Ocwen Loan Servicing Foreclosure Issues – Consent Judgment in New York!
During my time defending foreclosures throughout the state, a rare oddity in terms of loan modifications has always been the loan servicer known as OCWEN! From extremely rare principal reductions in loan modifications to incredibly fast returns on a loss mitigation package, Ocwen Loan Servicing had always been a pleasure to work with…until know.
Recent revelations about this servicer have really changed my view on this servicer, to the point that where I am faced with them as a loan servicer on a client’s file – I have a specially tailored (and short) set of discovery aimed at the servicer.
What am I asking for? Why am I asking for it?
To those outside the foreclosure world, this news is practically unheard of. In December of 2014, Ocwen Loan Servicing and the New York Attorney General entered into a consent judgment. I am asking some very simple questions – is Ocwen servicing this loan and did Ocwen enter into a consent judgment in the state of New York. This consent judgment has some troubling revelations, especially as it may relate to Florida foreclosure cases. Among the admissions made by Ocwen were the following:
- For example, Ocwen’s systems have been backdating letters for years. In many cases, borrowers received a letter denying a mortgage loan modification, and the letter was dated more than 30 days prior to the date that Ocwen mailed the letter. (…)Ocwen’s processes failed to identify and remedy these errors.
- Moreover, Ocwen failed to fully investigate and appropriately address the backdating issue (…)
- Ocwen’s core servicing functions rely on its inadequate systems. Specifically, Ocwen uses comment codes entered either manually or automatically to service its portfolio; each code initiates a process, such as sending a delinquency letter to a borrower, or referring a loan to foreclosure counsel. With Ocwen’s rapid growth and acquisitions of other servicers, the number ofOcwen’s comment codes has ballooned to more than 8,400 such codes (…) there are duplicate codes that perform the same function.
As a Foreclosure Defense attorney, each of these points really scares me in terms of defending consumers rights. Think of the sheer number of foreclosures that were entered thanks to these records and letters that Ocwen now admits are inadequate. The implications of this are far reaching, and will have longstanding impacts. If you are one of those individuals fighting a mortgage foreclosure in Florida and Ocwen is your servicer, I urge you – hire an attorney that will look at these records!