Daily Archives: April 25, 2017

Maryland also banned Ocwen from operating in the state.

Housingwire:

Maryland’s action, taken by the state’s Commissioner of Financial Regulation, is, in the words of a HousingWire tipster, a “doozy.”

Maryland’s cease-and-desist order, which can be read in full here, presents a laundry list of Ocwen’s supposed failings, including the company’s “failure to cooperate” with examiners from the Multi-State Mortgage Committee, Ocwen’s alleged unlicensed servicing activity in Maryland, issues with the REALServicing platform that Ocwen uses (issues with REALServicing were also cited by the Consumer Financial Protection Bureau, which took its own action against Ocwen last week), various states’ enforcement actions against Ocwen, and a cavalcade of other issues.

Because of these issues, Maryland partially “summarily suspended” the mortgage lender licenses of Ocwen Mortgage Servicing, Ocwen Loan Servicing, Ocwen Financial Solutions Private Limited, Ocwen Business Solutions, Homeward Residential, Liberty Home Equity Solutions.

Under those suspensions, Ocwen and its related companies are prohibited from acquiring new mortgage servicing rights for Maryland mortgages. The companies must also suspend “any and all” new agreements to subservice Maryland mortgages and is also ordered to not retain the servicing for any newly originated Maryland mortgages.

One of the most significant stipulations of the Maryland action is that Ocwen is ordered to “immediately begin the process of migrating loans off the REALServicing platform,” and is required to provide a report to the Maryland Commissioner of Financial Regulation on its progress on a monthly basis.

Ocwen and the related companies are also ordered to suspend “any and all” stock repurchases “during the course of this administrative action.”

Ocwen is also required to provide a written plan to the Maryland Commissioner of Financial Regulation that demonstrates how the company will remain a “going concern” for one year.

Ocwen is also orders to develop new payment plans for its executives that “better align with performance.”

Ocwen is also ordered to prepare a wind-down plan that illustrates what will happen if the company is no longer able to operate moving forward. According to Maryland’s order, that plan is required to provide details on the “orderly transfer” of all Maryland servicing rights should Ocwen fail.

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N.J. Town Pulls Public Funds From Wells Fargo

The city of East Orange in northern New Jersey has pulled public funds from Wells Fargo & Co. after lawmakers accused the bank of engaging in predatory-lending practices and exacerbating the city’s foreclosure crisis.

City officials said Wells Fargo holds 13% of the 439 mortgages currently in foreclosure in East Orange. City councilman Chris James said the bank forced people from their homes and then let the vacant properties fall into disrepair.

“We can’t have the city’s money, that’s from hard working people’s taxes, in this system,” said Mr. James, a Democrat who led the divestment push. Mr. James also pointed to Wells Fargo’s investment in the controversial Dakota Access Pipeline and last year’s revelation that bank employees had opened more than 2 million unauthorized deposit and credit card accounts to meet ambitious sales goals as additional reasons for cutting ties with the company.

Read on.