Posted by Arleen Frias-Arias.
According to NPR News.com, Ocwen Mortgage, who has been tasked by FDIC (Federal Depose Insurance Corporation) and US Department of Treasury to assist consumers that are delinquent in their mortgages, is being sued. New York State’s top financial regulator has launched an investigation into Ocwen’s practices as it turns out they are finically hurting home-owners, not helping them get out of foreclosure.
The gist of the article is that Ocwen committed fraud by preparing mortgage documents particularly on what is called a loan modification, which is a legal contract prepared to adjust the payments of loan borrowers who could not make their payments due to hardship. They are also accused of not posting payments already in their possession from borrowers until past the payment due date, deliberately causing homeowners to become late and incur fees.
In my opinion, more needs to be substantiated by regulators to determine if this was widespread, because Ocwen seems to have a reputation of consistently not adhering to the law.
Arleen is a marketing and communication/TV production major at Montclair State University, Class of 2018.