Consumer complaint received 2025-01-31 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: Ocwen Financial Corporation
State: NY

Complaint narrative:
Subject : Follow-Up CFPB Complaint PHH Mortgage Servicings False Information, Mishandling, and Failure to Facilitate a Settlement Agreement Re : PHH Mortgage Servicings Pattern of Misinformation, Contradictory Statements, and Obstruction of Mortgage Settlement Dear CFPB Enforcement Division, I am filing this follow-up complaint against PHH Mortgage Servicing because my previous complaint was prematurely closed without resolution and PHHs response failed to address its clear pattern of misinformation, delays, and mismanagement regarding my delinquent mortgage.

As a borrower who is financially capable of resolving this matter, I have made multiple good-faith efforts to negotiate a fair settlement agreement to satisfy PHHs first lien and XXXX second lien, which is necessary to move forward with a new lender. However, PHH has actively misled me, obstructed negotiations, and provided contradictory information that has delayed the process and exacerbated my financial situation.

1. PHH Provided False and Contradictory Information Regarding the Settlement Agreement PHH employees have repeatedly provided false and misleading information that has made it nearly impossible for me to move forward with a resolution : PHH Misrepresented That a Discounted Settlement Would Satisfy Both Liens PHH
representatives confirmed that a discounted settlement agreement would resolve both the first lien ( PHH ) and the second lien ( XXXX  ).

After conducting an extensive title search, I discovered that PHH does not own the second lienXXXX  does.

This critical misrepresentation led to months of delays, wasted time negotiating under false pretenses, and unnecessary financial strain.

Contradictory Statements Regarding Loan Modification Approval PHH informed me that a loan modification for {$580000.00} had been approved, yet when I requested documentation, none was provided.

After multiple follow-ups, PHH then stated the modification never existed.

This blatant contradiction disrupted my ability to make informed financial decisions and shows a pattern of either incompetence or deliberate misinformation.

Failure to Provide Timely and Accurate Information for Settlement Negotiations PHH has delayed providing essential documents needed to reach a resolution with XXXX and a new lender.

These delays have prevented me from moving forward with a settlement that I am financially prepared to finalize.

2. PHHs Response to My CFPB Complaint Was Inadequate and Ignored Core Issues PHHs response to my previous CFPB complaint was entirely insufficient and failed to address : Why PHH employees confirmed that the settlement would resolve both liens when PHH only owns the first lien.

Why PHH representatives confirmed a {$580000.00} loan modification approval that did not exist.

Why PHH has continuously delayed providing necessary account documentation.

Instead of correcting these serious servicing failures, PHH provided a generic, non-substantive response that ignored the direct financial harm caused by its misleading statements and obstruction of the settlement process.

3. PHHs Conduct Violates Federal Mortgage Servicing Regulations PHHs failure to provide accurate and timely information constitutes clear violations of the Real Estate Settlement Procedures Act ( RESPA ) ( 12 U.S.C. 2605 ). The following provisions apply : Failure to Provide Accurate Loss Mitigation Information ( 2605 ( k ) ) PHH misrepresented key financial terms, including lien ownership and modification approvals, which directly harmed my ability to resolve my mortgage delinquency.

Failure to Timely Respond to Requests for Information ( 1024.36 ) PHHs repeated delays in providing key documents have prevented me from negotiating settlements with both PHH and XXXX. 
Failure to Properly Service the Mortgage Under Successor Servicer Obligations ( 1024.38 ) PHHs servicing failures have exacerbated prior servicer Ocwens mishandling of my account, rather than correcting past errors.

These are not isolated incidents but part of a clear pattern of servicing misconduct that violates my rights under federal law and prevents me from reaching a fair resolution.

4. Requested Regulatory Action Against PHH Mortgage Servicing Given PHHs repeated misrepresentations and refusal to provide accurate information, I respectfully request that the CFPB : Reopen my complaint and require PHH to provide a full, transparent response that addresses the misrepresentations, contradictions, and servicing failures outlined above.

Conduct a formal investigation into PHHs handling of mortgage settlements and whether this pattern of misinformation constitutes systemic servicing violations.

Require PHH to engage in good-faith negotiations to allow me to finalize a settlement agreement that satisfies both liens.

Enforce compliance with RESPA and other mortgage servicing laws to ensure PHH provides borrowers with timely and accurate information.

I have extensive documented proof of PHHs false statements, contradictions, and servicing failures, including : Voice recordings of PHH representatives giving misleading and contradictory information.

Email correspondence documenting PHHs failure to provide accurate and timely information.

Evidence that PHHs misrepresentations actively prevented me from reaching a mortgage resolution.

If PHH continues to delay and obstruct the settlement process, I will have no choice but to pursue further legal action against PHH for mortgage servicing misconduct, including claims for actual damages and statutory penalties under RESPA.

I urge the CFPB to immediately reopen my case and hold PHH accountable for its servicing failures. Thank you for your time and assistance. I look forward to your prompt response.

Company response to consumer: Closed with explanation