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Ocwen Financial Under Fire

Miami foreclosure attorney
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The National Mortgage Settlement (NMS) has barred Ocwen Financial from pursuing foreclosures on over 17,000 debtors. The overseer is alleging that the company not only failed to meet Performance Metric 31, which involves the distribution of denial notifications to borrowers, but has yet to address the issues that led to the failure.

Grounds for Prohibition

Metric 31 requires lenders to send out a notification of denial for a loan modification to a borrower, outlining the reasons for the denial, and informing him when an appeal to the decision can be made. Ocwen Financial’s failure of Metric 31 in 2014 was originally a product of technical issues, but its failure to rectify the situation with a satisfactory action plan is what really landed it in hot water. Nevertheless, the NMS noted that Ocwen has made progress, having met its requirement for consumer relief by providing borrowers with over $2 billion, and passing metrics 7, 8, 9 and 23 with a corrective action plan. Still, its lack of compliance with Metric 31 remains unresolved, a fact which threatens the rights of its mortgagers.

Ocwen’s Response

According to the financial company, it has been working with the Office of Mortgage Settlement Oversight to remedy the issues cited by the NMS. The company said it has put some of its loans on hold, in order to protect borrowers from being affected by lingering technical problems. It has also cited its positive reports thus far for 2016 as further proof that it has taken measures to fix any internal issues. Yet, clearly, its efforts have simply not been enough.

The ban placed on Ocwen Financial demonstrates that the NMS is taking borrowers’ rights seriously, and will go to great lengths to protect them. Hopefully, this is an indication that banks and other financial companies will no longer get away with ignoring the guidelines placed by the NMS and other government overseers. At Graham Legal, protecting borrowers from exactly this type of behavior is our top priority. Talk to a Miami foreclosure attorney on our team today to find out if your rights have been compromised.

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