State of New York Hammers Ocwen

The New York Department of Financial Institutions has settled a range of issues with the leading problem loan mortgage servicer, Ocwen Financial Corp.  The feds and other states would be well advised to look at this settlement as an example of what can be done through civil enforcement. The Ocwen Executive Chairman agreed to resign, Ocwen agreed to pay $150 million in fines and restitution (This is just for New York residents, mind you.), and Ocwen agreed to state supervision over its entire operation.  

At one time, when I worked at UAW Legal Services Plan, all of my mortgage servicing cases involved disputes with Ocwen.  Among the complaints were improper add-on charges including insurance and improper handling of  foreclosure loans, both loans where foreclosure was filed and shouldn't have been and improper conduct during the foreclosure process.  

I had a case that went on for a year before we figured out the problem was a mortgage payment that was paid to a previous servicer in the gap period between the time Ocwen bought the loan and the time Ocwen communicated the purchase to the home owner.  

If you look at your mortgage statement and see charges that you don't understand, you have the right to contact your servicer and request an explanation.  All too often the charges don't belong.  If you can't resolve the problem through contacting your serv'icer, contact a NACA consumer attorney at www.consumeradvocates.org.  

http://www.wsj.com/articles/new-york-financial-regulator-announces-settlement-with-ocwen-1419257065