From The Plain Dealer:
CLEVELAND, Ohio — A national mortgage servicing firm accused of abusing homeowners who are behind on their mortgages by swearing at them, calling them names, mocking their illnesses and threatening them with prison will pay out more than $60 million.
Green Tree Servicing of Minnesota will pay $48 million in restitution and $15 million in civil penalties to settle the charges of illegal loan servicing and debt collection practices. The Federal Trade Commission and Consumer Financial Protection Bureau allege the company has spent the years since the financial crisis terrorizing homeowners who were in trouble financially.
On a side note: Green Tree is part of the Walter Investment Management group. Green Tree’s sister companies are ditech, Security 1 Lending, and Reverse Mortgage Solutions.
Ocwen Loan Servicing, a subsidiary of Ocwen Financial Corporation, and Green Tree Loan Servicing, for the sale by Ocwen of an Agency mortgage servicing rights portfolio with a total principal balance of $9.6 billion, according to an announcement from Ocwen on Wednesdaymorning.
According to Ocwen, the portfolio consists of approximately 55,000 performing loans owned by Freddie Mac. The transaction is subject to approval by Freddie Mac and its conservator, the Federal Housing Finance Agency (FHFA), as well as other customary conditions. Ocwen reported that it expects the transaction to close by April 30, 2015, and expects the loan servicing to transfer in May 2015.
“We are pleased with the progress we are making on executing our plan,” Ocwen CEO Ron Faris said. “Over the next several months, we expect to generate proceeds of at least $650 million from sales and transfers of mortgage servicing rights. We are also committed to ensuring a smooth and accurate transfer of information to the buyers of these mortgage servicing rights.”
A Hammond couple claim in a federal lawsuit that they were victims of “robosigning” and other predatory mortgage practices that left them facing foreclosure.
According to the lawsuit, which was filed in Lake County Superior Court a month ago and was moved to U.S. District Court in Hammond on Tuesday, Pedro and Elisa Rico bought their Hammond house in 1996.
The couple were up to date on their payments, but their lender, Green Tree Servicing, LLC, approached them about refinancing in 1999.
The lawsuit says Green Tree used their son, who was a minor at the time, to translate the terms of the new loan for them, which they thought included a fixed rate over 15 years.
The Ricos say they didn’t learn until a year ago when they received a notice that it actually included a balloon payment of $40,000 due in August 2014.
The Ricos are claiming Green Tree and Bank One used other deceptive practices, such as having documents signed by a notary when they weren’t there and providing false information for Elisa Rico to join the deed on the house so the couple would qualify.
And here is information on the Rico’s lawsuit. Case number 2:2015cv00089:
Rico et al v. Green Tree Servicing, LLC et al
||Pedro F. Rico and Elisa F. Rico
||Green Tree Servicing, LLC, J.P. Morgan Chase Bank, N.A., Bank of New York Mellon and OCWEN Loan Servicing, LLC
||March 10, 2015
||Indiana Northern District Court
||John E Martin
||Joseph S Van Bokkelen
|Nature of Suit:
||Truth in Lending
|Cause of Action:
||28:1441 Petition for Removal
|Jury Demanded By: