Daily Archives: April 14, 2015

Lawsuit: Ocwen sent false reports to consumer credit agencies

A homeowner in California is asking the Ninth Circuit to revive his putative class action lawsuit against Ocwen Loan Servicing for submitting false information to credit agencies.

The owner alleges that Ocwen Loan Servicing, part ofOcwen Financial (OCN), told credit agencies that foreclosed-on homeowners were still liable for the unpaid balance of their mortgage loans after the homes were sold.

Jeffrey Kuns in his suit argues that the California Consumer Credit Reporting Agencies Act prohibits “deficiency liability” in these circumstances.

Kuns’ initial suit in California court, filed in July 2012, says he bought a home in Nevada City, California, in June 2005 with a mortgage serviced by Ocwen.

Read on.

What happened to 84-year-old’s Wells Fargo IRA CD?

Time was important.

Lacey resident Diane Dangler wanted Wells Fargo to rollover her father’s IRA CD to Valley National Bank, to take advantage of a 2.25 percent interest rate. But, six weeks later, the money had not budged.

In fact, Dangler said the bank put the funds in a Wells Fargo account with a lower interest rate. “The rate (at Valley National) is still available but can disappear at any moment,” said Dangler, who has power of attorney for her 84-year-old father, who suffers from Parkinson’s disease.

Press on Your Side was able to help.

Certificates of deposit, which limit access to the investment for a period of three months to five years, allow consumers to obtain a better interest rate than they would if the money were in a savings account. An IRA CD offers tax benefits as well, said Greg McBride, chief financial analyst at Bankrate.com.

After they mature, and no longer accrue interest, the consumer can cash out a CD with a check or roll it over into an another account, McBride said.

But an IRA CD, like the one Dangler was dealing with, is different. Cashing it out would mean that her father would be taxed on the entire value. “You have to do it from institution to institution so you don’t burst the tax-protection bubble,” McBride said.

According to Dangler, her father’s IRA CD amounted to more than $162,000 when it matured on Feb. 16.

Read on.

HSBC, Assurant offer $1.8M to end force placed kickback lawsuit

HSBC (HSBC) and Assurant Inc. (AIZ) agreed on Friday to pay $1.8 million to put an end to a class action lawsuit that alleged the bank took kickbacks for steering some 11,000 consumers into inflated flood insurance contracts.

The arrangement, which needs a Colorado federal court’s approval, would put an end to a lawsuit that alleges that HSBC intentionally herded consumers to unnecessary and onerous coverage levels when force placing homeowners whose coverage had lapsed into flood-insurance policies.

In turn, the lawsuit alleges, HSBC would receive from Assurant’s American Security Insurance a substantial kickback.

The deal, if approved, would bar HSBC from ordering insurance for customers at a higher level than necessary when their policy lapsed. It would return about 90% of HSBC’s commissions to the customers.

Read on.

Ocwen is no longer the nation’s largest mortgage servicer

The impact of Ocwen Financial’s (OCN) exit from agency mortgage servicing is beginning to materialize.

According to a recent report from Fitch Ratings, Ocwen is no longer the country’s largest prime mortgage servicer. In fact, Ocwen is now the third-largest prime mortgage servicer, falling behind Bank of America (BAC) andNationstar Mortgage (NSM), in 1st and 2nd respectvely.

Fitch’s report is based on data from 2014’s fourth quarter, but Ocwen recently announced several massive agency mortgage servicing rights sales that will drop its share of agency servicing even more.

Read on.