1-14-2015: The Consumer Financial Protection Bureau (CFPB), authorities in 49 states, and the District of Columbia filed a proposed court order requiring the country’s largest nonbank mortgage loan servicer, Ocwen Financial Corporation, and its subsidiary, Ocwen Loan Servicing, to provide $2 billion in principal reduction to underwater borrowers.
1-14-2015: Ocwen Financial Corporation is a financial services holding company which, through its subsidiaries, is engaged in the servicing and origination of mortgage loans. Ocwen has settled one lawsuit for certain questionable practices and will pay a civil monetary penalty of $100 million to the New York Department of Financial Services (“DFS”) by December 31, 2014, which will be used by the State of New York for housing, foreclosure relief and community redevelopment programs. Ocwen will also pay $50 million as restitution to current and former New York borrowers in the form of $10,000 to each borrower whose home was foreclosed upon by Ocwen between January 2009 and December 19, 2014 They are being investigated in California and other states as well.
The Securities and Exchange Commission (SEC) is investigating disclosure, misrepresentation, and omission issues.
Both the Federal Housing Finance Agency (FHFA) who regulates Fannie Mae and Freddie Mac and the Office of the US Controller of Currency have requested reviews of major banks.
HUD is also on the warpath and has the authority to fine or sanction banks.
Please go to this link to Cspan’s excellent coverage of the Congressional investigations of the subject: http://www.c-spanvideo.org/videoLibrary/search-results.php?keywords=mortgage+servicer+foreclosure+practices
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