Regulators list many mortgage errors at Ocwen Financial

Regulators list many mortgage errors at Ocwen Financial

The Michigan Department of Insurance and Financial Services issued a cease and desist order to Ocwen on Thursday and said that Ocwen has had difficulty keeping accurate records and with properly crediting borrowers' payments.

News of the complaints sent Ocwen's shares plummeting Thursday by almost 54 percent on the Nasdaq. Instead, the Tar Heel State claims, Ocwen submitted a plan that didn't include any of its liabilities, such as "known and anticipated" regulatory penalties and the implementation of a new servicing platform.

Florida Attorney General Pam Bondi on Thursday filed a parallel lawsuit against Ocwen, and at least 20 other state regulators, including North Carolina, issued regulatory orders or charges against Ocwen subsidiaries to address violations of state and federal laws.

The Consumer Financial Protection Bureau and 20 state regulators on Thursday took legal action against mortgage servicing giant Ocwen over allegations that the company dropped the ball on normally simple practices, which allegedly cost up to 1,000 customers their homes because of unwarranted foreclosures.

A spokesman for Ocwen said a statement was forthcoming.

In response to these filings, an Ocwen spokesperson said "We have just received various orders from state mortgage regulators, and are in the process of reviewing them in detail".

In perhaps the most damning passage, the Commissioner of Banks claims that if the servicer were to include these liabilities, "it would indicate that Ocwen continuing as a going concern would be in doubt".

The Florida-based Ocwen, which has serviced almost 1.4 million mortgages on behalf of banks, has not been convicted of any of these alleged violations.

"Borrowers have no say over who services their mortgage, so the Bureau will remain vigilant to ensure they get fair treatment", the statement continued. Ocwen also agreed to provide $150 million in relief for borrowers.

The home borrower said she sent the company two checks, one for principal and interest, the other for her escrow payment, around April 2, 2016, to prepay her May 2016 mortgage costs.

In one case, a borrower with a mortgage modification started having her payments rejected.

The company said the accusations by the federal agency are "inaccurate", "unfounded" and the result of a "self-serving conclusion".

Goldberg Law PC announces that it is investigating Ocwen Financial Corporation ("Ocwen" or the "Company") (NYSE: OCN) concerning possible violations of federal securities laws. The CFPB went after Ocwen in 2013, again alleging that the company had failed to services its loans improperly. In a 2014 internal communication, The company's head of servicing characterized the system as "an absolute train wreck". If you email, please include your phone number. I'm not talking about differentiators here.