Ocwen Stopped Reporting Payments To Agencies, Scored Dropped 40 Points

Flyfisher

LoanSafe Member
#1
I did a refi about 2 years ago which is being handled by Ocwen. Last May, I got notification from TransUnion that my score dropped 40 points overnight. When I looked at my report, I saw that my mortgage was shown as closed with a zero balance and was transferred to another mortgage company.

I called Ocwen, and the rep told me that they are now using a new internal system, which is why is was showing as a transferred account and that it would be corrected within the month. Obviously it wasn't corrected. So I wrote Ocwen a detailed letter. They wrote back that they are now properly reporting.

I then went in the other direction and did a dispute through TransUnion. I sent them detailed print outs from my credit report showing how my mortgage account is now closed with a zero balance because it was transferred. They wrote back that this is all accurate.

As happy as I would be that my house is paid off, the reality is that it is not. In the meantime, my credit score still has the 40 point ding. Has anybody else ever dealt with this? My understanding is that mortgage companies are not required by law to report to the agencies. It is frustrating if this is the case. They can use your score to determine your interest rate and yet have the ability to artificially raise your score via non-reporting. Thanks.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#2
Hello,

Yes, this has happened quite a few time here on LoanSafe with members who had similar issues. This would fall under the federal Fair Credit Reporting Act (FCRA) which promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies.

This from the FTC:

You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.ftc.gov/credit for an explanation of dispute procedures.

https://www.consumer.ftc.gov/articles/pdf-0096-fair-credit-reporting-act.pdf

I would then make a complaint to the FTC if they do not fix it.