Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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arkygirl
Ocwen is buying up all these bad boys lately. First Litton, now Saxon.

Maybe Ocwen has been voted by industry insiders as the best company able to cover up the initial mortgage fraud that occurred when the note was signed, do "modifications" enough to get real valid contracts to replace the "lost" and/or faked notes and get the train moving again...or maybe the insiders have just designated Ocwen as the toxic waste dumping ground for industrial-strength systemic fraud that has been poisoning the systems for years. Just bury it..

For some reason, it appears that Ocwen is eager to paint a huge legal bull's eye on itself and become a target for an ever growing number of lawsuits. It is astounding that Ocwen pays for the privilege, to boot, considering that the Litton deal is not too sweet*.

This mega-consolidation makes me uneasy for any number of reasons...something to watch.

Morgan Stanley to rid itself of mortgage servicer


Mon Oct 24, 2011 6:09pm EDT

* Morgan Stanley to sell Saxon to Ocwen for $59.3 mln

* Bought business in 2006 for $706 million

* Follows Goldman's sale of Litton to Ocwen in June

By Lauren Tara LaCapra

Oct 24 (Reuters) - Morgan Stanley plans to sell its mortgage-servicing business to Ocwen Financial Corp for $59.3 million, closing out a money-losing strategy that stemmed from the subprime housing bubble.

The deal, which was announced by the two companies on Monday, also signals Ocwen's strategy of expanding by buying troubled servicing assets on the cheap from big banks that have stepped back from the U.S. mortgage business in the aftermath of the financial crisis.

Morgan Stanley bought Saxon in August 2006 for $706 million as part of the bank's dive into subprime mortgages. Mortgage servicers do not lend money, but earn fees by collecting payments from mortgage borrowers for investors that own underlying bonds.

The timing of Morgan Stanley's purchase was unfortunate: problems in the subprime market were not yet widely understood, but U.S. home prices had just peaked and subprime borrowers were starting to show difficulty making payments.

Months later, Goldman Sachs Group Inc made a similar move by buying Houston-based servicer Litton Loan Servicing, which it also offloaded to Ocwen in June for over $600 million.

The two banks had hoped to profit from getting a closer look at trends in the subprime mortgage market, which produced billions of dollars for lenders, securitizers and servicers in the years leading up to the crisis of 2007-2009.

But Saxon and Litton soon created headaches for their Wall Street owners, as delinquencies rose and losses accrued. Problems with foreclosure paperwork eventually ensnared Goldman and Morgan Stanley into investigations by federal and state regulators last year.

*Loans at Litton are still not doing well. The deal pushed Ocwen's delinquency rate up to 28.7 percent at Sept. 30 from 24.2 percent three months earlier, Ocwen President and Chief Executive Ron Faris said in a statement announcing third-quarter results on Monday.

Ocwen's total servicing portfolio grew to an unpaid principal balance of $106.1 billion at Sept. 30, up from $70.8 billion it serviced three months earlier.

More here:

http://www.reuters.com/article/2011/10/24/morganstanley-saxon-idUSN1E79N1O720111024


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I smell TONY ETTINGER all over again!

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4justiceNow
If anyone truly doubts we are now living in a third world country they only need to consider the fact that Ocwen is still operating freely. There's no way such a totally criminal enterprise could remain free from prosecution for such a long period of time in any country which values justice and the rule of law. 

IMHO

4J 
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MSF Moderator
Submitted to MSFraud:

OCWEN DEMANDS MONEY EVEN AFTER THE HOUSE IS ALREADY PAID OFF!

I have paid off my house through my original loan servicing company and have all of the appropriate documents showing my house is paid off.

However my loan servicing company was evidently paying the payments through Ocwen without my ever being made aware of it. Then I began receiving notices from 
Ocwen stating that I owed them money. I have never paid Ocwen anything directly, only through my loan servicing company “First Mortgage”.

Ocwen states that I have not provided them with adequate proof that my house is insured and that I owe them over a thousand dollars for each year they provide insurance. But my deed of trust specifically provides that no insurance is even required, now or ever in the past. Ocwen has clouded my title to my house and I can’t get a deed conveyance because of them.

I have called 
Ocwen on multiple occasions and the foreign sounding people who answer the phone tell me I must resubmit the same documents that I have already sent to them on four separate occasions. By certified mail twice and by Fax twice. One of the faxes went to the Ocwen Ombudsman's office the other went to the research department and the two certified mailings went to the research department. But they insist that I must send the documents again and wait for them to make a determination.

They steadfastly maintain that they have no email addresses either personal or professional so modern communications are not possible.

This company 
Ocwen is fraudulently insuring my property and clouding my title to my property. I can’t even get them to give me a phone number address or email address of their attorneys or their service address. I am hoping that you know how to contact their attorneys.
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MSF Moderator

Fraud Charges against Ocwen Federal Bank

posted on:
March 15, 2006

author:
Staff


 

For immediate release

Montgomery, Alabama (March 15, 2006) - Multiple trials are set in several Alabama counties this year, beginning in April, against Ocwen Loan Servicing LLC, formerly Ocwen Federal Bank FSB. Ocwen, headquartered in West Palm Beach, Florida, is the largest third-party mortgage service provider in the United States.

According to complaints filed in Macon, Russell and Jefferson counties, Ocwen charged customers $95 default notice fees for each notice sent. The United States Department of Treasury’s Office of Thrift Supervision took exception to this practice. In April of 2004 Ocwen entered into an agreement with the Office of Thrift Supervision to cease charging these default notice fees to borrowers. Despite this agreement Ocwen has not gone through customers’ files and removed previous default notice charges from their accounts.

One of the first of these lawsuits will proceed to trial in Russell County. In that case the plaintiff, Debbie Long, alleges she was charged $95 default fees on several occasions and foreclosure fees of over $900 despite no foreclosure being initiated. Ms. Long also alleges Ocwen charged her late fees for payments sent on time and that these payments were reported to credit bureaus as being late.

Throughout, Ocwen failed to disclose what fees, finance charges and penalties would be charged in connection with Ms. Long’s mortgage, and other facts necessary for her to keep her mortgage current and prevent negative reporting to credit bureaus and possible foreclosure.

Attorneys representing Ms. Long are Rhon E. Jones and Scarlette M. Tuley with the law firm of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. in Montgomery, Alabama. The firm has 37 filed cases pending against Ocwen.

“The banking and mortgage industries should have the publics trust, but questionable activities by a few greedy and unethical operators give them a bad name,” Jones said. “How many people need to be victimized before each industry’s standards improve?”
http://www.beasleyallen.com/news/Fraud-Charges-against-Ocwen-Federal-Bank/

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