Consumer complaint received 2020-11-18 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Ocwen Financial Corporation
State: MD

Complaint narrative:
the purpose of escrow is to pay debts associated with the real estate property -- taxes and insurance. i have been with PHH since XX/XX/XXXX. PHH is a subsidiary of Ocwen. My entire account information - history, etc - was transferred to PHH for a seamless transition. my first statement from PHH stated escrow balance {$0.00}. My second statement reflected the {$1300.00} escrow balance that was successfully transferred with my account. 

XXXX total insurance and tax expense is {$4100.00}. i understand that during the transition everything stayed the same. however, it is the responsibility of the mortgage company to best estimate expenses. in XXXX my escrow was {$190.00} x 12 months which is a total of {$2300.00} to pay for property related escrow expenses that actually total {$4100.00}. There is a shortage of {$980.00} " The monthly shortage for the next 36 months is {$27.00} and will be automatically added to your monthly payment beginning XX/XX/XXXX. '' unless i can pay the shortage in full within 60 days. 

XXXX was the responsibility of PHH to better estimate my escrow payments in order to have a mutually beneficial relationship. This was our first full 12 months with PHH. 

my XXXX property related expenses that are escrowed for are {$4100.00}. The escrow analysis provided to me on XX/XX/XXXX -- i now have a shortage of {$2400.00}. " The monthly shortage for the next 48 months is {$50.00} and will be automatically added to Your monthly payment beginning XX/XX/XXXX. '' unless i can pay the shortage in full within 60 days. my escrow payment was increased to {$290.00} x 12 months which is a total of {$3500.00}. 

THESE ESCROW PAYMENTS WILL NEVER PAY THE TOTAL DUE ON THE ESCROWED EXPENSES ON THE PROPERTY. I HAVE NO CONTROL OVER HOW THEY ESCROW. I AM POWERLESS. IF I CAN DO THE MATH -- SO CAN THEY. THIS IS ON PURPOSE AND BY DESIGN. 

PHH is a subsidiary of Ocwen. I have a reasonable expectation that matters will be handled in an appropriate manner. I have proven, without a doubt, that PHH has not fulfilled their responsibility as a respectable and responsible mortgager. IT IS PHH 'S RESPONSIBILITY TO CALCULATE ENTIRE YEAR OF EXPENSES SUPPORTING THE PROPERTY. PHH knew that these payments would fall short. PHH did not give me the option to divide entire shortage over the 1 year term as OCWEN did for the last 15 years. this would have been a more manageable solution in this pandemic environment. i believe that PHH has an ulterior motive to eventually repossess my house for lack of payment. 

PHH refers to this as ESCROW ADVANCES. Customer service rep said to me " WE PAY YOUR BILLS AS A COURTESY TO YOU. '' THE BEST COURTESY TO ME WOULD BE TO ACCURATELY ESTIMATE ESCROW MONTHLY PAYMENTS OVER 12 MONTHS TO PAY THE BILLS WHICH IS THEIR RESPONSIBILITY. Mortgagers insist on paying these bills because until the loan is paid off, the mortgager owns the property and has a vested interest in ensuring that these bills are paid. THIS IS DISGUSTING. 

PHH SHOULD BE AUDITED TO PROTECT EVERY MORTGAGEE FROM THEIR PREDATORY PRACTICES.

Company response to consumer: Closed with explanation