Independent Expert Consultant Finds RMBS Investors’ Allegations Against Ocwen to be Baseless
May 25 2016 - 8:30AM
Ocwen Financial Corporation (NYSE:OCN), a leading financial
services holding company, today commented on the Duff & Phelps,
LLP (Duff & Phelps) independent analysis, which determined that
none of the allegations in the Gibbs & Bruns, LLP’s January 23,
2015 Notice of Non-Performance investigated by Duff & Phelps
were supported by evidence.
Duff & Phelps, a global corporate valuation and financial
advisory firm, was engaged by Wells Fargo Bank N.A. in its capacity
as Master Servicer for 42 Ocwen-serviced Residential Mortgage
Backed Securities trusts (Trusts), to investigate allegations
regarding the Trusts alleged by: 1) Gibbs & Bruns’ January 23,
2015 Notice of Non-Performance on behalf of certain Institutional
Investors; and 2) Ocwen’s Consent Orders with the Consumer
Financial Protection Bureau and New York Department of Financial
Services.
Duff & Phelps conducted a 12-month review of Ocwen’s
servicing operations, accounting, loan modifications, borrower
compliance, and operations and governing practices. This review
involved an analysis of thousands of servicing files, data points,
invoices, as well as a comprehensive review of the Company’s
systems and records.
The Duff & Phelps investigation:
- Did not find any evidence that Ocwen failed to account for
P&I payments to the Master Serviced trusts.
- Did not find any evidence that Ocwen charged the Master
Serviced Trusts for any undisclosed or ‘mysterious’ expenses.
- Did not find evidence that Ocwen made negative NPV
modifications in order to maximize servicing fees and prematurely
recoup advances.
- Did not find evidence that Ocwen engaged in modifications in
order to prematurely recover advances at the time of
modification.
- Did not find evidence to conclude generally that Ocwen made
extreme and imprudent modifications.
- Found that Ocwen applied the Stop Advance Tag on loans
consistently with Ocwen’s Stop Advance model and not with regard to
whether or not the loan had been modified or whether the borrower
defaulted immediately after modification.
- Did not find evidence that Ocwen failed to comply with the SCRA
requirements for borrowers on active military duty.
- Did not find evidence sufficient to conclude generally that
Ocwen engaged in deceptive, misleading, or inadequate practices
with regard to newly boarded loans.
- Did not find evidence sufficient to conclude generally that
Ocwen improperly imposed lender-placed insurance.
- Did not find evidence to conclude generally that the Master
Serviced Trusts were charged higher fees in connection with sales
of REO properties involving Hubzu auctions or REALHome brokers as
opposed to traditional sales and/or unrelated brokers.
“We are pleased with the results of Duff & Phelps’ year-long
independent review. We continue to focus on servicing loans in
the best interest of loan investors and on being a leader in
helping homeowners,” said Ron Faris, President and CEO of
Ocwen.
About Ocwen Financial Corporation
Ocwen Financial Corporation is a financial services holding
company which, through its subsidiaries, originates and services
loans. We are headquartered in West Palm Beach, Florida, with
offices throughout the United States and in the U.S. Virgin Islands
and operations in India and the Philippines. We have been serving
our customers since 1988. We may post information that is important
to investors on our website (www.Ocwen.com).
FOR FURTHER INFORMATION CONTACT
Media
John Lovallo
jlovallo@levick.com
917-612-8419
Investors
Stephen Swett
T: (203) 614-0141
E: shareholderrelations@ocwen.com
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