Washington State Department of Financial Institutions

News Release

Thursday, December 19, 2013

Contact

Lyn Peters, Director of Communications
PH (360) 902-8731 lyn.peters@dfi.wa.gov

Deborah Bortner, Director Division of Consumer Services
PH 360-902-0511, deborah.bortner@dfi.wa.gov

FOR IMMEDIATE RELEASE:


Washington Homeowners To Receive Assistance In Multi-State Ocwen Loan Servicing Settlement

Restitution includes funds for homeowners wrongly foreclosed upon and principal reductions for current homeowners whose property values are under water

OLYMPIA – The Washington State Department of Financial Institutions (DFI) Division of Consumer Services is pleased to announce a multi-state loan servicing settlement with Ocwen Loan Servicing, LLC, state Attorneys General and the Consumer Financial Protection Bureau.

The settlement originated from a multi-state mortgage examination conducted in 2010 by eight state mortgage regulators: Florida, Arizona, Georgia, Louisiana, Maryland, Massachusetts, Mississippi, and West Virginia.

See: Ocwen Consent Order (PDF)*

While Washington was not among the eight examination states, Washington’s DFI actively participated in reaching this settlement, working as part of the multi-state mortgage committee to determine consumer restitution.

"Our Division also independently worked as members of the state mortgage regulators to negotiate and draft the states’ settlement agreement and consent order to be issued simultaneously with the CFPB’s and state AG’s consent agreement," Deborah Bortner, Director of DFI Consumer Services Division added.

The agreement terms:

"We are pleased to be part of a multi-state team taking action against a company that took advantage of Washington homeowners," DFI Director Scott Jarvis said. "We hope this agreement puts businesses victimizing Washington residents on notice that illegal activity will not go unpunished in our state."

The agreement cites specific allegations of wrongdoing found during the examination, including:

Ocwen Financial Corporation is a publicly traded Florida corporation headquartered in Atlanta, Ga. Ocwen Loan Servicing, LLC is a limited liability company and wholly owned subsidiary servicing company of Ocwen Financial Corporation located in Palm Beach, Fla.

Borrowers should contact Ocwen directly to obtain information about principal reductions and whether they qualify for assistance under the terms of this settlement.

Additional Information


About DFI
www.dfi.wa.gov ▪ 360.902-8700 ▪ 877-746-4334
The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department also works to improve financial education throughout Washington through its outreach programs and online clearinghouse www.dfi.wa.gov/financial-education. In addition to posting information about licensees and administrative actions, DFI uses the Web and social media to provide financial education information: http://www.twitter.com/FinEd4All, www.twitter.com/DFIConsumers, www.finlit.blogspot.com, www.youtube.com/user/WADFI, www.homeownership.wa.gov.

About Division of Consumer Services
www.dfi.wa.gov/cs ▪ 360-902-8703 ▪ 877-746-4334, x 8703
The mission of the Division of Consumer Services is to protect consumers from illegal and fraudulent lending practices. The division accomplishes its mission through licensing, licensee examinations, investigations, and enforcing selected state and federal statutes and rules. Consumer Services regulates the business activities of consumer loan companies, mortgage brokers, money transmitters and currency exchangers, as well as check cashers and sellers, also known as "payday lenders." The Division is entirely self-supporting, with funding provided by licensing, auditing, and policing of regulated businesses and individuals. No money is received from the state General Fund or other public revenue source.

* This document is a PDF file, and you will need Adobe Acrobat Reader to view it. If you don't already have Acrobat Reader installed on your computer, you may download it for free from Adobe.

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