 "We have had Ocwen on our radar since the first revelations in the summer of
2010, when reports were issued regarding potentially widespread deficiencies in
the court documents presented by mortgage companies during foreclosure
proceedings," said Manuel Flores, acting secretary of the Department of
Financial and Professional Regulation. "It is only fair that Ocwen, as one of
the state's largest mortgage servicing companies, provide reparations to the
customers it has wronged."In the settlement Dec. 19, Ocwen agreed to pay $125
million to homeowners who lost their homes to foreclosure due to servicing
errors and $2 billion to help homeowners reduce the principal amount due when
they owe more than their homes are currently worth on the market. In Illinois,
approximately 16,000 current and former homeowners will receive financial
reimbursement by Ocwen.
IDFPR's 2010 investigation of the 20 largest mortgage servicing companies in
Illinois resulted in the department issuing a nine-point plan to ensure
Illinois-licensed firms understood what was expected of them when initiating and
processing foreclosure actions.
[to top of second column] |
Ocwen was among the first Illinois-licensed servicing companies to
agree that these common-sense expectations — making sure that actual
people review the files, that those individuals actually sign
statements attesting to the accuracy of the files, that notaries
actually witness those signatures, and that files be complete before
they are forwarded for further processing — are designed to better
protect all parties affected by the foreclosure process.
"The sloppy paperwork found in many foreclosure files created an
unacceptable legal and financial risk for homeowners, successful
bidders at foreclosure auctions, subsequent owners of foreclosed
properties and the industry," Flores said.
[Text from
Illinois
Department of Financial and Professional Regulation
file received from
the
Illinois Office of
Communication and Information] |
