Ocwen Foreclosures frozen due to National Mortgage Settlement failure to comply
Are you trying to negotiate your wrongful foreclosure or mortgage workout with Ocwen? If you are one of a group of affected borrowers, your window may have widened. Over 17,000 Ocwen loan foreclosures are on hold.Following the National mortgage settlement, an independent monitor has evaluated Ocwen Loan Servicing regularly. During the first quarter of 2016 monitoring procedure, Ocwen received a mixed report that could prove costly.
The good news for Ocwen:
NMS Monitor Joseph Smith’s office reported that Ocwen has satisfied its consumer relief obligation, providing more than 23,000 borrowers with over $2 billion in consumer relief, well ahead of the 2017 deadline. The bad news for Ocwen:17,496 loans that “could have been affected” by failure to address Metric 31 are frozen, restricted from foreclosure. Metric 31 compliance failure is not a brand new issue for Ocwen. As far back as October 2015, the NMS monitor office reported Ocwen failed metric 31, which tests whether the mortgage servicer, Ocwen, loan modification denial notification to a borrower is sent with the reason for the denial, the factual information considered by the servicer in making its decision and a timeframe by which the borrower can provide evidence that the decision was made in error.
Bank of America, after acquiring Countrywide in 2008 for $2.5 billion, (less than a tenth of the 2007 valuation), dropped the countrywide name from its mortgage operations. At one point, early in 2008, Countrywide acknowledged it had over a 9% default rate overall, with a 33% default in subprime mortgage loans alone. At its zenith, in 2007, Countrywide originated more than $408 billion in loans, much of that sum going to poorly assessed and risky borrowers, or predatory lending mortgages. .
Ocwen has also completed corrective action for other Metrics: 7,8,19 and 23 as well as Ocwen’s Global Corrective Action Plan. The Global Corrective Action Plan is a plan to correct several letter dating issues uncovered in previous monitoring audits.
Metric 7 evaluates the timeliness, accuracy and completeness of pre-foreclosure initiation notification letters sent to borrowers.
Metric 8 tests servicer’s compliance with servicing standards regarding the propriety of default-related fees (e.g., property preservation fees, valuation fees and attorneys’ fees) collected from borrowers.
Metric 19 tests servicing standards compliance regarding timeliness for responding to borrowers about missing or incomplete information.
Metric 23 tests the servicer’s compliance with the requirement to notify borrowers of any missing documents within 30 days of a borrower’s request for a short sale.
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