Michigan Enters into Consent Agreement with Ocwen Loan Servicing, LLC
(LANSING) Today, the Michigan Department of Insurance and Financial Services (DIFS) has announced the entry of a Consent Agreement with Ocwen Loan Servicing, LLC (Ocwen), a mortgage broker, lender, and servicer doing business in Michigan. The settlement resolves an enforcement action that resulted from the identification of numerous deficiencies with the company’s escrow practices. These issues were identified during a multi-state examination and were also seen in consumer complaints filed with DIFS.
Under the terms of the Consent Agreement, Florida-based Ocwen has committed to transitioning its servicing portfolio from its current servicing platform to a platform better able to manage escrow accounts and to establish a new complaint resolution process. The company is also required to hire a third-party firm to audit a statistically significant number of escrow accounts in high-risk areas of the portfolio to determine whether problems continue to exist around the management of escrow accounts and to identify the root cause of those problems.
The settlement requires Ocwen to correct errors identified during the escrow review process and requires restitution for any customers who have been harmed by the company’s failure to properly handle mortgage payments regardless of whether that harm is caused by a systemic issue or an individual error.
“I’m pleased we have reached this agreement with Ocwen,” said DIFS Director Patrick McPharlin. “The Consent Agreement allows both DIFS and the company to move forward with a focus on what specific steps need to be taken in order to provide consumers with accurate processing of their mortgage payments and for improved customer service in the future.”
As of June 30, 2017, Ocwen serviced just over 42,000 mortgages in Michigan with a total principal of over $3.8 billion, according to reports filed by the company.
DIFS provides a business climate that promotes economic growth while ensuring that the insurance and financial services industries are safe, sound, and entitled to public confidence. In addition, the Department provides consumer protection, outreach, and education services to Michigan citizens. For more information about DIFS or the services provided, please visit the website at www.michigan.gov/difs, follow them on Twitter or “Like” them on Facebook.