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Information for Consumers About Ocwen - Financial Regulation

Why did State Mortgage Regulators issue regulatory orders on Ocwen?

State mortgage regulators conduct regulatory examinations to ensure that companies like Ocwen are operating in accordance with state and federal laws. Part of that assessment tests the company’s ability to accurately process mortgage loan payments. If a company does not process a borrower’s money appropriately things like taxes and insurance may not get paid on time.

A committee of state mortgage regulators have agreed to address concerns with Ocwen in a collective and coordinated manner. The Maryland Commissioner of Financial Regulation (the “Commissioner”) participated in a multi-state examination of Ocwen in order to determine Ocwen’s compliance with applicable federal and state laws and regulations, and to evaluate Ocwen’s financial condition and management’s control and supervision of its licensed mortgage servicing operations. The Commissioner alleges that some of Ocwen’s actions may be in violation of Maryland law and regulations.

NOTE: The Commissioner’s order is a summary order and a hearing will be held to determine the merits of the Commissioner’s claims. While this matter is being litigated through the hearing process, Ocwen is permitted to continue to service your loan.

The action filed by the Commissioner on April 20, 2017, as a result of this examination, is now available.

If you are a Maryland resident and have a question about the action taken or would like to submit an official complaint, you may contact the Office of the Commissioner of Financial Regulation at 1-888-784-0136 (option 1) or e-mail DLFRComplaints-DLLR@maryland.gov.

Do I need to do anything as a result of the regulatory action?

Not at this time. You should however always keep your documentation in a safe place, as your loan documents will have important information on them like your loan number, the dates that you obtained the loan, and the address to which you mail your payments.

How will I know if anything changes as a result of this action?

If something changes that would impact your loan you will be notified by Ocwen through a letter and possibly email correspondence. If you would like more information on this action you may call Ocwen’s customer service to inquire. Don’t forget to note the date and time of your call and the person you spoke to.

What is a mortgage servicer and how do I know who services my loan?

A mortgage servicer handles mortgage loans, including collecting and recording payments from borrowers. A servicer also handles loan defaults and foreclosures, and may offer loss mitigation programs to assist delinquent borrowers.

The company that you make your monthly payment to is your mortgage servicer. Many of the loans handled by servicers are owned by third-party investors.

How will I know if my payments have not been handled correctly?

You receive a monthly statement from Ocwen, either electronically or in the mail. You also receive an annual escrow statement that reflects the timing and amounts that Ocwen paid your real estate taxes and insurance if they perform that function on your behalf. These statements are the most effective way for you to determine that your payments are being correctly managed.

What does it mean when Ocwen says they escrow for taxes, or escrow for insurance?

This means that Ocwen takes a portion of your monthly mortgage payment and sets it aside in an account, saving it for the time when your taxes or insurance payment is due. Ocwen, as your mortgage servicer, manages the escrow account and pays these bills on your behalf when due.

If Ocwen is managing my escrow account and I get a delinquent tax notice or notice of expired homeowner’s insurance, does that mean there is something wrong?

It may. You should immediately call Ocwen to inquire as to why you received the notice(s), especially if Ocwen is escrowing for taxes and insurance on your loan. Don’t forget to note the date and time of your call and the person you spoke to.

Ocwen sent me a notice of force-placed insurance, even though they escrow for my insurance payments. Does that mean there is something wrong?

It may. You should check your insurance policy to make sure it has not expired. If it has expired, the force placed insurance should cover your property. If it has not expired and you think the insurance was placed in error, you should call Ocwen and ask for an explanation. Don’t forget to note the date and time of your call and the person you spoke to.

What should I do if I notice a problem or have a question on my loan?

You should call Ocwen and ask them to explain the issue. If they cannot explain the issue in a way that you can understand you should ask to speak with a different customer service representative. Take note of the person’s name that speaks to you, the time and date on which you spoke, and ask the customer service representative to make sure to note the conversation in your loan file.

What should I do if I am not getting the answers I need from Ocwen?

If you are a Maryland resident and have a question about the action taken or would like to submit an official complaint, you may contact the Office of the Commissioner of Financial Regulation at 1-888-784-0136 (option 1) or e-mail DLFRComplaints-DLLR@maryland.gov.