Finally, the one-two punch that has been needed for so long! Ocwen can't even afford to audit its own accounts.
April 20, 2017
Mortgage business obliterated by state banking regulators
Citing numerous issues with consumer escrow accounts and a “deficient financial condition,” a consortium of state banking regulators just put Ocwen Financial’s mortgage business on life support.
In a bombshell announcement from the North Carolina Commissioner of Banks, according to an email notification sent to HousingWire, more than 20 state mortgage regulators issued cease-and-desist orders to Ocwen.
This order, the email states, prohibits the acquisition of new mortgage servicing rights and the origination of mortgage loans by Ocwen Loan Servicing, a subsidiary of Ocwen, until the company is “able to prove it can appropriately manage its consumer mortgage escrow accounts.”
According to the order: The reconciliation of escrow accounts would cost $1.5 billion. That's beyond Ocwen’s financial capacity to fund. In short, Ocwen just doesn't have that kind of money.