By THOMAS GRILLO
LYNN — Southern Essex Register of Deeds John O’Brien applauded the Division of Banks’ decision to temporarily suspend Ocwen Loan Servicing LLC’s ability to do business in Massachusetts.
“Ocwen is a financially troubled company that has been misleading and hurting innocent homeowners for some time now,” said O’Brien in a statement. “In their quest for financial gain, Ocwen has been victimizing these homeowners and it has to stop.”
Massachusetts took the action Monday with more than 20 other states to address issues related to the Florida-based company’s operations.
Ocwen services 34,472 loans in the Bay State. Of that number, 1,256 mortgages are held by homeowners who own property in southern Essex County since 2004.
Among other violations, the commissioner charged Ocwen has failed to accurately manage escrow accounts.
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The multistate examinations and monitoring revealed serious violations of consumer protection statutes and regulations and significant concerns with Ocwen’s ability to remain a growing concern, the state said.
“With the filing of these actions it gives me hope these homeowners will see an end to this injustice and that Ocwen will finally be held accountable for their actions,” O’Brien said.
Of paramount concern is the company’s deteriorating financial condition. Ocwen has lost nearly $1 billion since 2014, and will not be profitable by its own estimations for at least two years, the state said. The company has not developed or implemented an effective plan to curb these losses, the state said.
The order requires Ocwen to implement a plan to transfer its loan servicing activities for Massachusetts consumer mortgage loans to state-approved servicers. It also requires Ocwen to fund or place mortgage loan applications in process with other lenders at no loss to applicants, and to cease accepting new applications.
“Our office alone has received numerous calls over the years from homeowners regarding Ocwen’s bullying tactics,” said O’Brien. “If any homeowner in Essex County requires any deed or mortgage documents from our Registry in their fight against Ocwen, we stand ready to assist. Please contact us at 978-542-1700 or email us at [email protected].”
In response, Ocwen has filed for restraining orders and injunctions against Massachusetts and Illinois regulators arguing the cease and desist demand will harm consumers.
“Ocwen has a responsibility to its customers, shareholders, and employees to vigorously defend the company,” the firm said in a statement.
The allegations do not arise out of a recent assessment of Ocwen’s business activities, the company said. Instead, they come from a 2015 multi-state examination of the firm’s mortgage servicing business by the Multi-State Mortgage Committee, which covered Ocwen’s activities from January 2013 to February 2015.
The company said they remain committed to working with Massachusetts and the other state regulators to resolve any valid concerns, and has commenced those efforts.
“Ocwen’s ability to help homeowners at risk of foreclosure remain in their home through responsible loan modifications continues to positively impact communities across the country,” the company said.
Thomas Grillo can be reached at [email protected].
