Consumer complaint received 2026-04-22 00:00:00
Product: Mortgage — Conventional home 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: TX

Complaint narrative:
Rebuttal to Onity Response / Incomplete and Nonresponsive Servicing Investigation To the Consumer Financial Protection Bureau, I submit this rebuttal regarding Onity Mortgage XXXX response concerning Account No. XXXX and the property located at, XXXX, TX XXXX. Onitys response remains incomplete and nonresponsive. This is not just a complaint about one incorrect phone statement. It is a record-integrity problem, a successor-in-interest handling problem, a payment-status problem, a foreclosure-expense transparency problem, and a modification-document problem. Onity admits that on XX/XX/XXXX its representative incorrectly advised that the final modification agreement had not yet been generated, even though Onity claims that agreement had already been generated and mailed on XX/XX/XXXX. That admitted misinformation goes directly to the loss-mitigation process and may have interfered with timely execution and return of the agreement. Under 12 C.F.R. 1024.35, inaccurate information regarding loss mitigation, foreclosure, or other servicing issues is grounds for error resolution. Onity also states that the modification was denied on XX/XX/XXXX, then later reversed, and then reissued. Yet the modification materials state that the first modified payment would begin on XX/XX/XXXX, while Onity simultaneously demanded XXXX and XX/XX/XXXX trial payments. Those positions do not reconcile. Either the account had already moved into permanent modification status or it had not. Onitys explanation leaves the payment status unclear and prevents meaningful review of whether payments were accurately categorized, applied, and credited. The successor-in-interest handling is equally troubling. Onitys XX/XX/XXXX successor packet confirms XXXX as a successor in interest and states that she is not personally liable unless she chooses to assume liability. However, the same packet states that the loan modification and assumption review/approval will be completed simultaneously and that if the modification is accepted she will be required to assume liability. A confirmed successor in interest must be treated as a borrower for Regulation X servicing protections. Onitys wording improperly blurs the line between borrower-status protections and personal assumption liability and appears to pressure assumption as a condition of meaningful relief. Onitys own response then confirms that XXXX was not added as a confirmed successor until XX/XX/XXXX, that XXXX name was not updated until XX/XX/XXXX, and that XXXX was only removed after an internal review found documentation dated XX/XX/XXXX authorizing his release as a successor in interest. That means Onity had relevant successor-related documentation in its own file yet still generated and circulated modification documents using outdated or disputed party information. The fee issue remains one of the strongest indicators that Onitys response is incomplete. The modification summary says, in plain language, NO FEES. Yet the agreement separately states that recording fees, title examination fees, and attorneys fees may be charged to the borrower, and also states that interest, costs, expenses, fees, escrow advances, and other unpaid amounts may be added to the new balance. The XX/XX/XXXX statement makes this more serious. That statement states that the loan had been referred to an attorney to start foreclosure proceedings and directs that, before remitting payment, the borrower MUST contact the attorney for the full reinstatement amount because the amount shown may have changed. The same statement shows a large Assessed Expenses balance, along with Past Due Payments and additional unpaid late charges, returned-item charges, and shortages. It also appears to reference at least a BPO cost and an inspection fee. I am not asserting, from the face of that statement alone, that the entire assessed-expense amount is attorneys fees. I am asserting that Onity was carrying a large foreclosure-related expense bucket without a clear itemization while foreclosure counsel was already involved and while the modification file was still disputed and being reworked. Under 12 C.F.R. 1024.35, a fee or charge without a reasonable basis is a covered servicing error. The balloon terms are also internally contradictory. The packet refers to a balloon payment of {$41000.00}, elsewhere refers to {$55000.00}, and elsewhere states a total balloon obligation of {$96000.00}. Those are materially different obligations. A borrower should not be expected to sign a modification package that presents multiple inconsistent balloon amounts while also warning that failure to pay the balloon could result in foreclosure. The agreement further contains broad lender-protective errors and omissions language allowing Onity, at its option, to void the agreement, demand corrective documents, and revert the loan to prior terms if it later claims there was an error or omission. In a file where Onity already admits misinformation, reversed decisions, and later corrections to party records, that language attempts to shift the practical risk of Onitys own record problems back onto us. Onitys materials also do not resolve the foreclosure-timing issue. The packet says foreclosure proceedings will be stopped if applicable once the modification is complete. That does not answer what happened while the application was under review, while the denial was being challenged, while the denial was being reversed, and while new documents were being reissued. Because the file shows a reversed denial and the XX/XX/XXXX statement shows attorney referral for foreclosure activity, a full foreclosure timeline is necessary. Accordingly, we demand the following relief : 1. Withdraw the current modification package and issue a corrected package with one consistent set of parties, one consistent payment timeline, one consistent balloon figure, and no contradictory NO FEES versus borrower-paid-fees language. 2. Remove or expressly agree not to enforce any clause that allows Onity to void the agreement, revert to prior terms, require corrective documentation under threat of reversal, or shift back onto us the costs and consequences of Onitys own errors, rework, successor-record issues, denials, reversals, or reissued documents. 3. Confirm in writing that no attorneys fees, foreclosure counsel fees, BPO charges, inspection fees, title charges, publication/posting costs, corporate advances, or other expenses generated by Onitys errors, rework, or defective records will be assessed, capitalized, collected, or preserved for future collection against us. 4. Provide a complete life-of-loan payment history, including suspense and unapplied-funds history. 5. Provide a full assessed-expense ledger showing every dollar by date, vendor, service, invoice amount, and contractual or legal authority, including all attorney/counsel fees, BPO charges, inspection fees, title charges, posting/publication charges, and corporate advances. 6. Provide the XX/XX/XXXX mailing proof and image of the final modification package, along with all XX/XX/XXXX call logs, recordings, and agent notes. 7. Provide all successor-in-interest documents, intake dates, indexing dates, and internal workflow notes showing when each party was added, removed, or corrected. 8. Provide the foreclosure referral date, counsel referral date, every reinstatement quote, every notice or posting date, and every instruction sent to foreclosure counsel during review, denial, reversal, and reissuance. 9. Confirm whether any derogatory credit reporting was furnished during the period of incorrect guidance, denial, reversal, disputed successor records, or disputed charges, and correct any inaccurate reporting tied to those issues. We reject any clause, rider, summary, modification term, or servicing position that purports to shift onto us the costs, risks, consequences, or cleanup burden created by Onitys own servicing errors, successor-record failures, contradictory modification terms, denial reversal, foreclosure-counsel referral activity, reissued documents, or unexplained assessed expenses. Onitys conduct has forced us to devote extraordinary time and resources to reviewing contradictory packets, tracing successor-status errors, challenging unsupported charges, and preventing additional harm. We reserve all rights to seek reimbursement of documented out-of-pocket expenses, correction of any derogatory credit reporting, waiver and reversal of all disputed charges, actual damages, injunctive relief, restitution where available, and any additional remedies permitted by law. Nothing in this correspondence should be construed as consent to pay or capitalize any charge caused by Onitys errors, its counsels activity, or its defective records. Please treat this response as a formal request for continued review and a supplemental response supported by actual records rather than general assurances. Sincerely, XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation