Tag Archives: Ocwen

Ocwen SEC filing reveals details of CFPB mortgage servicing investigation

During a call with investors to discuss the company’s fourth-quarter earnings, Ocwen Financial CEO Ron Faris said resolving the Consumer Financial Protection Bureau’s investigation into the company’s mortgage servicing practices is a top priority in 2017.

In Ocwen’s third-quarter 10-Q filing with the Securities and Exchange Commission, the company revealed that it could be facing a fine and/or other disciplinary action from the CFPB.

Read on.

Altisource Portfolio Solutions to pay $32 million to settle class action suit over Ocwen relationship

When Altisource Portfolio Solutions filed its 10-K yearly filing with the Securities and Exchange Commission earlier this week, the company revealed that theConsumer Financial Protection Bureau is looking into the company’s relationship with Ocwen Financial.

But that wasn’t the only Ocwen-related revelation in Altisource’s SEC filing.

The company also disclosed that it recently reached a $32 million settlement in a class action lawsuit brought by Altisource investors who claimed financial harm after Altisource’s stock plummeted after the New York Department of Financial Services began investigating the company’s relationship with Ocwen in early 2014.

Read on.

Ocwen reaches $223 million settlement with California over servicing violations

Ocwen Financial announced late Friday that it reached a $223 million settlement with the California Department of Business Oversight, ridding itself of the restrictions that hampered its mortgage business in California for more than two years.

The settlement includes a cash payment of $25 million. As part of the settlement, Ocwen is also required to provide an additional $198 million in debt forgiveness through loan modifications to existing California borrowers over a three-year period.

The terms of the new settlement are a far cry from Ocwen’s original California settlement.

Read on.

Ocwen facing CFPB investigation, potential fine for servicing practices

It’s been nearly three years since Ocwen Financial agreed to offer $2 billion in consumer relief and pay up to $127.3 million to settle a Consumer Financial Protection Bureau investigation into its servicing practices.

That settlement, and others with the New York Department of Financial Servicesand the California Department of Business Oversight, are among the items that Ocwen’s executives call the “legacy issues” that Ocwen is working to move past as the nonbank charts a course forward.

But it looks like Ocwen may not be done with the CFPB yet.

Ocwen said Thursday that it is currently under investigation by the CFPB over the company’s mortgage servicing practices, and could be facing a fine and/or other disciplinary action.

Ocwen disclosed the nature and status of the CFPB investigation in its 10-Q filing with the Securities and Exchange Commission, filed as part of the company’s third-quarter earnings release.

Ocwen disclosed the fact that it was facing a CFPB investigation in earlier filings with the SEC, but this latest filing states that the CFPB’s enforcement staff “has been authorized to engage with us regarding the resolution of their concerns” about Ocwen’s compliance with federal servicing laws.

Read on.

ICYMI: Ocwen given OK to move forward on 17,000 foreclosures

Ocwen Financial got the official go-ahead from the Office of Mortgage Settlement Oversight to lift the foreclosure sale hold placed on more than 17,000 loans earlier this year after it mailed corrected loan modification denial notices to affected borrowers and provided a sufficient timeframe for the borrower to appeal the denial.

According to the most recent third and fourth quarter 2015 oversight report from Joseph Smith, monitor of the National Mortgage Settlement, “After Ocwen mailed corrected loan modification denial notices to affected borrowers in May 2016 and provided a sufficient timeframe for borrowers to appeal their denials, I permitted Ocwen to lift the foreclosure hold in July 2016.”

Read on.

Ocwen fixes previous settlement failures, faces two new failed tests

Right as Ocwen Financial fixed previous compliance failures, the servicer is hit with two new compliance failures, according to the latest oversight report on Ocwen from the office of Joseph Smith, who is the monitor of the National Mortgage Settlement.

In the last report from the NMS, Ocwen failed to be back in compliance with one of the performance metrics of the National Mortgage Settlement that it failed in the second half of 2014. And because of those issues, Ocwen had to place 17,300 loans that “could have been affected” by this issue on foreclosure hold.

These issues are now resolved, according to the latest report.

Smith’s office permitted Ocwen to lift the foreclosure sale hold in July 2016 after it mailed corrected loan modification denial notices to affected borrowers and provided a sufficient timeframe for the borrower to appeal the denial.

Read on.

Judge tosses Ocwen, Altisource kickback lawsuit

Housingwire:

Just this past week, Ocwen agreed to pay $900,000 to the state of Washington after an investigation conducted by the state found that Ocwen used unlicensed companies in India and the Philippines to service mortgage loans.

And more good/bad news came out for Ocwen last week, when a federal judge dismissed a racketeering lawsuit against the nonbank.

According to Reuters and Westlaw News, Ocwen stood accused of “overcharging thousands of homeowners for property inspections as well as taking kickbacks” from a scheme that allegedly involved Ocwen and Altisource Portfolio Solutions, a company that is closely affiliated with Ocwen.

The Reuters report provides scant details, but a review of the court filing shows that a pair of homeowners sought class action status and sued Ocwen and Altisource for allegedly overcharging for property inspection and broker price opinions, with Altisource allegedly providing “kickbacks” to Ocwen in exchange for using its services and passing those increased costs onto the borrowers.

The plaintiffs in the case claimed that Ocwen, Erbey and Altisource engaged in an “abusive, predatory and illegal home mortgage loan servicing business,” and in some cases, performed multiple property inspections and BPOs to “run up unnecessary fees.”

The good news for Ocwen is that the lawsuit was dismissed, as in the eyes of the judge, the plaintiffs’ claims didn’t hold water. Specifically, the judge said the plaintiffs’ case “failed to allege facts that are sufficient to make out a viable claim for relief.”

But Ocwen didn’t get off scot-free. In fact, the judge called the charges levied against Ocwen and Altisource “extremely troubling,” as the plaintiffs allegations are “bolstered” by other consent orders and settlements Ocwen has previously entered into, like in New York, for example.