Ocwen settles with state on loan problems
The Massachusetts Division of Banks wrapped up a long-running investigation of mortgage servicer Ocwen with a $1 million fine for numerous problems involving the Florida company’s administration of home loans.
The settlement is related to a cease-and-desist order Massachusetts officials obtained against Ocwen in April 2017, part of broad national action by regulators from more than 30 jurisdictions for deficient loan-servicing practices. In 2013, Ocwen had been ordered by the US Consumer Financial Protection Bureau and multiple states to pay consumers $2 billion for providing false information during foreclosure proceedings and charging borrowers unauthorized fees during the housing crisis.
The federal agency and the Massachusetts attorney general sued Ocwen again in 2017 over similar charges, such as allegedly forcing borrowers to buy unnecessary and expensive insurance.
A Massachusetts consent order issued March 23 limits Ocwen’s new mortgage activities until it can transfer the 33,000 loans it currently holds in the state to a new service platform and undertake other corrective measures, including a data-integrity review of consumer loan information.
“This Order continues the Division’s efforts to stop unscrupulous loan servicing practices and implement actions to ensure consumers’ funds are safe and accounted for properly,” Commissioner of Banks Terence McGinnis said in a statement.
An Ocwen spokesman, John Lovallo, said in a statement that the company is “pleased to have reached resolution with Massachusetts.”