US Orders Mortgage Servicer Ocwen to Help Borrowers with $2 Bln


US orders mortgage servicer Ocwen to help borrowers with $2 bln

Dec 19 (Reuters) – U.S. officials on Thursday ordered the largest nonbank mortgage servicer to provide $2 billion in help to underwater borrowers to resolve allegations of misconduct that led to thousands of people losing their homes.

Ocwen Financial Corp must reduce loan balances for struggling homeowners and refund $125 million to foreclosed borrowers under an agreement with the U.S. Consumer Financial Protection Bureau and officials from 49 states and the District of Columbia.

Ocwen failed to account for borrowers’ payments, gave false reasons for denying loan modifications and robo-signed legal documents, the consumer bureau said.

In many cases, after Ocwen began servicing loans, it did not respect trial modifications that had already been agreed to by the lenders, consumer bureau Director Richard Cordray said.

“After examining the potential violations, we’ve concluded that Ocwen made troubled borrowers even more vulnerable to foreclosure,” Cordray said in a conference call with reporters.

Ocwen separately disclosed the agreement on Thursday and said it had already set aside funds to cover all but about $500,000 of the required refund payments.

“The agreement, which is subject to court approval, is in alignment with the same ultimate goals that we share with the regulators – to prevent foreclosures and help struggling families keep their homes,” Ocwen said in a statement.

The firm did not admit to the allegations, according to court documents.

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12 Responses to “US Orders Mortgage Servicer Ocwen to Help Borrowers with $2 Bln”
  1. James Smith says:

    I have a second mortgage with Wells Fargo, we have not paid them in almost a year. I did send them a cease and desist letter a few months back. Why have they not initiated some type of action?

    • john c. hacker iii says:

      beacse its all smoke and mirrors bullshit,they aren’t helping homeowners,the bastards are lining theyre own pockets,annoucennts of crap, what a joke

    • Because the longer you stall them and give them excuses to put it off, the more money interest and fees they can tack on for doing nothing, I know, I have been trying to stop them for 6 years. and it’s up to $89,000 on a $51000 mortgage.

  2. 2 BILLION DOLLARS, RIGHT!!! ? California states ATTORNEY GENERAL FRANCES T. GRUNDER, leaves a contact number on the court documents, 415 703 5500 its a friggen wireless no. that doesn’t even work…… I WANT MY 200,000.00 EQUITY AND MY HOME BACK. WHO THE HELL DOES ONE CONTACT????? ITS ALL SMOKE AND MIRRORS.!! BULLSHIT!! JOHN C. HACKER III 714 317-0285

  3. I have almost allegations concerning PHH on my site at http://www.phhmortgagemustbedestroyed, We’re having our Alternative Dispute Resolution meeting on 24 December at my house. I’ll have bound copies of this pattern setting consent on the table for us to redline. Wouldn’t it be nice to spend one day in court and collect $2Bn?

  4. Steve says:

    As the loans from AHMSI hide in the background left unmentioned.

    • Bruce R Nelson says:

      AHMSI was NEVER a “Lender”. They were a “pretender lender” soley ownd by a Vulture Capitalist in NYC who scarfed up AHM and Option One so he could stick a straw in our spinal corded and suxk the blood, marro an neurons out of our brain. When the going was getting tuff for Willie the Vultue he conned PCWEN Financial in Clearwaterr, FL to buy him out…alll the while, by the way,m Option One American Home Mortgae Inc and Ocwen NEVER had a shred of proof of standing, not an iota and I know that for a fact when I surf AHMSI and theeir incompetent attorner, Teresa Shill had to admit, in court that She (AHMSI) did not posses the origibal noite nor the original mortgage (Polk County,!2th Circut Ct, Dallas, Oregon last week of 23/2009 and first wek of 20010, just in case you want to look it up. Ocwen (I have written in thgis blog, Was slammed (2 Billion) for fraud and given the privalige of being awarrd the job of Ombudsman. IE we ere wee lambs fed to the wolves (Ocwen) to be eaten alive all costing me $300k equity because a Federal Judge (Anna Brown, Portlandf, OR) decided in favoer of OCWEN/HSBC/AHMSI not REQUIRING as the law requires (TILA) that an entity claiming “interest” in a property MUST PROVE they own the loan, is they possess the original note, and Mortgage. I am an older geezer now age 77, disabled vet struck penyless by a Feceral Cout Judge who conspitrf with the hidh ens attorneys to stral my hoime and equity. In the end I loose, the criminals win.

      Bruce R Nelson
      Banner Elk, NC 28604

      • BOBBI SWANN says:

        Mr. Nelson – First of all, let me Thank You for being a veteran and serving our country and protecting the freedoms which we so freely enjoy. Secondly, let me apologize for the inconceivable action of this lender and our government for treating a veteran with such disrespect and allowing such heinous actions to be taken against you. This should have NEVER happened to you. We should NEVER place our vets in a position where their fight for the freedom to own a home should not be fought. I am so sorry that you lost this battle. There were supposed to have been protections for Vets in the foreclosure process and I would gamble to say that Ocwen never did and never has followed the rules. What I can tell you is this: You can file a complaint against Ocwen with the Consumer Financial Protection Bureau (google for their contact information) which was established as a Protection agency for citizens. Something should be done to stop this atrocity because as a veteran of our armed services who fought to keep our freedoms in place, putting their lives on the line, being disabled, sustaining more than just physical injury…all to keep the rest of us safe and secure, should be protected. We protect endangered species of the animal world but we have somehow forgotten those who kept those freedoms alive and well. I do hope you pursue with a complaint ~ it has to start somewhere. In salute to you!

  5. James Smith says:

    Ok, I keep seeing post about this. Ocwen is my Master Servicer but no one is telling us how we can take advantage of this. James

  6. BOBBI SWANN says:

    BULLSHIT! Courts awarded 127 BILLION in the settlement, with a lousy 2 BILLION to these homeowners? NO ADMITTING GUILTY, NO JAIL TIME, NO PUNISHMENT, NO PERSONAL RESPONSIBILITY….under the terms of the agreement, these borrowers will be lucky to be able to prove they deserve the credit against their loans AND it’s only to the point of 100% to market value. WHOOPIE! Hey Mr. & Mrs. Borrower, you won’t be underwater anymore but you also still lost all your equity…it’s sitting in the pockets of Ocwen and they are using that same equity to pay you all back. Now that’s JUSTICE!

    • j Alonzo says:

      The sheep will keep being herded in the way of the New Order, or better said. The way its always been except now its being done directly in our faces. Those who are behind on their mortgage and those who are current. We are all under the same control. Unless you are a billionaire or have some strong political influences, which they usually come together.You are just a sheep. Those of us writing here for the most part are waking up! Democrats & Republicans are all the same. They work for the banks, big pharma,
      & the all the companies that get all the contracts that make all the materials to go to War!
      They start wars in the name of some ghost called a terrorist, when its all for control of oil, lithium and currency control. Are state judges are no better. They have been ordered
      to move cases along and just give the house back to any bank who says, HEY ITS MY HO– USE! The judges just move along with this crime and ignore the defendants defenses. Mexico is no longer the most corrupt country.

      • jchiiicm81JOHN C.HACKER III says:

        couldn’t AGREE with you more.Our own government is THE MOST scandalous entity on the planet….., fuckem all.

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