Washington State has fined the servicing company over its use of offshore companies to handle mortgage servicing activities
Oft-investigated mortgage servicer Ocwen will have to limber up its checkbook again, this time to pay a $900,000 fine to Washington State.
According to the state’s Department of Financial Institutions, Ocwen has been using unlicensed, offshore affiliates to perform servicing activities for Washington loans. Ocwen itself is licensed to service mortgage loans made to Washington residents. However, the DFI said the company was using unlicensed companies in the Philippines and India to perform activities that were considered residential mortgage servicing under state law.
That’s a problem, as Washington’s Consumer Loan Act “specifically requires that companies servicing residential mortgage loans be licensed Consumer Loan Companies,” according to a DFI news release. The DFI found that two offshore Ocwen affiliates – Ocwen Financial Solutions Private Limited in India and Ocwen Business Solutions Inc. in the Philippines – had been conducting unlicensed servicing activities for years. OFSPL had conducted the activities as far back as 2010, while OBS’s unlicensed activity started in 2013.
Under the settlement, Ocwen agreed to pay a $900,000 and only service Washington loans through licensed entities from now on, the DFI stated. DFI officials said Ocwen was quick to make the changes once the issue was pointed out.
“Ocwen cooperated in our investigation and quickly made changes to address our concerns around unlicensed activity,” DFI Director of Consumer Services Charles Clark said.”
According to the state’s Department of Financial Institutions, Ocwen has been using unlicensed, offshore affiliates to perform servicing activities for Washington loans. Ocwen itself is licensed to service mortgage loans made to Washington residents. However, the DFI said the company was using unlicensed companies in the Philippines and India to perform activities that were considered residential mortgage servicing under state law.
That’s a problem, as Washington’s Consumer Loan Act “specifically requires that companies servicing residential mortgage loans be licensed Consumer Loan Companies,” according to a DFI news release. The DFI found that two offshore Ocwen affiliates – Ocwen Financial Solutions Private Limited in India and Ocwen Business Solutions Inc. in the Philippines – had been conducting unlicensed servicing activities for years. OFSPL had conducted the activities as far back as 2010, while OBS’s unlicensed activity started in 2013.
Under the settlement, Ocwen agreed to pay a $900,000 and only service Washington loans through licensed entities from now on, the DFI stated. DFI officials said Ocwen was quick to make the changes once the issue was pointed out.
“Ocwen cooperated in our investigation and quickly made changes to address our concerns around unlicensed activity,” DFI Director of Consumer Services Charles Clark said.”
