Tag Archives: 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.

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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.”

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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.

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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.

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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.

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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.

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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.

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