Tag Archives: Ocwen

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.

North Carolina Slaps Ocwen with a Cease-and-Desist Letter

Here’s a detailed breakdown of Ocwen’s new restrictions by state

Massachusetts put Ocwen out of business. Here are the rest of the states..

Housingwire:

Below is a list of the remaining states with relevant passages about each state’s restrictions on Ocwen:

ArkansasArkansas Securities Commissioner, B. Edmond Waters, issued a press release in connection with a cease and desist order issued against Ocwen Loan Servicing, LLC and Ocwen Mortgage Servicing, Inc. Ocwen Loan Servicing, LLC and Ocwen Mortgage Servicing, Inc. are ordered to cease and desist from acquiring new mortgage servicing rights and originating new mortgage loans. The order prohibits the acquisition of mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its borrower mortgage escrow accounts.

ConnecticutThe Commissioner finds that the public welfare requires immediate action in order to prevent irreparable and immediate harm to Connecticut borrowers and the necessity of a temporary order requiring Ocwen to cease and desist from violating the laws cited herein, pursuant to Section 36a-52(b) of the Connecticut General Statutes in that, since December 2013, State Mortgage Regulators, including this Department, have been concerned about Ocwen’s mortgage servicing practices including, but not limited to, the misapplication of borrower payments and inaccurate escrow accounting and statements, and that the recent Multi-State Examination and CT Examination indicate that these issues have not been resolved, but rather may be exacerbated.  In addition, Connecticut borrowers have no ability to select a different mortgage servicer to remedy such persistent and pervasive errors by Ocwen.  Considering the potential harm to Connecticut borrowers and Ocwen’s inability to provide sufficient information concerning its existing borrower escrow accounts, the Commissioner finds it imperative that Ocwen cease from acquiring new mortgage servicing rights in connection with Connecticut residential mortgage loans for which it would have to maintain escrow accounts, and acquiring or originating new Connecticut residential mortgage loans serviced by Ocwen for which it would have to maintain escrow accounts, until it can ensure that the escrow accounts of its existing residential mortgage loan servicing portfolio in Connecticut are properly reconciled and that all Connecticut borrowers’ monies are maintained in segregated deposit or trust accounts for the benefit of such Connecticut borrowers.

District of ColumbiaThe majority of the orders prohibit the acquisition of new mortgage servicing rights and the origination of new mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts and not further harm consumers. Some orders also require Ocwen to cease any ongoing unlicensed activity.

FloridaFiled a separate lawsuit over Ocwen’s servicing practices.

HawaiiThe Notice of Charges and Proposed Order prohibits the acquisition of mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its consumer mortgage escrow accounts. The Notice of Charges and Proposed Order also demands Ocwen to cease illegal unlicensed activity that is believed to be occurring in Hawaii.

IdahoThe department’s order prohibits Ocwen from violating Idaho law in the handling of consumer escrow accounts. Managing the money that borrowers remit as part of their monthly mortgage payments is critical to the business of a mortgage servicer, and the department’s order requires Ocwen to accurately and lawfully fulfill that function when dealing with Idaho borrowers’ mortgage payments.

IllinoisA search of the Illinois Department of Financial and Professional Regulation did not show record of Illinois’ actions against Ocwen.

MaineOcwen shall immediately cease acquiring new mortgage servicing rights, and acquiring or originating new residential mortgages serviced by Ocwen, until Ocwen can show it is a going concern by providing a financial analysis that encompasses all of the liabilities Ocwen currently maintains, as well as liabilities it has knowledge it will incur in the course of its business; Ocwen shall immediately cease from acquiring new mortgage servicing rights, and acquiring or originating new residential mortgages serviced by Ocwen, until Ocwen can provide the state regulators with a reconcilement of its escrow accounts showing that consumer funds are appropriately collected, properly calculated, and disbursed accurately and timely.

MississippiOLS shall immediately cease acquiring new mortgage servicing rights, and acquiring or originating new residential mortgages serviced by OLS, until Ocwen can show it is a going concern by providing a financial analysis that encompasses all of the liabilities Ocwen currently maintains, as well as liabilities it has knowledge it will incur in the course of its business; OLS shall immediately cease from acquiring new mortgage servicing rights, and acquiring or originating new Mississippi residential mortgages serviced by OLS, until OLS can provide the DBCF with a third party audit of its escrow accounts associated with any Mississippi residential mortgage loans demonstrating that consumer escrow funds are appropriately collected, properly calculated, and disbursed accurately and timely; and make any and all corrections of whatever type necessary to remedy all mistakes, errors, and improprieties occurring in the past due to OLS’s Actions.

MontanaThe order prohibits Ocwen from acquiring new mortgage servicing rights until the company is able to establish that it can appropriately manage its Montana escrow accounts. Over the past three years, the Montana Division of Banking and Financial Institutions has handled 16 complaints against Ocwen and required Ocwen to credit $51,368.56 to Montana borrowers. Division officials will now focus on assisting borrowers who currently make mortgage payments to Ocwen.

NevadaThe majority of orders, including the order issued by the Nevada Division of Mortgage Lending, prohibit the acquisition of mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts and prevent harm to consumers.

North Carolina Lead state in announcing restrictions.

South CarolinaA search of the South Carolina State Board of Financial Institutions – Consumer Finance Division did not show record of South Carolina’s actions against Ocwen.

TennesseeThe Tennessee Department of Financial Institutions (“Department”) issued today an enforcement action against Ocwen Loan Servicing to prohibit the company from acquiring new mortgage servicing rights or originating mortgage loans in Tennessee until it provides the Department with a plan to demonstrate an ability to operate in a sound manner.

TexasA search of the Texas Department of Savings and Mortgage Lending did not show record of Texas’ actions against Ocwen.

West VirginiaA search of the West Virginia Division of Finance did not show record of West Virginia’s actions against Ocwen.

WisconsinThe majority of orders prohibit the acquisition of new mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts and not further harm consumers. Ocwen conducts mortgage loan servicing for approximately 1.5 million consumers nationwide, including about 13,500 in Wisconsin.

WyomingA search of the Wyoming Division of Banking did not show record of Wyoming’s actions against Ocwen.

Florida AG also alleges widespread servicing failures at Ocwen, sues the bank

The state of Florida also sued Ocwen, which is based in West Palm Beach, along with the company’s subsidiaries Ocwen Loan Servicing and Ocwen Mortgage Servicing, for “mortgage servicing misconduct.”

According to the complaint filed by Florida Attorney General Pam Bondi and Florida Office of Financial Regulation Commissioner Drew Breakspear, Ocwen “harmed Floridians by filing illegal foreclosures, mishandling loan modifications, misapplying mortgage payments, failing to pay insurance premiums from escrow and collecting excessive fees.”

Florida’s complaint, filed in federal court in West Palm Beach, alleges violations of the Real Estate Settlement Procedures Act, the Florida Deceptive and Unfair Trade Practices Act and Chapter 494, Florida Statutes.

The complaint claims that Ocwen “failed to adequately perform basic mortgage servicing functions that resulted in widespread errors and financial harm to borrowers.”

In a release, Bondi’s office claims that despite a 2014 settlement between Ocwen, the CFPB, and 49 states that involved Ocwen providing $2 billion in consumer relief and paying a fine of $127.3 million for many of the same issues, Ocwen continued to fail in its duties as a mortgage servicer.

Read on.

CFPB sues Ocwen, alleges total failure of mortgage servicing process

Ocwen is still repeated offenders. When are the execs and board members get charged???

April 20, 2017 is turning into D-Day for Ocwen Financial.

On Thursday, a group of state banking regulators issued a series of cease-and-desist orders to Ocwen that prohibit the acquisition of new mortgage servicing rights and the origination of mortgage loans by Ocwen Loan Servicing, a subsidiary of Ocwen, until the company is “able to prove it can appropriately manage its consumer mortgage escrow accounts.”

But that’s only one front. Ocwen now has a much bigger fight on its hands – with theConsumer Financial Protection Bureau.

The CFPB announced Thursday that it is suing Ocwen Financial for “failing borrowers at every stage of the mortgage servicing process.”

According to the CFPB, its lawsuit alleges that Ocwen cost borrowers money, and in some cases, their homes, with its years of “widespread errors, shortcuts, and runarounds.”

In its lawsuit, the CFPB says that Ocwen “botched basic functions like sending accurate monthly statements, properly crediting payments, and handling taxes and insurance.”

The lawsuit also claims that also “illegally foreclosed on struggling borrowers, ignored customer complaints, and sold off the servicing rights to loans without fully disclosing the mistakes it made in borrowers’ records.”

The CFPB claims that it uncovered “substantial evidence that Ocwen has engaged in significant and systemic misconduct at nearly every stage of the mortgage servicing process.”

Read on.

Ocwen now one giant step closer to acquiring MSRs again after new NYDFS agreement

For more than two years, Ocwen Financial has been prohibited from acquiring new mortgage servicing rights in bulk, thanks to the company’s $150 million settlementwith the New York Department of Financial Services.

The news got a little better earlier this year when the California Department of Business Oversight removed the state’s mortgage servicing restrictions on Ocwen, but the NYDFS settlement still precluded Ocwen from buying new MSRs.

Now, it appears that Ocwen could be on the brink of returning to the MSR market full force, after the nonbank announced Monday that it reached a new agreement with the NYDFS, which paves the way for the complete removal of the MSR restrictions.

According to an Ocwen filing with the Securities and Exchange Commission, the company agreed on Monday to a new consent order with the NYDFS, which removes the third-party monitor stationed inside of Ocwen’s operations which was part of the original settlement with the regulator.

Read on.

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.