Ocwen

Introduction

The following pages provide an overview of my report to the United States District Court for the District of Columbia on Ocwen’s compliance with the servicing standards. Close followers of the National Mortgage Settlement (NMS or Settlement) will recall that Ocwen was a successor servicer to one of the original servicers in the Settlement, ResCap Parties. As a result of that transaction, I monitored Ocwen’s compliance with the Settlement for that portion of its loan portfolio. Subsequently, in February 2014, Ocwen joined the Settlement for its entire operation. This report is my third report on Ocwen with respect to all the loans it services and covers testing periods for the third and fourth calendar quarters 2015.

Though Ocwen passed all my tests during the third quarter 2015, it did fail two tests for the fourth quarter 2015, each of which is related to force-placed insurance. Further discussion of these fails and Ocwen’s actions to correct them are below.

As stated in my previous reports, I required Ocwen to place a hold on foreclosure sales on 17,300 loans because of significant errors in loan modification denial notices sent to borrowers. This hold was related to part of Ocwen’s remediation efforts after it failed Metric 31. These errors included, among other things, failure to provide the factual information considered by Ocwen in making its decision and the timeframe for borrowers to appeal the denial and provide evidence that the denial was made in error. After Ocwen mailed corrected loan modification denial notices to affected borrowers in May 2016 and provided a sufficient timeframe for borrowers to appeal their denials, I permitted Ocwen to lift the foreclosure hold in July 2016. Ocwen continues to address and implement other remediation efforts related to its Metric 31 failure. In August 2016, I confirmed Ocwen had completed its Metric 31 corrective action plan (CAP) as of March 2016. I will continue to closely monitor Ocwen’s implementation of its Metric 31 remediation plan and its overall compliance with the Settlement.

Full report below…

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4closureFraud.org

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Monitor’s Update on Ocwen’s Compliance