Boston - Yesterday, the Division of Banks (Division), a regulatory agency under the Office of Consumer Affairs and Business Regulation, announced it has entered into a Consent Order with Ocwen Loan Servicing, LLC, (Ocwen) a West Palm Beach, Florida-based mortgage loan servicer, mortgage lender, and debt collector.
This action resolves the outstanding findings from the April 20, 2017 Findings of Fact and Temporary Order to Cease and Desist and Order to Show Cause and Notice of Right to a Hearing. The Division was one of twenty-two state regulators to issue public regulatory orders or charges against Ocwen on April 20, 2017 for violations of state and federal laws.
“We will continue our efforts to curb and correct inappropriate actions by loan servicers that have harmed Massachusetts consumers and ensure that Massachusetts residents are protected,” said Consumer Affairs Undersecretary John Chapman.
The Consent Order requires numerous corrective measures to be taken by Ocwen. These include the transfer of all Massachusetts consumer loans onto a new servicing platform, an audit of consumer escrow accounts, a data integrity review of consumer loan information, and a financial condition plan. The Consent Order also places restrictions on Ocwen’s ability to retain new mortgage servicing rights in Massachusetts and requires the payment of a penalty of $1,000,000.
“This Order continues the Division’s efforts to stop unscrupulous loan servicing practices and implement actions to ensure consumers’ funds are safe and accounted for properly,” said Commissioner of Banks Terence McGinnis. “The Division remains focused on taking action where appropriate to ensure that licensees follow the law.”
Ocwen Loan Servicing, LLC is a nationwide mortgage lender and mortgage loan servicer and currently services approximately 33,000 residential mortgage loans in the Commonwealth.
Please refer to the Division of Banks website at www.mass.gov/dob for additional information including the rules governing lender licensing, instructions on how to file a complaint, and information relative to the license application requirements. Please visit the Division’s Consumer Money Matters webpage for tips to protect consumers from unlawful lending practices.