Consumer complaint received 2026-05-11 00:00:00
Product: Mortgage — VA 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: FL

Complaint narrative:
I. BACKGROUND I am the borrower of record on a XXXX mortgage loan serviced by Onity Mortgage Corporation XXXX I wish to sell my home, and a prospective buyer has expressed interest in assuming my VA loan. In accordance with the loan terms and applicable VA regulations, I initiated the assumption process with Onity. XXXX. THE PROBLEM On XX/XX/year>, Onity issued a written denial of my loan assumption request. The sole stated basis for the denial was : " Investor does not allow assumption. '' No contractual provision was cited. No VA guideline was referenced. No creditworthiness evaluation of the prospective buyer was conducted or requested Onity had only the buyer 's name at the time of denial. This denial is directly contradicted by the executed XXXX XXXX XXXX governing my loan. Paragraph G of that agreement states : " On and after the Modification Effective Date, XXXX will allow the transfer and assumption of the Loan, including this Agreement, only as permitted under VA guidelines. '' This provision is affirmative and unambiguous. The only permissible grounds for denial under the Modification Agreement are non-conformance with VA guidelines. " Investor preference '' is not a VA guideline. Onity has no contractual authority to refuse to process the assumption on this basis. VA regulations at 38 U.S.C. 3714 and 38 C.F.R. 36.4232 require that XXXX loans be processed for assumption subject to creditworthiness review of the proposed assumer. VA XXXX XXXX, XXXX XXXX expressly requires holders to process qualifying assumption requests. Onity 's blanket refusal without any creditworthiness review and without a XXXX basis violates VA program requirements binding on all servicers of VA-guaranteed loans. Additionally : I have reason to believe this loan is held in a XXXX XXXX mortgage-backed security pool. XXXX XXXX 's XXXX XXXX explicitly permits assumptions of VA loans in XXXX XXXX pools. The claim that the " investor does not allow assumptions '' is therefore suspect on its face and requires substantiation that Onity has refused to provide. Onity also addressed the denial letter to the prospective buyer a non-borrower third party who had not yet submitted a formal application rather than to me as the borrower of record. This reflects a failure to follow basic assumption processing procedures. XXXX. WHAT I BELIEVE ONITY DID WRONG Denied XXXX VA loan assumption request without any creditworthiness review of the proposed assumer, in violation of VA program requirements Denied the assumption on the sole basis of " investor preference, '' which is not a permissible ground under the Loan Modification Agreement ( Paragraph G ) or VA regulations Failed to identify the investor or cite any contractual provision authorizing the denial Failed to process the assumption request in good faith as required by the Modification Agreement Addressed correspondence to a non-borrower third party rather than the borrower of record Effectively converted an assumable VA loan into a non-assumable loan in breach of the contractual terms the borrower paid for ( including the VA funding fee ) XXXX. WHAT I WANT THE COMPANY TO DO XXXX. Rescind the XX/XX/year> denial letter in writing XXXX. Reopen and process my assumption request in accordance with Paragraph G of the XXXX XXXX XXXX and applicable VA guidelines, including conducting a good-faith creditworthiness review of the proposed assumer XXXX. Disclose the full legal name, address, and contact information of the current investor/owner of the note, as required under 15 U.S.C. 1641 ( f ) ( 2 ) 4. Provide the specific contractual provision by document, section, and page under which Onity or the investor claims authority to deny assumption notwithstanding Paragraph G of the Modification Agreement XXXX. Confirm whether this loan is held in a XXXX XXXX pool, and if so, identify the pool number and issue date XXXX. Confirm in writing that future denial will only issue on grounds expressly permitted by VA guidelines and supported by specific findings

Company response to consumer: Closed with explanation