Washington, D.C. – Today, 22 state mortgage regulators have issued public regulatory orders or charges to subsidiaries of Ocwen Financial Corporation (Ocwen) to address violations of state and federal laws, including the mishandling of consumer escrow accounts, unlicensed activity, and a deficient financial condition. The majority of the orders prohibit the acquisition of mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts. Some of the orders also require Ocwen to cease any ongoing unlicensed activity.
The orders are the culmination of several years of examinations and monitoring by multiple state regulatory agencies that revealed the company is mismanaging consumer mortgage escrow accounts. The company has also operated unlicensed mortgage servicing facilities in certain states in apparent violation of state licensing statutes.
“This multi-state effort is a testament to the states’ ability to regulate large companies across the country while ensuring compliance with applicable state and federal law, and protecting consumers,” said CSBS President and CEO John W. Ryan.
The jurisdictions that have publicly issued orders are: Arkansas, Connecticut, District of Columbia, Florida, Hawaii, Idaho, Illinois, Maine, Massachusetts, Mississippi, Montana, Nebraska, Nevada, North Carolina, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, West Virginia, Wisconsin, and Wyoming.
Update: Indiana, Michigan and Oregon have also issued public regulatory orders, bringing the total number of state mortgage regulators that have issued public orders to 25.