Loan Servicer Ceases Foreclosures Found to be Wrongful

Stephanie Abbott —  August 6, 2019 — 7 Comments

Ocwen Financial Corporation is a national provider of loan servicing for lenders. It is headquartered in Florida and has offices in several states. In its Consent Agreement with Maine’s Bureau of Consumer Credit Protection and Attorney General, Ocwen admitted that after July 2014 it pursued foreclosures against Maine homeowners based on paperwork which the State found to be legally defective.

Specifically, Ocwen used “powers of attorney” granted by corporate originators of the mortgages, but those corporate originators of the mortgages had been legally dissolved – had ceased to exist – no later than March 2012. The State alleges that the powers of attorney terminated when the granting corporations dissolved.

Under the Consent Agreement, the State found that Ocwen’s use of the powers of attorneys from legally nonexistent entities violated a statute prohibiting “false, deceptive or misleading representation or means in the collection of any debt.”

Ocwen’s illegal filings continued into January of 2019, even after Ocwen’s lawyers had assured State regulators in November 2018 that the practice would stop. The company termed the additional filings as “inadvertent.”

Ocwen Financial Corporation will refund or credit 24 Maine residents more than $50,000 in attorney’s fees they were assessed when their homes were foreclosed upon, and the company will pay $24,000 in civil penalties and $10,000 in investigative costs to the State of Maine, as part of a Consent Agreement signed last week.

Maine’s Supreme Court has made clear that lenders must establish that they have the legal right to pursue foreclosures,” said Will Lund, Superintendent of the Maine Bureau of Consumer Credit Protection. “Those requirements were not followed in these cases.”

Attorney General Aaron M. Frey, whose office assisted state mortgage regulators in negotiating and resolving the matter, stated, “The Consent Agreement puts Ocwen – and other national mortgage lenders and servicers – on notice that they must follow the legal standards here in Maine if they pursue actions on defaulted mortgages.”

The Consent Agreement may have ramifications beyond Ocwen, noted Superintendent Lund, since other lenders may be filing foreclosures based on similar powers of attorney issued by the same nonexistent corporate loan originators used by Ocwen.

 

Stephanie Abbott

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7 responses to Loan Servicer Ceases Foreclosures Found to be Wrongful

  1. Glenn greenwood August 24, 2020 at 3:00 pm

    With the latest Usbank vs Gordon these cases will come back to court and foreclosures granted. All plaintiff needs is ratification …

  2. The bastards took my home in June of 2017 while they were supposedly doing a modification for me. I had no idea that I was being foreclosed on until the Sheriff showed up to kick me out..
    They need to pay..

  3. My lender clase the loan went the lender report, Stement asking for Health department neet to inspect the séptico sistem. They dos not falow the lender report and the séptico sistem is ilegal to pe Law and va ragulation

  4. Debra Reed Timothy Reed August 27, 2019 at 10:46 pm

    They did the same to us stole our home and left us homeless and we were compliant with our modification
    Conspiracy started 2009-2016

    • Please contact me the are doing the same thing to me. Crooked Ocwen needs to be accountable for their actions. I filed a lawsuit against them in 2016 they asked me to drop the suite and do a loan modification which I did. They have been increasing my payments and placed forced placed insurance. They are horrible wicket demons from hell. Please contact me Debra I would like to speak with you. I am so sorry that they have done this horrible horrible misdeed to you and your family. Please Send me a email with your contact information. My name is Cee G. I am in California. John316pray@yahho.com

  5. I too have the same assignment. Must be New Century. In 2012 Ocwen, assigned my note, to the CSMC Trust….New Century was deceased, bankrupt. Seven times they have used the same document to harass, and bully me. Foreclosed twice with the same paperwork and the state court allowed it.

    • Glenn greenwood August 24, 2020 at 2:57 pm

      With the latest Usbank vs Gordon decision that all the plaintiff needs is a ratification of assignment all these cases will be overturned in the future.

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