A settlement has been reached between the state of Washington and a pair of offshore affiliates of Ocwen Financial Corp. over unlicensed activities.
The West Palm Beach, Florida-based company’s servicing subsidiary, Ocwen Loan Servicing LLC, is licensed as a servicer in the state of Washington.
But Ocwen has reportedly been utilizing two offshore affiliates that were note licensed to handle some of its mortgage servicing in the Evergreen State.
One of the unlicensed entities, Ocwen Financial Solutions Private Limited, has been conducting unlicensed activities in India since August 2010, according to an announcement Thursday from the
Consumer Services Division of the Washington State Department of Financial Institutions.
Ocwen Financial Solutions had applied for a license in May 2010,
but the application was reportedly incomplete. While the requested items were subsequently provided, no license has been issued.
The other company, Philippines-based Ocwen Business Solutions Inc., had been conducting unlicensed activity from June 2013 until August 2015, the state said.
Ocwen Business Solutions applied for a license in September 2015, but the state advised the company that it will not license foreign entities as a consumer loan company.
Ocwen’s use of the affiliates violated the
Washington Consumer Loan Act.
The department indicated that Ocwen has agreed to a consent order.
In addition to requiring that only licensed entities service Washington residential loans, the consent order requires Ocwen to pay a $900,000 fine.
Washington Department of Financial
Institutions Director of Consumer Services Charles Clark said in the news release that Ocwen cooperated in the investigation and quickly made changes to its operations to address the state’s concerns.
Ocwen commented on the consent order in a filing with the Securities and Exchange Commission.
“Ocwen and the WA-DFI entered into the consent order so that these matters may be economically and efficiently settled,” the SEC filing stated. “Under the consent order, Ocwen neither admits nor denies any wrongdoing.”
As of June 30,mortgage banking firm reports that its average offshore employment was 6,012.