Consumer complaint received 2025-08-07 00:00:00
Product: Mortgage — FHA 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: KY

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Date : [ Insert Date ] To Whom It May Concern, I am submitting this formal complaint regarding PHH Mortgages servicing violations, which have caused me severe financial harm and placed my home at risk of foreclosure. I am a successor in interest to the property and have been actively engaged in loss mitigation since early XXXX. 

PHH initiated foreclosure in XX/XX/XXXX while simultaneously offering me a loan modification. I submitted a trial payment in good faith, but PHH rejected the payment, held my check for XXXX days, and failed to credit it to my account. This caused overdraft fees, missed obligations, and cascading financial damage. 

From XX/XX/XXXX through XX/XX/XXXX, PHH assessed property inspection fees, legal fees, and foreclosure costsdespite my active participation in loss mitigation and ongoing hardship due to a federally declared disaster ( XXXX ). PHH also delayed verifying my status as successor in interest, locking me out of my account for over XXXX months and denying access to payment tools and modification documents. 

These actions violate multiple provisions of Regulation X, including : - 12 CFR 1024.41 ( g ) : Foreclosure prohibited during loss mitigation - 12 CFR 1024.38 ( b ) ( 2 ) ( i ) : Failure to credit payments- 12 CFR 1024.41 ( f ) : Improper fee assessments during review - 12 CFR 1024.38 ( b ) ( 1 ) : Failure to respond to hardship documentation - 12 CFR 1024.30 ( d ) : Failure to communicate with successor in interest Foreclosure During Loss Mitigation Dual Tracking - 12 CFR 1024.41 ( g ) : - If a borrower submits a complete loss mitigation application more than XXXX days before a foreclosure sale, a servicer shall not move for judgment or order of sale, or conduct a foreclosure sale, until ... the servicer has sent a written notice that the borrower is not eligible for any loss mitigation option. 
Source : CFPB Regulation X 1024.41 ( g ) Failure to Credit Trial Payments- 12 CFR 1024.38 ( b ) ( 2 ) ( i ) : - Servicers must promptly credit payments and maintain accurate records reflecting the borrowers payment history.

Source : eCFR 1024.38 ( b ) Improper Fee Assessments During Review - 12 CFR 1024.41 ( f ) : - A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless ... the borrower is not eligible for any loss mitigation option. 
This includes fees for inspections, legal services, or foreclosure costs during active review. 
Source : CFPB Regulation X 1024.41 ( f ) Successor in Interest Access Delays- 12 CFR 1024.30 ( d ) : - Servicers must treat confirmed successors in interest as borrowers for purposes of mortgage servicing rules.

Source : CFPB Successor Homeowner Spotlight RESPA Damages for Financial Harm - 12 U.S.C. 2605 ( f ) : - Borrowers may recover actual damages caused by servicer violations, including financial loss and emotional distress. 
Source : XXXX Law Bulletin RESPA Damages PHH Mortgage violated 12 CFR 1024.41 ( g ) by initiating foreclosure while my loan modification was pending. They rejected my trial payment and held my check for 60 days, violating 1024.38 ( b ) ( 2 ) ( i ). 
From XX/XX/XXXX through XX/XX/XXXX, PHH assessed inspection and legal fees during active loss mitigation, violating XXXX ( f ). They also delayed confirming my successor status, denying me access to my account and modification documents, in violation of XXXX ( d ). 
These violations caused measurable financial harm, including overdraft fees, missed obligations, and emotional distress. I am seeking relief under RESPA XXXX XXXX. XXXX ( f ).

Company response to consumer: Closed with explanation