The Consumer
Financial Protection Bureau (CFPB) and 49 states have signed a proposed court
order requiring Ocwen to spend $2.1
billion on loan modification programs and relief to victims of foreclosure.
Ocwen is the largest non-bank mortgage
servicer in the United States. It was alleged by CFPB that for years, Ocwen has illegally delayed loan modifications, charged improper fees, provided
incorrect updates to consumers who were applying for loan modifications, erroneously
reviewed foreclosure documents, and inaccurately applied and tracked monthly
mortgage payments.
Like GMAC, Bank of America, Citi, JPMorgan Chase,
and Wells Fargo, Ocwen is alleged to have deceived and abused the system for
too long and must be punished for its illegal practices.
Under the Order, Ocwen
is required to comply with the provisions of the 2012 National Mortgage
Settlement and must comply with the new
mortgage servicing rules that are taking effect January 2014. A
knowledgeable, responsive single point of contact must be established for
borrowers applying for relief, so that the loan modification process will be
clearer and quicker than ever before. Instead of being sacrificed, borrowers
will now be protected and given a fair shot at saving their homes.
Borrowers should be overjoyed that there will be more communication between
servicer and borrower, and that borrowers who were improperly foreclosed on
between 2009 and 2012 may receive compensation. It is a great step forward in the
mortgage servicing world.
Thank you to Lieb at Law's Assistant Case Manager, Jessica Vogele, for sharing this valuable information.
