The New York State Department of Financial Service announced that its review of Ocwen’s mortgage servicing practices found indications of non-compliance with servicing reforms.
The Department issued a release that “in some instances, the company failed to demonstrate that it had it sent out required 90-day notices before commencing foreclosure proceedings, or even that it had standing to bring foreclosure actions.” The examination also found that Ocwen sometimes failed to provide a single point of contact for borrowers, pursued foreclosure actions on borrowers seeking modifications, failed to conduct an independent review of loan modification denials, and failed to ensure that loan information was accurate and up to date. Ironically Ocwen was the first mortgage servicer to agree to the Department’s new mortgage servicing reforms in 2011. The examination resulted after the Department received complaints about Ocwen. The Department is now requesting that Ocwen hire an independent monitor to review its operations and identify and report on corrective action.
The Law Firm of R. Spencer Lauterbach is here to protect homeowners facing the risk of losing their homes. Mr. Lauterbach’s firm provides a thorough review for its clients’ foreclosure and home modification cases, and has successfully defended homeowners against unfair and illegal practices by mortgage servicers. Mr. Lauterbach is a member of the New York Bar, practicing in Rockland and Orange Counties as well as all three boroughs in New York City.