GSE Bill would allow Homeowners to submit FOIAs to Fannie and Freddie while under Federal Conservatorship

By K.K. MacKinstry/LendingLies

Anyone who is trying to find out information about the trust ownership of their loan, knows that if Fannie Mae or Freddie Mac are involved- your research hits a stone wall.  Homeowners who have a mortgage not secured by the GSEs are better able to determine what trust their loan was allegedly assigned to.  The GSEs who operate as quasi-governmental agencies are still private companies but have been able to evade public disclosures by claiming to not be federal entities.

Under current law, the Freedom of Information Act does not apply to Fannie Mae and Freddie Mac because, while they are under federal conservatorship, they are not federal agencies.

The days of the GSEs hiding behind an ambiguous status may come to an end.   H.R. 1694 was introduced by Rep. Jason Chaffetz R-UT last week.     Under the proposed  bill, the GSEs would be required to accept and process FOIA requests from the public and release information to satisfy those request for as long as they remain under federal conservatorship.  This would allow homeowners in litigation and foreclosure to have access to trust information and other loan information.  You can be assured that the GSEs and private investors will fight all attempts to bring transparency to these opaque entities.

On March 28, 2017, the House Committee on Oversight and Government Reform requested a cost estimate from the Congressional Budget Office. The CBO estimated the bill would increase spending for Fannie, Freddie and the Federal Housing Finance Agency by $10 million over the 2018 to 2027 period. Revenues, however, would not be affected.

All the net costs would be covered by Fannie and Freddie because FHFA would assess the fees on the two entities to cover its costs.  Both Fannie and Freddie are profitable operations and the government has fought to relinquish federal conservatorship.  However, it can be predicted that Fannie and Freddie will attempt to revert back to publicly held companies rather than hide the fact that a majority of the loans it guarantees were never properly delivered to the trusts.

The increase in administrative costs wasn’t the only increase the Congressional Budget Office discovered. The office estimates that administrative costs would increase by $40 million in 2018 in order to research and administer FOIA requests.

This bill would only apply to the GSEs while they are under federal conservatorship, and the administration could have solidified plans for GSE reform. The Mortgage Bankers Association recently released its GSE reform suggestions that analyze suggestions for the best option for reform.  Therefore, if this legislation is passed we highly suggest that readers immediately send FOIA requests immediately by certified mail to obtain the name of the trust that allegedly holds your mortgage.

Steve Mnuchin, has already stated that GSE reform is a priority of this administration.  The MBA’s “Task Force for a Future Secondary Mortgage Market,” was created by big lenders and insurers in the industry, to offer a specific vision of the end-state of the GSEs, as well as transition steps to a post-GSE system.  Predictably,  the White Paper benefits the banks at the expense of the homeowner.

The paper breaks down specific areas for reform. It includes:

  • Maintain the liquidity and stability of the primary and secondary mortgage markets through the establishment of a resilient and robust housing finance system, throughout the transition process to the end state.
  • Replace the implied government guarantee of Fannie Mae and Freddie Mac with an explicit guarantee at the mortgage-backed security (MBS) level only, supported by a federal insurance fund with “appropriately” priced premiums (whatever that means).
  • “Protect” taxpayers by putting more private capital at risk through expanded front- and back-end “credit enhancements” (requiring that the government and tax payer pay for the guarantee).

The chart below is a snapshot from the white paper and gives a quick view of keys factors in the MBA’s GSE reform plans, comparing how the GSEs operated before and after conservatorship.

The paper emphasizes the need for affordable-housing as a political requirement for bipartisan GSE reform.  But in reality, the paper emphasizes the ability of the big lenders to step in for the GSEs and monopolize the profits, while having the federal government act as a guarantor only.

History demonstrates that big banks don’t do anything altruistic for homeowners and the plan would require a mandatory housing fee charged against the guarantors.  Therefore, the banks would receive all of the financial benefits while saddling the government and homeowner with the risk and expense.  It sounds like the type of plan the big banks would attempt to push on to an unsuspecting public.

It is likely that e-lending and e-documents would become the new standard so that the big banks can attempt to electronically manipulate a decade of defective loan documents through this system.  This is disguised under the “preserve infrastructure” clause.  The government and big banks have proven they are unable to administer responsible housing policies without resorting to fraud or protecting homeowners.

Homeowners and borrowers should vehemently oppose using big lenders that securitize loans or use e-signature loan products that can easily be manipulated and fabricated.  Do yourself a favor and bypass the big banks.  Credit unions, local banks and lenders that offer portfolio loans are an excellent alternative to having your loan backed by Fannie Mae or Freddie Mac.

 

 

Deed Theft Scams: Why Not Prosecute the Banks Too?

It is supreme irony that individual scam artists are being prosecuted for false representations and deed theft — while the the institutional scam artists on Wall Street did the same thing raking in trillions of dollars, without a whiff of criminal prosecution.

Get a consult! 202-838-6345
https://www.vcita.com/v/lendinglies to schedule CONSULT, leave message or make payments.
THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
—————-

see http://www.foxnews.com/us/2017/04/22/scams-push-foreclosure-fraud-to-limit-taking-victims-homes.html

What the fraudster did in this case was reprehensible and criminal. Any person who does this deserves jail. So beware of anyone who suggests that they have some nifty way to save you from foreclosure if you just deed the property to them. It’s an industry. And it is based on your payment of rent while they zig and zag with the banks.

Beware of any who promises you guaranteed results. The only thing that will stop a foreclosure judgment or sale is a court order from a court of competent jurisdiction. In the real world of the justice system there is no such thing as guaranteed results.

But when you look at the details, it is impossible to distinguish between the fraud visited upon the victim in the article linked above and the fraud visited upon the same victim that put him in the position of losing his home to another complete stranger.

Consider this:

  • The “loan” you received was merely one part of a fraudulent scheme in which the money of third parties was swindled from them and then applied to create the illusion of your loan.
  • The note you signed was to the sales agent for the fraudulent scheme and not to the party whose money was used to make the “loan.”
  • By receiving the money you are obligated to pay it back. That’s called the debt.
  • By signing the note you are obligated to make payments to the payee on the note. That’s your second liability and it WILL be enforced if someone pays real money for your signed note, at least before it goes into default. That person would be a holder in due course.
  • By signing the mortgage deed or deed of trust, you have put your home up as collateral to guarantee payments on the fraudulent note, not to guarantee payment of the debt.
  • The mortgage deed or deed of trust are deeds. How is the above transaction different from conventional deed theft?
Quote from article:
“The scammers are no longer content with stealing $5,000. Now they want the whole house,” said Dina Levy, who heads the Homeowner Protection Program in the New York attorney general’s office, which has spread word about deed theft and prosecuted culprits.
Isn’t that what happened on Wall Street? No longer content to overcharge you for unaffordable loans the banks want your whole house. And no longer satisfied to take your house they want ten times the value of your house by “trading” in securities that everyone treats as non-securities under the 1999 law. But they are securities and they are in violation of SEC regulations and laws defining theft as a crime on the grandest scale ever seen in human history.

Here’s a detailed breakdown of Ocwen’s new restrictions by state

A deeper dive reveals what Ocwen can and can’t do going forward

The servicing issues at Ocwen Financial are allegedly so widespread that some states are placing stricter restrictions on the nonbank, beyond freezing the company’s ability to acquire new mortgage servicing rights.

On Thursday, a group of state business regulators issued joint cease-and-desist orders to Ocwen. The main announcement from the states shows that an examination into Ocwen’s servicing shows “several violations of state and federal law, including, but not limited to, consumer escrow accounts that could not be reconciled and willful and ongoing unlicensed activity in certain states.”

The orders also showed that the regulators are concerned with Ocwen’s ability to continue operating due to financial constraints, an issue that Ocwen denies.

The orders prohibit the acquisition of new mortgage servicing rights and the origination of mortgage loans by Ocwen Loan Servicing, a subsidiary of Ocwen, until the company is “able to prove it can appropriately manage its consumer mortgage escrow accounts.”

However, HousingWire analysis of each state’s cease-and-desist order or accompanying press release, show that some states’ regulators are restricting Ocwen’s business much further than that.

In fact, in one state, Ocwen has basically been put of out business entirely.

All in all, Arkansas, Connecticut, District of Columbia, Florida, Hawaii, Idaho, Illinois, Maine, Massachusetts, Mississippi, Montana, Nebraska, Nevada, North Carolina, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, West Virginia, Wisconsin, and Wyoming each placed restrictions on Ocwen’s business, according to the Conference of State Bank Supervisors.

But several states’ restrictions were not equal to the others– namely Massachusetts and South Dakota.

According to the announcement from the Massachusetts Office of Consumer Affairs & Business Regulation’s Division of Banks, Ocwen is not only no longer allowed to acquire new mortgage servicing rights, the company is also no longer allowed to service mortgages in the state, at all.

Here’s how Massachusetts describes its reasoning for restricting Ocwen’s business:

Of paramount concern is the company’s deteriorating financial condition, in which the company has lost nearly $1 billion since 2014, and will not be profitable by its own estimations for at least two years. The company has not developed or implemented an effective plan to curb these losses.

The examinations and monitoring noted the company has shown ineffective management of consumer escrow accounts and their internal servicing systems.

Therefore, Massachusetts is requiring Ocwen to “develop and implement a plan to transfer its loan servicing activities for Massachusetts consumer mortgage loans to a Division-approved licensed loan servicer(s).”

That means Ocwen can no longer service any mortgages in the state and must work to transfer all current mortgages it services to other servicers.

According to the Massachusetts Division of Banks, Ocwen services approximately 34,472 loans in Massachusetts, representing 3.5% of Ocwen’s portfolio – all of which must be transferred away.

Massachusetts’ order also requires Ocwen to “either fund or place mortgage loan applications in process with other lenders at no loss to applicants, and to cease accepting new applications,” which means no new loans for Ocwen in Massachusetts either.

“The Division will be closely monitoring Ocwen’s compliance with the Order,” the Division of Banks’ order states. “During this time, consumers with mortgage loans serviced by Ocwen should continue to submit loan payments to Ocwen in normal course in accordance with their loan terms. Ocwen will continue to service these loans until an orderly transfer of the servicing is completed in accordance with the Order. Any current mortgage loan applications should continue to be processed.”

South Dakota also placed its own serious restrictions on Ocwen’s business in the state, in the form of halting all foreclosures in the state until the escrow issues are addressed.

Here’s how the South Dakota Department of Labor and Regulation’s Division of Banking described it:

Ocwen does not possess the competence, experience, character, or general fitness required to permit Ocwen to continue to acquire new business as a mortgage lender in South Dakota.

The public interest will be irreperably harmed if Ocwen’s mortgage lending liscense is not conditioned immediately.

Therefore, Ocwen is required to “immediately cease acquiring new mortgage servicing rights, and acquiring or originating new residential mortgages serviced by Ocwen, until Ocwen can show it is a going concern by providing a financial analysis that encompasses all of the liabilities Ocwen currently maintains, as well as liabilities it has knowledge it will incur in the course of its business.”

Ocwen is also required to “immediately cease from acquiring new mortgage servicing rights, and acquiring or originating new residential mortgages serviced by Ocwen, until Ocwen can provide a third-party audit of its South Dakota escrow accounts showing that borrower funds are appropriately collected, properly calculated, and disbursed accurately and timely, and make any corrections of whatever type necessary to remedy all mistake, errors, and improprieties occurring due to Ocwen’s actions.”

Ocwen is also required to “immediately cease any and all foreclosures in the state of South Dakota until all South Dakota escrow accounts have been correctly and properly balanced and all corrections due to mismanagement of the escrow accounts have been effected.”

Nearly all of the other states list the same restrictions: no new mortgage servicing rights and no new loans to be serviced by Ocwen Loan Servicing, except for Nebraska and Rhode Island, which each expect Ocwen to provide detailed reports on its servicing activity on a frequent basis going forward.

The Nebraska Department of Banking and Finance states that Ocwen is prohibited from “the acquisition of mortgage servicing rights and the origination of mortgage loans until they are able to prove they can appropriately manage their consumer mortgage escrow accounts.”

Beyond that, Nebraska’s order requires Ocwen to provide a list of all the residential mortgages it services in the state, including the name, address, telephone number, and state of residence of the borrower; as well as the loan number; the owner of the loan; the account balance; and the location of any escrow funds.

Ocwen is then required to provide a report on the status of every Nebraska loan it services to the Nebraska Department of Banking and Finance every 10 days.

Ocwen is also required to provide written notice of all servicing transfers within 72 hours of execution.

And in Rhode Island, Ocwen “shall immediately cease from acquiring new mortgage servicing rights and acquiring or originating new residential mortgages serviced by Ocwen, which mortgage loans are secured by Rhode Island property, until Ocwen can provide the Department of Business Regulation with a reconcilement of its escrow accounts showing that consumer funds are appropriately collected, properly calculated, and disbursed accurately and timely.”

Ocwen is also required to “immediately cease acquiring mortgage servicing rights and acquiring or originating new residential mortgages serviced by Ocwen, which mortgage loans are secured by Rhode Island property, until Ocwen can show it is a going concern by providing a financial analysis that encompasses all of the liabilities it currently maintains, as well as liabilities it has knowledge it will incur in the course of its business.”

Additionally, Ocwen is required to file written confirmation by 4 p.m. on May 22, 2017, stating that the company has stopped acquiring new mortgage servicing rights and acquiring or originating new residential mortgages serviced by Ocwen for properties in Rhode Island.

Ocwen is also required to provide the Rhode Island’s Department of Business Regulation with the following information: a list of all loans secured by Rhode Island property presently serviced by Ocwen, including the date such loans were originated; a list of all loans secured by Rhode Island property as to which Respondents are acting as a third party servicer, including the date such loans were originated; and a list of all pending acquisitions of servicing rights and applications for mortgage loans that would be secured by Rhode Island property that are in the pipeline.

Below is a list of the remaining states with relevant passages about each state’s restrictions on Ocwen:

ArkansasArkansas Securities Commissioner, B. Edmond Waters, issued a press release in connection with a cease and desist order issued against Ocwen Loan Servicing, LLC and Ocwen Mortgage Servicing, Inc. Ocwen Loan Servicing, LLC and Ocwen Mortgage Servicing, Inc. are ordered to cease and desist from acquiring new mortgage servicing rights and originating new mortgage loans. The order prohibits the acquisition of mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its borrower mortgage escrow accounts.

ConnecticutThe Commissioner finds that the public welfare requires immediate action in order to prevent irreparable and immediate harm to Connecticut borrowers and the necessity of a temporary order requiring Ocwen to cease and desist from violating the laws cited herein, pursuant to Section 36a-52(b) of the Connecticut General Statutes in that, since December 2013, State Mortgage Regulators, including this Department, have been concerned about Ocwen’s mortgage servicing practices including, but not limited to, the misapplication of borrower payments and inaccurate escrow accounting and statements, and that the recent Multi-State Examination and CT Examination indicate that these issues have not been resolved, but rather may be exacerbated.  In addition, Connecticut borrowers have no ability to select a different mortgage servicer to remedy such persistent and pervasive errors by Ocwen.  Considering the potential harm to Connecticut borrowers and Ocwen’s inability to provide sufficient information concerning its existing borrower escrow accounts, the Commissioner finds it imperative that Ocwen cease from acquiring new mortgage servicing rights in connection with Connecticut residential mortgage loans for which it would have to maintain escrow accounts, and acquiring or originating new Connecticut residential mortgage loans serviced by Ocwen for which it would have to maintain escrow accounts, until it can ensure that the escrow accounts of its existing residential mortgage loan servicing portfolio in Connecticut are properly reconciled and that all Connecticut borrowers’ monies are maintained in segregated deposit or trust accounts for the benefit of such Connecticut borrowers.

District of ColumbiaThe majority of the orders prohibit the acquisition of new mortgage servicing rights and the origination of new mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts and not further harm consumers. Some orders also require Ocwen to cease any ongoing unlicensed activity.

FloridaFiled a separate lawsuit over Ocwen’s servicing practices.

HawaiiThe Notice of Charges and Proposed Order prohibits the acquisition of mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its consumer mortgage escrow accounts. The Notice of Charges and Proposed Order also demands Ocwen to cease illegal unlicensed activity that is believed to be occurring in Hawaii.

IdahoThe department’s order prohibits Ocwen from violating Idaho law in the handling of consumer escrow accounts. Managing the money that borrowers remit as part of their monthly mortgage payments is critical to the business of a mortgage servicer, and the department’s order requires Ocwen to accurately and lawfully fulfill that function when dealing with Idaho borrowers’ mortgage payments.

IllinoisA search of the Illinois Department of Financial and Professional Regulation did not show record of Illinois’ actions against Ocwen.

MaineOcwen shall immediately cease acquiring new mortgage servicing rights, and acquiring or originating new residential mortgages serviced by Ocwen, until Ocwen can show it is a going concern by providing a financial analysis that encompasses all of the liabilities Ocwen currently maintains, as well as liabilities it has knowledge it will incur in the course of its business; Ocwen shall immediately cease from acquiring new mortgage servicing rights, and acquiring or originating new residential mortgages serviced by Ocwen, until Ocwen can provide the state regulators with a reconcilement of its escrow accounts showing that consumer funds are appropriately collected, properly calculated, and disbursed accurately and timely.

MississippiOLS shall immediately cease acquiring new mortgage servicing rights, and acquiring or originating new residential mortgages serviced by OLS, until Ocwen can show it is a going concern by providing a financial analysis that encompasses all of the liabilities Ocwen currently maintains, as well as liabilities it has knowledge it will incur in the course of its business; OLS shall immediately cease from acquiring new mortgage servicing rights, and acquiring or originating new Mississippi residential mortgages serviced by OLS, until OLS can provide the DBCF with a third party audit of its escrow accounts associated with any Mississippi residential mortgage loans demonstrating that consumer escrow funds are appropriately collected, properly calculated, and disbursed accurately and timely; and make any and all corrections of whatever type necessary to remedy all mistakes, errors, and improprieties occurring in the past due to OLS’s Actions.

MontanaThe order prohibits Ocwen from acquiring new mortgage servicing rights until the company is able to establish that it can appropriately manage its Montana escrow accounts. Over the past three years, the Montana Division of Banking and Financial Institutions has handled 16 complaints against Ocwen and required Ocwen to credit $51,368.56 to Montana borrowers. Division officials will now focus on assisting borrowers who currently make mortgage payments to Ocwen.

NevadaThe majority of orders, including the order issued by the Nevada Division of Mortgage Lending, prohibit the acquisition of mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts and prevent harm to consumers.

North Carolina Lead state in announcing restrictions.

South CarolinaA search of the South Carolina State Board of Financial Institutions – Consumer Finance Division did not show record of South Carolina’s actions against Ocwen.

TennesseeThe Tennessee Department of Financial Institutions (“Department”) issued today an enforcement action against Ocwen Loan Servicing to prohibit the company from acquiring new mortgage servicing rights or originating mortgage loans in Tennessee until it provides the Department with a plan to demonstrate an ability to operate in a sound manner.

TexasA search of the Texas Department of Savings and Mortgage Lending did not show record of Texas’ actions against Ocwen.

West VirginiaA search of the West Virginia Division of Finance did not show record of West Virginia’s actions against Ocwen.

WisconsinThe majority of orders prohibit the acquisition of new mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts and not further harm consumers. Ocwen conducts mortgage loan servicing for approximately 1.5 million consumers nationwide, including about 13,500 in Wisconsin.

WyomingA search of the Wyoming Division of Banking did not show record of Wyoming’s actions against Ocwen.

[Editor’s note: If any of HousingWire’s readers can assist in locating the missing states’ orders against Ocwen, please contact Ben Lane at blane@housingwire.com. This article will be updated as appropriate.]

Sub-Prime Mortgage Servicer Ocwen fabricates Mortgage Documents

Ocwen is the bottom-feeder of mortgage servicing companies.  Most survey’s rank Ocwen as the absolute worst in customer service and accountability including consumer research by J.D. Powers.  Ocwen acts as a debt-collector and our experience at LendingLies is that Ocwen often cannot identify the true creditor or provide any documentation demonstrating who owns the loan.  Ocwen then resorts to fabricating documents and obfuscation to keep the borrower in the dark until they can successfully foreclose.  Why is the CFPB and Multi-State Mortgage Committee not investigating Ocwen’s fabrication of loan instruments?

Last year we had a client from Texas contact us who was dealing with Ocwen.  He had pulled his paperwork and discovered that his loan was one of the Taylor, Bean & Whitaker (TBW) fraudulent transactions, there was no evidence that the note had ever been endorsed, and there were no assignments from TBW to Ocwen.   To overcome these issues Ocwen either photoshopped endorsements or assignments in-house, or went to a third party who creates fraudulent loan instruments and filed to foreclose.

The Lendinglies staff sent a copy of the note and assignment to a forensic document fraud examiner and he discovered that the “original” copies submitted by Ocwen were nothing more than computer-generated forgeries.  We did a little more investigating and discovered that  the “corrective” assignment of the Deed of Trust was signed by Ocwen employee Amber K. Wilson.

Amber K. Wilson was employed as a Servicing Operations Specialist at Ocwen since May 2015.   Located in Iowa, Amber’s Linked-In profile stated that her current duties included, “Researching Mortgage Documents to verify a full Chain of Title is present. If it is not create the needed Documents (sic). Work from Excel Spread Sheet daily as well as several internal data programs.”  Amber K. Wilson admitted on a public website that Ocwen Loan Servicing creates documents to create a “proper Chain of Title” if there are errors.

This is an admission that Ocwen employees are engaging in fraudulent activity by fabricating notes and assignments (the derogatory information has since been removed from her Linked-In profile but a screenshot of last year’s Linked-In profile is included below). Hopefully the CFPB and Multi-State Mortgage Committee who have filed lawsuits will investigate this type of criminal activity.

It is fraudulent to recreate a chain of assignment with fabricated documents to create the appearance the current servicer has standing. As Neil Garfield has repeatedly pointed out- copies of the note and assignment don’t document an actual transaction (sale, transfer)- they are nothing but window dressing to create the illusion an event occurred.

Our client was a victim of these sham documents Ocwen filed in the Tarrant county records. He has been fortunate enough to find an attorney who has successfully kept Ocwen at bay.  Texas is involved in the multi-state effort to regulate large servicers across the country while ensuring compliance with applicable state and federal law, while protecting consumers.

Amber Wilson’s Linked-In profile where she admits fabricating loan instruments:

Ocwen admits its substandard servicing is standard in Industry

By K.K. MacKinstry/Lendinglies

During the Multi-State Mortgage Committee’s investigation, Ocwen made an accurate revelation when attempting to justify charges of mortgage servicing failures by claiming that its servicing policies are comparable to other mortgage loan servicing operations.  Truer words have not been spoken, and the entire mortgage loan servicing industry is in shambles because servicers make more money foreclosing than servicing a loan.

Ocwen said that these independent reviews “consistently confirmed Ocwen’s escrow practices are in line with common industry standards for timeliness and accuracy.”  That may be true because ALL loan servicers practice similar predatory and illegal servicing tactics to increase the probability that a homeowner will default. Every homeowner who has a mortgage serviced by Ocwen, Nationstar, CitiMortgage, Wells Fargo, Bank of America, JPMC, EverHome, PHH or any other major loan servicer is at risk of being victimized by their servicer because they follow similar servicing strategies as seen in other investigations and lawsuits.

Ocwen admitted that: “No mortgage servicer is perfect – to the extent mistakes are made, we have a process to identify and remediate consistent with other mortgage servicers.”  Ocwen has thus admitted there is a systematic failure among the servicing industry to properly service loans in a legal manner and they are merely following the herd.  Servicers have proven they are unwilling or unable to cure their defective practices, therefore it is time that consumers demand a complete overhaul of the way mortgage loans are serviced and potential issues managed.  At this point the government has been unresponsive to regulating loan servicing practices and until there are serious financial or criminal penalties the behaviors will go unabated.

According to Ocwen, its efforts to employ third parties to audit its compliance efforts are, “consistent with methods used in other regulatory settlements and with the Multi-State Mortgage Committee’s examination manual practices.”

Ocwen said that it is engaging an independent review firm to conduct that review.

The state banking regulators also accused Ocwen of being unsound financially, a charge that Ocwen disputes.  If they were not financially unsound on Thursday, they certainly were by Friday when the markets closed and Ocwen stock had suffered a 54% decrease in value.

From Ocwen’s statement:

Ocwen disagrees with any allegation it is not financially sound. Despite significant operating losses from 2014 to 2016 driven by a shrinking portfolio and $171 million of state and national regulatory monitoring expenses, Ocwen generated over $1.4 billion of positive operating cash flow.

What Ocwen fails to mention is that Ocwen has incurred huge legal expenses to defend against lawsuits brought by wronged homeowners.  Over the past year, Lendinglies has seen Ocwen back off of pursuing foreclosures when homeowners retained aggressive counsel. Although Ocwen has made huge profits by foreclosing on homes it doesn’t own and reselling those properties, homeowners have concluded through their investigation that Ocwen is little more than a debt-collector who routinely creates documents as needed in order to create the appearance of ownership.  Livinglies in possession of these documents if the MMC has any interest in these illegal practices.

Ocwen said that it provided the state regulators with “remarkable transparency” into its operations, but that still wasn’t enough for the states and is also untrue.  What the state regulators need to investigate is how Ocwen is creating endorsements on notes and fabricating assignments.  Are these activities done in-house or outsourced to third parties?  There must be a paper-trail of this fraudulent activity and employees should be interviewed and an external task force retained to investigate.  Of course, no one wants to reveal the ugly underbelly of modern mortgage loan servicing.

“Ocwen provides a variety of financial information to select individual states as well as the MMC, such as recurring liquidity reports, monthly results, and future financial and cash projections,” Ocwen said in its statement but the MMC was not convinced and proceeded with allegations of wrongdoing.

Another issue brought up by the states is Ocwen’s alleged operating of “unlicensed mortgage servicing facilities in certain states in apparent violation of state licensing statutes over a period of several years.”  Ocwen admitted past issues but claims those issues are now in the past.

“Ocwen has worked diligently to correct perceived licensing concerns and has entered into recent settlements with three states, without admitting or denying wrongdoing,” Ocwen stated. “Ocwen believes it is properly licensed in all states where it conducts business and welcomes the opportunity to demonstrate its compliance to any state regulators who may still have questions or concerns.”  Ocwen must be taking a page from United Airlines’ playbook and denying all responsibility until forced to face the inevitable consequences of its actions.

Ocwen adds that the company has been in “regular communication” with the state regulators in question for the last two years and progress has been made.  Somehow nothing Ocwen says rings of truth.

David Dayen: The CFPB Just Sued a Crooked Mortgage Servicer, but Indicted Itself

The lawsuit against Ocwen is welcome, but should have happened four years ago.

Injured by Ocwen? Take Action Now!

By K.K. MacKinstry

Ocwen has admitted that its mortgage servicing policies and loan processing systems are a “trainwreck”.  As regulators and the Consumer Fraud Protection Bureau (CFPB) tighten the noose on Ocwen, we recommend that Livinglies readers who have experienced issues with Ocwen contact their state Attorney General offices, the CFPB, state banking regulators and government representatives to express your outrage and share your experience NOW.

Although Ocwen is being investigated for predatory servicing practices, please make regulators aware of the deeper level of fraud that is occurring and consists of fabricating and forging loan instruments including notes and assignments.  If you have been subjected to any of Ocwen’s tactics that push homeowners into default please provide this information to the aforementioned agencies.

The regulators found that Ocwen manipulates escrow accounts to create defaults and problems with taxes and insurance, does not respond accurately to submitted Qualified Written Requests, fails to properly post payments, revokes loan modifications without reason, and engages in other tactics designed to create loan defaults.  Now is the time to speak up about your experiences.  If homeowners damaged by Ocwen inundate the CFPB with complaints, perhaps this predatory servicing operation will be shut-down for good.

It appears that Ocwen’s business model and policies were designed to maximize the chances that a homeowner will default through processes that create confusion, disinformation and a deliberate lack of accountability by Ocwen.   Ocwen is not the only loan-servicing entity that engages in these practices, but it is the one currently in the regulatory crosshairs.  If these issues are brought to light, other loan servicers may be forced to change their business practices or suffer the same fate.

To file a complaint with the CFPB do so here.

To file a complaint with a state member, please do so here or find your state contact below:

AK – Alaska
Ms. Patrice Walsh
State of Alaska Department Commerce, Community & Economic Development
Chief Examiner

Phone Number:

907-269-5496

Fax:

907-269-8146
AL – Alabama
Mr. Scott Corscadden
Alabama State Banking Department
Supervisor, Bureau of Loans

Phone Number:

334-242-3452

Fax:

334-353-5961
AR – Arkansas
Ryan Drake
Arkansas Securities Department
Examiner Supervisor

Phone Number:

501-324-8688

Fax:

501-683-5894
AZ – Arizona
Mr. Robert D. Charlton
Arizona Department of Financial Institutions
Superintendent

Phone Number:

602-771-2772

Fax:

CA – BRE
Mr. Jeffrey Mason
State of California Bureau of Real Estate
Chief Deputy Commissioner

Phone Number:

916-263-8728

Fax:

916-263-8943
CA – DBO
Mr. Victor Wells
California Department of Business Oversight
Deputy Commissioner

Phone Number:

213-576-7609

Fax:

213-576-7178
CO – DORA
Ms. Marcia Waters
Department of Regulatory Agencies – Division of Real Estate
Department of Regulatory Agencies – Division of Real Estate

Phone Number:

303-894-2422

Fax:

CT – Connecticut
Mr. Carmine Costa
Connecticut Department of Banking
Director, Consumer Credit Division

Phone Number:

860-240-8207

Fax:

860-240-8159
DC – District of Columbia
Mr. Christopher Weaver, Esq
Department of Insurance, Securities and Banking
Associate Commissioner of Banking

Phone Number:

202-442-7774

Fax:

202-535-1196
DE – Delaware
E. Quinn Miller
Office of the State Bank Commissioner
Investigative Supervisor

Phone Number:

302-744-2116

Fax:

302-739-2356
FL – Florida
Mr. Andy Grosmaire
Florida Office of Financial Regulation
Bureau Chief

Phone Number:

850-410-9848

Fax:

850-410-9914
GA – Georgia
Mr. Rod Carnes
Georgia Department of Banking and Finance
Deputy Commissioner, Non-Depository Financial Institutions Div.

Phone Number:

770-986-1371

Fax:

770-986-1029
HI – Hawaii
Ms. Iris Ikeda
Division of Financial Institutions
Commissioner of Financial Institutions

Phone Number:

808-586-2820

Fax:

808-586-2818
IA – Iowa
Mr. Rodney E. Reed
Iowa Division of Banking
Finance Bureau Chief

Phone Number:

515-281-4014

Fax:

515-281-4862
ID – Idaho
Mr. Mike Larsen
Idaho Department of Finance
Consumer Finance Bureau Chief

Phone Number:

208-332-8060

Fax:

208-332-8096
IL – Illinois
Mr. Alan Anderson
Illinois Dept. of Financial & Professional Regulation, Div of Banking
Senior Counsel of Mortgage Banking Regulation

Phone Number:

312-793-1419

Fax:

312-814-2238
IN – DFI
Ryan Black
Department of Financial Institutions
Deputy Director

Phone Number:

317-232-5850

Fax:

317-232-7655
IN – Sec. of State, Securities Div.
Mr. Alex Glass
Secretary of State, Securities Division
Securities Commissioner

Phone Number:

317-232-6681

Fax:

317-232-3675
KS – Kansas
Ms. Jennifer Cook
Kansas Office of State Bank Commissioner
Deputy Commissioner – Consumer and Mortgage Lending

Phone Number:

785-296-2266 x209

Fax:

785-296-0168
KY – Kentucky
Ms. Tammy Scruggs
Kentucky Department of Financial Institutions
Division Director, Non-Depository Institutions

Phone Number:

502-782-9086

Fax:

502-573-0184
LA – Louisiana
Mr. Darin Domingue
Louisiana Office of Financial Institutions
Chief Examiner

Phone Number:

225-922-2596

Fax:

225-925-4524
MA – Massachusetts
Ms. Cindy Begin
Massachusetts Division of Banks
Chief Risk Officer

Phone Number:

617-956-1523

Fax:

MD – Maryland
Mr. Clifford Charland
Maryland Commissioner of Financial Regulation
Director of Mortgage Examination Process

Phone Number:

410-230-6167

Fax:

ME – Maine
Mr. Terry Fancy
Maine Bureau of Consumer Credit Protection
Principal Consumer Credit Examiner

Phone Number:

207-624-8685

Fax:

207-582-7699
MI – Michigan
Mr. Kirt L. Gundry
Michigan Department of Insurance and Financial Services
Director, Mortgage Examination & Investigation Section

Phone Number:

517-284-8602

Fax:

517-284-8850
MN – Minnesota
Sarah Butler
Minnesota Department of Commerce
Supervisor, Non-depository Institutions

Phone Number:

651-539-1720

Fax:

651-368-0449
MO – Missouri
Mr. Mick Campbell
Missouri Division of Finance
Supervisor of Mortgage Licensing

Phone Number:

573-751-4243

Fax:

573-751-9192
MS – Mississippi
Ms. Traci McCain
Mississippi Department of Banking and Consumer Finance
Director, Mortgage Division

Phone Number:

601-321-6901

Fax:

601-321-6933
MT – Montana
Chris Romano
Montana Division of Banking and Financial Institutions
Non-Depository Bureau Chief

Phone Number:

(406) 841-2928

Fax:

(406)841-2930
NC – North Carolina
Ms. Molly Sheehan
North Carolina Office of the Commissioner of Banks
Deputy Commissioner of Banks/Non-Depository Entities

Phone Number:

919-715-6938

Fax:

919-733-2978
ND – North Dakota
Mr. Bob Entringer
North Dakota Department of Financial Institutions
Commissioner

Phone Number:

701-328-9933

Fax:

701-328-0290
NE – Nebraska
Ms. Jean Angell
Nebraska Department of Banking and Finance
Review Examiner

Phone Number:

402-471-2171

Fax:

402-471-3062
NH – New Hampshire
Ms. Raeleen Schutte
New Hampshire Banking Department
Director of Consumer Credit

Phone Number:

603-271-3561

Fax:

603-271-0750
NJ – New Jersey
Mr. Thomas M. Hunt
New Jersey Department of Banking and Insurance
Assistant Division Director

Phone Number:

609-292-7659 x50223

Fax:

609-292-3144
NM – New Mexico
Mr. Joe Cruz
New Mexico Financial Institutions Division
Industry Manager

Phone Number:

505-476-4519

Fax:

505-476-4670
NV – Nevada
Mr. James Westrin
Nevada Division of Mortgage Lending
Commissioner

Phone Number:

702-486-0789

Fax:

702-486-0785
NY – New York
Ms. Rholda Ricketts
New York Department of Financial Services
Deputy Superintendent

Phone Number:

212-709-5540

Fax:

212-709-5555
OH – Ohio
Zachary Luck
Ohio Division of Financial Institutions
Deputy Superintendent for Consumer Finance

Phone Number:

614-644-7517

Fax:

614-222-3554
OK – Oklahoma
Mr. Scott Lesher
Department of Consumer Credit
Administrator

Phone Number:

405-521-3653

Fax:

405-521-6740
OR – Oregon
Kirsten Anderson
Oregon Department of Consumer and Business Services
Administrator

Phone Number:

503-947-7478

Fax:

503-947-7862
PA – Pennsylvania
Mr. Robert Knaub
PA Department of Banking and Securities
Director for Non-Depository Licensing

Phone Number:

717-787-3717

Fax:

SC – Board of Fin Inst.
Mr. Jim Copeland
SC Board of Financial Institutions – Consumer Fin. Div.
Assistant Commissioner

Phone Number:

803-734-2020

Fax:

803-734-2025
SC – Dept. of Cons Affairs
Ms. Carri Grube Lybarker
South Carolina Department of Consumer Affairs
Administrator

Phone Number:

803-734-4233

Fax:

803-734-4060
SD – South Dakota
Ms. Jean Blow
South Dakota Division of Banking
Policy Analyst

Phone Number:

605-773-3422

Fax:

866-326-7504
TN – Tennessee
Mr. Mike Igney
Tennessee Department of Financial Institutions
Assistant Commissioner / Compliance Division

Phone Number:

615-253-7794

Fax:

615-741-2883
TX – OCCC
Ms. Leslie L. Pettijohn
Texas Office of Consumer Credit Commissioner
Consumer Credit Commissioner

Phone Number:

512-936-7640

Fax:

512-936-7610
TX – SML
Ms. Caroline C. Jones
Texas Department of Savings and Mortgage Lending
Commissioner

Phone Number:

512-475-1038

Fax:

512-475-1505
UT – Utah
Mr. Jonathan C. Stewart
Utah Division of Real Estate
Director

Phone Number:

801-530-6744

Fax:

801-526-4387
UT – Utah
Ms. Eva Rees
Utah Department of Financial Institutions
Supervisor

Phone Number:

801-538-8834

Fax:

801-538-8894
VA – Virginia
Ms. Susan E. Hancock
Virginia State Corporation Commission
Deputy Commissioner

Phone Number:

804-371-9701

Fax:

804-371-9416
VT – Vermont
Ms. Sue Clark
Vermont Department of Financial Regulation
Regulatory and Consumer Affairs Director

Phone Number:

802-828-4878

Fax:

802-828-1477
WA – Washington
Mr. Charles Clark
Washington Department of Financial Institutions
Acting Deputy Director and Director of Consumer Services

Phone Number:

360-902-0511

Fax:

360-596-3866
WI – Wisconsin
Cheryll Olson-Collins
Wisconsin Department of Financial Institutions
Administrator, Banking Division

Phone Number:

608-267-1707

Fax:

608-267-6889
WV – West Virginia
Ms. Tracy Hudson
West Virginia Division of Financial Institutions
Director of Nondepository Institutions

Phone Number:

304-558-2294

Fax:

304-558-0442
WY – Wyoming
Mr. Joe Mulberry
Wyoming Division of Banking
Deputy Commissioner

Phone Number:

307-777-7797

Fax:

307-777-3555
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