Consumer complaint received 2026-05-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Ocwen Financial Corporation
State: CA

Complaint narrative:
Homeowner : XXXX XXXX XXXX XXXX : XXXX Via XXXX, La XXXX, CA XXXX Servicer : PHH Mortgage XXXX Onity XXXX Account XXXX : [ Insert your loan number here ] NARRATIVE SUMMARY I am filing this formal complaint against my mortgage servicer, previously named PHH Mortgage, which has very recently rebranded itself to Onity XXXX, formerly known as Ocwen Financial Corporation, for administrative negligence, fraudulent tax reporting, and unauthorized access to my banking funds. The servicer issued a stop payment on a property tax check totaling over XXXX but reported that amount as paid to the IRS on my XXXX Form 1098. This falsified reporting led to an inaccurate inflation of my mortgage principal and the referral of my account to a collection agency for a debt that never existed and monies in excess of approximately XXXX, which did not leave their holdings. Despite sending copies of paid property taxes with a clear identification of payments made from my bank account, letters from XXXX XXXX XXXX collector stating that Onity did indeed send a check, however the check was sent in XXXX of XXXX not in XXXX. Additionally the letter from the county states the the check received was considered as defaulted as it had a STOP payment. DETAILED VIOLATIONS XXXX. FRAUDULENT TAX REPORTING AND ESCROW ERRORS In late XXXX, the servicer claimed they would manage my property taxes. They issued an official XXXX XXXX XXXX stating they disbursed XXXX in real estate taxes. However the XXXX XXXX XXXX XXXX has confirmed in writing that the servicer placed a stop payment on the check, which was not received in XXXX but in XXXX. Because of this deception my mortgage principal was wrongfully increased to XXXX for funds never disbursed to XXXX XXXX. XXXX. FAILURE TO RESPOND TO NOTICES OF ERROR I have sent XXXX separate formal Notices of Error between XX/XX/XXXX and XX/XX/XXXX. Under RESPA Regulation X the servicer is required to acknowledge and resolve these notices. They have ignored all three written communications and have failed to correct the negative escrow balance of approximately XXXX which stems entirely from their own stop payment order. XXXX. IMMINENT RISK OF FORECLOSURE AND DAMAGES If I had relied on the inaccurate tax Form 1098, which PHH sent me claiming falsely that they paid the amount of XXXX on my behalf toward XXXX XXXX XXXX property taxes, my home would have proceeded to public auction in XX/XX/XXXX. I was forced to use my own workers ' compensation settlement funds to pay XXXX XXXX directly to save my home. I have incurred thousands in interest and penalties from XXXX XXXX due to the servicer 's negligence not to mention the stress associated with having to come up with an amount of XXXX within less than 30 days. XXXX. UNAUTHORIZED BANK ACCESS The servicer attempted multiple unauthorized ACH withdrawals from my XXXX XXXX account, in the month of XXXX XXXX, in an attempt to pay what they allegedly are owed with the phantom escrow fund for almost XXXX, and this month they have tried to withdraw over XXXX unauthorized money from my checking account at XXXX XXXX. The latter was immediately not approved as XXXX XXXX is not honoring withdrawals generated by Onity, and they were blocked only through bank intervention. The first unauthorized XXXX ach withdrawal was returned to my account as Onity was unable to provide authorization for a transaction for that amount. REQUESTED RESOLUTION I request that the servicer immediately cease all collection activity. They must provide a corrected XXXX Form 1098 to the IRS and me. They must perform an escrow re-analysis to remove the negative balance and revert my mortgage principal to the correct amount. I also request reimbursement for the tax penalties caused by their neglect despite being told several times that they did not make a payment of XXXX to XXXX XXXX XXXX and forwarded letters of stop payment order. Furthermore, I am seeking full restitution for the following damages under RESPA ( Regulation X ), the XXXX Fair Debt Collection Practices Act, and California Housing Laws : Correction of the XXXX Form 1098 : An immediate corrected filing to the IRS to reflect the actual tax status. Financial Reimbursement : Recovery of all tax penalties, interest, and late fees incurred as a direct result of the servicer 's Stop Payment order. Principal Adjustment : Immediate removal of the {$28000.00} in " phantom debt '' added to my mortgage principal. Escrow Correction : Removal of the {$28000.00} negative balance. Removal of negative credit remarks made to the XXXX reporting credit bureaus. Statutory Damages : I reserve the right to seek statutory damages for the servicer 's failure to respond to XXXX ( XXXX ) formal Notices of Error and for unauthorized attempts to access my private bank funds via ACH.

Company response to consumer: Closed with explanation