I am sure that we will hear a lot of Ocwen lawsuits and fraud, now that Ocwen, non-bank mortgage servicer and non-regulated bank, is being investigated by the New York regulator. 5 major banks own approximately 56% of the market in this country and now the non-bank like Ocwen, Nationstar and others are given more mortgage servicing rights sold by the 5 major banks. Now the non-banks’ power are now bigger than the government had never imagined. Check out this 2005 Ocwen lawsuit:
Read: The Ocwen Story: The $11.5 million dollar verdict on a $31,000 loan.
Case Style: Davis v. Ocwen Federal Bank, et al.
Case Number: Unknown
Judge: Susan Criss
Court: 212th District Court, Galveston County, Texas
Robert Hilliard of Hilliard & Munoz, L.L.P., Corpus Christi, Texas; William H. Oliver of Pipkin, Oliver & Bradley, L.L.P., San Antonio, Texas; and Edward M. Carstarphen of Ellis, Carstarphen, Dougherty & Goldenthal, P.C., Houston, Texas
Defendant’s Attorney: Unknown
In February 2002, Sealy Davis, 64, took out a $31,000 home equity loan on the Texas City residence where she had lived since 1942. Ocwen acted as the servicing agent on the loan.
In 2003, Ms. Davis became ill and spent four days in the hospital, which forced her to miss one loan payment. Ocwen told her it would put her on a payment plan, but never did. Ocwen also failed to credit Ms. Davis for the money she paid, and began to foreclose on her house while continuing to assure her she was on a payment plan.
Ocwen eventually foreclosed on Ms. Davis’ home, and she filed for Chapter 13 bankruptcy in the hopes of ending Ocwen’s harassment. During the bankruptcy, however, Ocwen requested an additional $390 to cover its costs and fees related to the default she already cured.
“We’re pleased the jury decided that Ocwen should be held liable for what it did to Ms. Davis,” said attorney Robert Hilliard, lead counsel for Ms. Davis and name partner in Corpus Christi’s Hilliard & Munoz, L.L.P. “Home loan companies should help people own a place to live, but Ocwen apparently is more interested in taking away the homes of its customers.”
At trial, a former Ocwen employee testified to the company’s unfair practices, including paying incentives to its loan collectors for moving properties with equity into foreclosure. Evidence also showed that the company engaged in predatory servicing by not informing borrowers of how to make their loans current and failing to give credit for payments when they were made.
Outcome: In a 10-2 vote, the jury found that Ocwen knowingly and intentionally deceived Ms. Davis, and awarded her $10 million in punitive damages and $1.15 million in attorneys fees.
Plaintiff’s Experts: Unknown
Defendant’s Experts: Unknown