Court Monitor, State AGs Probing Flawed Ocwen Loan Reviews

A federal monitor is investigating whether Ocwen Financial Corp. (OCN) is treating borrowers fairly after a whistleblower said the company may have improperly influenced which mortgages were picked for a compliance review.

Joseph Smith, who is overseeing a 2012 settlement with five lenders over flawed foreclosures, said in a report today that he hired an outside accountant to review Ocwen’s loan servicing after becoming convinced the company’s self-reporting was unreliable. State attorneys general monitoring the accord also said they are investigating whether Ocwen provided false or misleading information in its compliance reporting.

“I’m not saying everybody there did wrong,” Smith said in a telephone interview yesterday. “The best you could say about it was it was sloppy. It could be more.”

Read on.

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