Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CFPB, States Seek $2B in Homeowner Relief from Ocwen
WASHINGTON (12/20/13)--Ocwen Financial Corporation and subsidiary Ocwen Loan Servicing, the largest nonbank mortgage loan servicer in the nation, have been ordered to provide $2 billion in principal reductions to underwater borrowers and $125 million in refunds to homeowners that were allegedly wrongly foreclosed upon under a Consumer Financial Protection Bureau court order.

The consent order is cosigned by the CFPB and authorities in 49 states and the District of Columbia. In the order, the authorities allege Ocwen "engaged in significant and systemic misconduct that occurred at every stage of the mortgage servicing process" and violated consumer financial protections, putting thousands of homeowners in jeopardy of losing their homes.

"Deceptions and shortcuts in mortgage servicing will not be tolerated," CFPB Director Richard Cordray said.

Alleged instances of misconduct cited by a CFPB release include:
  • Failing to timely and accurately apply payments made by borrowers and failing to maintain accurate account statements;
  • Charging borrowers unauthorized fees for default-related services;
  • Imposing force-placed insurance on consumers when Ocwen knew or should have known that they already had adequate home-insurance coverage;
  • Providing false or misleading information in response to consumer complaints;
  • Deceiving consumers about foreclosure alternatives;
  • Improperly denying loan modifications;
  • Providing false or misleading information to consumers about the status of foreclosure proceedings; and
  • Robo-signing foreclosure documents.
To remedy these identified issues, the CFPB and other authorities have requested that Ocwen:
  • Stop robo-signing official documents;
  • Adhere to significant new homeowner protections;
  • Properly process pending requests;
  • Honor previous loan modification agreements;
  • Ensure continuity of contact for consumers;
  • Restrict servicing fees; and
  • Notify consumers of loss mitigation options and restrict dual tracking.
For more, use the resource link.
Other Resources

CFPB Release
RSS print
News Now LiveWire
Why is a #creditunion a good fit for you? http://t.co/i4pGT98mkT via @MONEY
30 minutes ago
The numbers are in: Home Depot data breach impact on #creditunions = $57.4 million, 7.2 million credit/debit cards http://t.co/jorYSOYuxj
1 hours ago
.@Nussle : We'll back off when retailers accept their breach responsibility #NewsNow http://t.co/7WxDXicb6j
3 hours ago
RT @asmarterchoice: RT @daily_finance: Top 5 money management tips for 30-somethings http://t.co/mWRfDRSTE7
3 hours ago
Operational efficiencies focus of new @CUNA program #NewsNow http://t.co/qBYHKVYeQN
4 hours ago