Thrifts and Mortgage Finance
Company Overview of Ocwen Loan Servicing, LLC
Ocwen Loan Servicing, LLC offers and services residential mortgage loans. Its loan servicing includes customer service, collections, investor accounting, escrow, loss mitigation, foreclosure, and property disposition. It services mortgage backed securitized and unsecuritized loans and securities. The company was founded in 1989 and is based in West Palm Beach, Florida. Ocwen Loan Servicing, LLC operates as a subsidiary of Ocwen Financial Corp.
1661 Worthington Road
West Palm Beach, FL 33409
Founded in 1989
Key Executives for Ocwen Loan Servicing, LLC
President and Chief Executive Officer
Compensation as of Fiscal Year 2014.
Ocwen Loan Servicing, LLC Key Developments
Ocwen Loan Servicing LLC to Pay $2.5 Million, Hire 3rd-Party Auditor in Settlement with California Regulator
May 13 15
Ocwen Financial Corp. subsidiary Ocwen Loan Servicing LLC reached a settlement, effective Jan. 23, with the California Department of Business Oversight involving a $2.5 million penalty and the appointment of an independent third-party auditor. California was looking to suspend Ocwen's mortgage license in the state due to the company's alleged failure to turn over documents showing that it complies with laws protecting California homeowners. Ocwen soon indicated that it was cooperating with the department to resolve the administrative action originally filed Oct. 3, 2014. According to Ocwen's Form 10-K filed May 11, the agreement between the department and Ocwen Loan resulted in the department withdrawing its notice of hearing to suspend the company's license in California. Ocwen Loan and the California Department of Business Oversight entered into a consent order addressing and resolving the examination disputes between the two parties. The $2.5 million penalty, plus costs associated with the examination, was accrued as of Dec. 31, 2014. Ocwen Loan also agreed to stop acquiring additional mortgage servicing rights for loans secured in California until the Department is satisfied that the company can satisfactorily respond to the requests for information and documentation made in the course of a regulatory exam. The California Department of Business Oversight will also select an independent third-party auditor to assess Ocwen Loan's compliance with laws and regulations impacting California borrowers for an initial term of two years, extendable at the department's discretion. Ocwen Loan will be responsible for paying all reasonable and necessary costs associated with the auditor, who will report periodically on its findings and progress. The order does not involve any accusation or admission of wrongdoing regarding Ocwen Loan's servicing practices.
Ocwen Loan Servicing LLC Amends Senior Secured Term Loan Facility
Apr 21 15
Ocwen Loan Servicing LLC, as borrower, Ocwen Financial Corp. and certain of its subsidiaries, as guarantors, entered into an amendment to a senior secured term loan facility agreement with the lenders and Barclays Bank Plc, as administrative agent and collateral agent. Among other things, the amendment removes, with respect to the 2014 fiscal year, the requirement that Ocwen's financial statements and the related audit report must be unqualified as to going concern, and extends the required time period for delivery of the 2014 audited financial statements to May 29. The amendments are effective as of April 20, 2015. Ocwen said it continues to prepare information to demonstrate its ability to operate as a going concern and to provide such information to its auditor for the purposes of its audit of the company's financial statements for the year ended Dec. 31, 2014. Following the execution of the amendment and other amendments to Ocwen's debt greements, no defaults will occur in the event that the company's auditor includes disclosure in its 2014 audit report relating to the company's ability to operate as a going concern. Ocwen also announced that it repaid $17 million of its senior secured term loan, bringing the total repayment to $91 million in the past three weeks.
Berger & Montague, P.C. Files Class Action Lawsuit on Behalf of Homeowners Against Ocwen Loan Servicing
May 19 14
On behalf of homeowners, the law firm of Berger & Montague, P.C. has filed a class action complaint in the U.S. District Court for the Eastern District of Pennsylvania. The complaint alleges that Ocwen Loan Servicing, LLC violated the law by failing to timely present to county clerks documents proving that mortgage loans have been satisfied. The complaint is brought on behalf of Pennsylvania homeowners whose mortgage loans have been serviced by Ocwen and who paid in full all amounts due under their mortgages pursuant to a payoff quote provided by Ocwen. These homeowners subsequently requested that Ocwen record a document proving that the mortgage loan has been satisfied and paid off. But Ocwen failed to do so within 60 days of its receipt of the borrower's written request. On this basis, plaintiff alleges that Ocwen has violated Pennsylvania's Mortgage Satisfaction Act, and the federal Real Estate Settlement Procedures Act.
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