The Irony: Ocwen Sues Fidelity Information Services Over ‘Fraudulent, Abusive Billing Scheme’
Ocwen Financial Corp. has filed a lawsuit in California Superior Court alleging that Fidelity Information Services LLC (FIS) inflated its monthly rate and charged Ocwen for a variety of expenses while serving as its monitor for a 2015 mortgage servicing settlement case.
According to the filing, Ocwen alleges that FIS wasted an agreed to $44.8 million budget through “fraudulent or negligent misrepresentations in its monthly invoices to Ocwen”. The suit also claims “whenever Ocwen questioned the legitimacy of FIS’s invoices or confronted FIS about their increasing enormity, FIS reiterated its misrepresentations that the hours and expenses reflected on the invoices were legitimately worked and incurred.”
Because FIS held fast that its invoices were legitimate, “FIS induced Ocwen to continue to pay millions of dollars for work that was not performed,” the filing stated. Ocwen alleges that FIS did so because the monitor felt that it had “free reign to lie to Ocwen without consequence.”
The suit orbits a 2015 settlement against Ocwen for alleged impropriety in its mortgage servicing practices. The California Department of Business Oversight ordered Ocwen to conduct a two-year review of its business and named FIS as the agency to do the review. FIS proposed the nearly $45 million budget to review as many as 50,000 loan files.
“Each time FIS submitted an invoice to Ocwen, FIS represented that the amounts reflected hours actually worked in support of the review and expenses reasonably incurred and for which FIS was entitled to be reimbursed,” the filing states. “Those representations were false.”
Copy of the complaint below…
OCWEN LOAN SERVICING, LLC, v. FIDELITY INFORMATION SERVICES