Every dog has his day. Every RIPOFF has its end!
The beginning of the end for Ocwen; media exposure! More lawsuits planned against Ocwen? Wonderful!
Article printed below:
Fairbanks Critics May Now Focus on Ocwen
American Banker Thursday, November 13
By Erick Bergquist
Hours after federal regulators announced a landmark predatory servicing settlement with Fairbanks Capital Corp. On Wednesday, consumer groups and class action lawyers indicated that Ocwen Financial Corp. Is next on their list.
David Berenbaum, a senior vice president at the nonprofit National Community Reinvestment Coalition in Washington, said in an interview Wednesday that his group is "exploring legal action" against Ocwen and expects to file suit "early next year."
Ocwen, of West Palm Beach, Fla., services loans through a federally chartered thrift subsidiary, Ocwen Federal Bank. According to Mr. Berenbaum, it is "very similar to Fairbanks" in its practices.
It was the fifth-largest subprime servicer at midyear, with $33.5 billion, according to National Mortgage News. As of Sept. 30 its portfolio stood at $37 billion. "We have found allegations of failure to provide quality customer service, the pyramiding of fees, accelerated foreclosure, selectively foreclosing on units based on demographics, the clouding of credit reports, " Mr. Berenbaum said.
In an e-mail, Paul A. Koches, the general counsel for Ocwen Federal Bank, said that this year Ronald M. Feris, the president of the holding company and the bank, traveled to Washington to meet with an officer of the nonprofit.
Mr. Feris "offered to address any and all complaints, " Mr. Koches wrote. "That offer was extended on several subsequent occasions. Without explanation, NCRC refused our assistance, providing no facts or information to enable us to respond to any consumer concerns."
Kweku Hanson, a lawyer in Hartford, Conn., who says he has experienced problems with Ocwen's servicing of his loan, sued it last summer in a federal court in Bridgeport, Conn. A class action certification hearing is scheduled for Nov. 24.
In an interview Wednesday, Mr. Hanson said that Ocwen has been "stealing people's houses.""Nobody gets payments posted on time. Many have lost their homes, " he said. Ocwen charges "bogus late fees; they force insurance on you."
In his e-mail, Mr. Koches said Mr. Hanson's suit "is without merit and is being vigorously defended in court."
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