Regulator looks to suspend Ocwen’s mortgage license

by Paydayloans24713 Jan 2015
The state of California is looking to suspend the mortgage license of Ocwen Financial Corp., claiming the payment collection firm has failed to turn over the right paper work showing it complies with the state’s laws protecting homeowners.

The action is the latest against the Atlanta-based servicer, which is currently dealing with a mountain of regulatory issues.  California is accusing Ocwen of defying requests for information by the California Department of Business Oversight (CDBO), which manages the licensing of nonbank mortgage lenders, according to the .

Tom Dresslar, spokesman for the state agency, told the newspaper that losing a California license would mean that Ocwen, based in Atlanta, would have to sell its rights to handle bill collection and foreclosures in the state.
This year has proven to be tough for the mortgage company. In February, Benjamin Lawsky, superintendent of New York's Department of Financial Services, put an “indefinite hold” on its $2.7 billion mortgage-servicing rights deal with Wells Fargo.
Then in October, Ocwen was accused of denying struggling borrowers the chance to fix loan problems and avoid foreclosures. The recent investigation by the New York's Department of Financial Services found that the company inappropriately backdated thousands of time-sensitive letters to mortgage borrowers and did not take action to fix the issue despite repeated notices of concern.



Should CFPB have more supervision over credit agencies?