ocwen loan modification help
A major U.S. mortgage servicing firm under investigation for issuing backdated letters to borrowers who sought loan modifications is also the subject of thousands of consumer complaints, government data show.
Ocwen Financial (OCN) has been targeted by 13,520 complaints filed with the Consumer Financial Protection Bureau since December 2011 for problems involving loan servicing, foreclosures and related issues, according to the regulator's data.
The complaint total ranked Ocwen third for mortgage-related grievances filed with the CFPB during the nearly three-year span. Only Bank of America (BAC), with 29,390 complaints, and Wells Fargo (WFC), with 17,574, had more, the data show.
Ocwen's complaint total topped those of two of its closest non-bank competitors in the mortgage servicing sector, Nationstar Mortgage (NSM) and Green Tree Servicing, a subsidiary of Walter Investment Management (WAC), according to the data.
Most of the complaints were closed, with explanations given to the borrowers.
Mortgage servicers handle the day-to-day financial tasks involved with managing housing loans, including processing payments.
The violations represent a second attack on Ocwen, whose shares plunged last week after a New York regulator's review found serious issues with its mortgage servicing practices. This included the backdating of potentially thousands of letters that denied borrowers mortgage modifications and left them no time to appeal, likely causing "significant harm" to some homeowners, according to the New York Department of Financial Services review.
Citing a March research report by investment bank Compass Point Research and Trading, Ocwen said the consumer complaint total could be misleading because some mortgage servicers deal with relatively higher numbers of delinquent borrowers. Ocwen handles a heavy volume of delinquent mortgage loans.
"The servicing of delinquent loans is much more difficult and the most likely source of servicing missteps," the Compass Point report said.
Ocwen also cited a Department of the Treasury report issued in September that said the company had met all compliance benchmarks for the federal Home Affordable Modification Program. Minor improvement may be needed in some cases, the report said.
The CFPB reported Tuesday that its examinations of mortgage servicers earlier this year found some had delayed finalizing permanent loan modifications for borrowers, resulting in "negative consequences" for at least some of the homeowners involved. The report did not identify specific companies.
A major U.S. mortgage servicing firm under investigation for issuing backdated letters to borrowers who sought loan modifications is also the subject of thousands of consumer complaints, government data show.
Ocwen Financial (OCN) has been targeted by 13,520 complaints filed with the Consumer Financial Protection Bureau since December 2011 for problems involving loan servicing, foreclosures and related issues, according to the regulator's data.
The complaint total ranked Ocwen third for mortgage-related grievances filed with the CFPB during the nearly three-year span. Only Bank of America (BAC), with 29,390 complaints, and Wells Fargo (WFC), with 17,574, had more, the data show.
Ocwen's complaint total topped those of two of its closest non-bank competitors in the mortgage servicing sector, Nationstar Mortgage (NSM) and Green Tree Servicing, a subsidiary of Walter Investment Management (WAC), according to the data.
Most of the complaints were closed, with explanations given to the borrowers.
Mortgage servicers handle the day-to-day financial tasks involved with managing housing loans, including processing payments.
The violations represent a second attack on Ocwen, whose shares plunged last week after a New York regulator's review found serious issues with its mortgage servicing practices. This included the backdating of potentially thousands of letters that denied borrowers mortgage modifications and left them no time to appeal, likely causing "significant harm" to some homeowners, according to the New York Department of Financial Services review.
Citing a March research report by investment bank Compass Point Research and Trading, Ocwen said the consumer complaint total could be misleading because some mortgage servicers deal with relatively higher numbers of delinquent borrowers. Ocwen handles a heavy volume of delinquent mortgage loans.
"The servicing of delinquent loans is much more difficult and the most likely source of servicing missteps," the Compass Point report said.
Ocwen also cited a Department of the Treasury report issued in September that said the company had met all compliance benchmarks for the federal Home Affordable Modification Program. Minor improvement may be needed in some cases, the report said.
The CFPB reported Tuesday that its examinations of mortgage servicers earlier this year found some had delayed finalizing permanent loan modifications for borrowers, resulting in "negative consequences" for at least some of the homeowners involved. The report did not identify specific companies.
