Ocwen CEO Vows to Shrink Servicer as Complaints Rise


Ocwen CEO Vows to Shrink Servicer as Complaints Rise

(Bloomberg) — Ocwen Financial Corp., which agreed with regulators in December to improve its mortgage servicing, sent Nathan Fitzgerald a notice saying his loan was in default. If he didn’t send a $2,266 check immediately, Ocwen said, it would foreclose on him.

The warning in January shocked Fitzgerald, who said he never missed a payment on his three-bedroom home near Napa, California, and sent Ocwen bank records to prove it.

“This is a nightmare,” said Fitzgerald, 53, owner of a real estate and investment firm. “I have spent endless hours on the phone trying to get this fixed, and I’ve gotten nowhere.”

Complaints against Ocwen from borrowers continue to pour in to the Consumer Financial Protection Bureau, showing the magnitude of the firm’s challenges following its December settlement with regulators. After the departure of founder and Chairman William Erbey last month, Ocwen is preparing to sell part of its servicing business to simplify operations. It also needs to overhaul its compliance process and technology to regain the confidence of investors, said Douglas Harter, an analyst at Credit Suisse AG.

“One of the first tasks after Erbey’s departure is making sure they have the right infrastructure in place to catch these mistakes,” Harter said. “They are going to have a long road in rebuilding their reputation with regulators, investors and borrowers.”

Rest here…



One Response to “Ocwen CEO Vows to Shrink Servicer as Complaints Rise”
  1. At one point, there was a known issue in area of ‘lockbox theft.’ That is the ‘risk’ of mailing a payment. Servicers have different mailing address (po box, city of thieves, any state, usa) aka lockbox, payment cash system, for accepting payments, usually according to region. These sub-servicing affilliates cash the check, deposit the cash, and transfer the funds.

    There is no honor amongst these thieves…

Leave a Reply