Consumer complaint received 2025-02-27 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Ocwen Financial Corporation
State: UT

Complaint narrative:
I am filing a formal complaint against PHH Mortgage regarding their handling of my loan modification process, incorrect credit reporting, and escrow miscalculations. 

In XX/XX/XXXX, I requested a forbearance from PHH Mortgage due to a temporary loss of employment. I resumed making my mortgage payments in XX/XX/XXXX and was informed that I needed to submit a loan modification application. I submitted my completed application, including all required documents ( pay stubs from the previous 30 days ), via email on XX/XX/XXXX. 

On XX/XX/XXXX, I followed up with PHH and was informed that they had not received my pay stubs. I reiterated that they had been sent with my original submission. Despite this, I was required to resubmit the entire application since more than 30 days had passed. On the same day, I resubmitted the application with all required documentation. 

Over the following months, I contacted PHH monthly and was repeatedly told that they were waiting for the underwriter to obtain certain documents. In XX/XX/XXXX, I was again informed that my application was outdated and had to be resubmitted. At that time, I emailed, faxed, and uploaded my application via their website to ensure receipt. 

In XX/XX/XXXX, I received confirmation that my application had been accepted, and I was placed on a 90-day probationary period to make on-time mortgage paymentssomething I had already been doing since XXXX. 

In XX/XX/XXXX, I received my final loan modification, which I have since appealed for the following reasons : Incorrect Credit Reporting : PHH Mortgage has reported to the credit bureaus that I was late on my mortgage from XXXX to XX/XX/XXXX, which is false. I made all required payments during this time, and this incorrect reporting has negatively impacted my credit. 
Loan Modification Terms : The initial modification paperwork suggested that my interest rate could be reduced ; however, PHH increased my rate from 6.1 % to 6.8 % and extended my loan term to 40 years. This modification does not provide the assistance I initially sought. Despite these changes, my monthly payment has only decreased by approximately {$11.00}, making the modification financially disadvantageous. 
Escrow Overcharge : I am a 100 % XXXX XXXX and am exempt from paying property taxes. My home insurance costs {$1500.00} annually, yet PHH is charging me {$360.00} per month for escrow, amounting to {$4300.00} annually. I provided PHH with county documentation verifying my property tax exemption in XX/XX/XXXX, but they have failed to adjust my escrow accordingly. 
Despite my repeated attempts to resolve these issues, I have been met with delays and unhelpful responses. Each time I call PHH, I am told to schedule an appointment with the representative assigned to my account. When I do, the representative simply repeats prior statements without offering solutions. I have been unable to reach anyone from PHH 's Ombudsman office for further assistance. 

On XX/XX/XXXX, I formally submitted an appeal for the loan modification to ensure that there is a record of my concerns. 

I am requesting the following actions from PHH Mortgage : Immediate correction of my credit report to reflect my on-time payments from XXXX to XX/XX/XXXX. 
A reconsideration of my loan modification terms to align with the assistance originally offered, including the possibility of a reduced interest rate. 
A proper recalculation of my escrow account to reflect my property tax exemption and correct home insurance costs.

Company response to consumer: Closed with explanation