BREAKING NEWS, OP-ED —
In a not-so-unexpected move, Ocwen Loan Servicing, LLC has filed a lawsuit against Fidelity Information Services (FIS), which is basically an IT servicer provider to mortgage loan servicers. The issues involve Ocwen being billed $44.8-million by FIS, which the IT provider says were legit expenses. Ocwen disagrees, citing part of the receipts FIS claims were “legit” involve expenses at strip clubs, lavish hotels and casinos. Sounds like robbing Peter to pay Paul just backfired on Ocwen and the California Department of Business Oversight and now Ocwen wants its pound of flesh.
And just when everyone thought that Ocwen was a “snake in the grass” when it came to servicing mortgage loans, given the latest spate of bad news confronting it vis a vis three lawsuits from: (1) the CFPB; (2) the Florida Attorney General; and (3) Ocwen shareholders, it appears that Ocwen is trying to shift part of the blame arising from an audit of its services involving California homeowners (“the property owners that Ocwen has allegedly screwed”) under an order from the California Department of Business Oversight (“DBO”, “the government”) to audit Ocwen’s records to insure compliance with the DBO’s Order. See the 27-page Complaint here:
To compound Ocwen’s problems, 20 states plus the District of Columbia have also informed Ocwen that they will not allow the servicer to take on any new servicing accounts. Judging from the complaints lodged against Ocwen and its parent, the fault lies in Ocwen’s servicing platform (REALServicing), which would further indicate that Ocwen mortgages need to be individually, fully audited if Ocwen decides it wants to file a complaint to foreclose in Court, as the mortgage servicer, in collecting any alleged debt, could rack up multiple FDCPA violations!
On another note … for those of you who have Ocwen as a servicer … if Ocwen is trying to foreclose on you and you know you haven’t been making your mortgage payments … would it surprise you to learn that as a servicer or sub-servicer, Ocwen has been so kind (without any direct contract from you) as to make your payments for you?
Are you shitting your pants yet?
Perhaps you’d like to read this “electronic transmission” that Ocwen sent to six federal agencies, especially at the bottom of page 2 and the first paragraphs of page 3 (part of a report issued to counsel at Exhibit 29):
Now you seriously don’t think I made this shit up, right? This is Ron Faris, Ocwen’s CEO writing this stuff!
If Ocwen is making your payments, how then, are you in default?
May I suggest you check into your REMIC’s “Sales and Servicing Agreement” (“SSA”, also discussed in Exhibit 29) to see what conditions Ocwen would make these payments … basically … according to the Exhibit 29, they get to recoup all of those pesky servicing fees they’re tacking on at every whim, to where there’s nothing left for the REMIC after they sell your house! Another slap at homeowners … part of servicer fraud!
It’s public … so don’t say you weren’t told.
So if Ocwen’s accounting system is that messed up … and it’s taking funds from “other accounts” to pay for delinquent loan payments … wouldn’t it stand to reason that cutting off its new servicing routes would starve the mortgage loan servicer for surplus servicing funds it could continue to use to rip off other homeowners besides those affected. The dog chasing its tail? Perhaps. Eventually, it either gives up or bites itself. Ouch!
Sadly, our government let’s these folks get away with this, because Exhibit 29 was sent to the government, it has knowledge of what Ocwen is doing. It’s no wonder Ocwen’s stock tanked. If I ran a business like Ron Faris does, my stock would tank too! It’s no wonder many of you out there are considering suing Ocwen. Pretty soon, its legal resources will be depleted and it won’t be able to survive. Hmmm. Gee, what an interesting thought.
Hmmm. Looks like homeowners are making an impact here.
In our next online FDCPA Webinar, we’re going to look at drafting a sample FDCPA suit against Ocwen! Doesn’t THAT sound like fun? Go to the Clouded Titles website to register to attend this online webinar, Thursday, June 15, 2017!