Consumer complaint received 2025-11-15 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Fees charged
Company: Ocwen Financial Corporation
State: IL

Complaint narrative:
RESPA Request for Information / Qualified Written Request PHH Mortgage Servicing Violations, Suspense Misapplication, Dual Tracking, Improper Foreclosure Activity, and HUD Partial Claim Irregularities Servicer : PHH Mortgage ( formerly Ocwen Loan Servicing ) Borrower : XXXX XXXX XXXX Authorized Representative : XXXX XXXX XXXX : XXXX XXXX XXXX XXXX, XXXX, IL XXXX PHH Loan Number ( after modification ) : XXXX Ocwen Loan Number ( original loan ) : XXXX This is my second RESPA Request for Information / Qualified Written Request. 
My first request was submitted on XX/XX/XXXX, and PHH failed to provide a complete response within the required RESPA timeframe. 

I am filing this complaint due to severe servicing irregularities involving PHH Mortgage, Ocwen Loan Servicing, XXXX XXXX XXXX, HUD, and the FHA Partial Claim.

1. Misapplied Payments & Suspense Account Abuse PHH repeatedly held payments in suspense while simultaneously : claiming delinquency continuing foreclosure activity assessing fees force-placing hazard insurance A PHH statement dated XX/XX/XXXX shows : Escrow paid YTD : {$20000.00} ( excessive/unexplained ) Negative escrow adjustments ( e.g., {$120.00} ) Force-placed insurance ( Hazard Insurance XXXX XXXX XXXX XXXX XXXX Suspense account fluctuations Partial Payment ( Unapplied ) despite sufficient funds This violates 12 CFR 1026.36 ( c ) ( 1 ).

2. Dual Tracking & Improper Foreclosure Activity During active loss mitigation review, PHH/Ocwen : accepted trial payments accepted a {$4000.00} modification payment confirmed modification progress through rep XXXX XXXX XXXX XX/XX/XXXX ) continued to request duplicate documents allowed Codilis & XXXX XXXX XXXX and advance foreclosure foreclosure case : XXXXXXXX XXXX XXXXXXXX case was filed, vacated, reinstated, and dismissed repeatedly This is illegal dual tracking under 12 CFR 1024.41 ( f ) - ( g ).

3. FHA/HUD Partial Claim Irregularities PHH and HUD have given conflicting statements regarding : whether FHA insurance was cancelled whether the HUD Partial Claim was ever satisfied the status of the subordinate lien why payoff statements did not match PHH records why the foreclosure case history contradicts the accounting We need the complete HUD Partial Claim file, including : subordinate note & mortgage claim submission payoff application HUD/NOVAD correspondence records of payoff receipt records showing application ( or non-application ) of the payoff PHH has not produced required documentation.

4. Escrow Mismanagement & Force-Placed Insurance Despite an active escrow account, PHH : force-placed hazard insurance charged excessive and inflated escrow failed to properly analyze escrow The XXXX escrow total of {$20000.00} is unreasonable. 

This violates 12 CFR 1024.17.

5. Payoff Irregularities & Unexplained Loan Balance PHH listed a loan balance of {$140000.00} in XX/XX/XXXX despite : trial payments escrow contributions modification attempts dismissed foreclosure HUD Partial Claim involvement PHH must explain why payments were not properly applied.

6. Suspense Account Misconduct ( Five Different Suspense Balances ) PHH must confirm the correct suspense balance and provide the full suspense ledger.

PHH has shown multiple different suspense balances with no explanation, including : suspense appearing/disappearing funds zeroed out without application partial payments marked unapplied negative escrow adjustments tied to suspense force-placed insurance while escrow was active Requesting the complete annotation of : A. All suspense account entries deposits withdrawals reallocations unapplied funds internal transfers escrow/suspense cross-applications B. Identify every PHH/Ocwen department that touched suspense funds Loss Mitigation Default/Foreclosure Escrow Payment Processing Corporate Advance HUD Partial Claim Team OcwenPHH Transfer Team C. Explain why FIVE different suspense balances exist Provide : 1. True suspense balance for each month 20182021 2. Why totals changed without explanation 3. Whether fees were deducted 4. Whether suspense was transferred to escrow 5. Whether suspense was used to generate fees 6. Whether PHH used suspense manipulation to create delinquency D. Suspense activity correlated to foreclosure filings dates payments placed in suspense dates they were moved/removed whether PHH used suspense to justify foreclosure E. Any HUD Partial Claim suspense or holding accounts If HUD funds were ever : placed in suspense misallocated not applied applied twice applied incorrectly PHH must produce full HUD claim ledger.

7. Evidence of Unlawful Foreclosure and Improper Case Handling The foreclosure case XXXXXXXX XXXX XXXXXXXX shows : A. Multiple filings/dismissals by PHH itself PHHXXXX voluntarily dismissed the case indicating wrong documents, wrong payoff, or incorrect accounting B. PHH foreclosed while modification was active Emails from XXXX XXXX : so far so good paperwork accepted active processing Yet foreclosure still proceeded.

This is dual tracking.

C. PHH accepted {$4000.00} then foreclosed anyway A clear servicing violation.

D. Payments were in suspense during foreclosure filings Artificially creating delinquency. 




E. XXXX listed the home as Foreclosure/Auction ( have communication proof with XXXX ) While under review reputational harm and FDCPA violations. 




F. PHH dismissed the foreclosure AFTER realizing accounting errors Suggests : incorrect HUD claim incorrect loan balance misapplied payments insufficient documents to foreclose G. PHH failed to notify borrower of court activity Potential notice violations. 






XXXX. Escrow Analysis After Payoff ( XX/XX/XXXX ) In XX/XX/XXXX, PHH issued an escrow analysis showing : {$610.00} escrow surplus Yet PHH : increased monthly payment projected incorrect escrow charges issued an analysis AFTER payoff funds were sent This confirms ongoing accounting errors even after payoff.

Company response to consumer: Closed with explanation