Ocwen Financial has reached agreements with two more states over last year’s regulatory actions against the company.
Ocwen has reached accords with North Carolina and South Dakota, bringing the total number of jurisdictions where the company has reached a resolution to 27, according to a recent regulatory filing.
The company’s troubles began in April, when about 20 states simultaneously filed regulatory orders against it, citing servicing abuses. The orders effectively crippled Ocwen’s ability to do business in those states. In the same month, Ocwen was sued by the Consumer Financial Protection Bureau, which alleged that the servicer “botched basic functions” in servicing loans.
In the succeeding weeks, more jurisdictions slapped regulatory orders on the company, eventually bringing the total up to 30 states plus the District of Columbia. In recent months, Ocwen has been settling the states’ complaints.
“The agreements (with North Carolina and South Dakota) contain key terms that are similar to the agreements Ocwen has previously disclosed,” the company said in its filing with the Securities and Exchange Commission. Those agreements included several provisions in common:
- Ocwen will not acquire any new residential mortgage servicing rights for a specified period of time
- The company will transition from its current proprietary servicing system, REALServicing, to an alternate system and not board any new loans on REALServicing
- Ocwen will engage a third-party auditor to analyze its compliance with federal and state escrow laws
- Ocwen will develop corrective action plans for any errors identified by the auditor and submit those plans for review
- Ocwen will develop a plan to enhance its consumer complaint-handling process
- Ocwen will provide financial reporting as part of each state’s supervisory framework for the next three years
The company said that it was continuing to pursue settlements with four regulatory agencies and two state attorneys general with whom it had not yet reached agreements.
Source of article: https://www.mpamag.com/news/ocwen-settles-servicing-complaints-with-two-more-states-90050.aspx