXXX PM XXXX XXXX minute after sending XXXX auto-replied confirming receipt of my message. That auto-acknowledgment is a contemporaneous record that Onity received the complete package on XX/XX/XXXX. On XX/XX/XXXX, Onity Mortgage Corporation sent me a response letter that contains several admissions directly relevant to this complaint. Onity acknowledged receiving my XX/XX/XXXX " additional financial documents '' but wrote : " the application package was again determined to be incomplete. A denial letter confirming this determination will be issued. '' The letter did NOT identify a single specific document that Onity claims is missing, and as of the XX/XX/XXXX date the denial letter itself had still not been issued nine days after receipt and four days beyond the five-day window in 12 C.F.R. 1024.41 ( b ) ( 2 ) ( i ) ( B ), which requires the servicer to notify the borrower of the specific documents needed to complete an incomplete application within five days of receipt. A blanket " determined to be incomplete '' does not satisfy that requirement. Most significantly, the XX/XX/XXXX letter contains a written admission by Onity that it conducts the very dual-track servicing prohibited by Regulation XXXX Onity XXXX XXXX XXXX : " With respect to account servicing and credit reporting, even when an account is under consideration for loss mitigation or enrolled in a trial or forbearance plan, servicing continues in accordance with the terms of the Note. Payments received are applied to past due amounts, and credit reporting reflects the account 's contractual status. Collection calls and notices are sent when payments are not received by the due date ... '' Onity further stated : " The Notice of Default was issued after the most recent modification request was denied and was therefore accurate at the time it was sent. '' These statements confirm that Onity ( a ) continues to send collection notices and default/demand letters during active loss mitigation review, and ( b ) treats the XX/XX/XXXX Notice of Default as valid despite my complete XX/XX/XXXX resubmission. Both positions conflict with 12 C.F.R. 1024.41 ( f ) and ( g ), which prohibit the servicer from making the first notice or filing for any judicial or non-judicial foreclosure process, or from moving for foreclosure judgment or order of sale, while a complete loss mitigation application is pending for evaluation. The XX/XX/XXXX letter also confirmed that Onity will continue reporting me as delinquent to XXXX XXXX XXXX, and XXXX, stating, " we are unable to remove valid past due reporting. '' It is not accurate to report this account as standard delinquent. I have been in an approved Temporary Hardship Forbearance Plan since XX/XX/XXXX, and I have had a loss mitigation application on file and under review for the entire period. Reporting a borrower in approved forbearance as standard delinquent, while a complete loss mitigation application is pending, violates the Fair Credit Reporting Act, 15 U.S.C. 1681s-2, and CFPB furnisher-accuracy guidance. This complaint constitutes a formal dispute of the inaccurate furnished information under the FCRA. I am also actively working to sell the property. It is currently listed for sale at XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXXXXXX with XXXX XXXX of XXXX XXXX XXXX ( XXXX ). I have repeatedly asked Onity to evaluate my application for all available loss mitigation options, including a pre-foreclosure / short sale agreement, payment deferral, loan modification, repayment plan, and forbearance extension. To my knowledge, Onity has not performed a good-faith evaluation of any of these options. Today, XX/XX/XXXX, I sent Onity a formal written response to the XX/XX/XXXX letter, forwarding my complete XX/XX/XXXX submission in full and demanding that Onity ( a ) identify specifically which documents it claims are missing, ( b ) cease foreclosure activity while the application is pending, ( c ) correct the inaccurate credit reporting, and ( d ) evaluate the application for all loss mitigation options. This CFPB complaint is being filed the same day to document Onity 's pattern of conduct. VIOLATIONS I AM ALLEGING 1. 12 C.F.R. 1024.41 ( b ) ( 2 ) ( i ) ( B ) failure to notify borrower of specific documents needed to complete an application. 2. 12 C.F.R. 1024.41 ( f ) and ( g ) prohibited dual-tracking of foreclosure while a complete loss mitigation application is pending. 3. 12 C.F.R. 1024.41 ( c ) failure to evaluate a complete application for all available loss mitigation options. 4. 15 U.S.C. 1681s-2 ( FCRA ) furnishing inaccurate delinquency information to consumer reporting agencies while borrower is in approved forbearance and has a pending loss mitigation application. 5. RESPA Notice of Error / Qualified Written Request Onity has failed to properly log and respond to my repeated written inquiries regarding the status of my application. # # # 5. What would be a fair resolution to your complaint? ( Paste into the " desired resolution '' box ) I am requesting the following relief : 1. Onity identifies in writing, within 5 business days, the specific documents ( if any ) it claims are missing from my XX/XX/XXXX submission, with reference to the exact field or requirement not satisfied. 2. Onity immediately halts all foreclosure-related activity on loan XXXX while my complete loss mitigation application is under review, as required by 12 C.F.R. 1024.41 ( f ) and ( g ). XXXX. Onity performs a good-faith evaluation of my complete application for all available loss mitigation options, including pre-foreclosure / short sale agreement, payment deferral, loan modification, repayment plan, and forbearance extension, and provides a written decision within 30 days as required by 12 C.F.R. 1024.41 ( c ). 4. Onity corrects the inaccurate delinquency reporting it has furnished to Equifax, Experian, and TransUnion for the period beginning XX/XX/XXXX ( the start of my approved Temporary Hardship Forbearance Plan ) through the date correction is made. The account should be reported consistent with forbearance status, not standard delinquency. 5. Onity acknowledges receipt of my XX/XX/XXXX submission and my XX/XX/XXXX follow-up in writing. 6. Onity refrains from initiating or advancing any foreclosure filing, referral, or judgment motion until a complete written loss mitigation decision has been issued.

Company response to consumer: Closed with explanation