PHH Mortgage Corporationcredit reporting/billing error/mortgage assistance

L Oct 09, 2019

Subject: Complaint Letter on Account # [protected]

Dear Sir:

My mortgage company, Ocwen Financial Corporation, purchased PHH MORTGAGE. Ocwen Loan Servicing transferred my mortgage to PHH MORTGAGE. PHH MORTGAGE is reporting erroneous information to the 3 credit reporting bureaus, reflecting that my mortgage as "loan modified non government". In addition, below you will find the changes to my monthly statements, and the amount reported on my credit reports as the outstanding principal balance due as of September, 2019 billing.

Outstanding Principal Balance (not payoff amount) $333, 944.92
Regular Principal Balance $115, 431.81
SAM Waived Balance $218, 513.11
(The SAM will lower the principle balance on your home to 95% of the current fair market value, for this the lender has the right to share precisely 25% of the equity you build over the life of the loan, of course never the exceed the amount they forebear These waivers are contingent on the fact that the homeowner must not fall behind more than 90 days during the first three years, if the homeowner does fall more than ninety days delinquent the forbearance stops and the amount that was forgiven becomes a balloon loan that would be due at the maturity of their loan or in the event of a sale regardless of the amount of equity built up in the home.)

My online billing statement reflects the following:

Loan Type Conventional without PMI
Original Loan Amount $293, 000.00
Principal Balance $115, 431.81

When they took over Ocwens mortgages, my billing should have only changed as I made payments. They made my report change due to these new calculations lowered my payment percentage to 11%. My credit score dropped significantly as a result. I am furious that they reported incorrect information AND no previous payment history from Ocwen. My mortgage was NOT modified with PHH nor did I receive any notification of any changes to my mortgage loan with PHH. It was transferred from Ocwen which I did receive written communication, and I had zero control of that decision. I want PHH MORTGAGE to do the following:

1. Remove the false report stating my loan was modified.
2. Correct the original loan amount and principal balance due on my credit reports.
3. Update my loan history from the Ocwen mortgage transfer.

The second issue regarding this complaint letter is the level of service I received on my denied loan modification request. I submitted a significant hardship letter and application, requesting a cash out refinance. I provided substantial documentation to support my hardship, which included a chronic illness, costly medical treatment, financially assisting my ill mother in emergency situations which eventually lead to her death (provided copy of death certificate), 2 month mortgage delinquency, outstanding debts that would be paid with the proposed cash out, and commitment to sign up for automatic payment to rebuild my credit standing moving forward. The appraisal amount was $338, 000, and I was requesting $80, 000 cash out before debts were paid. The reason for the denial was the following:

1. Time since delinquency is too recent or unknown. How can that be when the Ocwen account was transferred, and my medical treatment report, mother's illness and death certificate, and other documents was enclosed.
2. Lack of recent revolving account information. I only have two accounts, my mortgage with Ocwen since 2006, and my car loan with Westlake and paid off car loans with Honor Finance.
4. Serious delinquency and public record or collection filed. Public record was dismissed and the medical collections accounts were to be paid with the cash out request if approved. I submitted all the accounts and debts in my modification request package.

PHH only recommendation was Short Sale or Deed in Lieu. I don't know what Settlements mean as an available option. After receiving the denial letter, I submitted an appeal requesting forbearance, and received an acknowledgment letter in August, 2019. I have not received a response since then. I am continuing to look for ways to resolve my financial hardship, and contacted PHH again. The agent explained to me that when I make my payment on the 4th Wednesday of the month, I can call in to discuss establishing a repayment plan over the phone. Why wasn't this offered to me before as a viable solution option.

It was so much easier to work with Ocwen, who really seemed to want to help homeowners who are having trouble making their payments. In my case getting current again. Please let me know how PHH Mortgage can correct these errors, and make servicing my loan mutually agreeable in their assistance to help a homeowner dealing with a hardship and major chronic illness that is now stable.

I look forward to your response and timely resolution to this matter.

Thank you,
Mindy M. Spears

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