The Mortgage Servicers Homeowners Complain About Most
Every year, mortgage companies make thousands of mistakes that cause people serious problems. I read hundreds of public complaints that homeowners submitted to the government. Six companies stood out for all the wrong reasons.
In 2024 and 2025, homeowners filed alarming complaints against Mr. Cooper, Wells Fargo, Freedom Mortgage, Onity Group Inc., PennyMac Loan Services, and JPMorgan Chase. The homeowners’ stories reveal patterns of misconduct that costs people thousands of dollars. Sometimes, it also cost people their homes.
Mr. Cooper: Escrow Chaos and Vanishing Customer Service
Consumers describe Mr. Cooper (formerly Nationstar Mortgage) as chaotic and unresponsive when errors occur.
The Escrow Problem
One of the most common complaints involves escrow mismanagement. Homeowners report that Mr. Cooper fails to pay property taxes on time, leading to penalties or liens.
An Illinois homeowner nearly had a tax lien placed on his home. He called Mr. Cooper five times and received different explanations each time about why the company hadn’t paid his property taxes from escrow. To avoid the lien, he ended up paying the taxes a second time.
The Customer Service Black Hole
Homeowners frequently complain that they can’t reach a real person. One spent over four hours cycling through phone numbers, “trying to reach a live person and all [they] got was automated messages with no way to reach a human being and no real answers.”
This is a growing problem. Mortgage companies are experimenting with unproven AI and robots. Meanwhile, people’s homes are on the line and the new technology makes it even harder to fix the mistakes. We reported more on this trend in this post.
Wells Fargo: The Endless Paperwork Loop
Borrowers say Wells Fargo is trapping them in cycles of lost documents and broken promises.
Documents That Disappear
A Pennsylvania senior applied for a loan modification to keep her house. Every time she submitted the required documents, Wells Fargo claimed it hadn’t received them and asked her to resend them “over and over again.” Despite repeatedly sending income verification and supporting documents, she says Wells Fargo ignored them, denied her loans, and put her into foreclosure.
Denials Based on Lies
Other homeowners describe something even more troubling: being falsely accused of turning down help they desperately needed.
A Florida homeowner wrote that Wells Fargo claims he declined mortgage assistance, but “that is a lie.” He explained that he would never risk making his two young children homeless. Now, he says, Wells Fargo is giving him the runaround.
These complaints raise serious concerns about how Wells Fargo handles modification requests from families trying to avoid foreclosure. For many borrowers, the experience feels like being set up to fail.
JPMorgan Chase: Broken Promises and Unauthorized Charges
Homeowners with Chase mortgages report misleading information, unauthorized escrow charges, and constantly shifting terms.
Verbal Promises That Vanish
Chase’s representatives assured one borrower that her variable-rate mortgage included a rate cap. The representatives said this over the phone and claimed the rate cap was shown in her loan documents. Later, Chase sent a letter saying the cap wouldn’t apply after all.
When the borrower asked for call recordings, Chase said, “You would need to file a lawsuit and subpoena” to get them. Chase told the borrower they shouldn’t have relied on “information from their representatives.” It didn’t matter that the representatives were supposedly “mortgage specialists.”
Escrow Errors on Repeat
Another homeowner filed a complaint after Chase mistakenly disbursed a homeowner’s insurance payment from escrow despite repeated assurances that it wouldn’t happen. The result: a double payment and an escrow shortage that increased their monthly mortgage payment. Even after the borrower submitted proof that the policy had already been paid, Chase sent the funds anyway.
Adding Escrow Without Permission
One homeowner who had always paid taxes and insurance directly suddenly found an escrow account added “without permission or cause” after Chase took over servicing. Money began being withdrawn automatically from their checking account. Chase admitted the error and issued a refund. Then, a few weeks later, Chase sent a letter saying they were restarting the escrow deductions all over again. The borrower called it “a total waste of everyone’s time.”
PennyMac: Quick to Offer, Slow to Explain
Borrowers report poor communication, unreliable servicing, and costly errors, especially around loan modifications and insurance payments.
Modifications With No Answers
After losing his job, one homeowner contacted PennyMac for help. PennyMac quickly offered a modification, but no one could answer basic questions about how it worked. Later, he learned he had “missed a payment” and been reported as delinquent, despite PennyMac telling him that those payments would be overlooked. The company, he said, “was quick to offer something they could not explain” and “make assurances that turned out to be false.” When he tried to access documents online, he only got error messages.
Insurance Payments Are Always Late
A Maryland borrower experienced repeated lapses in homeowners insurance because PennyMac “missed [her] renewal premium 2 out of the last 4 years.” Every year, she had to follow up to ensure payments were sent. The payments were “always late,” sometimes processed just “48 hours before they are due,” causing delays and lapses in coverage.
Borrowers describe PennyMac’s tone as “indifferent” and say the company “always blame[s] the other party” when something goes wrong.
PHH Mortgage (Onity Group): Forced Insurance and Endless Delays
While less well-known than larger mortgage companies, Onity Group—operating as PHH Mortgage—is generating serious complaints about loan servicing and borrower communication.
Forced Insurance Despite Valid Coverage
One of the most common concerns involves forced insurance, even when the homeowner already has coverage.
One homeowner reported that PHH purchased flood insurance for her property despite her already having a policy. After she sent proof, the company “acknowledged their mistake (in writing)… but now are refusing to correct the error in escrow calculations.”
This type of error can significantly raise monthly payments and cause confusion for homeowners who’ve done everything right.
Eight-Month Modification Delays
Consumers also report long delays when seeking loan modifications. One homeowner waited eight months for PHH to review their application. During that time, their credit score dropped, affecting their ability to qualify for other relief programs, including homeowner assistance funds.
Freedom Mortgage: Tax Errors and the Suspense Account
Homeowners report frequent escrow mismanagement and failures to apply payments accurately.
Paying Taxes That Don’t Exist
A Texas veteran described how Freedom Mortgage paid $5,000 in county taxes he didn’t owe, creating an escrow shortage. Freedom then increased his mortgage payment to cover the shortage.
The Suspense Account Trap
A Washington, D.C. homeowner explained how Freedom Mortgage failed to apply her bi-weekly autopayments to her mortgage principal. Instead, Freedom was placing her payments into a “suspense account.” Each time she contacted the company, they told her the issue was fixed. When it wasn’t, they’d say they’d “research the issue.”
What You Can Do If Your Mortgage Servicer Is Mistreating You
If you’re dealing with any of the following:
- Misapplied or missing payments
- Escrow mismanagement
- Denied forbearance or modification
- Unexpected fees or foreclosure threats
- Lack of response from your servicer
…you are not alone. And you do have rights under federal and state consumer protection laws.
At Power to the People Law, we help homeowners fight back. We hold mortgage servicers accountable for unfair and deceptive practices. And we’re not afraid to name names.
Ready to Take Action? Contact us today to schedule a free consultation. Whether it’s Freedom, Wells Fargo, PennyMac, or another mortgage company, we’ll help you understand your rights and fight for the relief you deserve
About the Author
Angel E. Reyes is a former federal enforcement attorney at the Consumer Financial Protection Bureau and the Federal Trade Commission. After bringing enforcement actions against the largest U.S. companies, which resulted in over $100 million returned to consumers, he left the government to open Power to the People Law PLLC. This law firm focuses on protecting people’s homes and bank accounts.
Disclaimer
Informational only. Attorney advertising. Not legal advice.