(WASHINGTON, DC) – Today, the District of Columbia Department of Insurance, Securities and Banking (DISB) joined more than 20 State Mortgage Regulators that issued regulatory orders or charges to Ocwen Loan Servicing, LLC, a subsidiary of Ocwen Financial Corporation to address violations of state and federal laws including the mishandling of consumer escrow accounts, unlicensed activity, and a deficient financial condition. Mortgage escrow accounts hold borrower funds that the mortgage company is entrusted to disburse to pay real estate taxes and hazard insurance.
“As the financial regulator for the District of Columbia, it is our duty to protect District consumers and ensure financial entities are adhering to District law,” said DISB Commissioner Stephen C. Taylor. “I strongly encourage any District resident who might have concerns about their mortgages with Ocwen Loan Servicing, LLC to contact my office at 202-727-8000.”
The majority of the orders prohibit the acquisition of new mortgage servicing rights and the origination of new mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts and not further harm consumers. Some orders also require Ocwen to cease any ongoing unlicensed activity.
The orders are the culmination of several years of examinations and monitoring that revealed the company is mismanaging consumer mortgage escrow accounts. The company also has operated unlicensed mortgage servicing facilities in certain states, but not in the District of Columbia, in apparent violation of state licensing statutes over a period of several years.
To view a list of frequently asked questions, go here. To contact the District of Columbia Department of Insurance, Securities and Banking, please call 202-727-8000 or visit disb.dc.gov.