Wednesday, October 22, 2014

Ocwen Mortgages May Get a Reprieve from Foreclosure

On October 21, 2014 the New York State Department of Financial Services sent correspondence to Ocwen's General Counsel raising issue "with Ocwen's systems and processes".

The issue presented by NYS DFS deals squarely with Ocwen engaging in bad faith negotiations to modify mortgages. 

Borrowers in New York should be arming their applications for violations of CPLR 3408's good faith negotiation requirement as they review this correspondence and asking the Courts to sanction Ocwen should they have experienced the issues highlighted in the correspondence.

Of note are the record keeping inaccuracies attributed to Ocwen by NYS DFS, which impact RPAPL 1303 and 1304 as well as issues with standing and, in particularly, the attorney verification requirements embodied CPLR 3012-b. How can a Court trust their applications to foreclose in light of this correspondence?

The correspondence claims that "these issues remain unresolved today". This is very concerning.