California regulator reveals what Ocwen did wrong
Although Ocwen won the fight with the CDB, it has been revealed what they did wrong. Turns out, they are not as clean as everyone thought they were.
Over the course of last year, Ocwen Financial detailed its efforts to rid itself of the mortgage servicing restrictions placed on it by a 2015 settlement with the California Department of Business Oversight over claims that Ocwen failed to turn over documentation showing that it complied with California laws.
In various filings with the Securities and Exchange Commission and calls with investors, Ocwen said that it set aside $25 million to buy its way out of the CDBO settlement, which prohibited Ocwen from acquiring any additional mortgage servicing rights for loans in California and placed a monitor inside Ocwen’s operations to ensure the company’s compliance with the settlement.
Ocwen got its wish last week, when it announced that it reached a new settlement with the CDBO to remove the state’s restrictions on its business.
But the price tag turned out to be much higher than the $25 million in cash Ocwen previously set aside. The final settlement also included $198 million in debt forgiveness.
So why was the settlement so big? Turns out that Ocwen’s operations weren’t exactly squeaky clean while the monitor was in place.
Details released by the CDBO in conjunction with the new settlement show that the monitor implanted in Ocwen’s operations found “hundreds” of violations of state and federal law over the last 18 months, including violations of the California Homeowner Bill of Rights. read more… housingwire.com