Consumer complaint received 2024-10-28 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Ocwen Financial Corporation
State: TX

Complaint narrative:
When I got the loan back in XXXX, I was given two different mortgages with two different interest rates. One loan has 7.5 % and the other one 9.90 %. My payment is due every XXXX of the month. 

Since I was trying to make extra payments toward the principal on the loan with the highest interest, on XX/XX/XXXX, I sent an extra payment of {$10000.00}, which was an automatic electronic payment from my bank institution to the company ( PHH MortgageServices ), which they received the same date, XX/XX/XXXX. However, PHH did not credited my payment and still kept charging me the same interest rate. On XX/XX/XXXX, I phoned the company but their responses were evasive, at first not even acknowledging the payment until I pressed on the issue and finally told me that only {$9700.00} could be applied to the principal because they were taken the regular monthly payment out of the extra payment of {$10000.00}, even though I had separately already made the regular payment of {$210.00} due on XX/XX/XXXX. It was confusing and I still dont understand, that they said that the regular {$210.00} payment I had made before it would be reversed. They didnt provided me any logical explanation., just told me that the payment would be credited in the next statement. On XX/XX/XXXX, I mailed another extra principal only payment of {$5000.00}, along with the regular monthly payment of {$210.00}, which was due on XX/XX/XXXX. Once again, PHH did not credited the payment. I phoned call again but did not get a response as to why they didnt post my payments? The representative just told me that she will escalated my inquiries to the escalation department. I requested a correction of the records as well a written- mail explanation of the issues in question. They promised to adjust the interest rate charged and applied the payments. Their response did not however, appropriately nor timely addressed my questions, which I did let them know. Then on XX/XX/XXXX, I did sent another {$800.00} principal only payment, which again was not posted, as well the {$5000.00} appeared not yet been credited, even though on my phone call since before they said it will. On XX/XX/XXXX, I contacted PHH once more and It took about an hour and half on the phone to talked to an escalation department manager who told me that the payments were not credited because I was trying to pay off the mortgage and that I was not allowed to make extra payments. I pointed out to the fact that in the statements it is stated that yes, one can make extra payments, and that if what he was saying to me now was correct, then why they failed to informed me before since I contacted them on XXXX? He said that I needed to request a payoff letter and pay only with a certified check. I then requested once again, a corrected statement as well the payoff letter. The manager promised to : 1. Mail me a corrected-updated statement reflecting the adjustments to the interests rate. He said I will received it in 3 business days. As well, 2. In one business day they would mail me a payoff letter. 

To this date PHH have not mail me neither of those. Not the updated statement not the payoff letter. The fact and the matter is that since XX/XX/XXXX I have been having issues with the mortgage not applying my payments and charging me several late fees even thought I have probe them that the payments have been making on time. Since XX/XX/XXXX PHH also changed the me5hod of payment without notifying me. I always did my payments electronically through my bank institution, but without any warning, on XX/XX/XXXX PHH rejected the electronic payments and requested to my bank institution to mail paper checks instead. When I noticed that the payments were not being posted on time I contacted my bank institution and found out about it. I contacted PHH about the issue but they said that it was my bank institution who did that. I returned to my bank and it confirmed that was PHH who changed the me5hod of payment. My bank even conatcted PHH to clarify the issue but no response was received from PHH. Then on XX/XX/XXXX PHH charged me other late fees on both lost ( {$70.00} ) alleging that they did not received the check payments from me bank. Again, my bank institution contacted PHH with proof that the checks were in fact mailed on the XXXXXXXX XXXX XXXX, as they always did. No response from PHH, only said that the address was not correct, even though that was the very same address to which my bank had mailed the other payments before. To this day, PHH still not credited overpayments made in XXXX, not the extra payments I have recently made.

Company response to consumer: Closed with explanation