California regulators have Ocwen Financial Corp. in their targets and are reportedly trying to suspend the giant servicer’s mortgage license. They are accusing Ocwen of failing to provide documentation that shows it is in compliance with the California’s laws to protect homeowners.
In 2013, the California legislature passed a package of laws, known as the Homeowners Bill of Rights, which were implemented to increase transparency in the foreclosure process and reduce mortgage fraud.
California Department of Business Oversight spokesman Tom Dresslar said that his department has been asking Ocwen for the required information for almost a year but that Ocwen has “repeatedly failed to adequately respond.” As a result, the agency issued a subpoena and a regulatory order, both of which were violated. That prompted the matter to be referred to an administrative law judge with the request that Ocwen‘s license be revoked.
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