Servicing

Ocwen pulls a PHH: Asks court to declare CFPB unconstitutional, requests DOJ help

Asks court for expedited decision on CFPB constitutionality
Ocwen Financial is pulling a PHH. Just as PHH did recently, Ocwen is playing the unconstitutional card in its fight against the Consumer Financial Protection Bureau, asking the United States District Court for the Southern District of Florida to declare the CFPB unconstitutional and toss out the CFPB’s lawsuit against the company.
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U.S. Bank fined $15 million for bankruptcy filing violations

OCC announces fine for violations between 2009 and 2014
The Office of the Comptroller of the Currency announced Tuesday that it is ordering U.S. Bank National Association to pay a civil penalty of $15 million for what it calls “bankruptcy filing violations” that occurred between 2009 and 2014. Here are the details.
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Credit rating agencies ding Ocwen over CFPB, state regulator charges

S&P, Fitch, Moody’s, Morningstar take action on nonbank’s ratings
In the wake of the Consumer Financial Protection Bureau and a growing group of state regulators accusing Ocwen Financial of widespread mortgage servicing issues, S&P Global Ratings, Moody’s Investors Service, Fitch Ratings, and Morningstar each released updated views of Ocwen, with each agency’s analysts stating that Ocwen’s recent regulatory troubles could have dire long-term consequences for the company.
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Ocwen takes Massachusetts, Illinois to court to fight mortgage restrictions

Nonbank says that states’ restrictions will cause “significant harm” to consumers
Last week, a raft of state regulators clamped new business restrictions on Ocwen Financial for alleged rampant errors with homeowners’ escrow accounts and other issues at the nonbank. Ocwen said that it intended to fight back against the state regulators’ accusations and business restrictions, and the company did just that on Tuesday, announcing that it is taking the regulators in Massachusetts and Illinois to court to fight for its ability to operate within the states.
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Additional states restrict Ocwen's business over mortgage servicing issues

Maryland, Michigan, Indiana also sanction Ocwen
Last week, a group of 22 states sanctioned Ocwen Financial and Ocwen Loan Servicing for alleged widespread issues with consumer escrow accounts and allegations that the companies were conducting “willful and ongoing unlicensed activity” in some states. But those states aren’t the only ones that are taking action against Ocwen.
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Here's a detailed breakdown of Ocwen's new restrictions by state

A deeper dive reveals what Ocwen can and can’t do going forward
The servicing issues at Ocwen Financial are allegedly so widespread that some states are placing stricter restrictions on the nonbank, beyond freezing the company’s ability to acquire new mortgage servicing rights and originate new mortgage loans. In fact, in one state, Ocwen has basically been put of out business entirely.
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Cincinnati sues Harbour Portfolio Advisors over predatory foreclosure sales

Already under CFPB investigation
Harbour Portfolio Advisors remains in the hot seat as it faces another investigation into its foreclosure sales practices. The city of Cincinnati announced a lawsuit against the company, one of the nation’s largest sellers of foreclosed homes, due to unpaid fines and alleged failure to properly maintain dozens of homes.
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Ocwen answers state regulators' charges of widespread servicing errors

"Ocwen will not sign unfair and unjust consent orders"
On Thursday, a group of state regulators, led by North Carolina, accused Ocwen Financial of having widespread errors on consumers’ escrow accounts and said that the company’s financial situation is tenuous, at best. Early Friday morning, Ocwen released a lengthy statement in response the state banking regulators allegations, and as one might expect, Ocwen said that it disagrees with the state regulators’ charges and plans to fight back.
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Attention lenders: The CFPB is now focusing more on fair lending in mortgages

A look at where the CFPB will increase its fair lending oversight this year
After looking back at its fair lending priorities for 2016, the Consumer Financial Protection Bureau highlighted which areas will be top priorities for 2017. So what’s at the top of the list? Mortgages. The bureau explains where it is ramping up its efforts in its latest annual Fair Lending report.
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Florida also alleges widespread servicing failures at Ocwen

Attorney General Pam Bondi files lawsuit against nonbank
The Consumer Financial Protection Bureau and the members of the Multi-State Mortgage Committee were not the only ones to take action against Ocwen Financial on Thursday for the nonbank’s mortgage servicing practices. The state of Florida also sued Ocwen, along with the company’s subsidiaries Ocwen Loan Servicing and Ocwen Mortgage Servicing, for “mortgage servicing misconduct.”
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