“Ocwen also sent backdated letters to borrowers facing foreclosure that may have left them unable to avoid default, Benjamin Lawsky, the department’s superintendent, wrote in the letter to Ocwen general counsel Timothy Hayes.”
~
NY says Ocwen backdated foreclosure letters, company shares slide
By Karen Freifeld and Peter Rudegeair
Oct 21 (Reuters) – Ocwen Financial Corp may have harmed hundreds of thousands of borrowers by sending backdated letters about loan modifications and foreclosures, New York state’s financial regulator said on Tuesday, sparking a selloff in shares of the mortgage servicer.
The company denied loan modifications in letters that borrowers received more than 30 days after they were mailed, cutting off their opportunity to appeal, according to an Oct. 21 letter from New York Financial Services superintendent Benjamin Lawsky to Ocwen.
Borrowers facing foreclosure received letters from Ocwen with cure dates that had passed months earlier, the letter said. Such activity violated state and federal laws, Lawsky said.
Shares of Ocwen sank 18.2 percent on news of Lawsky’s letter, closing down $4.78 at $21.48 on the New York Stock Exchange. They slid as much as 29.3 percent to a session low of $18.57, their lowest level since July 2012.
Atlanta-based Ocwen, one of the largest U.S. mortgage servicers, issued a statement blaming the improperly dated letters on software errors. It said it believes it has resolved the dating issues found so far.
The company’s statement said 283 New York borrowers received letters with incorrect dates, and added that 281 “are currently borrowers with us.” Ocwen later amended that statement to say it is aware of borrowers in New York beyond the 283 who received letters with incorrect dates but does not yet know how many.
“We are working with and fully cooperating” with the regulator, Ocwen said.
In his letter to Ocwen general counsel Timothy Hayes, Lawsky said an Ocwen employee had alerted a compliance executive to backdating problems about a year ago, and raised the issue again after being ignored for five months, yet the company failed to launch an appropriate investigation.
Lawsky, who runs the New York Department of Financial Services, demanded that Ocwen “fix its systems without delay.”
This past June, a monitor discovered a 2012 letter, backdated 41 days, denying a loan modification. The company told the regulator over the summer it discovered the issue in April or May of 2014. It said it involved around 6,100 letters and it had changed its system to fix the problem.
“Each of these representations turned out to be false,” Lawsky said in his letter.
Ocwen has faced more intense supervision from the New York regulator since February, when its proposed purchase of servicing rights on $39 billion of mortgages from Wells Fargo & Co was indefinitely halted.
Lawsky has also questioned Ocwen’s business ties to affiliates, as has the U.S. Securities and Exchange Commission. The servicer disclosed that the SEC has been looking into its restated financials as well.
The New York regulator and the SEC have been coordinating parallel probes, according to a person familiar with the matter. The person was not aware of any federal authorities looking into the backdating. Spokespeople for both agencies declined comment.
Michael Bresnick, former director of President Barack Obama’s Financial Fraud Task Force, said the U.S. Department of Justice might become interested in examining whether the backdating violated federal civil fraud laws.
“A central issue will be whether this was simply an isolated mistake … or part of a larger scheme to defraud homeowners,” Bresnick said.
A DOJ spokeswoman did not immediately respond to a request for comment.
The release of the letter shows New York’s issues with Ocwen are not going away and other regulators may start investigations, Compass Point Research and Trading analyst Kevin Barker said in a report on Tuesday.
Jaret Seiberg, an analyst at Guggenheim Partners, expressed similar sentiments.
“If Ocwen intentionally misdated letters to deprive borrowers of modifications, then it could be exposed to serious legal liability,” Seiberg said. (Reporting by Karen Freifeld and Peter Rudegeair in New York, additional reporting by Jonathan Stempel in New York, Aruna Viswanatha and Sarah Lynch in Washington; editing by David Gregorio)
SOURCE: Reuters
Letter below…
~
4closureFraud.org
~
Lawsky Letter to Ocwen general counsel Timothy Hayes
THERE IS NOTHING THAT IS GOING TO CHANGE OCWEN’S TACTICS BECA– USE HE GETS AWAY WITH EVERYTHNG HE DOES AND PAYS THE FINES WITH OTHER PEOPLES MONEY. . HE HAS CA– USED HUNDREDS OF THOUSANDS OF FORECLOSURES SO HE PAYS A FINE AND ALL THOSE PEOPLE MAYBE GET FIVE HUNDRED A PIECE HE HAS MADE THAT A HUNDRED TIMES OVER . HE IS COLD CALCULATED AND HEARTLESS,BUT IF THEY STOP HIM FROM BUYING MSR’S (MORTGAGE SERVICING RIGHTS FROM THE BANKSTERS AND FREEZE HIS ASSETS AND THEN FINE HIM HE WOULD BE SCRAMBIING .
Ocwen final nov72014
Ocwen Loan Servicing LLC Foreclosed On my investment Condo without authority to Foreclose. A recent CFPB report discovered similar ongoing abuses among servicers, and overseers of the National Mortgage Settlement have documented non-compliance with their court-mandated rules. Ocwen’s unlawful procedures are symptomatic of the entire industry. They grew to become the nation’s fourth-largest servicer, and the largest one that’s not also a bank, by scooping up servicing rights discarded by those also caught still abusing homeowners. Still abusing their court-mandated rules still foreclosing on properties they don’t own and are only the servicer with no right to foreclose. OCWEN aquired the servicing rights of the property from GMAC and have fraudulently over-stepped their authority to foreclose as a debt collector through their Lawyers at Robertson Anschutz & Schneid of Boca Raton. Indeed, the wrongdoing alleged in the Ocwen Case occurred through 2012, showing that this misconduct is ongoing, despite a MASSIVE SETTLEMENT with the industry’s biggest players earlier that year. This Foreclosure in Broward County happened on August 18,2014, CASE CACE0806 XXXX. The CFPB is charged with enforcing the Dodd-Frank Wall Street Reform and Consumer Protection Act which protects consumers from unfair, deceptive, or abusive acts or practices by any mortgage servicer – whether they are a bank or nonbank. This is still enforced today as it was early in 2012, examinations by the Multistate Mortgage Committee, which is comprised of state financial regulators, identified potential violations at Ocwen that are still occurring in foreclosure cases today.
Ocwens response was:
_____________
in response to your inquiry regarding the owner of the loan ,please note that Ocwen does not own the loan,nor has it ever represented that it owns the loan.Rather Ocwen is a servicer of the loan on behalf of the owner. The Entity that owns the loan is U.S. Bank National Association AS TRUSTEE FOR Lehman XS Trust Series 2006-XXX
______________
There is a lost note and Mortgage applied for on the foreclosure complaint and an affidavit signed by an officer of GMAC on January 17,2013 who swore that to the best of his knowledge the original note has not been satisfied,pledged,assigned or hypothecated.
One lie to cover another is the deception to cover up who is the
Real Owner in due course and the banks will do anything to prove they are the owner of your loan .
So here is Ocwen saying he is not the owner in due course but is acting on behalf of the owner U.S.Bank
National Association as Trustee for Lehman XS TRUST TRUST SERIES 2006-XXX
In that statement is the scam that the Banks are using to foreclose on thousands of homes and deceive the courts,the judges and the borrowers that the trust holds the note.
1-The bank chose to have a distributed party of interest scheme to avoid paying taxes twice and put these loans into SPV’s(Special Purpose Vehicles) so they don’t get taxed on them. This is covered under the internal revenue tax code 860.
This way only the shareholders are taxed,and only the shareholders are the real parties in interest.
The real parties of interest has to pay taxes on the earnings of the Notes in other words the banks avoided paying interest on the note, if the REMIC(trust) owned it then the REMIC has the tax liability. The banks could have accepted double taxation and let the REMIC hold the centralized power or distribute the tax liabilities to the shareholders,distributing the parties of interest. The bank chose the distributed power of interest scheme to avoid paying taxes on the notes ,but now if no one entity is the real party in interest ,then each and every shareholder of the REMIC is.
So the question is …who has the right to foreclose? The answer is …no one.
The promissory note is only enforceable in its whole entirety. If thousands of shareholders own a tiny percentage of each loan no one can foreclose.
LOAN HISTORY TO UNDERSTAND EVENTS AS THEY HAPPENED
a- Greenpoint Mortgage closing may 22,2006 then the PROMISSORY Note was sold to the REMIC STRUCTURED AS A SPV Leaving the shareholders the real party of interest NOT LEHMAN TRUST.
b- The lender then becomes only the servicer
c- Greenpoint transfers the servicing rights to GMAC SEPT 1,2006
d- Loan defaults sept 2008
e- David Stern fabricates two Assignment of Mortgage Dec.2,2009 and Dec. 3 ,2009 word for word with GMAC AS THE ASSIGNOR AND ASSIGNEE SAMME ADDRESS
with Jeffrey Stephan as VP OF MERS WITH SAME Effective date OF Dec.12,2008 and Recorded in Broward County jan.21,2010.AND JAN.28,2010
f- Foreclosure Complaint dated Dec.22,2008 ON BOTH 10 days after effective date on assignment.OF MORTGAGE.
g- GMAC Mortgage is now the owner of my loan through fraudulent assignments of mortgage by David L. stern and Jeffrey Stephan using MERS as the authority do do so.
h- The pattern here is the original lender greenpoint sells the loan to a REMIC (Real Estate Mortgage Investment Conduit for 1.5 times the value of the loan so if the loan was 100k the lender goy 150k but since the bank chose to avoid paying double taxes they decided to use a structure the REMIC as a SPV(SPECIAL PRPOSE vEHICLE) LEAVING THE SHAREHOLDER AS Tthe paying taxes on the Notes making them the real parties of interest according to iRC tax code 860 (internal Revunue Code 860) then the Mortgage Backed Securiities that were purchased for the promissory note replace the note and the note is converted into a stock traded on the S.E.C since you cannot have a stock and a not exist at the same time is a form of security fraud so now the lender is claiming the Famous lost Note and Mortgage that they say was lost when to transfering from from lender to servicer since the original lender lost his right to control the loan after converting it to a stock so that Lender becomes only the servicer and to cover up where the lost Note is they transfer the servicing to another servicer who eventually will be the lender through the dec 2,2009 Assignment became the next lender then they pull the same scam off all over again.
i- DID YOU JUST HAVE AN AHA MOMENT????
Now here is what has happened. Ocwen has said that GMAC HAS A SWORN STATEMENT that the loan never was satisfied,pledged,assigned or hypothicated ,bull crap and more fraud to cover up the fact that Ocwen contacted me as a debt collector meaning the loan was written off by the REMIC and the FDIC paid them a tax credit of 80% ,then the remic sold the dead asset to GMAC AND oCWEN PICKED IT UP FOR PENNIES ON THE DOLLAR .
however the only way a bank can foreclose on you is if they buy the promissory note back from the REMIC as a written off debt,just like a debt collector would . tax credit has been given to the shareholders and the REMIC. It is no more so,essentially these banks are picking up the promissory note for pennies on the dollar and through deceit,they try to re-attach the converted Note to the Dead Loan .This is called Re-Adhesion.
The Notes bought from the secondary markets (Defaulted Loans) are unsecured . Re-adhesion of an asset that has been written off is illegal ,immoral and unconscionable.
They then take these documents and represent them to the world as if they are the real parties of interest. They bring these documents into court,deceiving the court and their counsel (who ,for the most part ,is ignorant of this scheme). Ocwen first notified me in february 16,2013 as a debt collector “this is an attempt to collect a debt”
Once a debt has been written off, it is discharged. it cannot be collected again. Debt Collectors use deception to convince people that they were assigned the debt. So how does this relate to the REMIC and a debt collector? The individual Shareholder s are the real and beneficial interest holders. Since the individual shareholders cannot endorse and assign their portion of the loss,then they have to write it off as a bad debt.
The TRUSTEE of the REMIC cannot foreclose either because it is not the Real and Beneficial holder of the Promissory Note , The REMIC has given up the right to foreclose when it chose to be structured as a SPV (Special Purpose Vehicle) for the purpose of a straight tax pass through .
A defective instrument is not enforceable. An instrument that has been previously discharged and bought as a bad debt is not enforceable.The question to ask opposing counsel to:
1-Stipulate the true nature of their ownership of the Note
2-subpoena of accounting records .
Did you just have an aha moment
THIS IS THE NATURE OR THE EXTENT OF THE BIGGEST FRAUD PREMEDITATED IN THE HISTORY OF THE MORTGAGE INDUSTRY TO THE AMERICAN PUBLIC AND THE WORLD
A Foreclosure action must be done by a Real Party in interest. If it is’nt ,then it is nothing more then THEFT AND EXTORTION
This is not new news, its OLD stuff we already no. FACT: Nothing be will be done for the people who suffered their fraudulent greed.
wow. ,,your kidding me,,gee eres some god damn news…what a f—-en revalation,wo gets brownie points for this lame ass news break…. THERES NO SECRET HERE PEOPLE/ITS ALL OUT IN THE OPEN……….WHAT I WANNA KNOW IS WHEN DO I GET COMPENFUCKENSATED FOR THESE BASTARDS TAKING MY HOME,210,000 DLRS EQIUTY,AND GIVING THEM 12,000 DLRS AND MAKING 4 PAYMENTS …THESE FUCKERS TOOK MY HOME AND IM ON THE FUCKEN STREETS. DO SOMETHING ABOUT IT .. JESUS FUCKEN CHRIST.!! THIS ISNT NEWS…. WHAT A JOKE ON THE AMERICAN PEOPLE
Say it isn’t so… A big Bank lying to enable thousands of foreclosures… I happen to (or did) like Ocwen. Thats a shame but We will have to add them to the “Fraudclosure List of Banksters”. The Law Offices Of Steven W. Stutman – Goshen, New York’s #1 Foreclosure Defense Team