New York’s top banking supervisor once again set his sights on Ocwen Financial Corp. this week, saying the servicer sent thousands of foreclosure warnings to borrowers months after it was too late to save their homes.
Benjamin Lawsky, New York’s superintendent for financial services, said an investigation of Ocwen’s mortgage servicing practices turned up more than 7,000 letters sent to borrowers that had been backdated and sent only after their payment deadlines had passed.
“In many cases, borrowers received a letter denying a mortgage loan modification, and the letter that was dated more than 30 days prior to the date that Ocwen mailed the letter. These borrowers were given 30 days from the date of the denial letter to appeal that denial, but those 30 days had already elapsed by the time they received the backdated letter,” Lawsky said in a letter, which was addressed to executives and board directors at Ocwen.
Note: it is my observation and opinion as a Realtor® that Ocwen is at the top of the list of servicers that are inept and fail in their fiduciary obligations to homeowners, such as paying impounds and insurance declarations as they are legally required. God help anyone who is forced to have Ocwen servicing their loan.
Read the original article in DSNews.
An update on the same topic:
According to an article in National Mortgage News, Ocwen’s problems may prevent it from completing its purchase of $39 billion in mortgage-servicing rights from Wells Fargo. Analysts and servicing experts say Benjamin Lawsky’s investigation of Ocwen may have delivered the “death blow” to the deal.
“This increases the chances the Wells Fargo servicing deal is canceled,” Compass Point Research & Trading analyst Kevin Barker wrote in a research note.
Lawsky’s crackdown on Ocwen sent the mortgage servicer’s shares down 18.2% last Tuesday and another 7% in Wednesday afternoon trading.