Ocwen Expects to Resolve California License Issues

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MORTGAGE EXPERT
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An action against Ocwen Financial Corp. by the state of California that threatens a substantial portion of its servicing business is expected to be resolved by the company.

The California Department of Business Oversight previously requested information from the Atlanta-based firm over its compliance with local servicing laws and regulations.

But Ocwen has allegedly failed to come up with the requested documentation  — prompting a formal notice of intent to suspend Ocwen’s license for a year.

However, the mortgage servicer issued a statement late Tuesday indicating that it believes it has
provided the requested information in the format requested.

“We expect that we will receive follow up requests or clarifications and that further document and information exchanges may take place,” Ocwen President and Chief Executive Officer Ron Faris said in the statement. “We expect our ongoing cooperation will result in a satisfactory outcome for all parties.”

The statement went on to tout how Ocwen has helped distressed borrowers and has a strong track record in California. It quoted executives from non-profit organizations praising the company’s actions.

“We did not originate the loans we service, but we have taken a leading role in helping to stabilize communities most affected by the financial crisis,” Faris added.

The loss of Ocwen’s California license could have a substantial impact on its servicing portfolio; roughly 23 percent of the loans it services are located in the Golden State based on outstanding principal balances.

Mortgage Expert

Mortgage Daily Staff

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