Consumer complaint received 2025-09-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Confusing or misleading advertising or marketing
Company: Ocwen Financial Corporation
State: CA

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX XXXX Consumer Financial Protection Bureau XXXX. XXXX XXXX XXXX, D.C. XXXX Re : Formal Complaint Request for Removal of Shared Appreciation Modification ( SAM ) and Related Charges Dear CFPB Officer, I respectfully submit the attached complaint concerning unlawful and potentially fraudulent activity related to a Shared Appreciation Modification ( XXXX ) on my mortgage, originally held by XXXX XXXX XXXX and subsequently managed by Ocwen Loan Servicing and PHH Mortgage ( XXXX XXXX ). 

As detailed in the complaint, the SAM inflated my loan without proper notarization, recordation, or disclosure, and originated during a time when both Ocwen and the XXXX XXXX XXXX were under scrutiny for mortgage-related misconduct. The attached complaint outlines the legal deficiencies, the lack of required documentation, and the fees that have been unjustly assessed under this invalid agreement. I am requesting that the CFPB investigate these issues and intervene to remove the SAM and all associated fees. 

Thank you for your attention to this matter. Please feel free to contact me at XXXX should you require any additional documentation or clarification. 

Sincerely, XXXX XXXX see complaint details- Formal Consumer Complaint to the CFPB XXXX. Complainant Information Name : XXXX XXXX Address : XXXX XXXX XXXX, XXXX XXXX, CA XXXX Email : XXXX Loan Number : XXXX Servicer : PHH Mortgage / XXXX XXXX ( previously Ocwen Loan Servicing, LLC ) 2. Nature of the Complaint This complaint challenges the validity and enforceability of a Shared Appreciation Modification ( SAM ) allegedly created during Ocwens servicing of my loan and currently enforced by PHH Mortgage. The SAM appears to have been added unlawfully and without proper disclosure, and has inflated my loan balance by approximately {$95000.00} ( from {$760000.00} to {$860000.00} ), in addition to {$61000.00} in related charges. I request full removal of the SAM and reversal of all associated fees and inflated principal. 

XXXX. Supporting Evidence and Legal Violations - The SAM was never notarized by me and was only stamped by a representative of the servicer over two months later, without legal notarization or borrower presence. No notary was done on the servicer side ( Ocwen ). See attached document. 
- The SAM was never recorded with the XXXX XXXX XXXX XXXX. I have a certified No Record letter confirming this. See attached. 
- The SAM was not disclosed in either the XXXX Notice of Transfer from XXXX to Ocwen, or in the XX/XX/XXXX Notice of Transfer from XXXX to XXXX. Both notices only reference a single loan. See attached - PHHs own written response ( dated XX/XX/XXXX ) admits the SAM was never recorded, yet they continue to enforce it as binding. They cite investor requirements as a justification for non-disclosure and non-recordation. 
- The agreement was mailed to the XXXX XXXX XXXX, which has since been prosecuted and dissolved for fraudulent mortgage rescue schemes. The SAM was allegedly mailed during their active representation of me. 
- Ocwens legal history includes documented fee abuses and illegal loan modification practices. Ocwen was subject to multiple CFPB and state AG enforcement actions, including a $ XXXX settlement and ongoing monitoring. Ocwen is currently in a settlement stage for improper fees from XXXX and XXXX ( the time Ocwen owned my loan ) https : //www.ocwenfeesettlement.com/. 
- I have been charged for SAM-related appraisal inspections and cancellation fees despite never requesting a payoff quote or appraisal. 

XXXX. Requested Relief I respectfully request the following : XXXX. That PHH be compelled to dismiss and remove the Shared Appreciation Modification from all servicing systems. 
XXXX. That all charges, including the {$95000.00} that was added when the SAM was created as well as the {$61000.00} in payoff-related fees and any appraisal or inspection charges tied to the SAM, be removed. 
XXXX. That the original 2 % fixed-rate modification from XXXX for {$760000.00} be restored as the only valid obligation. 
XXXX. That CFPB investigate the potential misconduct by Ocwen and XXXX XXXX in creating the SAM. 
XXXX. That this complaint be associated with any ongoing CFPB investigations into Ocwen 's historical misconduct. 

XXXX. Supporting Attachments ( Available Upon Request ) - Certified No Record statement from XXXX XXXX XXXX XXXX XXXX - Copies of Notices of Servicing Transfer from XXXX and XXXX - SAM agreement lacking borrower notarization and recordation - PHHs XX/XX/XXXX written response - Documents showing fees charged without borrower authorization - XXXX XXXX XXXX legal history and default judgment records- Summary of Ocwen enforcement actions and settlements XXXX. Additional Information on XXXX XXXX XXXX  Legal Violations The XXXXXXXX XXXX XXXX  preyed upon vulnerable homeowners in an illegal scheme that falsely promised help avoiding foreclosure, said Attorney General XXXX XXXX XXXX. We will continue to protect homeowners from fraudulent law firms and hold accountable those who defraud them. 
The court found that XXXX XXXX XXXX and its associated entities systematically defrauded homeowners out of millions of dollars through a mortgage rescue scam. See : XXXX  v. XXXX XXXX XXXX, XXXX XXXX. XXXX ( XXXX. XXXX XXXX XXXX XXXX. 
XXXX. Ocwen Legal Violations and Settlements Ocwen Loan Servicing, LLC serviced my mortgage from XX/XX/XXXX to XX/XX/XXXX, which overlaps precisely with the period of documented legal violations and class-action lawsuits against the company. 

In XX/XX/XXXX, the Consumer Financial Protection Bureau ( CFPB ) filed suit against Ocwen for failing borrowers at every stage of the mortgage servicing process. The complaint ( CFPB v. Ocwen, Case No. 9:17-cv-80495, S.D. Fla. ) alleged illegal foreclosures, misapplied payments, and systemic inaccuracies in loan data. These violations mirror concerns in my own case related to undocumented charges and improper loan modification practices. 

Additionally, a separate nationwide class action settlement was approved regarding illegal mark-ups on property valuation fees charged by Ocwen between XXXX and XXXX. According to www.OcwenFeeSettlement.com, Ocwen agreed to refund {$60.00} {$70.00} per fee for inflated Broker Price Opinions ( BPOs ) and Hybrid Valuations. This includes a certified California subclass, directly applicable to me, given my residence and loan location. 

Ocwen has denied wrongdoing but settled due to the risk and cost of litigationan implicit recognition of systemic servicing failures. These admissions support my position that the Shared Appreciation Modification ( SAM ) created during XXXX controllikely in coordination with XXXX XXXX improperly structured, inflated my balance without legal justification, and should be deemed void, along with all SAM-related fees. 

Thank You, XXXX XXXX

Company response to consumer: Closed with explanation