“They failed to comply with a subpoena for information. They violated a lawful order from the commissioner. And they failed to comply with an order from an administrative law judge.”– Tom Dresslar, spokesman, California Department of Business Oversight
From The Los Angeles Times:
California officials said the state is looking into potential violations of the California Homeowners Bill of Rights, a package of laws passed in reaction to foreclosure abuses, and the California Residential Mortgage Lending Act, under which Ocwen is licensed.
An accusation detailing the state’s complaints was issued in October by Commissioner of Business Oversight Jan Lynn Owen. The dispute stems from a routine examination of Ocwen that began in January 2013, Owen said in the accusation.
By October 2013, according to the accusation, examiners were telling Ocwen that it had supplied too little information for them to determine its compliance with the Homeowners Bill of Rights. The law’s provisions include a requirement that servicers provide a single point of contact for troubled borrowers and a ban on dual tracking, the practice of negotiating over a loan modification while at the same time pursuing a foreclosure.
Despite an escalating series of demands and finally a judicial order, the agency contends that Ocwen has never provided all the information the department was seeking, including reports on a sample of 1,320 loans the company services.