Consumer complaint received 2026-06-01 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Ocwen Financial Corporation
State: VA

Complaint narrative:
Submitted by : XXXX and XXXX XXXX XXXX Address : XXXX XXXX XXXX, XXXX, Virginia Loan Number : Ending in XXXX Current Servicer : PHH Mortgage Services Prior Servicer : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX Attorney of Record : XXXX XXXX NATURE OF COMPLAINT : Improper Servicing Transfer, Loss of Loss Mitigation File, Failed Modification Process, and Potential Dual Tracking Violation DETAILED STATEMENT OF FACTS : We, XXXX and XXXX XXXX, are homeowners currently engaged in the loss mitigation process regarding our property at XXXX XXXX XXXX, XXXX, Virginia ( Loan No. ending XXXX ). We are filing this complaint because a series of failures by XXXXXXXX XXXX XXXX XXXXXXXX, XXXX XXXX XXXX, and PHH Mortgage Services have collectively destroyed our ability to complete a loan modification we were actively pursuing, placed us at serious risk of losing our home, and violated our rights under federal mortgage servicing law. CHRONOLOGY OF EVENTS : XXXX. FIRST MODIFICATION ATTEMPT AND SERVICING TRANSFER : We were actively engaged in the loss mitigation process with XXXX XXXX XXXX as our servicer. During this process, a servicing transfer was initiated. We received notice that our mortgage account was being transferred from XXXX XXXX XXXX to PHH Mortgage Services, effective XX/XX/XXXX. The transfer notice stated : " PHH Mortgage Services is now the servicer of the mortgage account, and we are glad to have you as a new customer. The account transferred from XXXX XXXX XXXX ( Prior Servicer ) to PHH Mortgage Services effective XX/XX/XXXX. '' XXXX. SECOND SET OF MODIFICATION DOCUMENTS AND CRITICAL DEADLINE : We were provided a second set of loan modification documents that required execution and return by XX/XX/XXXX- just XXXX days after the servicing transfer became effective. We complied with this deadline, signing and mailing the documents by XX/XX/XXXX. The documents arrived at XXXX XXXX Mortgage XXXX on XX/XX/XXXX. XXXX. DOCUMENTS DEEMED UNRECORDABLE : XXXX XXXX Mortgage XXXX, in a written communication dated XX/XX/XXXX, informed us that the second set of modification documents returned on XX/XX/XXXX, were deemed invalid and unrecordable for XXXX reasons : First, the documents were received after the servicing transfer had already become effective on XX/XX/XXXX, meaning XXXX XXXX XXXX was no longer the servicer of record when the documents arrived. Second, the documents contained certain alterations- specifically, we had removed the " XXXX. '' designation from behind our signatures and signed " without prejudice and without recourse '' - which XXXX XXXX determined rendered the documents unrecordable. XXXX XXXX further acknowledged in its XX/XX/XXXX, letter that neither set of modification documents was sent to PHH Mortgage Services, our new servicer, because both sets were unrecordable. XXXX XXXX stated in that same letter that a third set of documents was being overnighted to us for review and execution. XXXX. THIRD SET OF DOCUMENTS NEVER RECEIVED : Despite XXXX XXXX 's written promise in its XX/XX/XXXX, letter that a third set of modification documents was being overnighted to us, we never received those documents. This failure left us without any executable modification documents and without any clear path forward on our loss mitigation process. XXXX. XXXX ATTORNEY CONFIRMS NO MODIFICATION DOCUMENTS ON FILE : We contacted PHH Mortgage Services and communicated directly with XXXX 's attorney, XXXX XXXX. Attorney XXXX confirmed to us that PHH Mortgage Services does not have the modification documents and can not use them. This confirmation from XXXX 's own legal counsel establishes that the complete loss mitigation file was never properly transferred from XXXX XXXX XXXX to PHH Mortgage Services as required by federal law. XXXX. FORCED REAPPLICATION : As a direct result of XXXX not having our modification documents or a complete loss mitigation file, we were forced to submit a completely new loss mitigation application. We submitted this reapplication via email to Attorney XXXX XXXX on XX/XX/XXXX. We have documentation of this submission. FEDERAL LAW VIOLATIONS : The conduct described above constitutes violations of the Real Estate Settlement Procedures Act ( RESPA ), 12 U.S.C. Section 2605, and its implementing regulation, Regulation X, 12 C.F.R. Part 1024, as enforced by the Consumer Financial Protection Bureau, specifically including the following : 7. VIOLATION OF 12 C.F.R. SECTION 1024.41 - LOSS MITIGATION PROCEDURES : Under Regulation X, a mortgage servicer that receives a complete loss mitigation application must evaluate the borrower for all available loss mitigation options. The servicing transfer from LoanCare to PHH did not extinguish our rights under an active loss mitigation process. PHH Mortgage Services, as the successor servicer, was obligated to honor and continue the loss mitigation process that was already underway. The failure to transfer our complete loss mitigation file effectively reset our application and forced us to reapply, causing significant delay and harm. 8. VIOLATION OF 12 C.F.R. SECTION 1024.38 - SERVICING TRANSFER OBLIGATIONS : Regulation X requires servicers to maintain policies and procedures reasonably designed to achieve the objective of properly transferring all information and documents in a borrower 's mortgage loan file to a transferee servicer upon a servicing transfer. The failure of XXXX to transfer our complete loss mitigation file to PHH Mortgage Services, as confirmed by XXXX 's own attorney XXXX XXXX, is a direct violation of this provision. XXXX. POTENTIAL DUAL TRACKING VIOLATION UNDER XXXX C.F.R. SECTION XXXX ( f ) : We are concerned that while our loss mitigation application is pending- including the reapplication submitted on XX/XX/XXXX - foreclosure proceedings XXXX be initiated or continued against our property. Federal law prohibits a servicer from making the first notice or filing required for a foreclosure process while a complete loss mitigation application is pending. We request that the CFPB investigate whether PHH Mortgage Services is engaging or planning to engage in dual tracking in violation of this provision. HARM SUFFERED : As a direct result of the failures described above, we have suffered the following harm : XXXX. Loss of a loan modification we were actively pursuing and for which we had already executed documents on XXXX separate occasions. XXXX. Forced reapplication for loss mitigation, causing significant delay in resolving our mortgage delinquency. XXXX. Ongoing risk of foreclosure on our primary residence due to the unresolved loss mitigation process. XXXX. Significant emotional distress, time, and expense in attempting to navigate a process that was derailed by the failures of XXXX XXXXXXXX XXXX XXXXXXXX, XXXX XXXX XXXX, and PHH Mortgage Services. XXXX. Loss of modification terms that may have been more favorable than any terms currently available. RELIEF REQUESTED : We respectfully request that the CFPB : 15. Investigate the failure of XXXX XXXX XXXX to transfer our complete loss mitigation file to PHH Mortgage Services in violation of 12 C.F.R. Section 1024.38. XXXX. XXXX XXXX XXXX XXXX XXXXXXXX 's failure to deliver the promised third set of modification documents. XXXX7. Direct PHH Mortgage Services to immediately process our reapplication submitted on XX/XX/XXXX, and evaluate us for all available loss mitigation options without further delay. XXXX. Ensure that PHH Mortgage Services does not initiate or continue any foreclosure proceedings while our loss mitigation application is pending, in compliance with 12 C.F.R. Section 1024.41 ( f ). 19. Investigate whether any dual tracking violations have occurred or are occurring with respect to our mortgage loan. XXXX. Take appropriate enforcement action against all responsible parties for their violations of RESPA and XXXX XXXX. SUPPORTING DOCUMENTATION AVAILABLE : XXXX. XXXX XXXX XXXX XXXXXXXX letter dated XX/XX/XXXX, acknowledging unrecordable documents and promising a third set XXXX. Second set of signed modification documents mailed XX/XX/XXXX XXXX. Servicing transfer notice confirming transfer from XXXX XXXX XXXX to PHH Mortgage Services effective XX/XX/XXXX XXXX. Email submission of reapplication to PHH XXXX XXXX XXXXXXXX dated XX/XX/XXXX XXXX. Communications with XXXX Attorney XXXX XXXX confirming XXXX does not have modification documents Respectfully submitted, XXXX and XXXX XXXX XXXX XXXX XXXX, XXXX, Virginia Loan Number : XXXX XXXX

Company response to consumer: Closed with explanation