Mortgage servicer to be taken to task over 'abuses'

by Adam Smith13 Mar 2014
Mortgage investors appear set to take Ocwen to task on what they've branded "servicing abuses".

Bloomberg has reported that holders of mortgage-backed securities are planning to communicate with trustees and master servicers about the practices of Ocwen. The Association of Mortgage Investors sent a Twitter message on Tuesday saying the group “unites RMBS around criticism of #Ocwen servicing abuses”.

“Look for a forthcoming letter to Trustees, Mastr Servicers,” the group said via Twitter.

Association of Mortgage Investors executive director Chris Katopis remained cagey on the subject when contacted by Bloomberg.

"The Association of Mortgage Investors remains committed to the rights of investors. We are currently reviewing action against a number of servicers for their actions that have been harmful for both investors and borrowers,” he told Bloomberg, declining to comment further on the matter.

The criticisms won't be the first to be levelled at the country's fourth-largest mortgage servicer. Ocwen has been plagued with allegations that it has mishandled borrowers’ loans. As part of a settlement with regulators last year, Ocwen agreed to pay $2.1bn in relief to homeowners.

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