The Consumer Financial Protection Bureau (CFPB) filed suit against OCWEN, one of the nation’s largest nonbank mortgage companies. The lawsuit was filed on April 20, 2017. According to the lawsuit, OCWEN failed borrowers during the mortgage servicing process. The Consumer Financial Protection Bureau’s Director, Richard Cordray said in a statement,
“Today the Consumer Financial Protection Bureau is filing a lawsuit against Ocwen, one of the nation’s largest nonbank mortgage servicers. We are seeking relief to compensate consumers for years of systemic and significant errors throughout the mortgage servicing process, which cost some of them their homes. We allege that Ocwen calculated loan balances improperly, misapplied borrower payments, and botched escrow and insurance payments. We believe Ocwen failed to properly investigate and fix these problems when people formally complained, and it illegally foreclosed on borrowers. And we believe Ocwen compounded these failures by selling the servicing rights to these loans without fully disclosing or correcting errors in people’s records.”
According to the lawsuit, OCWEN failed borrowers by:
- Serviced loans using error-riddled information
- Illegally foreclosed on homeowner by failing to deliver required foreclosure protections. As a result, it is alleged that OCWEN wrongfully initiated foreclosure proceedings on at least 1,000 people, and has wrongfully held foreclosure sales.
- Failed to credit borrowers’ payments.
- Botched escrow accounts by failing to properly apply escrow payment.
- Mishandled hazard insurance:
- Bungled borrowers’ private mortgage insurance
- Deceptively signed up and charged borrowers for add-on products
- Failed to assist heirs seeking foreclosure alternatives
- Failed to adequately investigate and respond to borrower complaints
- Failed to provide complete and accurate loan information to new servicers
The CFPB is requesting that OCWEN follow mortgage servicing laws and pay penalties. You can read the lawsuit at the CFPB website: http://files.consumerfinance.gov/f/documents/20170420_cfpb_Ocwen-Complaint.pdf
Jason M. Shimotake
has been a Geraci Law, L.L.C. attorney for over five years. With almost a decade’s experience in a variety areas of law, Attorney Shimotake has honed his focus in consumer bankruptcy with Geraci Law, L.L.C. He has experience in all aspects of the bankruptcy process, from counseling to complex litigation issues. He has counseled and guided thousands of clients through the process and ready to help you with your journey through bankruptcy.
Attorney Shimotake attended Indiana University in Bloomington, IN and has degrees in English and Political Science. He received his Juris Doctorate at The John Marshall Law School in Chicago, IL and was admitted to the Illinois State Bar in 2008. In addition to the Illinois State Bar, Attorney Shimotake has federal licenses in the Northern District of Illinois, the Northern District of Indiana and the Eastern District of Wisconsin.
He works at Geraci Law at 87th & Cottage Grove. In the Chatham Village Square Shopping Center near Target, Nike, Lane Bryant and Foot Locker. Meeting with Attorney Shimotake is free, just dial 800 CALL PFG.
April 6, 2017: “Very happy with the results, Thanks to Briana, she was always there to answer my questions. Thanks to her we have started a new chapter in our life.”
April 6, 2017: “I appreciate the help I have received from both Attorney’s that have helped me. Filing Bankruptcy is embarrassing to me, and they never once made me feel beneath them. Everyone here is great, and I am so glad I chose to come here to help me.”
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April 4, 2017: “The attorneys at Geraci Law are very kind and professional. They are understanding and listen to you problems. The hours are convenient and the service is great. I would definitely recommend Geraci Law to my friends.”
Read more reviews at: https://www.bbb.org/chicago/business-reviews/attorneys-and-lawyers/peter-francis-geraci-law-llc-in-chicago-il-36000434/reviews-and-complaints
The Consumer Financial Protection Bureau (CFPB) has been working on fixing data accuracy, repairing dispute processes and cleaning up information from data furnishers.
The director of the CFPB, Richard Cordray, says,
“Since we began our oversight work, the CFPB has been uncovering and correcting problems in the consumer reporting industry, Because of our work, important improvements are being made. Much more work needs to be done but our corrective actions are leading to positive changes that are benefiting consumers all over the country.”
The main assistance to consumers maybe how consumer reporting companies are required to handle disputes. According to the new policies, the consumer reporting agencies must maintain evidence that they accurately handled the disputes and conducted a reasonable investigation. Also part of the dispute process is how consumers are notified of the completion of an investigation. According to the CFPB,
“continued monitoring has shown that the consumer reporting companies have improved processes for investigating disputes and are improving response letters to consumers.”
The Fair Credit Reporting Act, more commonly known as the FCRA, requires an investigation into the consumer dispute and proper noticing to the consumer withing 30 days.
Although these are important milestones in correcting the credit reporting process, it doesn’t help individuals who suffered from bad credit scores due to poor reporting. Geraci Law sees a lot of individuals who suffer from bad credit scores due to inaccurate reporting. Unfortunately, a credit score still determines the cost of financing. The difference in an average credit score and a good credit score means percentage points when financing a house or car.
You can learn more by visiting the CFPB site: https://www.consumerfinance.gov/about-us/newsroom/cfpb-oversight-uncovers-and-corrects-credit-reporting-problems/
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March 14, 2017: “They helped me so much in the 63rd St office. I needed my case filed the same day and Anna, Steve, Frank, and David came through. They work hard and they got it done.”
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March 9, 2017: “Process of Bankruptcy was very smooth. Attorney Jason A Kara is so helpful. I so recommend filing if you’re in debt.”
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