Ocwen Financial – its financial future hanging in the balance – this week filed court documents challenging the constitutionality of the Consumer Financial Protection Bureau, which late last week brought civil charges against the $200 billion servicer. Ocwen is hardly new to regulatory scrutiny, but this time around the situation is different. Just when it thought it had cleaned up its act on servicing residential borrowers, it was sued by the CFPB and smacked with cease-and-desist orders from at least 24 states. Those orders – which the company is already challenging in court – prevent...
Total mortgage delinquencies dropped to an 11-year low of 3.62 percent in March, thanks to improving economic metrics, according to Black Knight Financial Services’ first look at March 2017 mortgage data. In particular, overall delinquencies fell 14.1 percent month-over-month, the lowest they have reached since March 2006 and the fourth lowest point since the turn of the century. On a year-over-year basis, total delinquencies declined 11.4 percent. Total non-current inventory, comprised of all loans 30 days or more past due or in active foreclosure, fell below 2.3 million loans, the lowest volume in 11 years, Black Knight analysts found. Observers attributed...
Nonbank mortgage firms increased their servicing portfolios by 3.0 percent during 1Q17, more than double the 1.3 percent increase in total Fannie/Freddie servicing during that period.
Fitch notes that New Residential Investment Corp., a publicly traded REIT, owns $118.7 billion in servicing rights that are being subserviced by Ocwen.
The company adds: “Under these circumstances, Ocwen has a responsibility to its customers, shareholders, and employees to vigorously defend the company.”
The CFPB last week filed a massive civil damage case against top-ranked mortgage servicer Ocwen Financial, accusing the nonbank and its subsidiaries, Ocwen Loan Servicing, LLC, and Ocwen Mortgage Servicing, Inc., of “failing borrowers at every stage of the mortgage servicing process.” The agency alleges that Ocwen’s “years of widespread errors, shortcuts and runarounds cost some borrowers money and others their homes.” Ocwen allegedly botched basic functions like sending accurate monthly statements, properly crediting payments, and handling taxes and insurance. The agency added that Ocwen also illegally foreclosed on struggling borrowers, ignored customer complaints, and sold off the servicing rights to loans without fully disclosing the mistakes it made in borrowers’ records. Among the CFPB’s major allegations was that the ...
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