More Ocwen Trouble

Seems like we're not the only ones who have issues with Ocwen. Benjamin Lasky, superintendent of the New York State Department of Financial Services, says that Ocwen was backdating loan modification letters that it sent to homeowners, often months after the fact and well after the deadline to accept the offer had already passed.

The crazy part is that Ocwen already has a third-party inspector at its offices because of a prior settlement with other regulators who had issues with their business practices. Ocwen originally claimed it discovered this back-dating issue on its own in April, but later told Lasky that was untrue.

In last week's earnings conference call, Ocwen's chairman and majority shareholder billionaire real estate mogul William Erbey, said that the company was setting aside $100 million to settle with Lasky's office. According to the Post, that may not be enough to pacify Big Ben.

Finally, the Consumer Financial Protection Bureau — the new federal agency that the financial industry absolutely hates — says that Ocwen was #3 for consumer complaints since late 2011, topped by only Bank of America and Wells Fargo (both significantly larger than Ocwen). Ocwen was well ahead of its non-bank mortgage servicing peers Nationstar and Green Tree in the race for the title of Most Hated By Consumers.

As always, please let us know if you have had problems with Ocwen, too.