Ocwen hit with $900K fine over unlicensed offshore affiliates

by Ryan Smith29 Aug 2016
Oft-investigated mortgage servicer Ocwen will have to limber up its checkbook again, this time to pay a $900,000 fine to Washington State.

According to the state’s Department of Financial Institutions, Ocwen has been using unlicensed, offshore affiliates to perform servicing activities for Washington loans. Ocwen itself is licensed to service mortgage loans made to Washington residents. However, the DFI said the company was using unlicensed companies in the Philippines and India to perform activities that were considered residential mortgage servicing under state law.

That’s a problem, as Washington’s Consumer Loan Act “specifically requires that companies servicing residential mortgage loans be licensed Consumer Loan Companies,” according to a DFI news release. The DFI found that two offshore Ocwen affiliates – Ocwen Financial Solutions Private Limited in India and Ocwen Business Solutions Inc. in the Philippines – had been conducting unlicensed servicing activities for years. OFSPL had conducted the activities as far back as 2010, while OBS’s unlicensed activity started in 2013.

Under the settlement, Ocwen agreed to pay a $900,000 and only service Washington loans through licensed entities from now on, the DFI stated. DFI officials said Ocwen was quick to make the changes once the issue was pointed out.
“Ocwen cooperated in our investigation and quickly made changes to address our concerns around unlicensed activity,” DFI Director of Consumer Services Charles Clark said.”
 

COMMENTS

  • by | 8/29/2016 12:50:56 PM

    I hope other states follow suit. Trying to sell a short sale and coordinating with Ocwen personnel in India who barely spoke English and had absolutely no understanding of the home sale process in the U.S., has been nothing less than a nightmare and total abuse of the time of licensed agents in this country. Ocwen's use of offshore personnel is totally inappropriate for real estate brokerage business.

  • by waterboy | 8/29/2016 1:43:44 PM

    Ocwen personnel had NO desire to help in any way with any transaction I had with them. Ocwen deserves to be charged in EVERY state for their ineptness and total disregard for its customers and the Realtors who tried to work with them

  • by small broker | 8/29/2016 4:18:04 PM

    Same Stuff, Different Day - Why should the fine be paid by the stockholders who had nothing to do with the illegal activity? Why shouldn't the top managers, like the CEO, pay the fine personally for engaging in illegal activity?

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