Probable Cause to Charge Bradley Arant Bout cummings with Criminal contempt

USCA Case #14-5265 Document #1532155 Filed: 01/15/2015 Page 1 of 13

(Page 1 of Total)


(Page 2 of Total)


(Page 3 of Total)


(Page 4 of Total)


(Page 5 of Total)


(Page 6 of Total)


(Page 7 of Total)


(Page 8 of Total)


(Page 9 of Total)


(Page 10 of Total)


(Page 11 of Total)


(Page 12 of Total)


(Page 13 of Total)

Case 1:13-cv-02025-RMC Document 12 Filed 02/26/14 Page 1 of 65USCA Case #14-5265 Document #1532155 Filed: 01/15/2015 Page 1 of 65

(Page 14 of Total)


(Page 15 of Total)


(Page 16 of Total)


(Page 17 of Total)


(Page 18 of Total)


(Page 19 of Total)


(Page 20 of Total)


(Page 21 of Total)


(Page 22 of Total)


(Page 23 of Total)


(Page 24 of Total)


(Page 25 of Total)


(Page 26 of Total)


(Page 27 of Total)


(Page 28 of Total)


(Page 29 of Total)


(Page 30 of Total)


(Page 31 of Total)


(Page 32 of Total)


(Page 33 of Total)


(Page 34 of Total)


(Page 35 of Total)


(Page 36 of Total)


(Page 37 of Total)


(Page 38 of Total)


(Page 39 of Total)


(Page 40 of Total)


(Page 41 of Total)


(Page 42 of Total)


(Page 43 of Total)


(Page 44 of Total)


(Page 45 of Total)


(Page 46 of Total)


(Page 47 of Total)


(Page 48 of Total)


(Page 49 of Total)


(Page 50 of Total)


(Page 51 of Total)


(Page 52 of Total)


(Page 53 of Total)


(Page 54 of Total)


(Page 55 of Total)


(Page 56 of Total)


(Page 57 of Total)


(Page 58 of Total)


(Page 59 of Total)


(Page 60 of Total)


(Page 61 of Total)


(Page 62 of Total)


(Page 63 of Total)


(Page 64 of Total)


(Page 65 of Total)


(Page 66 of Total)


(Page 67 of Total)


(Page 68 of Total)


(Page 69 of Total)


(Page 70 of Total)


(Page 71 of Total)


(Page 72 of Total)


(Page 73 of Total)


(Page 74 of Total)


(Page 75 of Total)


(Page 76 of Total)


(Page 77 of Total)


(Page 78 of Total)

1

NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES In the Matter of OCWEN FINANCIAL CORPORATION, OCWEN LOAN SERVICING, LLC

CONSENT ORDER PURSUANT TO NEW YORK BANKING LAW § 44

The New York State Department of Financial Services (the “Department”) and Ocwen

Financial Corporation, the parent company of Ocwen Loan Servicing, LLC (together, “Ocwen”),

(collectively, the “Parties”) stipulate that:

WHEREAS, Ocwen is the fourth largest mortgage loan servicer and the largest servicer

of subprime loans in the United States, servicing an unpaid principal balance (“UPB”) of

approximately $430 billion. In New York alone, Ocwen services nearly 130,000 residential

home loans with a total UPB of more than $30 billion.

WHEREAS, Ocwen is a New York State-licensed mortgage banker and mortgage loan

servicer, pursuant to the New York Banking Law, and the Department is responsible for its

supervision and regulation;

WHEREAS, in the last five years, Ocwen has acquired mortgage servicing rights

(“MSRs”) for hundreds of billions of dollars in UPB from several major servicers, including

Litton Loan Servicing LP (“Litton”), Saxon Mortgage Services, Inc. (“Saxon”), and Homeward

Residential Holdings, Inc. (“Homeward”);

WHEREAS, in 2010 and 2011, the multistate examinations of Ocwen, Litton, and

Homeward identified numerous and significant violations of New York State laws and

regulations;


(Page 79 of Total)

2

WHEREAS, on September 1, 2011, in connection with Ocwen’s acquisition of Litton

and amid concerns regarding Ocwen’s rapid growth and capacity to properly acquire and service

a significant portfolio of distressed home loans, Ocwen and the Department entered into an

Agreement on Mortgage Servicing Practices (the “2011 Agreement”), which required Ocwen to

adhere to certain servicing practices in the best interest of borrowers and investors;

WHEREAS, a June 2012 targeted examination of Ocwen revealed that Ocwen violated

the 2011 Agreement;

WHEREAS, as a result of Ocwen’s violation of the 2011 Agreement, Ocwen entered

into a Consent Order with the Department on December 5, 2012, which required Ocwen to retain

an independent compliance monitor (the “Compliance Monitor”) for two years to conduct a

comprehensive review of Ocwen’s servicing operations;

WHEREAS, the Department and the Compliance Monitor identified numerous and

significant additional violations of the 2011 Agreement, as well as New York State laws and

regulations;

NOW, THEREFORE, to resolve this matter, the Parties agree to the following:

Facts

1. Ocwen has grown more than ten-fold in the last several years. Beginning in 2009,

Ocwen significantly expanded its servicing operations through the acquisition of several major

servicers of home loans, as well as the acquisition of MSRs for hundreds of billions of dollars in

UPB. From the end of 2009 to the end of 2013, Ocwen’s servicing portfolio grew from 351,595

residential loans with an aggregate UPB of $50 billion to 2,861,918 residential loans with an

aggregate UPB of $464.7 billion.


(Page 80 of Total)

3

2. In 2010 and 2011, the Department participated in a multistate examination of

Ocwen, as well as examinations of Litton and Homeward, the entities ultimately acquired by

Ocwen. The examination of Ocwen identified, among other things, deficiencies in Ocwen’s

servicing platform and loss mitigation infrastructure, including (a) robo-signing, (b) inaccurate

affidavits and failure to properly validate document execution processes, (c) missing

documentation, (d) wrongful foreclosure, (e) failure to properly maintain books and records, and

(f) initiation of foreclosure actions without proper legal standing.

3. The examinations of Litton and Homeward identified substantial deficiencies,

weaknesses, and violations of laws and regulations relating to, among other things, foreclosure

governance, implementation of modification programs, record keeping, required notifications,

and the charging of unallowable fees.

4. The examination of Litton also revealed that, prior to Ocwen’s acquisition of

Litton, members of Litton’s information technology staff falsified documents provided to the

Department during the review of Litton’s information technology infrastructure.

5. In connection with Ocwen’s acquisition of Litton in 2011 and in light of the

examination findings for both Ocwen and Litton, the Department sought to ensure that Ocwen

had sufficient capacity to properly acquire and manage a significant portfolio of distressed loans,

including the ability to effectively manage the increased volume and comply with requirements

under the federal Home Affordable Modification Program, internal loss mitigation policies and

procedures, and laws and regulations governing mortgage loan servicing and foreclosure

activities.

6. To that end, Ocwen and the Department entered into an Agreement on Mortgage

Servicing Practices on September 1, 2011, which required Ocwen to: (a) establish and maintain


(Page 81 of Total)

4

sufficient capacity to properly acquire and manage its significant portfolio of distressed loans to

ensure a smooth borrower transition; (b) engage in sound document execution and retention

practices to ensure that mortgage files are accurate, complete, and reliable; and (c) implement a

system of robust internal controls and oversight with respect to mortgage servicing practices

performed by its staff and third party vendors to prevent improper foreclosures and maximize

struggling borrowers’ opportunities to keep their homes.

7. In June 2012, the Department conducted a targeted examination of Ocwen to

assess its compliance with the 2011 Agreement and Part 419 of the Superintendent’s

Regulations, which governs business conduct rules for servicers. The examination identified

gaps in the servicing records of certain loans that indicated repeated non-compliance by Ocwen,

including: (a) failing to send borrowers a 90-day notice prior to commencing a foreclosure

action as required under New York Real Property Actions and Proceedings Law (“RPAPL”)

§ 1304, (b) commencing foreclosure actions on subprime loans without affirmatively alleging in

the complaint that Ocwen had standing to bring the foreclosure action as required by RPAPL

§ 1302, and (c) commencing foreclosure actions without sufficient documentation of its standing

to do so.

8. The targeted examination also identified instances that indicated widespread non-

compliance with the 2011 Agreement including: (a) failing to provide borrowers with the direct

contact information for their designated single point of contact, a customer care representative

whose role is to understand each assigned borrower’s circumstances and history to ensure that

the borrower receives efficient and consistent customer care; (b) dual-tracking; (c) failing to

conduct an independent review of loan modification denials; (d) failing to demonstrate adoption

of policies and procedures to effectively track sanctioned third-party vendors, including local


(Page 82 of Total)

5

foreclosure counsel; (e) failing to demonstrate implementation of policies and procedures to

verify borrower information on newly boarded accounts to accurately reflect the status and

current balance of the borrower’s account; and (f) failing to ensure that trial or permanent

modifications granted to borrowers by a prior servicer are honored upon transfer to Ocwen.

9. Consequently, on December 5, 2012, Ocwen entered into a Consent Order with

the Department, which required Ocwen to retain an independent compliance monitor for two

years. The Consent Order mandated that the Compliance Monitor, which would report directly

to the Department, would “conduct a comprehensive review . . . of Ocwen’s servicing

operations, including its compliance program and operational policies and procedures.” The

review would, at a minimum, consider (a) the adequacy of Ocwen’s staffing levels, (b) the

robustness of Ocwen’s established policies and procedures, (c) the fairness of servicing fees and

foreclosure charges, (d) the accuracy of borrower account information, (e) Ocwen’s compliance

with federal and state law, (f) borrower complaints and recordings of customer service, and (g)

Ocwen’s compliance with the Agreement.

10. The Compliance Monitor began work in July 2013.

11. In the course of the Compliance Monitor’s review, it identified numerous and

significant violations of the 2011 Agreement, as well as New York State laws and regulations.

12. For example, a limited review by the Compliance Monitor of 478 New York loans

that Ocwen had foreclosed upon revealed 1,358 violations of Ocwen’s legal obligations, or about

three violations per foreclosed loan. These violations included:

x failing to confirm that it had the right to foreclose before initiating foreclosure proceedings;

x failing to ensure that its statements to the court in foreclosure proceedings were correct;


(Page 83 of Total)

6

x pursuing foreclosure even while modification applications were pending (“dual tracking”);

x failing to maintain records confirming that it is not pursuing foreclosure of servicemembers on active duty; and

x failing to assign a designated customer care representative.

13. The Department and the Compliance Monitor also identified, among other things,

(a) inadequate and ineffective information technology systems and personnel, and (b) widespread

conflicts of interest with related parties.

Inadequate and Ineffective Information Technology Systems and Personnel

14. In the course of its review, the Compliance Monitor determined that Ocwen’s

information technology systems are a patchwork of legacy systems and systems inherited from

acquired companies, many of which are incompatible. A frequent occurrence is that a fix to one

system creates unintended consequences in other systems. As a result, Ocwen regularly gives

borrowers incorrect or outdated information, sends borrowers backdated letters, unreliably tracks

data for investors, and maintains inaccurate records. There are insufficient controls in place—

either manual or automated—to catch all of these errors and resolve them.

15. For example, Ocwen’s systems have been backdating letters for years. In many

cases, borrowers received a letter denying a mortgage loan modification, and the letter was dated

more than 30 days prior to the date that Ocwen mailed the letter. These borrowers were given 30

days from the date of the denial letter to appeal that denial, but those 30 days had already elapsed

by the time they received the backdated letter. In other cases, Ocwen’s systems show that

borrowers facing foreclosure received letters with a date by which to cure their default and avoid

foreclosure—and the cure date was months prior to receipt of the letter. Ocwen’s processes

failed to identify and remedy these errors.


(Page 84 of Total)

7

16. Moreover, Ocwen failed to fully investigate and appropriately address the

backdating issue when an employee questioned the accuracy of Ocwen’s letter dating processes

and alerted the company’s Vice President of Compliance. Ocwen ignored the issue for five

months until the same employee raised it again. While Ocwen then began efforts to address the

backdating issue, its investigation was incomplete and Ocwen has not fully resolved the issue to

date, more than a year after its initial discovery.

17. Ocwen’s core servicing functions rely on its inadequate systems. Specifically,

Ocwen uses comment codes entered either manually or automatically to service its portfolio;

each code initiates a process, such as sending a delinquency letter to a borrower, or referring a

loan to foreclosure counsel. With Ocwen’s rapid growth and acquisitions of other servicers, the

number of Ocwen’s comment codes has ballooned to more than 8,400 such codes. Often, due to

insufficient integration following acquisitions of other servicers, there are duplicate codes that

perform the same function. The result is an unnecessarily complex system of comment codes,

including, for example, 50 different codes for the single function of assigning a struggling

borrower a designated customer care representative.

18. Despite these issues, Ocwen continues to rely on those systems to service its

portfolio of distressed loans. Ocwen’s reliance on technology has led it to employ fewer trained

personnel than its competitors. For example, Ocwen’s Chief Financial Officer recently

acknowledged, in reference to its offshore customer care personnel, that Ocwen is simply

“training people to read the scripts and the dialogue engines with feeling.” Ocwen’s policy is to

require customer support staff to follow the scripts closely, and Ocwen penalizes and has

terminated customer support staff who fail to follow the scripts that appear on their computer

screens. In some cases, this policy has frustrated struggling borrowers who have complex issues


(Page 85 of Total)

8

that exceed the bounds of a script and have issues speaking with representatives at Ocwen

capable of addressing their concerns. Moreover, Ocwen’s customer care representatives in many

cases provide conflicting responses to a borrower’s question. Representatives have also failed in

many cases to record in Ocwen’s servicing system the nature of the concerns that a borrower has

expressed, leading to inaccurate records of the issues raised by the borrower.

19. Ocwen’s inadequate infrastructure and ineffective personnel have resulted in

Ocwen’s failure to fulfill its legal obligations. Prior to the Department’s and the Compliance

Monitor’s review, Ocwen did not take adequate steps to implement reforms that it was legally

obligated to implement pursuant to the 2011 Agreement.

Widespread Conflicts of Interest with Related Parties

20. The Department’s review of Ocwen’s mortgage servicing practices also

uncovered a number of conflicts of interest between Ocwen and four other public companies (the

“related parties”),1 all of which are chaired by Mr. Erbey, who is also the largest individual

shareholder of each and the Executive Chairman of Ocwen. In addition to serving as chairman

of the board for Ocwen and each related company, Mr. Erbey’s holdings in these companies total

more than $1 billion. Other Ocwen executives and directors also own significant investments in

both Ocwen and the related parties. Yet, Ocwen does not have a written policy that explicitly

requires potentially conflicted employees, officers, or directors to recuse themselves from

involvement in transactions with the related companies.

1 The related parties are, as of the date of this Consent Order, Altisource Portfolio Solutions, S.A.

(“Altisource Portfolio”), Altisource Residential Corporation, Altisource Asset Management Corporation, and Home Loan Servicing Solutions Ltd., and any of their affiliates, predecessors and successors in interest, both past and present, and any of their officers, directors, partners, employees, consultants, representatives, and agents or other persons and entities acting under their control or on their behalf.


(Page 86 of Total)

9

21. Despite Mr. Erbey’s holdings in these companies, Mr. Erbey has not in fact

recused himself from approvals of several transactions with the related parties. Mr. Erbey, who

owns approximately 15% of Ocwen’s stock, and nearly double that percentage of the stock of

Altisource Portfolio, has participated in the approval of a number of transactions between the

two companies or from which Altisource received some benefit, including the renewal of

Ocwen’s forced placed insurance program in early 2014.

22. Ocwen’s close business relationship with related companies is particularly evident

in its relationship with Altisource Portfolio, which has dozens of subsidiaries that perform fee-

based services for Ocwen. In one example, Altisource Portfolio subsidiary Hubzu, an online

auction site, hosts nearly all Ocwen auctions. In certain circumstances, Hubzu has charged more

for its services to Ocwen than to other customers—charges which are then passed on to

borrowers and investors. Moreover, Ocwen engages Altisource Portfolio subsidiary REALHome

Services and Solutions, Inc. as its default real estate agency for short sales and investor-owned

properties, even though this agency principally employs out-of-state agents who do not perform

the onsite work that local agents perform, at the same cost to borrowers and investors.

23. Conflicts of interest are evident at other levels of the Ocwen organization. For

example, during its review, the Monitor discovered that Ocwen’s Chief Risk Officer

concurrently served as the Chief Risk Officer of Altisource Portfolio. The Chief Risk Officer

reported directly to Mr. Erbey in both capacities. This individual seemed not to appreciate the

potential conflicts of interest posed by this dual role, which was of particular concern given his

role as Chief Risk Officer.


(Page 87 of Total)

10

Settlement Provisions

Monetary Payment

24. Ocwen will pay the amount of $150 million as follows:

a. $100 million paid to the Department by December 31, 2014, as a civil monetary

penalty pursuant to New York Banking Law § 44, to be used by the State of New

York for housing, foreclosure relief, and community redevelopment programs

supporting New York’s housing recovery; and

b. $50 million deposited into an interest-bearing escrow account by December 31,

2014, to be paid as restitution to current and former Ocwen-serviced borrowers in

New York, as follows:

i. $10,000 to each borrower whose home was foreclosed upon by Ocwen

between January 1, 2009, and the date of this Consent Order; and

ii. The balance of the $50 million to be distributed equally among borrowers

who had foreclosure actions filed against them by Ocwen between January

1, 2009, and the date of this Consent Order, but in which Ocwen did not

complete such foreclosure.

25. Ocwen agrees that it will not claim, assert, or apply for a tax deduction or tax

credit with regard to any U.S. federal, state, or local tax, directly or indirectly, for any portion of

the amount paid pursuant to this Consent Order.

Borrower Assistance

26. For borrowers receiving payments pursuant to Paragraph 24(b)(ii), Ocwen will

evaluate such borrowers for all applicable modifications and other foreclosure alternatives in

light of their improved financial condition resulting from such payment.


(Page 88 of Total)

11

27. Beginning sixty (60) days after the date of execution of the Consent Order, and

for a period of two years thereafter, Ocwen will provide upon request by a New York borrower

that borrower’s complete loan file, which includes all information from all systems, including

comment codes, at no cost to the borrower, regardless of whether such borrower’s loan is still

serviced by Ocwen.

28. Beginning sixty (60) days after the date of execution of the Consent Order,

Ocwen will provide every New York borrower who is denied a modification, short sale, or deed-

in-lieu of foreclosure, a detailed explanation of the reasons for denial.

29. Beginning sixty (60) days after the date of execution of this Consent Order, for all

New York borrowers who have been reported negatively by Ocwen to credit agencies since

January 1, 2010, Ocwen will provide upon request at no cost a copy of such borrower’s credit

report (including credit scores) no more than once a year, regardless of whether such borrower’s

loan is still serviced by Ocwen. Ocwen will make sufficient staff available for borrowers to

inquire about their credit reporting and will dedicate the resources necessary to investigate such

inquiries and promptly correct any errors.

30. The Operations Monitor will oversee Ocwen’s compliance with these borrower

assistance provisions and will work with Ocwen to develop appropriate procedures for such

compliance.

Operations Monitor

31. The Department will select in its sole discretion an independent on-site operations

monitor (the “Operations Monitor”) that will report directly to the Department.

32. The Operations Monitor will review and assess the adequacy and effectiveness of

Ocwen’s operations. Such an assessment will include but is not limited to the following areas:


(Page 89 of Total)

12

a. Information technology systems and personnel, including with respect to record

keeping and borrower communications;

b. Number of personnel and the training and expertise of its personnel in all

servicing operations;

c. Onboarding process for newly acquired mortgage servicing rights, including

Ocwen’s ability to onboard newly acquired MSRs without interruption to

servicing newly acquired loans or its existing loan portfolio;

d. Controls in identifying and correcting errors made by Ocwen’s personnel or

systems;

e. Risk management functions;

f. Contracts or proposed contracts with third parties, including but not limited to

related parties;

g. Fees charged by Ocwen to borrowers or mortgage investors; and

h. The Ocwen borrower experience.

33. The Operations Monitor will identify the criteria for determining what constitutes

a “related party” for purposes of compliance with this Consent Order.

34. The purview of the Operations Monitor will extend to all matters directly or

indirectly affecting New York borrowers, including matters that affect borrowers in all states or

in multiple states that include New York.

35. The Operations Monitor will identify needed corrective measures to address

identified weaknesses and deficiencies in Ocwen’s operations, make recommendations to Ocwen

and to the Superintendent, and oversee implementation of reforms. The Operations Monitor will


(Page 90 of Total)

13

also develop benchmarks against which to assess Ocwen’s progress in complying with

recommended corrective measures.

36. The Operations Monitor will review and assess Ocwen’s current committees of

the Board of Directors. Ocwen Financial Corporation’s Board of Directors (the “Board”) will

consult with the Operations Monitor concerning, among other things, the structure, composition,

and reporting lines of such committees, and whether certain committees should be either

disbanded or created.

37. The Board will consult with the Operations Monitor to determine which decisions

should be committed to the specific oversight of the Board’s independent directors, or a

committee comprised of such independent directors, including, but not limited to:

a. Approval of transactions with related parties;

b. Approval of transactions to acquire mortgage servicing rights, sub-servicing

rights, or otherwise to increase the number of loans serviced by Ocwen;

c. Approval of new relationships with third-party vendors;

d. Determinations as to whether Ocwen’s servicing, compliance, and information

technology functions are adequately staffed;

e. Determinations as to whether Ocwen’s servicing, compliance, and information

technology personnel are adequately trained;

f. Determinations as to whether Ocwen’s information technology infrastructure and

ongoing investment in information technology systems are adequate;

g. Determinations as to whether Ocwen is adequately addressing the issues

identified by the Operations Monitor and the Compliance Monitor; and


(Page 91 of Total)

14

h. Determinations as to whether Ocwen is treating borrowers fairly and is

communicating with borrowers appropriately.

38. The Board will consult with the Operations Monitor to determine whether any

member of senior management should be terminated or whether additional officers should be

retained to achieve the goals of complying with this Consent Order, and all applicable laws,

regulations, and agreements, as well as creating a corporate culture of ethics, integrity,

compliance, and responsiveness to borrowers.

39. Ocwen may acquire MSRs upon (a) meeting benchmarks developed by the

Operations Monitor concerning the adequacy of Ocwen’s onboarding process for newly acquired

MSRs and its ability to adequately service both those newly acquired MSRs and its existing loan

portfolio, and (b) the Department’s approval, not to be unreasonably withheld. The Operations

Monitor will act with reasonable expedition to develop such benchmarks in consultation with

Ocwen. These benchmarks will address, at a minimum, the following:

a. The development and implementation of a satisfactory compliance plan;

b. The development and implementation of a plan to resolve record-keeping and

borrower communication issues;

c. The reasonableness of fees and expenses charged to borrowers and mortgage

investors, including those charged directly or indirectly by related parties;

d. The development and performance of a risk assessment to identify potential risks

and deficiencies in the onboarding process; and

e. The development of a written onboarding plan that addresses potential risks and

deficiencies, including testing and quality control review periodically during the

onboarding process.


(Page 92 of Total)

15

40. The Operations Monitor will semi-annually review and approve Ocwen’s

benchmark pricing and performance studies with respect to all fees or expenses charged to New

York borrowers by any related party.

41. The Operations Monitor will oversee and ensure Ocwen’s implementation and

adherence to the terms of this Consent Order.

42. Within one hundred twenty (120) days of the date of the formal engagement of

the Operations Monitor, the Operations Monitor will submit to the Parties a preliminary written

report of findings, including, to the extent the Operations Monitor has had the opportunity to

develop them, any proposed corrective measures and associated benchmarks (the “Operations

Report”). The Operations Monitor will submit written monthly action progress reports

(“Progress Reports”) to the Parties. On a quarterly basis, starting ninety (90) days from the date

of the first Operations Report, the Operations Monitor will issue an Operations Report covering

the three-month period immediately preceding.

43. Ocwen agrees to cooperate fully with the Operations Monitor by, including but

not limited to, providing the Operations Monitor access to all relevant personnel and records

necessary on a real-time basis, including those at any overseas locations, and including

information on business decisions pertinent to the work of the Operations Monitor currently

pending or recently made by Ocwen management or its Board of Directors, to allow the

Operations Monitor to fulfill its duties.

44. Any dispute as to the scope of the Operations Monitor’s authority will be resolved

by the Department in the exercise of its sole discretion after appropriate consultation with Ocwen

and/or the Operations Monitor.

45. Ocwen will pay all reasonable and necessary costs of the Operations Monitor.


(Page 93 of Total)

16

46. The terms of the Operations Monitor will extend for a period of twenty-four (24)

months from the date of formal engagement which shall be no later than May 1, 2015. The

Department may, in its sole discretion, extend the engagement another twelve (12) months if the

Department determines that Ocwen has not sufficiently achieved benchmarks identified by the

Operations Monitor.

Compliance Monitor

47. The Compliance Monitor will remain engaged for at least three (3) months from

the execution of this Consent Order. The Department may, in its sole discretion, extend the

engagement of the Compliance Monitor for a period not to exceed an additional three (3)

months.

48. Following completion of the Compliance Monitor’s engagement, the Operations

Monitor may call upon the Compliance Monitor to perform work that draws on the Compliance

Monitor’s institutional knowledge of Ocwen.

49. Prior to the Operations Monitor’s engagement and for a short transitional period

thereafter not to exceed forty-five (45) days, the Department may in its sole discretion direct the

Compliance Monitor to fill any of the roles of the Operations Monitor described in this Consent

Order.

Board of Directors

50. Ocwen Financial Corporation will expand its Board of Directors by two

independent board members (the “Additional Directors”) in consultation with the Compliance

Monitor or the Operations Monitor.

51. The Additional Directors will not own equity in any related party.

52. Ocwen’s Board will contain no more than two executive directors at any time.


(Page 94 of Total)

17

Conflicts of Interest

53. With respect to mortgage loans serviced by Ocwen, Ocwen will conduct semi-

annual benchmarking studies of pricing and performance standards with respect to all fees or

expenses charged to New York borrowers or to investors on New York property by any related

party, to determine whether the terms offered by the related party are commensurate with market

rates or, if market rates are not available, are reasonably related to actual expenses incurred by

the related party. Maximum rates for services that are established by government-sponsored

enterprises or other investors may not be presumed to be the market rate and may not substitute

for actual assessment of market rates.

54. Ocwen will not share any common officers or employees with any related party.

55. Ocwen will not share risk, internal audit, or vendor oversight functions with any

related party.

56. Any Ocwen employee, officer, or director owning more than $200,000 equity

ownership in any related party will be recused from negotiating, or voting to approve a

transaction with the related party in which the employee, officer, or director has such equity

ownership, or any transaction that indirectly benefits such related party if such transaction

involves revenues or expense to Ocwen or a related party of $120,000 or more.

Management Changes

57. Effective January 16, 2015, William Erbey will resign from his position as

Executive Chairman of Ocwen, his position as Chairman of the Board of Directors of Altisource

Portfolio, his position of Chairman of the Board of Directors of Altisource Residential

Corporation, his position of Chairman of the Board of Directors of Altisource Asset Management

Corporation, and his position of Chairman of the Board of Directors of Home Loan Servicing


(Page 95 of Total)

18

Solutions Ltd. Mr. Erbey will have no directorial, management, oversight, consulting, or any

other role at Ocwen or any related party, or at any of Ocwen’s or the related parties’ affiliates or

subsidiaries as of the date of his resignation. Effective at his resignation, Ocwen’s Board

members and management will not disclose to Mr. Erbey any non-public information about

Ocwen that is not available to other shareholders. In the event that Ocwen discovers a violation

of the terms of this Paragraph, Ocwen will notify the Department of the violation within three (3)

business days of discovery.

No Indemnification

58. Neither Ocwen, nor any of its parents or affiliates will, collectively or

individually, seek or accept, directly or indirectly, reimbursement or indemnification, including,

but not limited to, payment made pursuant to any insurance policy, or from any of its parents or

affiliates, with regard to any or all of the amounts payable pursuant to this Consent Order.

Breach of Consent Order

59. In the event that the Department believes Ocwen to be in material breach of this

Consent Order (“Breach”), the Department will provide written notice to Ocwen, and Ocwen

must, within ten (10) business days of receiving such notice, or on a later date if so determined in

the Department’s sole discretion, appear before the Department to demonstrate that no Breach

has occurred or, to the extent pertinent, that the Breach has been cured.

60. The parties understand and agree that Ocwen’s failure to make the required

showing within the designated time period will be presumptive evidence of Ocwen’s Breach.

Upon a finding of Breach, the Department has all the remedies available to it under the New

York Banking and Financial Services Laws and may use any evidence available to the

Department in any ensuing hearings, notices, or orders.


(Page 96 of Total)

19

Wavier of Rights

61. The parties understand and agree that no provision of this Consent Order is

subject to review in any court or tribunal outside the Department.

Parties Bound by the Consent Order

62. This Consent Order is binding on the Department and Ocwen, as well as Ocwen’s

successors and assigns that are under the Department’s supervisory authority. This Consent

Order does not bind any federal or other state agency or any law enforcement authority.

63. Except as set forth in Paragraphs 64 and 65, no further action will be taken by the

Department against Ocwen for the matters set forth in this Consent Order, provided that Ocwen

complies with the terms of the Consent Order.

64. Nothing in this Consent Order shall excuse Ocwen from paying required

restitution to any borrowers harmed by its improper or illegal conduct, including the backdating

of letters to borrowers. To the extent a borrower entitled to restitution has received a cash

payment pursuant to this Consent Order, Ocwen may offset such payment against the restitution

owed to such borrower.

65. Notwithstanding any other provision in this Consent Order, the Department may

undertake additional action against Ocwen for transactions or conduct that: (a) are not set forth

in this Consent Order; (b) Ocwen did not disclose to the Compliance Monitor or the Department

in connection with the Department’s investigation into these matters; and (c) that the Department

and Compliance Monitor were not otherwise aware of in connection with the Department’s

investigation and the work of the Compliance Monitor.

Notices

66. All notices or communications regarding this Consent Order will be sent to:


(Page 97 of Total)

20

For the Department:

Daniel Burstein Executive Deputy Superintendent Real Estate Finance Division New York State Department of Financial Services One State Street New York, NY 10004

For Ocwen:

Timothy M. Hayes Executive Vice President and General Counsel Ocwen Financial Corporation 1661 Worthington Road #100 West Palm Beach, FL 33409 Miscellaneous

67. Each provision of this Consent Order will remain effective and enforceable until

stayed, modified, suspended, or terminated by the Department.

68. No promise, assurance, representation, or understanding other than those

contained in this Consent Order has been made to induce any party to agree to the provisions of

the Consent Order.

IN WITNESS WHEREOF, the parties have caused this Consent Order to be signed this 22nd

day of December, 2014.

OCWEN FINANCIAL CORPORATION By: _______________________ RONALD FARIS President and Chief Executive Officer

NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES By: _______________________ BENJAMIN M. LAWSKY Superintendent of Financial Services

OCWEN LOAN SERVICING, LLC By: _______________________ TIMOTHY M. HAYES Executive Vice President


(Page 98 of Total)

For the Depmtment:


For Ocwen:

Timothy M. Hayes Executive Vice President and General Counsel Oewen Financial Corporation 1661 WOIthington Road #100 West Palm Beach. FL 33409

Miscellaneous

67. Each provision o[this Consent Order will remain effective and enforceable until

stayed, modified, suspended, or terminated by the Department.

68. No promise, assurance, representation, or understanding other than those

contained in this Consent Order has been made to induce any pmty to agree to the provisions of

the Consent Order.

IN WITNESS WHEREOF, the parties have caused this Consent Order to be signed this 19th

day of December. 2014.

OCWEN FINANCIAL CORPORATION NEW YORK STATE DEPARTMENT OF

~9-FINANCIAL SERVICES

By: By: BENc;cJ;-:A~M;oI:-;N-;:M-;-,-;:L--;A-:CW;-;;S'""'K-:::;Y-;--RONALD FARIS

President and Chief Executive Officer Superintendent of Financial Services

OCWEN LOAN SERVICING, LLC

By:TIMO:OccT"'H"'Y=M-;-,coH-;-A:CyC;;EOC,S,-----

Executive Vice President

20


(Page 99 of Total)

For the Department:


For Oewen:

Timothy M. Hayes Executive Vice President and General Counsel Ocwen Financial Corporat ion 1661 Worthington Road # 100 We" Palm Beach, FL 33409

Misce ll aneous

67. Each provision of this Consent Order will remain effective and enforceable unt il

stayed. modified, suspended. or terminated by the Department.

68. No promise. assurance. representation, or understanding other than those

conta ined in thi s Consent Order has been made to induce any party to agree to the provisions of

the Consent Order.

IN WITNESS WI-IEREOF, the parties have caused this Consent Order to be signed thi s 19th

day of December. 2014.

OCWEN FINANCIAL CORPORATlON NEW YORK STATE DEI'ARTMENT OF FI NANCIAL SE RYICES

By: By: RON~~~~~R~~------ liE N:,eJ A = I N,-:C"O".--;LA KY'A L D FA ~I S '-" M o,- M - " '::-Y"'S"'""-;- Pres iden t ,lnd Chief Executive Officer SUJlerintendent of financhll Services

OCWEN LOAN SERV ICING, LLC

BY:-r:V 0{ ~ TIMOTHY M. HAYES Executive Vice President

20


(Page 100 of Total)

12/27/2014 Ocwen Chairman to Resign Following $150 Settlement with N.Y. Regulator | Reverse Mortgage Daily

http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-resign-following-150-settlement-with-n-y-regulator/ 1/6

(http://engine.adzerk.net/r?

e=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&s=IV6DvjJmB7QTZT54V0VRjZO8p0k)

Search

« Reverse Mortgage Changes Impact Retirement Security, HUD Ups Counseling

Funds (http://reversemortgagedaily.com/2014/12/22/reverse-mortgage-changes-

impact-retirement-security-hud-ups-counseling-funds/)

Congress Members Seek More Reverse Mortgage Non-Borrowing Spouse

Protections (http://reversemortgagedaily.com/2014/12/22/congress-members-seek-

more-reverse-mortgage-non-borrowing-spouse-protections/) »

Ocwen Chairman to Resign

Following $150 Settlement with

N.Y. Regulator

(http://reversemortgagedaily.com/2014/12/22/ocwen-

chairman-to-resign-following-150-

settlement-with-n-y-regulator/)

December 22nd, 2014 | by Jason Oliva Published in News

(http://reversemortgagedaily.com/category/news/) , Ocwen

(http://reversemortgagedaily.com/category/ocwen/) , Reverse Mortgage

(http://reversemortgagedaily.com/category/reverse-mortgage/) , Servicers

(http://reversemortgagedaily.com/category/reverse-mortgage-servicers/) | 1

Comment (#comments)

The drama continues to unfold for Ocwen Financial Corp. (NYSE: OCN), which

today which today announced the resignation of Founder and Chairman William

C. Erbey, following a $150 million settlement

(http://www.dfs.ny.gov/about/ea/ea141222.pdf) with one of its top scrutinizers, the

New York Department of Financial Services (NYDFS).

After nearly 30 years of service with the company, Erbey will step down from his

position as Executive Chairman, effective January 16, 2015. Upon his resignation,

current Ocwen Director Barry Wish will assume the role of Non-Executive

Chairman on that date.

“I am grateful to the many associates who have worked alongside me and proud

of what we have accomplished,” Erbey said in a written statement. “I am

confident about Ocwen’s future under the experienced leadership of the executive

team.”

In agreement with the settlement, Erbey will also step down from his positions as

Board Chairman at each of Ocwen’s four related companies, including Altisource

Portfolio Solutions S. A.; Altisource Residential Corporation; Altisource Asset

Management Corporation; and Home Loan Servicing Solutions, Ltd.

“As of these resignations, Mr. Erbey will have no directorial, management,

oversight, consulting, or any other role at Ocwen or any related party, or at any of

Ocwen’s or the related parties’ affiliates or subsidiaries,” said the NYDFS in a

Daily news on the reverse mortgage industry

delivered to your inbox.

Email Address:

Subscribe

Follow @rmdaily

Wholesale Lender Sponsors

AAG Wholesale


e=eyJhdiI6MTg1NSwiYXQiOjIwLCJjbSI6MTA5MTMsImNoIjoxNzg0LCJjciI6MjM5NTYsImRtIjo0LCJmYyI6MzQ0MDUsImZsIjoyMDg3MCwibnciOjk2LCJydiI6MCwicHIiOjY2LCJzdCI6MCwidXIiOiJodHRwOi8vd3d3LmFhZ2FsbGlhbmNlLmNvbS8_JnV0bV9zb3VyY2U9Uk1EYWlseSIsInJlIjoxfQ&s=4ffG1P3yd_knbUCo-

iO1_5yS7sI)

Liberty Home Equity Solutions


e=eyJhdiI6Njk5NiwiYXQiOjIwLCJjbSI6MTA1MTUsImNoIjoxNzg0LCJjciI6MjMxMDIsImRtIjo0LCJmYyI6MzM0MDcsImZsIjoyMDMxNiwibnciOjk2LCJydiI6MCwicHIiOjY2LCJzdCI6MCwidXIiOiJodHRwOi8vbGliZXJ0eWhvbWVlcXVpdHkuY29tL3BhcnRuZXIvIiwicmUiOjF9&s=VjvsLXEU5VVMq8sXciQem0oTOG0)

HighTechLending Inc.


e=eyJhdiI6NjI1NCwiYXQiOjIwLCJjbSI6OTU1NSwiY2giOjE3ODQsImNyIjoyMDY5NywiZG0iOjQsImZjIjozMDQ0NywiZmwiOjE4ODU3LCJudyI6OTYsInJ2IjowLCJwciI6NjYsInN0IjowLCJ1ciI6Imh0dHA6Ly93d3cuaGlnaHRlY2hsZW5kaW5nLm5ldC9yZXZlcnNlLXdob2xlc2FsZS8iLCJyZSI6MX0&s=eTTAOrESeDn1MlnwyW1zDf8QOgA

)

Nationwide Equities


e=eyJhdiI6MTU0NSwiYXQiOjIwLCJjbSI6MTA1MzYsImNoIjoxNzg0LCJjciI6MjMxMjQsImRtIjo0LCJmYyI6MzM0MjksImZsIjoyMDMzOCwibnciOjk2LCJydiI6MCwicHIiOjY2LCJzdCI6MCwidXIiOiJodHRwOi8vdGhlcmV2ZXJzZXBvd2VyLmNvbS8iLCJyZSI6MX0&s=thJDPfr39rKs2-

6YNwBCK2bfupc )

Urban Financial of America


e=eyJhdiI6MjQwMywiYXQiOjIwLCJidCI6MCwiY20iOjEwNTM3LCJjaCI6MTc4NCwiY3IiOjIzMTI2LCJkbSI6NCwiZmMiOjMzNDMxLCJmbCI6MjAzNDAsImlwIjoiNTQuODIuMTk3LjU4IiwibnciOjk2LCJwYyI6MCwicHIiOjY2LCJydCI6MSwic3QiOjAsInVyIjoiaHR0cHM6Ly93d3cudWZhd2hvbGVzYWxlLmNvbS8iLCJyZSI6MX0&s=1s1-

C4OojOzrW4m-h-aSJ0psxdo )

Live Well Financial


e=eyJhdiI6ODg0MywiYXQiOjIwLCJjbSI6MTI5OTMsImNoIjoxNzg0LCJjciI6MjkzOTUsImRtIjo0LCJmYyI6NDExNTAsImZsIjoyNDE0NCwibnciOjk2LCJydiI6MCwicHIiOjY2LCJzdCI6MCwidXIiOiJodHRwOi8vd3d3LmxpdmV3ZWxsZmluYW5jaWFsLmNvbS9QYXJ0bmVycyIsInJlIjoxfQ&s=-

CxCWGJEvAepFiNmLa067nij-P8 )

Reverse Mortgage Solutions


e=eyJhdiI6Njk5MywiYXQiOjIwLCJjbSI6MTA0OTksImNoIjoxNzg0LCJjciI6MzI0MjgsImRtIjo0LCJmYyI6NDU0OTgsImZsIjoyNTk1NiwibnciOjk2LCJwYyI6MCwicHIiOjY2LCJydCI6MSwic3QiOjAsInVyIjoiaHR0cDovL3BhcnRuZXJzLnJtc25hdi5jb20vIiwicmUiOjF9&s=FdJMhBal9PKyox58ruM4tNyIDUM

)

Reverse Mortgage Funding


e=eyJhdiI6Mzg1NDEsImF0IjoyMCwiYnQiOjAsImNtIjoxOTU5MzYsImNoIjowLCJjciI6Njg4NzU3LCJkbSI6NCwiZmMiOjcxMzQ2OCwiZmwiOjQzNTMyMSwiaXAiOiI1NC44Mi4yNDYuMjEyIiwibnciOjAsInBjIjowLCJwciI6NjYsInJ0IjoxLCJzdCI6MCwiYmYiOnRydWUsInVyIjoiaHR0cHM6Ly9wYXJ0bmVycy5yZXZlcnNlZnVuZGluZy5jb20vIiwicmUiOjF9&s=8Nx4kinB30-

TuqKV0iCHfVmiQyU )

Sponsors


(http://reversemortgagedaily.com)

Home (http://reversemortgagedaily.com) About (http://reversemortgagedaily.com/about/) Wholesale Lenders (http://reversemortgagedaily.com/wholesale-lenders/)

Jobs (http://reversemortgagedaily.com/jobs/) Aw ards (http://reversemortgagedaily.com/awards/) Advertise (http://reversemortgagedaily.com/advertise/)

Contact (http://reversemortgagedaily.com/contact/) Content (http://reversemortgagedaily.com/content/) Calculator (http://reversemortgagedaily.com/calculator/) Categories

RSS (http://reversemortgagedaily.com/feed/)


(Page 101 of Total)

http://reversemortgagedaily.com/

http://reversemortgagedaily.com/about/

http://reversemortgagedaily.com/wholesale-lenders/

http://reversemortgagedaily.com/jobs/

http://reversemortgagedaily.com/awards/

http://reversemortgagedaily.com/advertise/

http://reversemortgagedaily.com/contact/

http://reversemortgagedaily.com/content/

http://reversemortgagedaily.com/calculator/

http://reversemortgagedaily.com/feed/




e=eyJhdiI6MjQ5MSwiYXQiOjYsImNtIjozODc4LCJjaCI6MTc4NCwiY3IiOjI1NjE2LCJkaSI6ImZjNGQyYTI3YmRhMzQ5NmI5NTU0ZmRjOTNiNGY4MWMxIiwiZG0iOjEsImZjIjozNjU5NCwiZmwiOjkxNjksImlwIjoiMjQuMS4yNDcuNjkiLCJudyI6OTYsInBjIjoxNTAwLCJwciI6NjUsInJ0IjoxLCJyZiI6Imh0dHA6Ly9yZXZlcnNlbW9ydGdhZ2VkYWlseS5jb20vMjAxNC8xMi8yMi9vY3dlbi1jaGFpcm1hbi10by1yZXNpZ24tZm9sbG93aW5nLTE1MC1zZXR0bGVtZW50LXdpdGgtbi15LXJlZ3VsYXRvci8iLCJzdCI6MTI2OTQsInVrIjoidWUxLWQ5NTJkY2FjNTNkNDQwY2E4MmUxZGExNzQ0ODU3MTFkIiwiem4iOjgyNywidHMiOjE0MTk3MjA5ODQ3NzYsImJmIjp0cnVlLCJ1ciI6Imh0dHA6Ly93d3cuczFsLmNvbS9jb250YWN0LnBocCJ9&s=BE6uZ2IosIzgP4JT7Csms5Nayuw)


e=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&s=waiNt6LedacAkIgcxpOp2Q80TnM)

statement.

Under the terms of the settlement, Ocwen will pay a civil monetary penalty of

$100 million to the NYDFS by December 31, which will be used by the State of

New York for housing, foreclosure relief and community redevelopment programs,

according to a release from the regulator.

The remaining $50 million will be used as restitution to current and former New

York borrowers in the form of $10,000 to each borrower whose home was

foreclosed upon by Ocwen between January 2009 and December 19, 2014. The

balance will then be distributed equally among borrowers who had foreclosure

actions filed, but not completed, by Ocwen between that timeframe.

The settlement, which arrived after the company inadvertently misdated

hundreds of letters (http://reversemortgagedaily.com/2014/10/27/ocwen-woes-

continue-as-ceo-pens-apology-to-borrowers/) sent to borrowers regarding loan

modifications and foreclosures, was largely prepared for by Ocwen.

In the third quarter, the company recorded a $100 million charge

(http://reversemortgagedaily.com/2014/10/30/ocwen-prepares-for-100-million-

servicing-settlement/) in payments in anticipation to settle for servicing charges in

the midst of investigations from the NYDFS. As for the other $50 million, Ocwen

said it will record that amount in its fourth quarter 2014 financial statements.

Also as part of the settlement, Ocwen will not be permitted to acquire additional

mortgage servicing rights, or begin to acquire additional MSRs until an unless it

receives approval from the NYDFS, and meets benchmarks developed by the

independent monitor concerning the adequacy of Ocwen’s onboarding process for

newly acquired MSRs.

“Today’s agreement will deliver significant assistance to Ocwen homeowners in

New York and provide a new path for the company to clean up its operations,”

said Lawsky in a written statement. “We will continue to closely monitor Ocwen

to ensure that it lives up to its obligations under this agreement, and treats

struggling homeowners with the respect and dignity they deserve.”

Ocwen has also agreed to several non-monetary provisions under the settlement,

including monitor-led oversight of its operations, in addition to the New York

borrower assistance measures.

Beginning 60 days after December 19—and for two years—Ocwen will provide,

upon request, New York borrowers with complete loan files at no cost, as well as

provide every N.Y. borrower detailed explanations as to why a loan modification,

short sale (http://reversemortgagedaily.com/2014/12/18/bloomberg-more-trouble-

for-ocwen/) or deed-in-lieu of foreclosure were denied.

The company will also provide one free credit report per year, at its own expense,

to any N.Y. borrower on request if Ocwen made a negative report to any credit

agency from January 1, 2010, the company will make staff available for borrowers

to inquire about their credit reporting, dedicating resources necessary to

investigate such inquiries and correct any errors.

Another non-monetary provision of the settlement requires the NYDFS to appoint

an independent Operations Monitor to review and assess the adequacy and

effectiveness of Ocwen’s operations for two years, with the regulator having the

option to extend this engagement for another 12 months.

The year has been a tumultuous one—to say the very least—for Ocwen, marked

by numerous investigations from regulators, including the NYDFS as well as the

Monitor of the National Mortgage Settlement, which released a report

(http://reversemortgagedaily.com/2014/12/16/ocwen-just-cant-beat-regulator-heat/)

this month examining the company’s compliance with NMS standards.

Even with the ongoing federal probes, penned apology letters

(http://reversemortgagedaily.com/2014/10/27/ocwen-woes-continue-as-ceo-pens-

apology-to-borrowers/) from executive leadership and series of servicing

downgrades (http://reversemortgagedaily.com/2014/10/23/ocwen-faces-more-

downgrades-following-regulatory-scrutiny/) , Ocwen has reiterated its cooperation

with regulators time and time again. Today’s settlement is no exception, though

2015 looks to be a rigid year.

“We believe this agreement is in the best interests of our shareholders,

employees, borrowers and mortgage investors,” said Ocwen CEO Ronald Faris.

“We will continue to cooperate with the DFS in the implementation of the terms of

this settlement which we believe will allow Ocwen to continue to focus on what

we do best—helping homeowners.”

e=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_aWQ9MTQ4ZmRlNTgtY2M5Yi0xMWUzLWE2MTgtMDA1MDU2YTA3OGVlIn0&s=YS87naCGiVx4RTsF4mYNSNB3Tmw)


e=eyJhdiI6Njk5MywiYXQiOjE4LCJidCI6MCwiY20iOjEwNDk5LCJjaCI6MTc4NCwiY3IiOjUzNTM4NSwiZGkiOiJlN2NmMmRmYzliMTg0YjRkYTRlMjJmZWJmOTMzNjNhYSIsImRtIjoxLCJmYyI6NTQyNTIyLCJmbCI6MjAyOTYsImlwIjoiMjQuMS4yNDcuNjkiLCJudyI6OTYsInBjIjowLCJwciI6NjYsInJ0IjoxLCJyZiI6Imh0dHA6Ly9yZXZlcnNlbW9ydGdhZ2VkYWlseS5jb20vMjAxNC8xMi8yMi9vY3dlbi1jaGFpcm1hbi10by1yZXNpZ24tZm9sbG93aW5nLTE1MC1zZXR0bGVtZW50LXdpdGgtbi15LXJlZ3VsYXRvci8iLCJzdCI6MTI2OTQsInVrIjoidWUxLWQ5NTJkY2FjNTNkNDQwY2E4MmUxZGExNzQ0ODU3MTFkIiwiem4iOjY0ODUsInRzIjoxNDE5NzIwOTg0Nzg1LCJiZiI6dHJ1ZSwidXIiOiJodHRwOi8vcGFydG5lcnMucm1zbmF2LmNvbS8ifQ&s=k_e8FNzStEq3BfE2YHyzfY2XyVw)


e=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&s=Q7y8nm59oS5-

1-AZgrO_LTBv24I)


(Page 102 of Total)




e=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&s=7_xmkIWRDwLuuvIxbzKM9DA9kn4)

The fourth-largest mortgage loan servicer in the U.S., Ocwen services an unpaid

principal balance of approximately $430 billion. In New York alone, the company

services nearly 130,000 residential home loans with a total UPB of more than $30

billion.

Written by Jason Oliva (mailto:[email protected])

Share this:

Google (http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-resign-

following-150-settlement-with-n-y-regulator/?share=google-plus-1)

Facebook (http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-

resign-following-150-settlement-with-n-y-regulator/?share=facebook)

Twitter (http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-resign-

following-150-settlement-with-n-y-regulator/?share=twitter)

(http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-resign-

following-150-settlement-with-n-y-regulator/emailpopup/) Email This Post

(http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-resign-

following-150-settlement-with-n-y-regulator/emailpopup/)

(http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-

resign-following-150-settlement-with-n-y-regulator/print/) Print This

Post (http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-

to-resign-following-150-settlement-with-n-y-regulator/print/)

Related Posts

Ocwen Defends Its Business Relationships Under Scrutiny

(http://reversemortgagedaily.com/2014/03/05/ocwen-defends-its-business-

relationships-under-scrutiny/)

Ocwen Prepares for $100 Million Servicing Settlement

(http://reversemortgagedaily.com/2014/10/30/ocwen-prepares-for-100-

million-servicing-settlement/)

Ocwen Freezes Future Mortgage Servicing Deals

(http://reversemortgagedaily.com/2014/04/20/ocwen-freezes-future-

mortgage-servicing-deals/)

1 Comment (http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-

resign-following-150-settlement-with-n-y-regulator/) • Digg This!

(http://digg.com/submit?

phase=2&partner=fb&url=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F22%2Focwen-

chairman-to-resign-following-150-settlement-with-n-y-

regulator%2F&title=Ocwen+Chairman+to+Resign+Following+%24150+Settlement+with+N.Y.+Regulator)

• Technorati Links

(http://technorati.com/search/http://reversemortgagedaily.com/2014/12/22/ocwen-

chairman-to-resign-following-150-settlement-with-n-y-regulator/) • Save to

del.icio.us (http://del.icio.us/post?

v=4&partner=fb&url=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F22%2Focwen-

chairman-to-resign-following-150-settlement-with-n-y-

regulator%2F&title=Ocwen+Chairman+to+Resign+Following+%24150+Settlement+with+N.Y.+Regulator)

• Email this (http://feedburner.google.com/fb/a/emailFlare?

itemTitle=Ocwen%20Chairman%20to%20Resign%20Following%20%24150%20Settlement%20with%20N.Y.%20Regulator&uri=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F22%2Focwen-

chairman-to-resign-following-150-settlement-with-n-y-regulator%2F)


e=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&s=u833AI8F7VvN1Qz5qRzq1K0Vobw)


e=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&s=rUkbxF053eJJUm-

VijcZ_RSKuT4)

Exclusive Training Provider


e=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&s=ZUCgC68dh1D0G9JAx38NsfK63yg)

HARP ProgramStatus 2014harp.mortgagerefinancerates.org

Verify Your HARP Eligibility

Status HARP 2014 Verification

Takes 1 Min


(Page 103 of Total)

http://www.googleadservices.com/pagead/aclk?sa=L&ai=CeynbGjmfVLbCCcfepAOKr4HYCKuL6YcH4_vktogBwI23ARABINvBpglgyYb_h_Cj7BKgAb2Pnd4DyAEBqAMByAPDBKoE0gFP0K5bdLUrSW0I9zqis5_OFRNT_buhzEx4NpDUj0ZzgfOXQgfVheqN2vD0kTWLjDNbv2sdDGTcJYkqgNKiaOAfoXE52Jn5g2M6Ne4apm8nlUiHBt51EdjiN6z4iFf6Nv0h01ngyemRairrEWVeOH79gRe5ZuGzEFwecSEF1XPuYoZ-P7IQkYGSdKOuq7Nd58pS1r2-UCHdcFU39HwLmtgc78M7ED8Wed9ZFBUCZGXnPRxVUHF-CWpuUVCBMlnbLZXzMywJisuXlIEuUoheQW7TLraIBgGAB6vw4iE&num=1&cid=5GjD5iFY4NuNOP0CfVyIyqIK&sig=AOD64_3r2I2piHz98zFX1jzVs0xIJ82khQ&client=ca-pub-4184953184656274&adurl=http://www.mortgagerefinancerates.org/HARP.php%3Fmkwid%3DcKvulkquI%26creative%3D%26keyword%3Dharp%2520mortgage%26matchtype%3D%26device%3Dc%26network%3Dd%26placement%3Dreversemortgagedaily.com%26adposition%3Dnone%26utm_campaign%3DHARP%2BRefinance%2B-%2BO%252FO%2B-%2BComputers%2B%252392%2B-%2BS%252FSN%2B-P%252FB%26utm_medium%3Dcpc%26utm_source%3Dgoogle






Here’s How One Finance

Professor Came Around to

Reverse Mortgages8 comments • 16 days ago

joshstephens — Couldn't

agree more. I have presented

the program and our take on

using it as a financial

planning tool to at least 10

advisors who have seen a

live presentation by John …

FHA Loses Competitive Edge

For Home Buyers

1 comment • 25 days ago

The_Cynic — What private

insurer wants to come into

the reverse mortgage

industry when FHA is

reporting a one year actuarial

determined loss of $7.7

billion for last fiscal year? Yet

that loss …

Time: Save Your HomeEquity Until You Really Need

It1 comment • 24 days ago

Dave83049 — I believe you

should take out the reverse

mortgage when you don't

need it and place all the

equity into the line of credit

(LOC). The balance in the

line of credit will grow at a …

Open Mortgage Picks UpReverse Originations Arm

From 360 Mortgage1 comment • 17 days ago

John Smaldone — My

congratulations to Scott

Gordon and Joe Morris. They

are good people and I am

looking forward to them

becoming a force in the

industry.John A. Smaldone

ALSO ON REVERSE MORTGAGE DAILY

Comments Community Login

Sort by Oldest Share ⤤

Join the discussion…

• Reply •

The_Critic • 4 days ago

Have the policies and transactions sanctioned by Erbey already

so irreparably harmed the reputation of Ocwen that Liberty will

never again rise above where it is today? Liberty most likely has

not been helped.

Having Ocwen related to this industry is NOT an overall benefit

to the industry at this time.

△ ▽

WHAT'S THIS?

Subscribe✉

Add Disqus to your sited

Privacy

Favorite ★

Share ›

.

(http://www.reversemortgagejobsonline.com/rss/feed.xml)

Reverse Mortgage Jobs(http://www.reversemortgagejobsonline.com/index.php)

Underwriter

(http://www.reversemortgagejobsonline.com/index.php?

page=view_job&post_id=643)

Reverse Mortgage Consultant



Experienced/Driven RMLO



Processor - Senior Reverse

Mortgage



Reverse Mortgage Specialists



Call Center Business Analyst



Reverse Mortgage Originators



National Recruiter



Popular Posts

RMF REIT Files for $100 Million

IPO, Eyeing 'Unprecedented

Opportunity'

(http://reversemortgagedaily.com/2014/12/22/rmf-

reit-files-for-100-million-ipo-eyeing-

unprecedented-opportunity/)

Senators, Lenders Call on FHA to

Reduce Mortgage Insurance

Premiums

(http://reversemortgagedaily.com/2014/12/21/senators-

lenders-call-on-fha-to-reduce-

mortgage-insurance-premiums/)



N.Y. Regulator




Column: Reverse Mortgages Have

Their Place In Retirement

Compliance

Regulations

unifiedcompliance.com

Compliance

framework with

content & structure.

Reduce

cost/complexity


(Page 104 of Total)

http://redirect.disqus.com/url?url=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F11%2Fheres-how-one-finance-professor-came-around-to-reverse-mortgages%2F%3AGpDSkVZ6yhHvyMlAdqFH7hR5upw&imp=914lc7g2a0tj7a&prev_imp=914jgrc2g907a3&forum_id=87374&forum=reversemortgagedaily&thread_id=3350140048&major_version=metadata&thread=3314497901&zone=thread&area=discovery

http://redirect.disqus.com/url?url=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F11%2Fheres-how-one-finance-professor-came-around-to-reverse-mortgages%2F%3AGpDSkVZ6yhHvyMlAdqFH7hR5upw&imp=914lc7g2a0tj7a&prev_imp=914jgrc2g907a3&forum_id=87374&forum=reversemortgagedaily&thread_id=3350140048&major_version=metadata&thread=3314497901&zone=thread&area=discovery

http://redirect.disqus.com/url?url=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F02%2Ffha-loses-competitive-edge-for-home-buyers%2F%3AgQxTO_ihjqzZXAeA2GTf61yout4&imp=914lc7g2a0tj7a&prev_imp=914jgrc2g907a3&forum_id=87374&forum=reversemortgagedaily&thread_id=3350140048&major_version=metadata&thread=3284085276&zone=thread&area=discovery

http://redirect.disqus.com/url?url=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F02%2Ffha-loses-competitive-edge-for-home-buyers%2F%3AgQxTO_ihjqzZXAeA2GTf61yout4&imp=914lc7g2a0tj7a&prev_imp=914jgrc2g907a3&forum_id=87374&forum=reversemortgagedaily&thread_id=3350140048&major_version=metadata&thread=3284085276&zone=thread&area=discovery

http://redirect.disqus.com/url?url=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F03%2Ftime-save-your-home-equity-until-you-really-need-it%2F%3AzCMx_lofdN_YtROpTuN8WpaE7oY&imp=914lc7g2a0tj7a&prev_imp=914jgrc2g907a3&forum_id=87374&forum=reversemortgagedaily&thread_id=3350140048&major_version=metadata&thread=3288150579&zone=thread&area=discovery

http://redirect.disqus.com/url?url=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F03%2Ftime-save-your-home-equity-until-you-really-need-it%2F%3AzCMx_lofdN_YtROpTuN8WpaE7oY&imp=914lc7g2a0tj7a&prev_imp=914jgrc2g907a3&forum_id=87374&forum=reversemortgagedaily&thread_id=3350140048&major_version=metadata&thread=3288150579&zone=thread&area=discovery

http://redirect.disqus.com/url?url=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F10%2Fopen-mortgage-acquires-360-mortgage-groups-reverse-mortgage-originations%2F%3ACg-yTHgIYgxbFfG2T4tLrRsvrNA&imp=914lc7g2a0tj7a&prev_imp=914jgrc2g907a3&forum_id=87374&forum=reversemortgagedaily&thread_id=3350140048&major_version=metadata&thread=3311023912&zone=thread&area=discovery

http://redirect.disqus.com/url?url=http%3A%2F%2Freversemortgagedaily.com%2F2014%2F12%2F10%2Fopen-mortgage-acquires-360-mortgage-groups-reverse-mortgage-originations%2F%3ACg-yTHgIYgxbFfG2T4tLrRsvrNA&imp=914lc7g2a0tj7a&prev_imp=914jgrc2g907a3&forum_id=87374&forum=reversemortgagedaily&thread_id=3350140048&major_version=metadata&thread=3311023912&zone=thread&area=discovery

https://disqus.com/home/discussions/reversemortgagedaily/ocwen_chairman_to_resign_following_150_settlement_with_ny_regulator/

https://disqus.com/home/forums/reversemortgagedaily/

https://disqus.com/home/inbox/

http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-resign-following-150-settlement-with-n-y-regulator/#comment-1756616968

https://disqus.com/home/user/The_Critic/

http://disqus.com/

https://disqus.com/websites/?utm_source=reversemortgagedaily&utm_medium=Disqus-Footer

https://help.disqus.com/customer/portal/articles/1657951?utm_source=disqus&utm_medium=embed-footer&utm_content=privacy-btn

https://disqus.com/home/user/The_Critic/

http://www.reversemortgagejobsonline.com/rss/feed.xml

http://www.reversemortgagejobsonline.com/index.php

http://www.reversemortgagejobsonline.com/index.php?page=view_job&post_id=643








http://reversemortgagedaily.com/2014/12/22/rmf-reit-files-for-100-million-ipo-eyeing-unprecedented-opportunity/

http://reversemortgagedaily.com/2014/12/21/senators-lenders-call-on-fha-to-reduce-mortgage-insurance-premiums/

http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-resign-following-150-settlement-with-n-y-regulator/

http://reversemortgagedaily.com/2014/12/18/column-reverse-mortgages-have-their-place-in-retirement-planning/

http://www.googleadservices.com/pagead/aclk?sa=L&ai=CVRHCFzmfVLvCL4KjpgPC5YGYDZXD1_MFlfy76LIBwI23ARABINvBpglgyYb_h_Cj7BKgAdu61_oDyAEBqAMByAPDBKoE0wFP0Gr5r3nRp8MTM1Y2UZeLvaL_yOgXu9xpsn9QghMcr1DY_XjVHbMT-0PuvmOSRViGlWpMGuPhQnyDDjB7dOV4t_qUBVo2mSmjVplDCRP7kOM_Q1HY7cikJwlwTxC1hls1tufanbIZKy5A-lWYQBeGrFBMzib-1lStbkd0BVGKim5mkKo4x-yhC276hl-FcjEpWtP2j-PjzVurBlQF2ocn7yclM3tVm_x33iF6DfEkt-bFSH3I-Bopoq8TZVhAjzXGWrFidabvyTfZrSnYeeHD5IxliAYBgAeNxagF&num=1&cid=5Gi7xgxqd6m66n79kPC4cXiM&sig=AOD64_3ZW4XK9MSkYyieB9XxMZj2p3NCDA&client=ca-pub-4184953184656274&adurl=http://www.unifiedcompliance.com/free/controls-spreadsheets






Planning

(http://reversemortgagedaily.com/2014/12/18/column-

reverse-mortgages-have-their-place-

in-retirement-planning/)

Congress Members Seek More

Reverse Mortgage Non-Borrowing

Spouse Protections

(http://reversemortgagedaily.com/2014/12/22/congress-

members-seek-more-reverse-

mortgage-non-borrowing-spouse-

protections/)

Recent Articles

Holiday Round-Up: Reverse

Mortgage Funding REIT Files for

$100 Million IPO

(http://reversemortgagedaily.com/2014/12/23/holiday-

round-up-reverse-mortgage-funding-

reit-files-for-100-million-ipo/)

Congress Members Seek More

Reverse Mortgage Non-Borrowing

Spouse Protections

(http://reversemortgagedaily.com/2014/12/22/congress-

members-seek-more-reverse-

mortgage-non-borrowing-spouse-

protections/)



N.Y. Regulator




Reverse Mortgage Changes

Impact Retirement Security, HUD

Ups Counseling Funds

(http://reversemortgagedaily.com/2014/12/22/reverse-

mortgage-changes-impact-

retirement-security-hud-ups-

counseling-funds/)

RMF REIT Files for $100 Million

IPO, Eyeing ‘Unprecedented

Opportunity’

(http://reversemortgagedaily.com/2014/12/22/rmf-

reit-files-for-100-million-ipo-eyeing-

unprecedented-opportunity/)

Senators, Lenders Call on FHA to

Reduce Mortgage Insurance

Premiums

(http://reversemortgagedaily.com/2014/12/21/senators-

lenders-call-on-fha-to-reduce-

mortgage-insurance-premiums/)

Are Retirees as Unprepared as

Studies Show?

(http://reversemortgagedaily.com/2014/12/21/are-


(Page 105 of Total)

http://reversemortgagedaily.com/2014/12/18/column-reverse-mortgages-have-their-place-in-retirement-planning/

http://reversemortgagedaily.com/2014/12/22/congress-members-seek-more-reverse-mortgage-non-borrowing-spouse-protections/

http://reversemortgagedaily.com/2014/12/23/holiday-round-up-reverse-mortgage-funding-reit-files-for-100-million-ipo/

http://reversemortgagedaily.com/2014/12/22/congress-members-seek-more-reverse-mortgage-non-borrowing-spouse-protections/

http://reversemortgagedaily.com/2014/12/22/ocwen-chairman-to-resign-following-150-settlement-with-n-y-regulator/

http://reversemortgagedaily.com/2014/12/22/reverse-mortgage-changes-impact-retirement-security-hud-ups-counseling-funds/

http://reversemortgagedaily.com/2014/12/22/rmf-reit-files-for-100-million-ipo-eyeing-unprecedented-opportunity/

http://reversemortgagedaily.com/2014/12/21/senators-lenders-call-on-fha-to-reduce-mortgage-insurance-premiums/

http://reversemortgagedaily.com/2014/12/21/are-retirees-as-unprepared-as-studies-show/



retirees-as-unprepared-as-studies-

show/)

Our Sites

Senior Housing News

(http://seniorhousingnews.com)

Home Health Care News

(http://homehealthcarenews.com)

©2014 Reverse Mortgage Daily

Powered by WordPress (http://wordpress.org/) using the Gridline Lite (http://graphpaperpress.com/2007/12/09/gridline-lite/) theme by Graph Paper Press

(http://graphpaperpress.com) .

(http://www.xnxxpornoizle.net)


(Page 106 of Total)

http://reversemortgagedaily.com/2014/12/21/are-retirees-as-unprepared-as-studies-show/

http://seniorhousingnews.com/

http://homehealthcarenews.com/

http://wordpress.org/

http://graphpaperpress.com/2007/12/09/gridline-lite/

http://graphpaperpress.com/

http://www.xnxxpornoizle.net/


(Page 107 of Total)


(Page 108 of Total)


(Page 109 of Total)


(Page 110 of Total)


(Page 111 of Total)


(Page 112 of Total)


(Page 113 of Total)


(Page 114 of Total)


(Page 115 of Total)

Case 10-11558-j7 Doc 18 Filed 06/11/10 Entered 06/11/10 16:04:38 Page 4 of 28


(Page 116 of Total)



(Page 117 of Total)



(Page 118 of Total)



(Page 119 of Total)



(Page 120 of Total)



(Page 121 of Total)



(Page 122 of Total)



(Page 123 of Total)



(Page 124 of Total)



(Page 125 of Total)



(Page 126 of Total)



(Page 127 of Total)



(Page 128 of Total)



(Page 129 of Total)



(Page 130 of Total)



(Page 131 of Total)



(Page 132 of Total)


(Page 133 of Total)


(Page 134 of Total)


(Page 135 of Total)


(Page 136 of Total)


(Page 137 of Total)

1/14/2015 Ocwen, California Regulators Lock Horns - WSJ

http://www.wsj.com/articles/ocwen-financials-shares-tumble-on-california-concerns-1421178252 1/3

Ocwen Financial Corp. is facing a new front in its long-running battle with regulators.

Already reeling from a lengthy fight with New York’s top financial regulator, Ocwen on

Tuesday pushed back against charges in California that it had failed to produce

required documents in an examination of its mortgage-servicing practices. Investors

reacted negatively to the latest headache and pushed Ocwen’s stock down 36%.

California’s Department of Business Oversight began a routine examination of Ocwen

at the beginning of 2013, then engaged in more than a year of confidential disputes

over Ocwen’s alleged failure to provide all the requested records, according to an

October state court filing.

The state regulator issued a subpoena in March 2014, and then when Ocwen still failed

to respond properly, the state filed civil charges in a state administrative court in

This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customersvisit http://www.djreprints.com.

http://www.wsj.com/articles/ocwen-financials-shares-tumble-on-california-concerns-1421178252

MARKETS

Ocwen, California Regulators LockHornsShares Slide 36% as State Says Mortgage Servicer Hasn’t Produced Requested Documents;

Ocwen Says It Has Complied

Updated Jan. 13, 2015 11:35 p.m. ET

By JAMES STERNGOLD

RELATED STORIES

Erbey’s Exit Ends Heady Era at Ocwen (http://www.wsj.com/articles/new-york-financial-regulator-

announces-settlement-with-ocwen-1419257065)

Timeline: Ocwen’s Regulatory Troubles (http://blogs.wsj.com/moneybeat/2014/12/22/ocwens-regulatory-

troubles-a-timeline)

Rules That Aided Ocwen Now Contribute to Woes (http://blogs.wsj.com/moneybeat/2014/12/23/rules-that-

aided-ocwen-now-contribute-to-woes/?KEYWORDS=ocwen)


(Page 138 of Total)

http://quotes.wsj.com/OCN

http://www.wsj.com/public/page/news-financial-markets-stock.html

http://www.wsj.com/articles/new-york-financial-regulator-announces-settlement-with-ocwen-1419257065

http://blogs.wsj.com/moneybeat/2014/12/22/ocwens-regulatory-troubles-a-timeline

http://blogs.wsj.com/moneybeat/2014/12/23/rules-that-aided-ocwen-now-contribute-to-woes/?KEYWORDS=ocwen



October seeking to suspend Ocwen’s license to do business in California, its largest

market. Those charges listed more than a dozen occasions when California requested

the records or when Ocwen allegedly provided just a portion.

“The bottom line is they have engaged in serial failures to give us the information that

was requested,” said Tom Dresslar, an agency spokesman. “They came in with dribs

and drabs and repeatedly failed to give us what we need to ensure they are in

compliance.”

He said the state was still seeking to suspend Ocwen, but Ocwen countered the

assertions Tuesday, saying it is “cooperating fully” and had already complied with the

demands.

“We have dedicated substantial resources toward satisfying the DBO’s requests,”

Ronald Faris, Ocwen’s chief executive officer, said in a statement. “We believe we have

provided the requested information in the format requested. We expect that we will

receive follow-up requests or clarifications and that further document and

information exchanges may take place.”

He added, “We expect our ongoing cooperation will result in a satisfactory outcome for

all parties.”

Mr. Dresslar rejected the statement. “Wrong,” he said when asked if indeed Ocwen had

provided all the records. “No.”

The requested records relate to Ocwen’s main business, the servicing of mortgages,

mostly for distressed homeowners. They were sought as part of a routine examination

to make sure the company was complying with a law protecting homeowners going

through foreclosures, loan modifications and other legal procedures, Mr. Dresslar

said.

The problems with California follow a series of investigations and penalties by New

York state regulators over Ocwen’s practices regarding distressed mortgage

borrowers and relations with its affiliated companies. New York penalized Ocwen $150

million and, in December, forced the company’s executive chairman and largest

shareholder, William Erbey, to resign

The stock, which closed at $7.78 Tuesday, has fallen about 86% in the past year.

With Ocwen’s California issue, reported earlier in the Los Angeles Times, if Ocwen


(Page 139 of Total)

http://www.wsj.com/articles/new-york-financial-regulator-announces-settlement-with-ocwen-1419257065



Copyright 2014 Dow Jones & Company, Inc. All Rights Reserved

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and bycopyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.

ultimately doesn't or cannot satisfy the regulator’s demands, it could be forced to

transfer its mortgage servicing rights in the state to other companies, said Mr.

Dresslar. He said the next hearing before the administrative judge is scheduled for

July.

Bose George, an analyst with Keefe, Bruyette & Woods, said that, while burdensome,

he thought Ocwen would eventually resolve the problem with California, though it

could prove costly.

Others weren't so sure. The continued regulatory problems and failure to reform have

undermined market confidence in the company to the point that it is raised concerns

about whether it can continue as an independent operation, said Kevin Barker, an

analyst at Compass Point Research & Trading LLC.

“I think we’re at that point,” Mr. Barker said. “These accusations are having serious

and far-reaching implications for this company,” Mr. Barker said.

Mr. George said the new disclosure raised a potentially serious problem of whether

Ocwen should have reported the subpoena from California earlier, when it was issued.

Companies are normally required to disclose all “material” matters that can affect

operations or their stocks.

While companies are normally required to disclose important regulatory issues that

can have a material impact on their operations or stock price, Ocwen hasn’t made any

disclosures about the demands of California or the threat to suspend its license before

today.

“This does look material,” said Mr. George.

Ocwen declined to comment specifically on its disclosures.

Write to James Sterngold at [email protected]


(Page 140 of Total)

mailto:[email protected]

1/14/2015 Rules That Aided Ocwen Now Contribute to Woes - MoneyBeat - WSJ

http://blogs.wsj.com/moneybeat/2014/12/23/rules-that-aided-ocwen-now-contribute-to-woes/?KEYWORDS=ocwen 1/3

MARKETS & FINANCE

Log In

EUROPE COMMODITIES

4:12 pm ETDec 23, 2014 ECONOMY & BUSINESS

COMMENTS

Rules That Aided Ocwen NowContribute to Woes

MORTGAGE-SERVICING MORTGAGES NEW YORK OCWEN REGULATORS SETTLEMENT

SUBPRIME MORTGAGES

By ALAN ZIBEL

WASHINGTON—Ocwen Financial Corp.’s rapid growth–and subsequent troubles–stem in

part from new rules that have pushed many banks out of the business of collecting

borrowers’ loan payments.

Big banks have gotten out of the mortgage-servicing business in the face of post-crisis

rules imposed by regulators to prevent the kinds of problems that plagued troubled

borrowers in 2008. The regulations require banks to ensure the proper treatment of

borrowers, including written notices of alternatives to foreclosure, and to hold larger

amounts of capital if they engage in mortgage-servicing.

Ocwen swooped in to buy mortgage servicing businesses from banks like Goldman

Sachs Group Inc. and Morgan Stanley MS -2.28% , which sold off their troubled

subprime mortgage-servicing businesses. In addition, Ocwen and other companies have

picked up mortgage-servicing assets from banks that remain big mortgage industry

players.

The company, which reached a $150 million settlement with a New York regulator this

week over allegations of mistreating homeowners, grew to become the fourth-largest

player in the U.S. mortgage-servicing industry in the third quarter of 2014, from the 16th

largest in 2010, according to Inside Mortgage Finance, a trade publication in Bethesda,

Md. As of the third quarter, Ocwen had $401 billion in mortgage-servicing assets and a

4.1% market share.

The shift of mortgage servicing into nonbanks has prompted some worries among

federal regulators given companies like Ocwen don’t have the same financing or

oversight requirements as banks. While state-level regulators and the Consumer

Financial Protection Bureau have some power over such non-bank mortgage servicers

“many of them are not currently subject to prudential standards such as capital, liquidity,

or risk management oversight,” the Financial Stability Oversight Council said in a report

this summer.

“Mortgage investors’ ability to collect on mortgages is dependent on a single mortgage

servicing company, where failure could have significant negative consequences for

market participants,” the report said.

New York officials, in their consent agreement with Ocwen, highlighted evidence of the

company’s rapid growth. The company used “a patchwork of legacy systems and

systems inherited from acquired companies, many of which are incompatible,” the order

said. “ A frequent occurrence is that a fix to one system creates unintended

consequences in other systems.”

SEARCH MONEYBEAT GO

What's This?Popular Now

'Facebook At Work'Hits App Stores

TurboTax's IncreasedCost Has SomeUsers Fuming

Why It Might Be TimeTo Refinance YourMortgage

Robots to GreetCustomers atJapanese Bank

Why Google Didn'tSign Obama-BackedStudent PrivacyPledge

Show 5 More

Investors GetCommoditiesSuper-Slump Jitters

MorningMoney Beat: TheMarket’s ReallySwinging Now

MARKETS DEALS BANKS PRIVATE EQUITY HEDGE FUNDS BANKRUPTCY

SELECT A REGION: GLOBAL HOT TOPICS: INVERSIONS FEDERAL RESERVE VOLATILITY ARGENTINA HIGH-FREQUENCY TRADING

ARTICLE

48 6 12

1

2

3

4

5

News, Quotes, Companies, Videos SEARCH

xRecommended post

‘Fear Gauge’ Spikes,Amid Talk of ‘OldNormal’ for StockMarket


(Page 141 of Total)

http://online.wsj.com/

http://blogs.wsj.com/moneybeat/2015/01/14/investors-get-commodities-super-slump-jitters/?mod=newsreel

http://blogs.wsj.com/moneybeat/2015/01/14/morning-moneybeat-the-markets-really-swinging-now/?mod=newsreel

http://blogs.wsj.com/moneybeat/category/markets/

http://blogs.wsj.com/moneybeat/category/deals/

http://blogs.wsj.com/moneybeat/category/banks/

http://blogs.wsj.com/moneybeat/category/private-equity/

http://blogs.wsj.com/moneybeat/category/hedge-funds/

http://blogs.wsj.com/moneybeat/category/bankruptcy/

http://blogs.wsj.com/moneybeat/

http://blogs.wsj.com/moneybeat/tag/inversions/

http://blogs.wsj.com/moneybeat/tag/federal-reserve/

http://blogs.wsj.com/moneybeat/tag/volatility/

http://blogs.wsj.com/moneybeat/tag/argentina/

http://blogs.wsj.com/moneybeat/tag/high-frequency-trading/

http://blogs.wsj.com/moneybeat/2014/12/23/rules-that-aided-ocwen-now-contribute-to-woes/

http://blogs.wsj.com/moneybeat/2015/01/14/fear-gauge-spikes-amid-talk-of-old-normal-for-stock-market/?mod=blog_flyover



Ocwen “gives borrowers incorrect or outdated information, sends borrowers backdated

letters, unreliably tracks data for investors, and maintains inaccurate records,” the

regulator said.

Isaac Boltansky, a Washington analyst with Compass Point Research and Trading, said

the sale of mortgage-servicing assets to non-bank firms is an example of how some of

the new regulations imposed under the 2010 Dodd-Frank financial law have done little to

reduce financial-system risks.

“There are clear instances where the law has simply increased the size of the nonbank

space,” he said.

As a non-bank , Ocwen does not have a base of deposits. But unlike banks, mortgage

servicers have been able to operate after filing for bankruptcy protection.

Ally Financial Inc.’s former mortgage subsidiary, Residential Capital LLC, filed for

Chapter 11 bankruptcy in May 2012 . Later that year, Ocwen and another non-bank

servicer purchased Residential Capital’s mortgage servicing assets for $3 billion.

MONEYBEAT HOME PAGE

SPONSORED RESULTS

Softspots Supremes Latest Fashion Trends

Clothing Shopping Men's Formal Wear

Fashion Accessories Fashion Designer Job

Top 10 Fashion Magazines Prom Dresses

Classic Women's Clothing Party Dresses

Stephen

Grocer

Editor

Phillipa

Leighton-Jones

European Editor

Erik Holm

Deputy Editor

Maureen Farrell

Reporter

New York

Paul Vigna

Reporter

New York

David Cottle

Reporter

London

Ronald

Barusch

Dealpolitik

Francesco

Guerrera

Current Account

Alen Mattich Jason Zweig

The Intelligent

Investor

Investment Banking ScorecardUpdated January 14, 2015

The Dealogic and WSJ scorecard breaks down the investment

banking industry by region, product, bank and sector.

Below shows year-on-year global volume and top 10 banks in $

billions and global investment banking revenue and top 10 banks

in $ millions:

25%

-28%

-28%

Equity Capital Markets $18.9

Debt Capital Markets $193.8

Investment Banking Revenue $1,486.1

ECM Bookrunner Ranking

ECM DCM IB

In billions

Goldman Sachs

Morgan Stanley

JPMorgan

Citi

BofA Merrill Lynch

Deutsche Bank

UBS

Credit Suisse

Barclays

HSBC

$0 $100$25 $50 $75

Source: Dealogic

The MoneyBeat Team

MoneyBeat Columnists


(Page 142 of Total)

http://mm.chitika.net/track?xargs=ANzqWN1LZCfQ5SRc1c4GjZIpR6t5v0MADPeaFX%2FiLz7dqA2i4BT12jvLMtfxZDEstMW1pb9UfmKAwSUppW3gEZQin%2F2A3KSV8vVK82GulSwvg3%2FRF%2FM%2F5chT4DSaaPEUKhRNM0UUTgcMDZ2AhjdlxzerpyfkslTRw%2FSJs823NIX5p%2F3zxvYNYrqSMItG7ZZte9sjZ63SyEz8UOdrTVd3jTfwCX0ycospvNMXRuL%2BtKMORIKYT08BPFaALeA5J2B9kVF0AD14lgPL%2FQQzHQfmstcyJi%2FPEtms3U0t5Dco1zlIh5u7UlNg6k0F5lmBgEcoznJZIzX3OPO621UWaneOd%2FFZlr4T8Px7Q04JNC66denY6Blm8VBrbVvOu3MR9OA63yItEcScDSRR5MLC8gPpLZlmvMnv6JdZe057N3N8Sf3y%2FCzWo6O8fQiVzZ8bRFQuHKqdPlZ10ZMKU9fuw8GNg9BK2YVB%2FPEQxMJS7bURdxgY2O07PpXY7lbndlePPz5vImNsXlTSKDyQiACxt0Q76PdS%2BS0lzxkzKgVJYiZFg3SO4zr%2FA34AG63Sihtlxd3hRvEswaw7Dltt0oLT9AqRoWYZcm4YgjNHpSb5wHu5B2bpP2S7TbRSig2sVt3nnH7i1p8goXi8yWulEBnsTJfXFTVmKqVDr6mmASh931ezXw0aq41NpF4%2BjRXxCcp314oWZyVz58Qf0EwlrhNCTldntw%3D%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=xPI5iXU59hh17%2BpvYMfwZ%2FGo6Bbz6kTfk8lzB%2BamJOivIe6RWHHWne9yFhY1hVzctACjKGPEVJKIyMz69MqAQn74X3JydGQpHcki8N2tPwr2PNGVjr1bz7EVc%2BZXQRdk2yFIgB2iHAgKG7kfvR5LQbk%2BERcrRiJH7rUAgqbIkJgFAdwAcFAAejOHeKxUJZqzb5J8qDt2RkN7nUZfJnq940YEFqrsRZxh3Xy3riRfTzhNxsX0l2s%2BkULKEx1ptH6NWAHISoIAtZZ14%2BRrBrtuD66GXeQ%2FTkAHOrU7Yeqg7k7QyEUFwVyl2DoZ7FbA%2FevZffo%2FkoHZCzJfZeLE46X9O4tlbTyJhb4tdQu9q%2F8UyjGMRhTldIjzyaKct5W7UVBsN0TUVACxY5dqXcs65WpVWA35cXYFud5zpxeUGLHmp%2FrJm2Ow0yAQ3DwoQ%2F9P9vJ5hYPtNnk%2FgDrce42t31bVPW67EnBYZ3qypZS%2BPL0A2PN4RGJSevGPi9Qd854YTHoX8ddr87eXa%2FYpb%2FAcPrT5BvkQ7ODsBEFm%2BRLVVkZDa7Z3%2FYY6rliqw8miYUEXaFFl2QQjEQtEsh%2BGDKa9qDIcTT%2BZoLxypBs%2BaRpSedDooMIkhWyIq5XXJ8yC8Gr5wiN56V1gAWhCjX7EP8KYCtyNHl50Guwbyz3Z8jGLhhfKYF60MqYA7l6ateDr4vaCe3A%2FpjpOaSfX5ypVcWMM2D9Qi3A%2FDT6qHV2I&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=cpGgPo4%2F7EDk5cyCvuPFW3Vwp%2BR3mySArzxon3Sm%2BDKDJWvYoZO%2F3HYlvZp0t1QkeRAXATb0q7EaBLbEyqAAGYtT0zMqRd6oAZkq5bv%2FOFUO4p0iREeENkvLPYrNjbnJLrjUYqQYr%2B1okbsYR4HS2Nm9TK%2BkuXyBe3hqeIUmUCwn4FRSG84DUjxgOzxTSM29QnxqqWy59AZq39RDz4gEFcbmWQvZZM0FBKVF4VkxPCLqTkuVSQ3eqlckEgP097iSd6Toj%2B7g0SHIYxtWFdPnRtKaMccTk%2BPwpA3q8ZYcjiw9YK%2B6JfTneb08IgH4qZS%2BqZ7Ruqu6ED7AUm93PLHmf2b4vCcOhvv3PI%2FNGy7PlLMRdSyGsx0rr8Bl%2BzokeQrVhiQraaUGQq6CTYmVNxRKsQr02qVSIkLNQr%2Bw37F%2FgOxFt5vtQXqq3kx9O%2B%2BgVzCcLMALk5P2dQchoEC4OSg3GSbbEzRQyPNV8FKHqJniLzqp1Sh5VJhlhhtEk3R%2FCVgS9wZ6OvF6bLcpGEzWO5blbh0nSm8T7cb6Ff%2B6Oe4xBBo7iqvUdE8E5v5peLHcWdTwFq4GyKghpIqWVMurrM0zFM2NRRmLxvqHkpEArDvZgf4ktASjHJiMWAi7yUADX%2FvsSEy4skfKBOmm4PRpy2SOomLxjqyg2B6vcXRwbGwibLxx6uqSGFFO%2BWtTHQXnwj6LfwOhKHc4i0i1J8zKJ5OwCyfm8iNh8139&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=Q17%2BisioZYb4cFj%2FvuE50VQXtnFVyNPh%2B6wJkMC%2FJ7Kxl4T8LqiXeSozL8KhVZYhLbxyYKd5mC8YIO3aKPC2%2FgzgMbjfQlbLR%2Fl742zMKB3p6grusGEWz%2BtvyfClI87y6U4LKtKi1E2u7G6RhYrHZ5fk5h%2FI%2FVRaux0%2FqtBWbHm%2FCVtIhqMVb2H%2BuDgeWiWJkk9X0hJxyOCvN79J3VYcJKEHp8owjk6T8chVnYfBjhbD8BLlHrXOs8FFOBvWM5mATzrRdpa%2F5vrSlYYajw63zxqiWYOdvZMrz1I2NUw9SxKO1cE%2Fk5PTiBY63K7q%2BXp8ad5GYfNEacxWUUcpZUl41kQ6RoIT7vylKfHl%2Bf8LgHFSCp96uC7Mqx%2B1Yp77jk2r8X6kiChOEhX6iqzc1kpdm7j02w%2FQtb4lXGXjyRNgZZMVVCTK87NppldmnLbWjrN%2FtN48K7RVS%2BNSs%2B%2FXQw%2Fz7BmvV%2FYP4Zw40Ug947kIN1Vsw13Ot660yKqym4QsDlEgZvxV7PFlMAfXBfRGGamPSidonlEti%2FjWkEpz3oXJVZYDvUbs402aE8QV6nziS7qOH8g8trZcw7PExUjGoIGejQAaAKdsB7GXOqpLqIMpdfEsk2a4xmrCzNWcxuZbfBPp0ese7wLrBWt6Jmw2aHGrw1vumDHRp%2BYee1ux3nIfocBJh%2B1%2Bl1%2B7wJ0Nr3iwqP5TcmQsfp4ZNr%2BUK3Ihy0b2NW%2FwHSudNgy3&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=F7CKuJYpVejo%2BIAvLs0o4cUrgvpjaXP5q5VVoCyg6i4yfycbNDEhByVe8HOOYPiB0NONKkGAL7mj0s1ZRvHs9MJieg3IBrRmgMC8TIZF7v7gwkqS6f5fkAKvLrQe4riPfCXEkmzueX%2FySboj3V%2BD%2Fz8O%2FHPJkYaZn4xSVHr%2BJ8YLHsIQp8N4mAR3d%2FUbgnGAqYek5mzGn%2FaOktRZISyke8RAVTEa90QR2xaDJYDHduIEN9l6t4xqnYwl01BJywE%2FTL%2BdWW6dsI0eZnlwymTbMQEyLEKlnPc9AKJVkNwhjbYzy2Ja%2BX10EceOdmbgKQ2NPdlBdFylyS2CmWM6g7huAr81UaOO8auwjq8VQZpTU5V5Ww5bR6pQ5eDDvua36sOxxeJj8sA6hA1ksNplZDAMtY8ADEcFzTO1MkZNjfrLUY2clj9JAzUxMDEGpo9VF4nsdy9V57vbVQjLRvqHsTPGjLVEsb2ZFbiiT2af3fcCQOpynkN1Wq3khVIVDXEk%2Fy5Gwf9amKhl8Ji0XlqUvvrmLTAJ7XLYUEDUOGbnLvqff4agtJGaPhaDpeDqMPzxGRDi2aYCy579OeaBrzSZi8jRZqGeDDXiowMHhuvey9nh3Y4BQxqfauoRJs6V8gn7PESjaRxkeMgHM%2F1cnoVtlXQNKEzfLhJWeZbCo0%2BtSobFQcuXc7v3dB%2B9NQj1SRrNFn7wVJT7JYuX7Vyzqbb2yjFUFMApuZy4ruJe&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=s1QEL9Iun47rD3ruHx3aGRr8PRCsPuD%2BGw4T%2FY7TkhbmWgX8Wkk5frHO5IWNspeCR0VYRfovXqENWORbaH0mOMJ6vZ%2BWcZRGnep2WR%2F7nxkdsEpQjeXyp1GIim43jpbb4rQp4xtXIf8%2FDG1mXQxRgs2L0UBtsXUOBAYlzmXHumh%2FbJlHi1rpE1zJ0RPZn7%2BYekDc0LIyDznKmC43YNfg0Dcc2arWdFUaLJ1pV1Fa%2Bu0UymbzkKOE%2FfJsSvdSwkr5ceh13AHfTJzJEAmoj1836GWTw2hNezNtdE9rtszOjRATm%2FrkS2cfzfF%2BdPO6ZbYW6WkE3qYfS7KrxElqG3W1L9tBR%2BIWrjAKxOxws%2FhfkqSgCNJU9qOyOcIpws6wSpTrXC9NTVRSKH4yx6mqgKGiTbUsmmZ6bw7Kag8v5FbVdyAPGFOdUH%2FDI2pwNXFefqihC70NZebIWvYQhymr6XsEWwMaLwovXO5X28M3DIpTtCBznRUwBEBDejikLnogNAcz%2FkcuFnXVflDrzlBzMpguUga1qorW7oUTn5o4anCGu1OI9%2BIYLMnvqgiEbEkeccqHIpa8oxO4d9vcqmz8Y%2BO%2BCZ%2FW0SmGVTPu5GPEcssqOW5Cv681Xg6gObG22bjycXx9H9yV0ZUIYJbxpxGu8AAEeai98og6nRBdmAwO%2BC3XO9uSv8ir3syPj2a0oY9FKF8UkW48BPVY1YiYqgX3SS0K%2FcBjAjjPh0WH&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=MKVmRD%2FR1vTqqkS33rlP5ewcSDelBBproPR9abOBy7dLgbmti1ScUhzdzz8JmzkeO%2FuFwCqKOLN3DuSTBShs0vxeTrA%2FJHEUKfxokPP6VkO34r94Pdzy6y1ZBNK1PAvqAUX%2BEtMegIOAW4VPcCrlms46eYgxKsFBdmPfyPDwO2jMYU4Y4iNhQZOgXMQZVpbPMyoEDFSZDljGvd5D8j82EUfoHif5riiicXJqg6L%2Bfhm5NrXYA6D4BRJNGI6UPFXpx%2B9qhpPozQt0yeaq9SQ%2B%2FWb8Rab34Jh5svdK3aTMN90aO73ZztV6ZBAjIeMeV1WGanolIfB3oH6brYrUzUP3IyomTFl0HaiUecu0n1Q%2BMF%2FL4aLKZkPSNDfXjqQqswugpxm4mwJHZ%2FcqRiVZ2cLmShhW3PysW%2BfPHhmNLhpuWauhIq64bbhs4q0NEyP%2Fv1vLTNlDzFU0tPNipW3%2FekIsDjL9uaLLMlOsrDPZfrj95w%2FT5G1BiyQErDD9xHVckY%2FFTenifpWmszA%2BguZ%2B7xYzOVC%2Bci0xAa%2FRr7IKwhjQC5DUa61vA8FBZKGcPNTWS%2Bpwa82NBDaggOjMw7%2BPtF5e%2BfIHDtGWnLV%2BDluuYhESRB755nG8pMJJxEDnUbmxxBUAIKytWNqMXYskxXyl0DTSmny2LB4XWZk7NOLZYwAD9SmySmmqlvPr%2FW2BqJghNTNXkgL5vNl2F5R8kJwJtj05u1O%2BspYq6pudBIHp3ip%2FbMM%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=Zyqr%2B%2BVSXM2UykZO3O5%2FWx3uWx5J8zcB747dyM%2BDsPJtqR%2F5cogt0ObekCPPQoTj4cLsiht2eAZ%2B3eMOe1oxCVNL9Or8VLBjEJO0yPZRECmgWKS372QDTt1QpoQrJIBKTGxOTHlmRX1hpWKISo7JqB%2BMZm6%2FZKy3NTcTuZvuOPR0zPUvoxjKQkQwOvSsp%2BAamrIDk1xWvrWm5X5mzhgCYR4oigYfgOllkbLdYrTcrtU7bGpZPIO7zw%2F5LcfzFWdMzo3nysRvdHewy2ciybBIu7wOlIMZ5Hxymw0QxF9vmaODGp1fuN30OwHuyz%2Fm06LvO7D6E18Gog%2FFn5dueQbS5Ox2dxv2UWjWif%2BT4AlQv%2BqiF5YeBFyDJR%2BtjHMWBIc6dfKWIG8ycxgItxWQk97fO4n4oXbvWFq%2FbGANyVEHQbcH08KQUKT%2Bs97HJlroEMyEYKXZh0BUOug96BD8uWO4Lfjvg6YmH34soHF5wEOQjREVO%2FlQMpUOzE9VjhETT4sPh2kbH8Gm5gm%2Fb4H6rowK0ypRVwG%2BE6LqaK91NvVkFD8qHmqkokdXH5wp6AoFa23v53K7VFxfQqP6dapStOUjLy3nVrkTy9EIWWUm3ioTR1gj2IRPviuT7iBZ5TSmEtQ7pZ8LQoRnbLpYIf9i2iT8TQz4%2FCJ0%2FrzPQbE7e1Z5bLAgHrvfAOLKJEdqF%2BCrgDk%2BQdf2IIGUKF%2BkQ5xAa4yueA%3D%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=DUiMWSWQl94rT8J9Hx3hWLwgP5LL3N%2FGeWVgKhHACWXkai56TKSRPvEZu%2FBw98HV277hyHOwPeaIj3hyi48Wu0oYQFi6FQ0%2FlOusfviS0aEywhBl0fRRw0qLHnXbVZ8fpupTtjcpCMdWlE7R1Gw5NY9EaLYJobwpUuSLpql6FVK9otty803nnvxAjhXGfCq%2Fk50jQx%2BuwI9fbxrmc7E1WmzBBPz%2BIbcgpXaJxJDWgWC2WEG8Gsy48MnYwc7LQL45ldYG%2FM9yXkuhMAVnBnybhfgLiaSbUWyZ11d6RArkT%2BTrAeA0zCObv5pgZes97h6w%2BB3aZmNODSVc9ABL3JWJY%2B3n6nEvh9c6mIys74148oMypDEVIE6LgqlmuQuN27DHrtp3pXvJRJfq9OiSbtje84lcgA%2FbsA32MkWMWlUq%2B7RA%2Bq8koTy2Isc9oWopBncNe11s7fD1ziMTE4ch1MFwZTVmVZSDEcMgYX0Z9B8llitMF6znA21BIWoNyM7wMI3Vushlw5FegOOGqhCvkH4p3mskP%2BBNQSkSdPFFJnrMrSrMYjJsl%2B7ukMmDoqLRn1VwOCK1jfkUfZLpeBCsYPH7iyT1qzCbqVKOh%2FEJgHI58%2B%2BH2Z%2FplKOjsFRx5dHHrfH7L6tg4qroHYqv6JgJ6XejecrcvgWVx6%2BTSwdNbK%2F5wm%2BAOM%2F4VUfbG3IGzh3w%2BHrHQf0RIaQ6BeQ8NOMBAd6uPpKf4hN%2BYqsAvGsr33IKMtY%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=YAbUutr7%2BmsxeHNj%2FvMSz5lFIDGwWRfKmyaRReXqgP2wBKSLydmgjLtNgu6YABR%2BwOu9M2%2FWsg2LMHUewRQl%2Bv6L0eRV5P1ymkKLDjxKE5v0NQIjoqh2hejwBjhSjJkFWCHO8zWJ1xY1rnlHyTMwqo0gqj%2Fy9aPnuFzABNe3%2BoSzRYZMtc58uIxfFrV27uwBCMWddKexbxznQW%2BwnFCRfJ1%2F6S5A1imLB4DvaeUD1U7n7mGfACL%2Fg%2FYN1BckWIf%2FN%2FQmULst8YyuuQgQiUnKlrB34wKrKXaJsZScufb4DhJ0tTP%2FIaEV6vnTbgksgtZ5JaCLjtgOeuwDbUp3JxKZYfWefVP6tNqWENxAkDiDhr%2BalLnCixS55bCLg6FA8Gk%2FFxx%2F18HpOgkTV7I3KDpCvfT5O4mR2E01Fq2hGivA5zYcWJBtiENlLqAADS01%2BGD7Cl86EqYp9xhq9wO9ujjpY3YeVDTXdLoLi0q9aEnnCcZKwCRhUlwqR9fpwmzmZ0ZCwCx1vLAsUGGG9YRCZh4yPFJ9%2BSYDBOxKi%2Fe4NBl1XATwhI6ee2P58qcDOdioICgXiwOr%2BG%2FtQnAwrtouuhvrBVkGwl73aYTkZN7i9RZZ0dz95GddVHYsGPpen4iHQ8b2FfNYNx41HgZBTFGhPiPekdsn%2FR%2BZIswMLdVEm5FTbeel2tXxbXosXPlBB9DmE8VA650k4GgDkdoOjDOdCI1v4w%3D%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://blogs.wsj.com/moneybeat/feed/

http://topics.wsj.com/person/G/stephen-grocer/7440

http://topics.wsj.com/person/L/phillipa-leighton-jones/7442

http://topics.wsj.com/person/E/erik-holm/7229

http://topics.wsj.com/person/V/paul-vigna/7296

http://topics.wsj.com/person/C/david-cottle/7446

http://topics.wsj.com/person/B/ronald-barusch/7441

http://topics.wsj.com/person/G/francesco-guerrera/6652

http://topics.wsj.com/person/M/alen-mattich/7944

http://topics.wsj.com/person/Z/jason-zweig/1586



Michael J.

Casey

Horizons

E.S. Browning

Symbols and Alerts Manage Email Preferences

Newsletters

SIGN UP

Wall Street JournalFacebookTwitter LinkedInFourSquareGoogle+YouTubePodcastsRSS Feed AppStoreBack to Top

Customer Service

Customer Center

New! Live Help

Contact Us

WSJ Weekend

Contact Directory

Corrections

Policy

Privacy Policy

Cookie Policy

Data Policy

Copyright Policy

Subscriber Agreement& Terms of Use

Your Ad Choices

Advertise

Advertise

Place a Classified Ad

Sell Your Home

Sell Your Business

Commercial Real Estate Ads

Recruitment & Career Ads

Franchising

Advertise Locally

Tools & Features

Apps

Emails & Alerts

Graphics

Columns

Topics

Guides

Portfolio

Old Portfolio

More

Why Subscribe

Register for Free

Reprints

Content Partnerships

Conferences

News Archive

Jobs at WSJ

Copyright ©2014 Dow Jones & Company, Inc. All Rights Reserved.

Morning MoneyBeat U.S. Morning MoneyBeat Europe

Morning MoneyBeat Asia

Subscribe / Login


(Page 143 of Total)

https://www.subscribe.wsj.com/hpfooterlink

https://id.wsj.com/access/509b1a086458232f6e000002/latest/login_standalone.html

1/14/2015 Ocwen’s Regulatory Troubles: A Timeline - MoneyBeat - WSJ

http://blogs.wsj.com/moneybeat/2014/12/22/ocwens-regulatory-troubles-a-timeline/ 1/3

MARKETS & FINANCE

Log In

EUROPE COMMODITIES

9:00 am ETDec 22, 2014 REGULATORY

COMMENTS (9)

Mr. Law sky — Reuters

Ocwen’s Regulatory Troubles: ATimeline

BENJAMIN LAWSKY NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES OCWEN

By ALAN ZIBEL

Mortgage servicer Ocwen Financial Corp. OCN -10.03% grew rapidly after the financial

crisis, but ran into trouble with New York officials, state attorneys general and the

Consumer Financial Protection Bureau over the treatment of homeowners and other

issues.

A timeline of events:

September 2011: New York state’s superintendent of financial services, Benjamin M.

Lawsky, reaches a pact with Goldman Sachs Group Inc. approving the sale of its

mortgage servicing business to Ocwen Financial Corp., with new standards to prevent

foreclosure abuses.

November 2011: Mr. Lawsky approves

the sale of Morgan Stanley MS -2.28% ’s

mortgage servicing business to Ocwen,

imposes similar foreclosure abuse

conditions.

October 2012: Ocwen agrees to pay

$750 million in cash and stock to acquire

Homeward Residential Holdings Inc, a

lender and servicer.

December 2012: Mr. Lawsky, citing

alleged violations of the 2011 agreement,

refuses to approve Ocwen’s plans to approve to buy Homeward Residential and the

mortgage-servicing unit of Residential Capital LLC, demanding that Ocwen bring on a

monitor to oversee the company’s mortgage operations. Mr. Lawsky later approves to

the Homeward and Residential Capital deals after Ocwen agrees to put the monitor in

place.

December 2013: Ocwen reaches a $2.1 billion settlement with the Consumer

Financial Protection Bureau and 49 states over alleged homeowner abuses.

February 2014: Mr. Lawsky blocks Ocwen’s plans to buy the rights to collect

payments on $39 billion of loans from Wells Fargo WFC -1.16% & Co., citing concerns

about the company’s rapid growth. Mr. Lawsky also says he is examining Ocwen’s

relationships with affiliated firms, saying he has uncovered potential conflicts of interest.

August 2014: Mr. Lawsky alleges that Ocwen earned as much as $65 million a year from

SEARCH MONEYBEAT GO

What's This?Popular Now

'Facebook At Work'Hits App Stores

TurboTax's IncreasedCost Has SomeUsers Fuming

Why It Might Be TimeTo Refinance YourMortgage

Robots to GreetCustomers atJapanese Bank

Why Google Didn'tSign Obama-BackedStudent PrivacyPledge

Show 5 More

Investors GetCommoditiesSuper-Slump Jitters

MorningMoney Beat: TheMarket’s ReallySwinging Now

MARKETS DEALS BANKS PRIVATE EQUITY HEDGE FUNDS BANKRUPTCY

SELECT A REGION: GLOBAL HOT TOPICS: INVERSIONS FEDERAL RESERVE VOLATILITY ARGENTINA HIGH-FREQUENCY TRADING

ARTICLE

56 20 12 8

1

2

3

4

5

News, Quotes, Companies, Videos SEARCHUSCA Case #14-5265 Document #1532155 Filed: 01/15/2015 Page 1 of 3

(Page 144 of Total)

http://online.wsj.com/

http://blogs.wsj.com/moneybeat/2015/01/14/investors-get-commodities-super-slump-jitters/?mod=newsreel

http://blogs.wsj.com/moneybeat/2015/01/14/morning-moneybeat-the-markets-really-swinging-now/?mod=newsreel

http://blogs.wsj.com/moneybeat/category/markets/

http://blogs.wsj.com/moneybeat/category/deals/

http://blogs.wsj.com/moneybeat/category/banks/

http://blogs.wsj.com/moneybeat/category/private-equity/

http://blogs.wsj.com/moneybeat/category/hedge-funds/

http://blogs.wsj.com/moneybeat/category/bankruptcy/

http://blogs.wsj.com/moneybeat/

http://blogs.wsj.com/moneybeat/tag/inversions/

http://blogs.wsj.com/moneybeat/tag/federal-reserve/

http://blogs.wsj.com/moneybeat/tag/volatility/

http://blogs.wsj.com/moneybeat/tag/argentina/

http://blogs.wsj.com/moneybeat/tag/high-frequency-trading/

http://blogs.wsj.com/moneybeat/2014/12/22/ocwens-regulatory-troubles-a-timeline/



distressed homeowners by routing home insurance fees to affiliated companies; Ocwen

says it will restate earnings due to accounting problems and discloses Securities and

Exchange Commission investigation of dealings with related companies.

October 2014: Mr. Lawsky says Ocwen backdated thousands of letters to borrowers

that prevented them from being able to promptly correct problem loans. Ocwen

apologizes. Ocwen sets aside $100 million for New York settlement.

November 2014: Ocwen, Wells Fargo cancel planned sale of mortgage-servicing

business.

December 2014: Ocwen criticized by mortgage-settlement watchdog over its compliance

with the 2012 mortgage-practices settlement.

December 2014: Ocwen Executive Chairman William Erbey agrees to step down as

part of $150 million settlement with Mr. Lawsky.

MONEYBEAT HOME PAGE

SPONSORED RESULTS

Celebrity Clothing Carhartt Union Suit

Special Occasion Dresses Classic Women's Clothing

Top Fashion Magazines Formal Gowns

Ethnic Clothing For Women Top 10 Fashion Magazines

Party Dresses Cute Plus Size Clothes

Stephen

Grocer

Editor

Phillipa

Leighton-Jones

European Editor

Erik Holm

Deputy Editor

Maureen Farrell

Reporter

New York

Paul Vigna

Reporter

New York

David Cottle

Reporter

London

Ronald

Barusch

Dealpolitik

Francesco

Guerrera

Current Account

Alen Mattich Jason Zweig

The Intelligent

Investor

Investment Banking ScorecardUpdated January 14, 2015

The Dealogic and WSJ scorecard breaks down the investment

banking industry by region, product, bank and sector.

Below shows year-on-year global volume and top 10 banks in $

billions and global investment banking revenue and top 10 banks

in $ millions:

25%

-28%

-28%

Equity Capital Markets $18.9

Debt Capital Markets $193.8

Investment Banking Revenue $1,486.1

ECM Bookrunner Ranking

ECM DCM IB

In billions

Goldman Sachs

Morgan Stanley

JPMorgan

Citi

BofA Merrill Lynch

Deutsche Bank

UBS

Credit Suisse

Barclays

HSBC

$0 $100$25 $50 $75

Source: Dealogic

The MoneyBeat Team

MoneyBeat Columnists

56 12


(Page 145 of Total)

http://mm.chitika.net/track?xargs=wPnM4HVSBKQ%2BGOsbnv5R8GOZZroIqaut16prCLes0LdsYAzooNV2iDNKh5fZHMdgXm12KJ6PuooPSvS3XzNJ44FapJkrr1dCi0XtM9nXbooLSGl9c8JJkfTFgBHFFW26VRA1i0jdcQ%2FRSFNw%2BRbU%2BpV4a436IL6NcFKyrfhmB08H4hkal4zK2pMoZuCtxJ5ftkcDqYYbRtqKQMabOo5DlDa7H0dk2oVPqzShv%2BB%2BhHqM4vV9MMcOA8Sx%2F7vzBeGYhupxXZZ9RnnChqwL2aZxCdCRwtYfZyTskHJIvYwaSNudoqMYf8xGJC5PsRH8o%2BpP8LTXxxIBq5r48apkFHDAL8xemY3QgPBd8yHGHUgUSQk3cG7SPqmHVrIadEWFJLgYVpetJURnsxi2sYx4YOIs7r4m7AhiZUQNpXQ9KbWgUXefQFXqP54RMoW4wwsuZmCKWqO8rfF%2BuEPo1ozc3xzBFRXBYl9R%2FAq121C9eDnQFqUq7q0a%2FRQCANX8jIQ4InAX9xCGLBkM7dVVC8EdLAGMrEqA56DqjNa7cqyhRPEUoIXp6qK2NiQxmyRUBvr8v57xedSP673ZI3O1WQchK4BVXbvzVN08yq%2F2d2ZG0Jma9phg4eQSfue2eOCGd%2FGYFU3rEbn3sD6R3PAl%2BGUEIVZSB0HUBj8qMI9gEJ2RYkwN1KHQuNT70w6kuA%3D%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=M2IEQMILzoB9Cw5t5Aw%2Fd9Q2Jathtrir0jU33Pd6irfhXw26xqvq0e2FxZPJsulal8ViSXoYKmnconUjCRSwGire3vP%2FJZckgsfNL%2F%2BpVPtOa6b%2FVrs8z2zr%2B8VPiYwIap48T%2FzMFtrOJkxgEUgreAq1SNWnKYULj4qimPS8Q5RDbGGGEL911A%2BWzbUWpSDOIbPPAUdjrJb9yrXSLoAjwluiG1cTBB6VBHcQ71eyM8tY1NeMQGLlvfWaVPBU7WYsDfj5%2B3CF81TTs%2FFA3WAzAFPF06teqHq70LsA95JrQcU30lK7U1gXD26Ky6NvFJenUqHuaxMQ4glxSsh1ZHLElR5DM4hT6bzk%2FqAaqYH%2Fk8d0VE9kKROP9l%2B3i%2FFpYIigtadYZggto3V%2BBNwFW%2BM%2FJdtf5WlmpTNNXicV3IYpxFRrXWMixXkMNf%2FJ6Nxr0q4txcrMEX83jbB%2F%2FTtvEGbxpFUPkD7o1%2BMCSNav2X%2FtMVvDr6MOMpC26sQEgqx%2BWfcWSCN%2FqghWxItaoOXXEg%2Fd9dwPCBUT1cSlju1OniGlfNsZorGH9fsnvfVPUePrUrXYkqVsvewnSj7sC74P6HeyuPMdKahi9ERbK1qOu%2FJO3m3dpdyAiZWlSbWiP0H1qGkUHp6Gq3uUN3d11%2B6c11LsoglRMETVEaJioIQ1X7MSztf3MAElr9KSB6RGU8TMXSBq&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=GLs7pygbOu3w46DXXUdTtKZ9p%2F4N6YmQaX3TMQktpc4YhKJt%2BYzOdBlW0MeZX1t7O2U3bZ%2BgqHpH%2BUUIvKRrkpOASigwv1E%2BmBsQS7SZazzqooDRaHBS59B7VtNpqkdRBgGkG0zTNtdyOT9tJ9N%2BAhNQM7eKw82v92qCHJ4UGfAR%2FpCkum5AMZVABOCcDZw7%2FmtEWZHBM%2FTJJF8dghPUKQDDuOI17Gb7I0pY0nn4NTnbvdl%2BHg6De3mgwHYpCdRlWRsjPnyBR7gxEMw%2BPxEZ%2FeQUSD8ernPEOwAg6dFiWHKX6miKnLrhTNhZCOCDjrTCeOiwHjJSoCkCEH1PzWI8%2FYSNoKoYu1jlbyTNGoeJPCnItD38mWGr7Xw17tcGxMcBM%2F%2BKnWtFAZ2PW3T3N5JdHGvia3iuVkRg4LA7U8Mq8vU9380zM5SBIHjfWT77q1zWWZ8bXs1s0T1n75aIjVlDdlaCCcnroHhP1bOeHKtBAN%2BdJJZBPFLkIVL0V4IDcLe2uy79UZC5hgp6KcH2mUgvgwfLHDq6nh%2BZQ65fhf4%2FpBxdqZwUvKL6iNTRryd4NkRMAFb4LixWIf%2BBYonCK7cdejToY3frsNIqon1l2ugoiwolhpCueh4wzGyfUzG%2FxhApbkHaUWnsXB7OJeBYEw0HCMW%2FgpcqFF0zayM%2FffrvWOApcTji8aavSw%2BFrcO20g6P434N8So2Sxg%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=5BpT0h6aHwrVdtbi21ihOhy%2B1Hkz%2Br3Jri84y5TPYQs4Qav9OcLNqX2aw9LjQ0digS8E31UMMjaKUjssHbyxnTBUN%2Fq6jV7lofBiL4CDKMWIvcobtDQOgKiZQrJOtktKIrvOtOZdRdmGmDAVC%2FXU%2BOBNWy8SDTmZPCburYWooLOMX7l5SkiOZqR2l5a4h0H2GMmfkPW9IB5jugBe64e39reBE3El7BejM%2BMA9i0NgGRAUa6ac8dow%2BFSPPUekKt1tfnctF%2Fjon38E%2Fi2uj0gg%2FQGFiAk%2B3Bzoy5%2FEZqQzcndW%2Baoxyw0udZCjPmeQn2aSvakCYJrIWa3o9e99q9jGZCX692p1zgwmIQVSP6%2BH%2FPJakIpN7m6W4doZQ9aoWtQRUAWohCC35Ae08I7I5BzLL9r5jJGnbkDmN9Jz6Lu%2BMZg5hOmOqR2IRYWfphP67HgIYlnF9IMuzWlG%2Bhu%2B4ptXpR0PPRFXNAtIVJYboo%2Fy8KyJgWZ1ifdCgTZ7APynAj7IbN1GRFe65xEmcP1uDF1wLaQ9wt8CZ34GL8fvbuDjDOWrTEjb11b1%2F4yLJ%2FnnSJ5iasYlTvpyg4FEsn0gtID5CQQs7dNTVMVkCA%2FRReVqX46i9RXo%2BhqOfQ7caH%2FVgTfYCeC3zmSl6kWB5zXEZGuREQTIf7Ovo6FUSj7R3oMH84FIsVpMjEe%2BohrGbUTPw15wrlCBikTpfA%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=4hOWbcoif%2F5T8nM23y%2BfnddO7fvu6PbMO7k2HDa0UzzX9v3abt4Na06CcC%2BRsDSxb5ZsB69Tme5V3meRJX8ZVLRB1Uz3oSLjB9oTnnmwXDDhdDTvWeGdNPTOUnaaoxDtmkwjaYaGJ44lYWB6b2WUtM%2FQeUcWYZOPpNMPv2IRdyUVCOpD%2BRFzIKiMPQOOsGCxWKegH2GrozGUMuX7OwWRG5K4wUdeiFDp%2F1A9%2F%2FDr9Zp3bCj6NpHn0B%2B4ljnruX6a%2FHI9MotiTOCsi8o5Vb%2F%2BST0%2BekmyJYx0lD7PWV8JCpKdQjTNxIPFvWkhAX4hG9GyrV%2Fbr5jZ5B6NCOKKTGq7zUlG%2B%2FDiKgsvLNWMnzPcAhbtkIn%2FUJfm3t37SHTDjxGJaHy54XS5QuPZq2Lm1Od%2BLuvXyJ34wJr%2BEN%2FnXZeR%2F7QQRlIivP0PVzRtGvH06t3uf%2BuMTOr3bdqrQs4JvAISp4RCyCGhxWgDfEh1a%2FdI1phA7XfTZw7%2BEBksKHSMSADTMe8iGTdFELJaPviErs0PhmmHi74EH3iB%2FyOxEIp8bc2EQ7UcY08%2FQKmEBNIVwwMBpC8uBuTLwAuSVL4emwq7FTFSW7eqLorN3uxD1%2B3xdcfE06fP6sY%2F3e8aDf5DcxhVSZiaGAzaBvtfk%2FXn9IKOApxc1UP45TwoVLeierXUQhFK2RUbm8BZnw5JfuruuSIsEMZxW8NN7sQ%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=xYHbswzT14bMwViXnW%2F4mQnFRyrm2F%2FdrwJDcSxWfOI5%2BHs5pflmiY6fFv6JgzKdSHU9w8mNgTfaphyegkvMbdiSoUEnC4kZ%2BJGazywiFmW6DvPS5QAGL53ql5YVPI42vWbLgX5CCeTv%2FgdYOHJVK5Jj1et%2FN8M2MdmuVsylvbSX9OX%2FN39oBhuuLYXV0Be5%2BkXpj1zjanNE4BVJNU3n6SI59kLxMddoZYrruaYduevHk8Mp%2B0QagaWrvQcTsBIW8SD1UnlwJRgq6rNQXzBT4FtbAG17ZitQa2KP1cXEBZdleu2ocnpe6RNm1W91awava4aPsetz%2FOsYDVG%2FUXnZ4MRm2Po1SWyTGf%2BhK0LaV6NdwqXu0esBygtSe%2B5o6Po6JeS3gVfsPNmY%2BSdAZmnrTakQWOFb1MsaD5G8QylXFVcPxQzQr4u0CQiJfpRVD2DobaPLK9adrPz5A9ZtdRgEIobAloQD%2BSO8lOv2RKzYKihK1ckDl7j465Kk6p40udSrSaGCFjXJVNENEepst6NODnBKi6nP9adUY3n6eFxXqsXoOBYi0AfwpZGxV7T208AOG1zZIMMmCJSUHWN7ZWItPfYQiE1ZS5sNoB7krhF2o2Llbt1fPyC%2B8Ua%2BJ3fnQXdDApxeZ%2BtuNxpkcsvUUjZX3NkH4UKuqDHfPGoBEUDHH%2FnswmzxWQEPoQ%3D%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=vYYBqGV532V%2BDZuZMSw%2B5Vd3syQRNs4k8SVlJevgb0cY1x9lIkssOTegQfE%2FCETwnDtGd%2BXjjgNkV0WiKhbvivNPa3IdqBejx9lvYDPk99uEie6EI9pOqMHDM681xv%2FtXVjiLh2FJ3q6uy3cSlGti303RNjy6PyySoWW3jcHGWX3Cax8YtMP%2FgpRFffE8OVIbuNl1d7WE5xk3eVf96QA%2BZYwmgyjQAonT7Iyqt24o9TK8%2Fv9Shv%2BX9lxjOQKtSGg2vIt1R6VYANYLmU%2F8PNG7e%2BrwWSTnMXPjRod72BbzULNmlM1yEqxru%2B5mrxX%2FO6O18R2%2BHJ4%2BkGdFI6AQAazfVzTqroI34D4QSjrW7%2FJ2ocrwVRk6GmZYLQk3qLokM%2FHgH6fVXJT82fXP3KT2gWzHQHZmIgzRQAPbzO3Hm0lnyrcfs6%2BelpzMIO7wlV9KzCF3biD89G2ccnECXAIso0hWhOhmYCjhXm6EIKpLWXRiP0V4vHJUZ%2BoYL201I27dekAgAFdrMnxlsqN2ezbVtsbMwKLhWb8FKsV7UZf8ulGHwsq0xb6p2kYTMgsYomR7EWGwZfx1Zh1bKyOf60BWLFpVPW0Ea0NQHzE5NFeFknOMuQsvaV4JW1wccYoJ%2FUNvLt58jO7qVO3gJeIt1%2FDBCSwlecYFNDKEpzzUVOwTH%2FKmP9hADoLhG5znbHGolm62P9cRNaVZj8opHo%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=wBfF9bKwU%2F0V59VmGYvz%2Bn8G0CQveYftZVMB7%2FKP6f9qsNCd1tuc77rGGjtxPCFq7h%2B9xpfxJDFsut18PYy3DXp7MN0JeJWavSKsp8HZWP16qw7Q8%2FQLZUokojmatS2t6P2lFO2eReI20Ccj5yEtp3Okew%2Fmfj9TqM28l5ezO44TvO%2Bd4BaEpBUpM0FUXkHcZ2HwoKc4MQyOuOfz%2Bqil3D06seG8nCHQuoOxHWpemTcjdCShyhXsbZjb7GPqDQq6j%2F%2FWwna3m0aUeDwSx5Kh9JLJUbEphkOA5TFDq%2BynplSOPLtwrq%2BsGZHxkyjQeSCkcen6HCPgmfYESH7X%2B1DwFNsKX7q7TiV0HgTbVvkP7EfygE2Kq7dTDxU5IO1VN2lSBbofSk4bSd94JlvTZg7D3J%2BYd7JpGQJ7ci4Nt1cEpyojdOfnl5dDA43FaMcKTAKrYuv9t3TGwvb0sxtfvhEd%2FiodczxjPxBYCt7EA8Sf%2FlPMsw0jQpHMzIXEdnKLfOpUHm69BSDG5xMFI5gDFAQtrEEbfoQ%2FxZFmol7ZeJnkaFR1LCKDmQIbdx%2FarJH0noW%2FQnQI60%2BEnileo%2BVwuSPFDNtLJcF9%2FdtEPAElNq64reUSSIx8Hs0q6QR%2BUwJimmb2dgNLdk8s67%2FGLWVONP6iQLNrPAJpvRvX4aH8LsJHpzXmDIedLgjXBZVloxSbGEwibCtvt1qzYVg%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=TemzudReCruBQM1kdUrIE7sGHV66tek0NNusUS2QvY%2BHU%2FwCkzhSMqAZfJVMZgktnGdWy1EFy%2BiB3mFM7ne%2B7MfAov%2Bl7GYtvhHuyEk5Aic4wBEOuzB4Gae7Nz2OsSKr%2Bio59l%2Bf8eHTst%2BaIUBKEEwJE0vZG34pSYseAdqyBUz9Ohwie2NvGv8W%2Fg3QW0gCSd0bqPu5ZWwYaohd15P8zXhF%2FMb%2Bp2WdBjq4%2F4IPL9dXr2H%2BCJZ61Tq8%2FDmMbL1gp9pl3u%2BEwbYTyjKgQhFRAzmUWrI2N%2FVac2B2loo%2FM0P%2BWF0A0kHWIFElqr5anmuCtydlZvslym2liNOTTKF1OvuEUH0II2WEITQ8v7JpKXUfhg5Gm7zYQzqiZmSMRIfzTwu5a%2BhBgTrFa2BRnEDZCqAa19gF6UUXrW1RBYQO9gPct47FE2CjQodNe5oZLOwQfgnDcR1Ve7vCbPg0TnDYY6Ol6ZCocAYgkD1l4bY9xctiPR297T1Yd0Nm9ME8t7rgrClNMMRND40u3mz8%2BwQs%2Fh1g943CHrUPdnjE0PpnlBfBA9RK9KXp5JdL%2F9qRa0Cnct5jK54vf0Tw0%2BIEMeEvQuEDS0ugckm0KUFmoDBI91BcTF0vs6yLbi5ku64EZ8hQFKdVg92EnME768F9c2%2FPVbtPjvbeFxhvbK5%2Fp7q1pYyJuz8dou07SQ%3D%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://mm.chitika.net/track?xargs=gl1B5Fkwtd3%2BS6OWm3UQ3zhPkZF4SzOQLSx68WUIQNUSS%2FOQYyNJQ05tdZYQWCZ35ZDpqQ3J2biZ3ENipTsq5CQfmo8QtoFXSuo4U9%2FcKLZiO6Vx7fJwW%2FhGoBNnBeEPDaAMQRrn%2BGLs445oUji4GW2BpDghdkd9Hvy2AYhsKcFquQSsQEtocXr8wqD3MoVKVZNE%2BcqQiLeKKFqM%2F%2BWMhkDkP%2BadknYxPmA0Epf9HWx0oYwiVori0PTakwFcoqkSYTFlOOzkSMKk%2Bn40Ixcnf8l08ONWPL6NoNm6e0pzGxGbqssCdmY8n7%2BikljZTYMATnB2Vy%2FaDLynRKRzsIMmP2cjEKLuj2jdTppliqJreyst%2FzTiMQ7saxTYU7M8bsDh72T5DWi5n%2BYqI7%2FUAISYje8CL7mCtwTT1FcZYwN%2B62%2BMdQ6Li8JLqVmotiy6NEPIg5b4VcXBa92FFofD8jBeJJMhypqXEuUv25ZEcal3HpUt6Xt%2FDx7fMVqyJAlwX%2BDf%2Fw7jhu3r%2Fbx8CipaYi7%2BTd6TxSrcT1qwi7yVUWG%2Brhpni4wPouRJI%2FG7Flq%2FO8Z6kICniMCy%2B84TJo686%2B8Un8Cwu2drfDuyAlhlOZGO%2FXhhcwhQAXEQQ4BDCO33tbi107EumyVwUoefbiAssFba2p6906xRC69dNYL5yu6AnEFnzhz5x%2FMR0hZUmH2NmwIE%2BsNgNWXBvzQ%3D&size_screen=1024x768&impsrc=getads&dpr=1&vsn=7.0&size_viewport=991x533

http://www.wsj.com/articles/ocwen-head-to-resign-in-new-york-settlement-1419224476

http://blogs.wsj.com/moneybeat/feed/

http://topics.wsj.com/person/G/stephen-grocer/7440

http://topics.wsj.com/person/L/phillipa-leighton-jones/7442

http://topics.wsj.com/person/E/erik-holm/7229

http://topics.wsj.com/person/V/paul-vigna/7296

http://topics.wsj.com/person/C/david-cottle/7446

http://topics.wsj.com/person/B/ronald-barusch/7441

http://topics.wsj.com/person/G/francesco-guerrera/6652

http://topics.wsj.com/person/M/alen-mattich/7944

http://topics.wsj.com/person/Z/jason-zweig/1586



Michael J.

Casey

Horizons

E.S. Browning

Symbols and Alerts Manage Email Preferences

Newsletters

SIGN UP

Wall Street JournalFacebookTwitter LinkedInFourSquareGoogle+YouTubePodcastsRSS Feed AppStoreBack to Top

Customer Service

Customer Center

New! Live Help

Contact Us

WSJ Weekend

Contact Directory

Corrections

Policy

Privacy Policy

Cookie Policy

Data Policy

Copyright Policy

Subscriber Agreement& Terms of Use

Your Ad Choices

Advertise

Advertise

Place a Classified Ad

Sell Your Home

Sell Your Business

Commercial Real Estate Ads

Recruitment & Career Ads

Franchising

Advertise Locally

Tools & Features

Apps

Emails & Alerts

Graphics

Columns

Topics

Guides

Portfolio

Old Portfolio

More

Why Subscribe

Register for Free

Reprints

Content Partnerships

Conferences

News Archive

Jobs at WSJ

Copyright ©2014 Dow Jones & Company, Inc. All Rights Reserved.

Morning MoneyBeat U.S. Morning MoneyBeat Europe

Morning MoneyBeat Asia

Subscribe / Login


(Page 146 of Total)

https://www.subscribe.wsj.com/hpfooterlink

https://id.wsj.com/access/509b1a086458232f6e000002/latest/login_standalone.html

-1- ACCUSATION IN SUPPORT OF NOTICE OF INTENT TO ISSUE AN ORDER SUSPENDING RESIDENTIAL

MORTGAGE LENDER AND LOAN SERVICER LICENSE

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Stat

e of

Cal

iforn

ia -

Dep

artm

ent o

f Bus

ines

s Ove

rsig

ht

MARY ANN SMITH Deputy Commissioner SEAN ROONEY Assistant Chief Counsel ALEX M. CALERO (CA STATE BAR NO. 238389) Corporations Counsel CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT 1350 Front Street, Room 2034 San Diego, California 92101 Telephone: (619) 525-4044 Facsimile: (619) 525-4045 Attorneys for the Complainant

BEFORE THE DEPARTMENT OF BUSINESS OVERSIGHT

OF THE STATE OF CALIFORNIA

In the Matter of the Accusation of THE COMMISSIONER OF BUSINESS OVERSIGHT, Complainant, vs. OCWEN LOAN SERVICING, LLC, Respondent.

File No.: 413-0544

ACCUSATION IN SUPPORT OF NOTICE OF INTENT TO ISSUE AN ORDER SUSPENDING RESIDENTIAL MORTGAGE LENDER AND LOAN SERVICER LICENSE

The Commissioner of Business Oversight (“Commissioner” and “Complainant”), in her

capacity as head of the California Department of Business Oversight, formerly the Department of

Corporations (“Department”), is informed and believes and based upon such information and belief

alleges and charges as follows:

I.

BACKGROUND

Ocwen Loan Servicing, LLC (“Ocwen”) is a residential mortgage lender and loan servicer

licensed by the Commissioner pursuant to the California Residential Mortgage Lending Act

("CRMLA") (Cal. Fin. Code § 50000 et seq.). Ocwen has its principal place of business located at

1661 Worthington Road, Suite 100, West Palm Beach, Florida, 33409. In California, Ocwen has a


(Page 147 of Total)



1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Stat

e of

Cal

iforn

ia -

Dep

artm

ent o

f Bus

ines

s Ove

rsig

ht

branch office located at 2255 North Ontario Street, Suite 400, Burbank, California, 91504.

In December 2014, Ocwen reported that it was servicing more than $90 billion in mortgage

loans and had foreclosed on more than 2500 borrowers during the previous year.

II.

REGULATORY EXAMINATION AND ORDER TO DISCONTINUE VIOLATIONS

Pursuant to California Financial Code section 50302, the Commissioner is required to

examine the records, documents and affairs of each licensee under the CRMLA to ensure compliance

with the law. California Financial Code section 50314 requires a licensee to keep records and

documents that will properly enable the Commissioner to determine whether the licensee is in

compliance with the law.

On or about January 8, 2013, the Commissioner commenced a regulatory examination of

Ocwen through her examination staff. On October 15, 2013, the Commissioner’s examination staff

made additional written requests for documents and information to Ocwen, to ensure its compliance

with the recently enacted California Homeowners Bill of Rights (“HBOR”), a package of

amendments to the California Civil Code that became law on January 1, 2013. Ocwen failed to

produce all of the requested documentation and information.

On February 7, 2014, the Department by letter made additional written requests to Ocwen for

documentation and information. The February 7, 2014 request, in large part, seeks production of

documents which should have been produced in response to the Commissioner’s January 8, 2013 and

October 15, 2013 requests. Ocwen was given a deadline of February 25, 2014 to produce the

documentation and information.

On February 25, 2014, Ocwen produced a portion of the documentation called for in the

February 7, 2014 request. Ocwen informed the Department that it would be producing further

documentation and, on March 7, 2014, Ocwen produced additional documentation.

The Department contacted Ocwen on March 10, 11 and 12, 2014 to inquire whether the

February 25, 2014 and March 7, 2014 productions consist of all of the documentation called for in the

Department’s February 7, 2014 request. Ocwen did not respond to the Department’s inquiries. The

documentation produced by Ocwen in response to the Department’s February 7, 2014 request is


(Page 148 of Total)



1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Stat

e of

Cal

iforn

ia -

Dep

artm

ent o

f Bus

ines

s Ove

rsig

ht

incomplete.

Based on Ocwen’s failure to produce all documentation and information called for in the

Department’s February 7, 2014 request, on March 12, 2014, the Commissioner issued an

administrative subpoena duces tecum requesting documentation and information from Ocwen. The

documentation requested in the administrative subpoena duces tecum is almost identical to the

documentation called for in the Department’s February 7, 2014 request. Ocwen was given a deadline

of March 21, 2014 to produce the documentation and information.

On March 22, 2014, Ocwen produced a portion of the documentation called for in the

subpoena duces tecum.

On April 22, 2014, representatives of Ocwen and the Commissioner took part in a conference

call regarding the deficiencies in Ocwen’s production of documentation. Ocwen agreed to produce

additional documentation and information.

On April 24, 2014, Ocwen produced a portion of the documentation discussed during the

April 22, 2014 conference call.

On May 1, 2014, the Department informed Ocwen that Ocwen’s latest production is

incomplete. The Department requested that Ocwen produce the outstanding documentation and

information by May 5, 2014, or the Commissioner may issue administrative orders and file a petition

in California Superior Court to compel Ocwen to comply with the ongoing examination and

administrative subpoena duces tecum.

On May 5, 2014, Ocwen produced a portion of the outstanding documentation and

information called for in the subpoena duces tecum.

Based on the above, on June 16, 2014, the Commissioner issued an Order to Discontinue

Violations, pursuant to California Financial Code section 50321, to Ocwen. The Order to Discontinue

Violations was issued as a result of Ocwen’s failure to produce documentation and information upon

request of the Commissioner and within the time period specified that would properly enable the

Commissioner to determine whether Ocwen is properly performing residential mortgage loan

servicing functions, in violation of California Financial Code section 50314. The Order to

Discontinue Violations required Ocwen to immediately cease the violation set forth above and


(Page 149 of Total)



1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Stat

e of

Cal

iforn

ia -

Dep

artm

ent o

f Bus

ines

s Ove

rsig

ht

immediately produce all books and records requested by the Commissioner by June 26, 2014.

On June 16, 2014, Ocwen was served with the Order to Discontinue Violations. Ocwen did

not request a hearing to challenge the Order to Discontinue Violations and the Order to Discontinue

Violations is now final.

After service of the Order to Discontinue Violations, Ocwen produced a portion of the

outstanding documentation and information.

On August 4, 2014, representatives of Ocwen and the Commissioner took part in a meeting

regarding Ocwen’s production of documentation. As a result of discussions during the meeting, it

became apparent that Ocwen had not produced all outstanding documentation by June 26, 2014, as

directed in the Order to Discontinue Violations.

III.

JUNE 16, 2014 REQUEST FOR INFORMATION

As a part of the Commissioner’s regulatory examination, on June 16, 2014, the Department by

letter requested a loan servicing report and other information from Ocwen. The letter required that the

report and information be produced within five (5) days from the date of the letter. Further, the letter

informed Ocwen that failure to produce the requested report and information may lead to the

Commissioner taking adverse action against Ocwen’s license.

On June 26, 2014, ten (10) days after the Department’s June 16, 2014 letter, Ocwen produced

a portion of the information requested in the Department’s letter.

On July 10, 2014, representatives of Ocwen and the Commissioner took part in a conference

call to obtain clarification on the documentation and information produced by Ocwen. As confirmed

by discussions during the conference call, Ocwen had still not produced all the information called for

in the June 16, 2014 letter.

On July 11, 2004, the Department by letter notified Ocwen that as a result of Ocwen’s failure

to produce all matters requested in the June 16, 2014 letter, within the five (5) day time frame, Ocwen

shall forfeit to the Commissioner a sum of one hundred dollars ($100) for every day, beginning July

11, 2014, up to ten (10) days, that date being July 20, 2014, until Ocwen produces all of the matters

requested. The letter further informed Ocwen that if it fails to produce all matters requested by 8:00


(Page 150 of Total)



1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Stat

e of

Cal

iforn

ia -

Dep

artm

ent o

f Bus

ines

s Ove

rsig

ht

a.m. on July 21, 2014, this failure shall constitute grounds for the suspension or revocation of

Ocwen’s license pursuant to California Financial Code section 50327.

On July 21, 2014, Ocwen produced a portion of the outstanding information called for in the

June 16, 2014 letter. On July 22, 2014, Ocwen made a further production of requested information.

To date, Ocwen has not produced a complete report containing all of the information requested.

IV.

JULY 31, 2014 AND AUGUST 5, 2014 REQUESTS FOR INFORMATION

On July 31, 2014 and August 5, 2014, the Department by letters requested loan servicing

reports from Ocwen for a sample of 1200 and 120 loans, respectively. The letters required that the

reports be produced by August 15, 2014, in preparation for an on-site examination of Ocwen to

commence on August 18, 2014. Both letters informed Ocwen that failure to produce the requested

information may lead to the Commissioner taking adverse action against Ocwen’s license.

Ocwen did not produce the requested information by August 15, 2018. Instead, on August 18,

2014, Ocwen produced a portion of the information requested in the July 31, 2014 and August 5,

2014 letters and informed the Department that the remaining information would be produced at a

later date.

On August 18, 2014, the Department by letter notified Ocwen that as a result of Ocwen’s

failure to produce all matters requested in the July 31, 2014 and August 5, 2014 letters, by the August

15, 2014 deadline, Ocwen shall forfeit to the Commissioner a sum of one hundred dollars ($100) for

every day, beginning August 18, 2014, up to ten (10) days, that date being August 27, 2014, until

Ocwen produces all of the matters requested. The letter further informed Ocwen that if it fails to

produce all matters required by 8:00 a.m. on August 28, 2014, this failure shall constitute ground for

the suspension or revocation of Ocwen’s license pursuant to California Financial Code section 50327.

Since August 28, 2014, Ocwen has made some partial productions of the information

requested in the July 31, 2014 and August 5, 2014 letters. However, to date, Ocwen has still not

produced all matters requested.

///

///


(Page 151 of Total)



1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Stat

e of

Cal

iforn

ia -

Dep

artm

ent o

f Bus

ines

s Ove

rsig

ht

V.

LAW

Section 50326 of the California Financial Code provides, in relevant part, that: If any licensee fails to do any of the following, the licensee shall forfeit to the people of the state a sum of up to one hundred dollars ($100) for every day up to the 10th day: (a) to make any report required by law or by the commissioner within 10 days from the day designated for the making of the report . . . or (b) fails to include therein any matter required by law or by the commissioner. Thereafter, any failure shall constitute grounds for the suspension or revocation of the license held by the residential mortgage lender or residential mortgage loan servicer.

(Cal. Fin. Code § 50326.)

Section 50327 of the California Financial Code provides that:

(a) The commissioner may, after notice and a reasonable opportunity to be heard, deny, decline to renew, suspend, or revoke any license if the commissioner finds that: (1) The licensee has violated any provision of this division or any rule or order of the commissioner thereunder; or (2) any fact or condition exists that, if it had existed at the time of the original application for the license, reasonably would have warranted the commissioner in refusing to issue the license originally.

(Cal. Fin. Code § 50237.)

VI.

CONCLUSION

The Commissioner finds that, by reason of the foregoing, Ocwen has violated Financial Code

section 50326 and has violated a prior issued Order to Discontinue Violations and based thereon,

grounds exist to suspend the residential mortgage lender and loan servicer license of Ocwen for a

period of up to twelve (12) months.

WHEREFORE, IT IS PRAYED that the residential mortgage lender and loan servicer license

of Ocwen be suspended for a period of up to twelve (12) months.

Dated: October 3, 2014 San Diego, CA JAN LYNN OWEN Commissioner of Business Oversight

By: ___________________________ ALEX M. CALERO Senior Corporations Counsel Enforcement Division


(Page 152 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

28

30

CLASS ACTION COMPLAINT

Daniel Alberstone (SBN 105275) [email protected] Roland Tellis (SBN 186269) [email protected] Mark Pifko (SBN 228412) [email protected] Michael Isaac Miller (SBN 266459) [email protected] BARON & BUDD, P.C. 15910 Ventura Boulevard, Suite 1600 Encino, California 91436 Telephone: (818) 839-2333 Facsimile: (818) 986-9698

Additional Counsel Identified Below Attorneys for Plaintiff DAVID WEINER, individually, and on behalf of other members of the public similarly situated

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

DAVID WEINER, individually, and on behalf of other members of the public similarly situated, Plaintiff,

vs.

OCWEN FINANCIAL CORPORATION, a Florida corporation, and OCWEN LOAN SERVICING, LLC, a Delaware limited liability company,

Defendants.

Case Number:

CLASS ACTION COMPLAINT FOR:

(1) Violations of California’s Unfair

Competition Law (Cal. Bus. & Prof.

Code §§ 17200 et seq.);

(2) Violations of the Racketeer

Influenced and Corrupt Organizations

Act (18 U.S.C. § 1962(c));

(3) Violations of the Racketeer

Influenced and Corrupt Organizations

Act (18 U.S.C. § 1962(d));

(4) Violations of the Rosenthal fair Debt

Collection Practices Act (Cal. Civ.

Code §§ 1788, et seq.);

(5) Unjust Enrichment

(6) Fraud; and

(7) Breach of Contract

Jury Trial Demanded

Case 2:14-cv-02597-MCE-DAD Document 1 Filed 11/05/14 Page 1 of 43USCA Case #14-5265 Document #1532155 Filed: 01/15/2015 Page 1 of 43

(Page 153 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

28

30


For his complaint against Ocwen Financial Corporation (“OFC”) and Ocwen Loan

Servicing, LLC (“OLS”) (collectively “Ocwen” or “Defendants”), Plaintiff David

Weiner (“Plaintiff”), individually, and on behalf of all other members of the public

similarly situated, based on information and belief, alleges as follows:

NATURE OF THE ACTION

1. This case concerns fraudulent practices committed by Ocwen in connection

with its home mortgage loan servicing business. Taking advantage of the economic

downturn and the increasing number of loans in default, Ocwen devised a scheme to

deceive homeowners who are behind on their mortgage payments into paying, or

believing they have to pay, hundreds or thousands of dollars in unlawfully marked-up

fees.

2. Ocwen uses an enterprise of affiliated companies, including Altisource

Portfolio Solutions S.A. (“Altisource”) -- a wholly-owned subsidiary of OFC until 2009,

when it was spun-off into a separate company -- to engage in its scheme to disguise

hidden, marked-up fees so that it could earn additional, undisclosed profits. Through this

unlawful enterprise, Ocwen assesses homeowners fees for services performed by vendors,

which are unlawfully marked up, often by 100% or more.

3. More specifically, when home mortgage borrowers get behind on their

payments and go into “default,” Ocwen obtains a number of default-related services

which purportedly are designed to protect the lender’s interest in the property. To obtain

these services, Ocwen funnels the work through its affiliated company, Altisource, who

then orders these services using a network of third-party vendors. As a matter of practice,

Altisource marks up the third-party vendors’ actual cost for their services, and then,

passes along the marked-up charge to Ocwen. Without disclosing the mark-up, Ocwen, in

turn, assesses the marked-up fees for these default-related service on homeowners’

accounts.

4. Ocwen is well-aware that its marked-up fees violate the disclosures made in

homeowners’ mortgage contracts because the fees exceed the actual cost of the default-


(Page 154 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

2


related services, so when Ocwen collects, or attempts to collect, such fees, it is not merely

being “paid back,” or collecting “amounts disbursed,” nor are such fees “reasonable and

appropriate” to protect the note holder’s interest in the property and rights under the deed

of trust. Nevertheless, through this fraudulent scheme, Ocwen is able to quietly profit

from default-related service fees at the expense of distressed homeowners -- a particularly

vulnerable class of consumers who are struggling to keep their homes.

5. Ocwen’s fraudulent loan servicing practices are designed to avoid detection,

even when examined in bankruptcy proceedings. As one court has explained, “[l]enders

have apparently been operating under the assumption that the fees and costs in their

proofs of claim are invulnerable to challenge because debtors lack the sophistication, the

debtors’ bar lacks the financial motivation, and bankruptcy courts lack the time. . . .[T]he

Court believes that certain members of the mortgage industry are intentionally attempting

to game the system by requesting undocumented and potentially excessive fees.”1

6. This type of rampant abuse by mortgage servicers like Ocwen has led federal

regulators to enter into numerous consent orders, but according to Mark Pearce, Director,

Division of Depositor and Consumer Protection, Federal Deposit Insurance Corporation:2

1 In re: Prevo, 394 B.R. 847, 848, 851 (Bankr. S.D. Tex. 2008) (emphasis added).

2 See Mark Pearce, Director, Division of Depositor and Consumer Protection, Federal

Deposit Insurance Corporation, Mortgage Servicing: An Examination of the Role of

Federal Regulators in Settlement Negotiations and the Future of Mortgage Servicing

Standards, before the Subcommittees on Financial Institutions and Consumer Credit, and

Oversight and Investigations Committee on Financial Services, U.S. House of

Representatives, July 7, 2011, available at

http://financialservices.house.gov/UploadedFiles/070711pearce.pdf (last visited, Feb. 1,

2012).


(Page 155 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

3


these consent orders do not fully identify and remedy past errors in mortgage-servicing operations of large institutions; in fact, the scope of the interagency review did not include a review of . . . the fees charged in the servicing process. Much work remains to identify and correct past errors and to ensure that the servicing process functions effectively, efficiently, and fairly going forward.

7. In addition to marking up fees for default-related services, Ocwen also has a

policy, practice, and procedure of misapplying homeowners’ payments, which, in turn,

generates fee income and larger profits for Ocwen and its affiliates.

8. Plaintiff brings this action, seeking injunctive relief and damages on behalf of

himself and the thousands of other homeowners who have been victimized by Ocwen’s

uniform scheme.

JURISDICTION AND VENUE

9. Jurisdiction is proper in this Court under 28 U.S.C. § 1332(d)(2). The matter

in controversy, exclusive of interest and costs, exceeds the sum or value of $5,000,000

and is a class action in which members of the class of plaintiffs are citizens of states

different from Defendants. Further, greater than two-thirds of the members of the Class

reside in states other than the states in which Defendants are citizens.

10. This Court also has jurisdiction over this matter under 28 U.S.C. §§ 1331,

1961, 1962 and 1964. This Court has personal jurisdiction over Defendants under 18

U.S.C. §1965. In addition, under 28 U.S.C. § 1367, this Court may exercise supplemental

jurisdiction over the state law claims because all of the claims are derived from a common

nucleus of operative facts and are such that Plaintiff ordinarily would expect to try them in

one judicial proceeding.

11. Venue lies within this judicial district under 28 U.S.C. § 1391(b)(1) and

(c)(2) because Defendants’ contacts are sufficient to subject them to personal jurisdiction

in this District, and therefore, Defendants reside in this District for purposes of venue, or

under 28 U.S.C. § 1391(b)(2) because certain acts giving rise to the claims at issue in this

Complaint occurred, among other places, in this District.


(Page 156 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

4


PARTIES

12. Plaintiff David Weiner is an individual and a citizen of California.

13. Defendant Ocwen Financial Corporation is a corporation organized under the

laws of Florida, with its principal place of business in Atlanta, Georgia.

14. Defendant Ocwen Loan Servicing, LLC is Delaware limited liability

company, and an indirect wholly-owned subsidiary of Ocwen Financial Corporation.

Ocwen Loan Servicing, LLC maintains operations in this District related to the activities

at issue in this case, including operations concerning the management of loans that are in

default, which are conducted from offices located in Burbank, California. Ocwen Loan

Servicing, LLC’s headquarters are located in West Palm Beach, Florida. It is licensed to

service mortgage loans in all fifty states, including California, the District of Columbia,

and two U.S. territories.

15. Whenever, in this Complaint, reference is made to any act, deed, or conduct

of Defendants committed in connection with the enterprise, the allegation means that

Defendants engaged in the act, deed, or conduct by or through one or more of their

officers, directors, agents, employees or representatives, each of whom was actively

engaged in the management, direction, control or transaction of the ordinary business and

affairs of Defendants and the enterprise.

16. Plaintiff is informed and believes, and based thereon, alleges that, at all

material times herein, each of the Defendants was the agent, servant, or employee of the

other Defendants, and acted within the purpose, scope, and course of said agency, service,

or employment, and with the express or implied knowledge, permission, and consent of

the other Defendants, and ratified and approved the acts of the other Defendants.

17. Defendants are the ultimate recipient of the ill-gotten gains described herein.

The fraudulent scheme at issue in this case was organized by executives working at the

highest levels of Defendants’ respective companies, and carried out by both executives

and subordinate employees working for Defendants.

FACTUAL BACKGROUND


(Page 157 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

5


America’s Lending Industry Has Divorced itself from the Borrowers it Once Served

18. Ocwen’s unlawful loan servicing practices exemplify how America’s lending

industry has run off the rails.

19. Traditionally, when people wanted to borrow money, they went to a bank or

a “savings and loan.” Banks loaned money and homeowners promised to repay the bank,

with interest, over a specific period of time. The originating bank kept the loan on its

balance sheet, and serviced the loan -- processing payments, and sending out applicable

notices and other information -- until the loan was repaid. The originating bank had a

financial interest in ensuring that the borrower was able to repay the loan.

20. Today, however, the process has changed. Mortgages are now packaged,

bundled, and sold to investors on Wall Street through what is referred to in the financial

industry as mortgage backed securities or MBS. This process is called securitization.

Securitization of mortgage loans provides financial institutions with the benefit of

immediately being able to recover the amounts loaned. It also effectively eliminates the

financial institution’s risk from potential default. But, by eliminating the risk of default,

mortgage backed securities have disassociated the lending community from homeowners.

21. Numerous unexpected consequences have resulted from the divide between

lenders and homeowners. Among other things, securitization has led to the development

of an industry of companies which make money primarily through servicing mortgages

for the hedge funds and investment houses who own the loans.

22. Loan servicers do not profit directly from interest payments made by

homeowners. Instead, these companies are paid a set fee for their loan administration

services. Servicing fees are usually earned as a percentage of the unpaid principal balance

of the mortgages that are being serviced. A typical servicing fee is approximately 0.50%

per year.

23. Additionally, under pooling and servicing agreements (“PSAs”) with

investors and noteholders, loan servicers assess fees on borrowers’ accounts for default-

related services. These fees include, inter alia, Broker’s Price Opinion (“BPO”) fees,


(Page 158 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

6


appraisal fees, and title examination fees.

24. Under this arrangement, a loan servicer’s primary concern is not ensuring

that homeowners stay current on their loans. Instead, they are focused on minimizing any

costs that would reduce profit from the set servicing fee, and generating as much revenue

as possible from fees assessed against the mortgage accounts they service. As such, their

“business model . . . encourages them to cut costs wherever possible, even if [that]

involves cutting corners on legal requirements, and to lard on junk fees and in-sourced

expenses at inflated prices.”3

25. As one Member of the Board of Governors of the Federal Reserve System

has explained:

While an investor’s financial interests are tied more or less directly to the performance of a loan, the interests of a third-party servicer are tied to it only indirectly, at best. The servicer makes money, to oversimplify it a bit, by maximizing fees earned and minimizing expenses while performing the actions spelled out in its contract with the investor. . . . The broad grant of delegated authority that servicers enjoy under pooling and servicing agreements (PSAs), combined with an effective lack of choice on the part of consumers, creates an environment ripe for abuse.

4

Ocwen’s Subprime Mortgage Servicing Business Grows Rapidly, and

Draws the Attention of Regulators

26. Seeking to capitalize on these circumstances, Ocwen has positioned itself as

a major player in the residential mortgage servicing industry. In fact, “Ocwen was the

3 See Adam J. Levitin, Robo-Singing, Chain of Title, Loss Mitigation, and Other Issues in

Mortgage Servicing, before the House Financial Services Committee, Subcommittee on

Housing and Community Opportunity, Nov. 18, 2010, available at

http://financialservices.house.gov/Media/file/hearings/111/Levitin111810.pdf (last visited

Feb. 1, 2012). 4 See Sarah Bloom Raskin, Member Board of Governors of the Federal Reserve System,

Remarks at the National Consumer Law Center’s Consumer Rights Litigation Conference,

Boston Massachusetts, Nov. 12, 2010, available at

www.federalreserve.gov/newsevents/speech/raskin20101112a.htm (last visited Jan. 23,

2012).


(Page 159 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

7


fourth largest mortgage servicer in the United States in 2013, collecting payments on

nearly one out of every twenty home loans.”5

27. As larger banks have shifted their attention to servicing the mortgage loans of

their core customers -- i.e., prime loan borrowers who use their lending banks’ other

services -- Ocwen has focused on servicing loans obtained by non-prime, or credit

impaired, borrowers.

28. Elaborating on the tremendous growth in its servicing business in recent

years, Ocwen states:

Our residential servicing portfolio has grown from 351,595 residential loans with an aggregate [unpaid principal balance (“UPB”)] of $50.0 billion at December 31, 2009, to 2,861,918 residential loans with an aggregate UPB of $464.7 billion at December 31, 2013. Through acquisitions, we have substantially increased the share of our servicing portfolio that is made up of conventional (loans conforming to the underwriting standards of the government sponsored entities, the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the GSEs and Agency), government insured (loans insured by the Federal Housing Authority (FHA) of the Department of Housing and Urban Development (HUD) or Department of Veterans Affairs (VA) (collectively, government insured)) and prime non-Agency loans (loans generally conforming to the underwriting standards of the GSEs whose UPB exceeds the GSE loan limits, commonly referred to as jumbo loans). At December 31, 2013, these loans comprise 56.8% of the UPB of our servicing portfolio, up from 24.4% at December 31, 2012.

6

29. Ocwen goes on to explain that “[t]he mortgaged properties securing the

residential loans that [they] service are geographically dispersed throughout all 50 states,

5 See Karen Freifeld, Peter Rudegeair, and Andrew Hay, NY regulator suspects Ocwen

Financial of possible ‘self-dealing’, Reuters, Apr. 21, 2014, available at

http://www.reuters.com/article/2014/04/21/ocwen-financial-letter-

idUSL2N0ND0R120140421 (last visited, Nov. 5, 2014). 6 Ocwen Financial Corp, SEC FORM 10-K (Period Ending Dec. 31, 2013), available at

http://www.sec.gov/Archives/edgar/data/873860/000144530514000799/a2013123110k.ht

m (last visited April 1, 2014).


(Page 160 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

8


the District of Columbia and two U.S. territories.”7 The five largest concentrations of

properties, comprising approximately 39% of the loans serviced by Ocwen as of

December 31, 2013, are located in California, Florida, New York, Texas and New

Jersey.8 California has the largest concentration with 436,374 loans, approximately 15%

of the total number of loans serviced.9

30. Fueled by these increases in its residential servicing portfolio, Ocwen’s

revenue has jumped from $360 million in 2010 to a staggering $2 billion in 2013.10

31. Ocwen’s rapid growth and business practices have not gone unnoticed by

state regulators, including Benjamin Lawsky, Superintendent of New York’s Department

of Financial Services (the “Department”). As a result of a consent order entered into by

Lawsky’s office and Ocwen in late 2012, a compliance monitor was installed at Ocwen in

2013.11

Additionally, on or around February 6, 2014, Lawsky halted indefinitely Wells

Fargo’s transfer of approximately $39 billion in servicing rights to Ocwen.12

32. Speaking at the annual meeting of the New York Bankers Association in

February 2014, Lawsky cautioned that Ocwen’s explosive growth “raises red flags,” that

he sees “corners being cut” by non-bank servicers like Ocwen, and that Ocwen’s use of

7 Id.

8 Id.

9 Id.

10 James Sterngold and Saabira Chaudhuri, Ocwen to Restate Results After Accounting

Change, The Wall Street Journal, August 12, 2014, available at

http://online.wsj.com/articles/ocwen-financial-to-restate-some-results-1407852143 (last

visited, Nov. 5, 2014). 11

Michael Corkery, State Regulator Halts Deal Between Wells Fargo and Loan Servicer,

N.Y. Times, February 6, 2014, available at http://dealbook.nytimes.com/2014/02/06/new-

york-regulator-halts-mortgage-servicing-rights-deal/?_php=true&_type=blogs&_r=0 (last

visited, Nov. 5, 2014). 12

Id.


(Page 161 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

9


technology to handle distressed loans is “too good to be true.”13

33. Such concerns about Ocwen’s loan servicing practices are well-founded. For

companies like Ocwen, who are determined to maximize the money they earn from

servicing loans, the right to charge default-related service fees has opened the door to a

world of exploitation.

34. Taking full advantage of this opportunity for such explotation, Ocwen

formed an unlawful enterprise of affiliated companies, including Altisource, in order to

increase mortgage servicing revenues by fraudulently concealing marked-up fees for

default-related services on homeowners’ accounts.

Ocwen’s “Tangled Web Of Conflicts” and Self-Dealing

with Affiliated Company Altisource

35. To maximize profits, Ocwen assigns the complex task of administering the

millions of loans it services to computer software programs. The software programs are

designed to manage homeowners’ loan accounts and assess fees, according to protocols

and policies designed by the executives at Ocwen.

36. Prior to August 2009, Ocwen’s technology platforms were provided by the

Ocwen Solutions line of businesses, which consisted primarily of Ocwen’s former

unsecured collections and its residential fee-based loan processing businesses. These

businesses provided technological services across the full spectrum of the mortgage

lifecycle, from due diligence and underwriting to default processing and property

preservation, all the way up to collections and customer relationship management. OFC

developed this technology platform over a period of more than 20 years at a cost of more

13

Kate Berry, Lawsky Bashes Ocwen, Says Servicer’s Growth ‘Raises Red Flags,’

National Mortgage News, February 12, 2014, available at

http://www.nationalmortgagenews.com/mortgage-servicing/lawsky-bashes-ocwen-says-

servicers-growth-raises-red-flags-1041092-1.html?zkPrintable=true (last visited, Nov. 5,

2014).


(Page 162 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

10


than $150 million.14

37. In order to allow Ocwen to focus on growing its core servicing business, on

August 10, 2009, Ocwen completed the distribution of the Ocwen Solutions line of

businesses via the spin-off of Altisource.15

As part of the separation, William C. Erbey --

Ocwen’s Chairman of the Board and the owner of 13% of Ocwen’s common stock -- also

became the Chairman of the Board for Altisource.16

38. As of June 30, 2014, Mr. Erbey owns approximately 27% of the common

stock of Altisource.17

He also has taken a very active role in the company. As Altisource

explains in its Form 10-K Statement, its success is “dependent” upon Mr. Erbey’s

services, and the loss of his services “could have a material adverse effect upon business,

operating results and financial conditions.”18

39. In fact, Ocwen and Altisource are so interconnected, that Altisource points to

its relationship with Ocwen as a potential “risk factor” to its business:

Given this close and continuing relationship with Ocwen, we

may encounter difficulties in obtaining and retaining other

customers who compete with Ocwen. Should these and other 14

Ocwen Financial Corp, SEC FORM 10-K (Period Ending Dec. 31, 2012), available at

http://www.sec.gov/Archives/edgar/data/873860/000101905613000314/ocn_10k12a.htm

(last visited Sept. 9, 2013). 15

Altisource was originally incorporated on November 4, 1999 in Luxembourg as Ocwen

Luxembourg S.à r.l. See Altisource Portfolio Solutions S.A., SEC FORM 10-K (Period

Ending Dec. 31, 2012), available at http://www.sec.gov/Archives/edgar/data/1462418/

000110465913009969/a13-2839_110k.htm (last visited Sept. 9, 2013). The entity was

renamed Altisource Portfolio Solutions S.à r.l. on May 12, 2009, and converted into

Altisource on June 5, 2009. Id. Prior to August 10, 2009, Altisource was a wholly-owned

subsidiary of Ocwen. Id. 16

Id. 17

Ocwen Financial Corp., SEC Form 10-Q (Period Ending June 30, 2014), available at

http://www.housingwire.com/ext/resources/files/Editorial/Documents/SEC-ABEA-

6F4AAO-873860-14-16.pdf (last visited October 23, 2014). 18

See Altisource Portfolio Solutions S.A., SEC FORM 10-K (Period Ending Dec. 31,

2012), available at http://www.sec.gov/Archives/edgar/data/1462418/

000110465913009969/a13-2839_110k.htm (last visited Sept. 9, 2013).


(Page 163 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

11


potential customers continue to view Altisource as part of

Ocwen or as too closely related to or dependent upon Ocwen,

they may be unwilling to utilize [Altisource’s] services, and

[Altisource’s] growth could be inhibited as a result.19

40. This “close and continuing relationship” between Ocwen and Altisource was

the subject of a letter Benjamin Lawsky, New York’s top bank regulator, sent to Ocwen

on February 26, 2014. In the letter, Lawsky addressed potential conflicts of interest

between Ocwen and Altisource:

The Department’s ongoing review of Ocwen’s mortgage

servicing practices has uncovered a number of potential

conflicts of interest between Ocwen and other public companies

with which Ocwen is closely affiliated. Indeed, the facts our

review has uncovered to date cast serious doubts on recent

public statements made by the company that Ocwen has a

“strictly arms-length business relationship” with those

companies. We are also concerned that this tangled web of

conflicts could create incentives that harm borrowers and push

homeowners unduly into foreclosure.

. . .

Pursuant to the December 4, 2012 Consent Order between

Ocwen and the Department, we have engaged an independent

on-site compliance monitor at Ocwen to conduct a

comprehensive review of Ocwen’s servicing operations. It is in

the course of the monitorship that we uncovered these potential

conflicts between and among Ocwen, Altisource Portfolio

Solutions, S.A. (“Altisource Portfolio”), Altisource Residential

Corporation, Altisource Asset Management Corporation, and

Home Loan Servicing Solutions Ltd. (together, the “affiliated

companies”), all of which are chaired by William C. Erbey, who

is also the largest shareholder of each and the Executive

Chairman of Ocwen.20

19

Id. 20

Letter from Benjamin M. Lawsky, Superintendent of Financial Services, New York

State Department of Financial Services, to Timothy Hayes, General Counsel, Ocwen

Financial Corporation (Feb. 26, 2014), available at

http://www.dfs.ny.gov/about/press2014/pr140226-letter.pdf (last visited, Nov. 5, 2014).


(Page 164 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

12


41. Lawsky’s letter noted that “Ocwen’s management owns stock or stock

options in the affiliated companies,” which “raises the possibility that management has the

opportunity and incentive to make decisions concerning Ocwen that are intended to

benefit the share price of the affiliated companies, resulting in harm to borrowers,

mortgage investors, or Ocwen shareholders as a result.”21

42. Lawsky’s review of Ocwen’s operations revealed that the company’s Chief

Risk Officer served in the same role for Altisource, and “reported directly to Mr. Erbey in

both capacities.”22

As Lawsky explained, Ocwen and Altisource’s joint Chief Risk

Officer “seemed not to appreciate the potential conflicts of interest posed by this dual role,

which was particularly alarming given his role as Chief Risk Officer.”23

Lawsky’s letter

further explains that the Chief Risk Officer told the on-site compliance monitor that

Ocwen “paid his entire salary, but he did not know and apparently never asked which

company paid his risk management staff.”24

Lawsky concluded that, while the Chief Risk

Officer has since been removed from his role at Altisource, “his and Ocwen’s failure to

affirmatively recognize this conflict demonstrates that the relationship between Ocwen

and the affiliated companies warrants further examination.”25

43. According to Lawsky, the Department’s “review of Ocwen’s mortgage

servicing practices . . . also found that Ocwen relies extensively on affiliated companies

for its information management system (from the programming of comment codes to

functioning as Ocwen’s IT help desk), as well as procurement of third party services,”

which “further demonstrates the interconnected nature of Ocwen’s relationship with the

affiliated companies.”26

21

Id. 22

Id. 23

Id. 24

Id. 25

Id. 26

Id.


(Page 165 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

13


44. Indeed, following the separation in 2009, Ocwen is contractually obligated to

purchase mortgage and technology services from Altisource under service agreements that

extend through 2020.27

Ocwen is now Altisource’s largest customer, accounting for 60%

of Altisource’s total revenue in 2012.28

45. As part of the Department’s ongoing examination of Ocwen’s mortgage

servicing practices, in April 2014 Lawsky sent Ocwen another letter addressing

“conflicted business relationships” and “self-dealing” between Ocwen and Altisource.29

More specifically, Lawsky stated that:

One particularly troubling issue is the relationship between

Ocwen and Altisource Portfolio’s subsidiary, Hubzu, which

Ocwen uses as its principal online auction site for the sale of its

borrowers’ homes facing foreclosure, as well as investor-owned

properties following foreclosure. Hubzu appears to be charging

auction fees on Ocwen-serviced properties that are up to three

time times the fees charged to non-Ocwen customers

. . .

The relationship between Ocwen, Altisource Portfolio, and

Hubzu raises signficiant concerns regarding self-dealing. In

particular, it creates questions about whether those companies

are charging inflated fees through conflicted business

relationships, and thereby negatively impacting homeowners

and mortgage investors. Alternatively, if the lower fees are

necessary to attract non-Ocwen business on the open market, it

raises concerns about whether Ocwen-serviced properties are

27

Altisource Portfolio Solutions S.A., SEC FORM 10-K (Period Ending Dec. 31, 2012),

available at http://www.sec.gov/Archives/edgar/data/1462418/

000110465913009969/a13-2839_110k.htm (last visited Sept. 9 2012). 28

Id. 29



Financial Corporation (April 21, 2014), available at

http://www.housingwire.com/ext/resources/files/Editorial/Lawsky-Letter-to-Ocwen-RE-

Altisource-Hubzu.pdf (last visited, Nov. 5, 2014).


(Page 166 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

14


being funneled into an uncompetitive platform at inflated

costs.30

46. On August 4, 2014, Lawsky sent yet another letter raising concerns about

Ocwen’s use of related companies to provide fee based services.31

As Lawsky explained,

“[b]ecause mortgage servicing presents the extraordinary circumstance where there is

effectively no customer to select a vendor for ancillary services, Ocwen’s use of related

companies to provide such services raises concerns about whether such transactions are

priced fairly and conducted at arms-length.”32

47. Once again, Lawsky’s August 2014 letter was particularly concerned with

transactions between Ocwen and “related” company Altisource:

[T]he Department has serious concerns about the apparently conflicted role played by Ocwen Executive Chairman William Erbey and potentially other Ocwen officers and directors in directing profits to Altisource, which is “related” to Ocwen but is formally a separate, publicly traded company. As you know, Mr. Erbey is Ocwen’s largest shareholder and is also the Chairman of and largest shareholder in Altisource. In fact, Mr. Erbey’s stake in Altisource is nearly double his stake in Ocwen: 29 percent versus 15 percent. Thus, for every dollar Ocwen makes, Mr. Erbey’s share is 15 cents, but for every dollar Altisource makes, his share is 29 cents.

The Department and its Monitor have uncovered a growing body of evidence that Mr. Erbey has approved a number of transactions with related companies, despite Ocwen’s and Altisource’s public claims -- including in SEC filings -- that he recuses himself from decisions involving related companies.

…

30

Id. 31



Financial Corporation (Aug. 4, 2014), available at

http://www.dfs.ny.gov/about/press2014/pr140804-ocwen-letter.pdf (last visited, Nov. 5,

2014). 32

Id.


(Page 167 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

15


Finally, Ocwen and Altisource state in their public filings that rates charged under agreements with related companies are market rate, but Ocwen has not been able to provide the Monitor with any analysis to support this assertion.

33

48. Lawsky is not the only regulator raising questions about Ocwen’s business

dealings. According to OFC’s most recent filing with the Securities and Exchange

Commission (“SEC”), on June 12, 2014 it received an SEC subpoena, in which the SEC

requested “production of various documents relating to [OFC’s] business dealings with

Altisource, HLSS, [Altisource Asset Management Corp], and Altisource Residential and

the interests of [OFC’s] directors and executive officers in these companies.”34

49. Despite the fact that Lawsky, the SEC, and other financial regulators have

raised significant concerns about the “tangled web of conflicts” between the entities,

Ocwen continuously, and systematically, engages in “self-dealing” transactions with

Altisource.

50. Accordingly, although Ocwen and Altisource technically are separate

entities, they are effectively joined together, as affiliated companies, operating as a

continuing unit with a common purpose.

Ocwen’s Scheme to Mark Up Fees for Default-Related Services

51. In its loan servicing operations, Ocwen follows a strategy to generate

fraudulently concealed default-related fee income. Rather than simply obtain default-

related services directly from independent third-party vendors, and charge homeowners

for the actual cost of these services, Ocwen has a policy, practice, and procedure of

marking up fees for default-related services on homeowners’ loan accounts. As a result,

even though the mortgage market has collapsed, and more and more borrowers are falling

into delinquency, Ocwen continues to earn substantial profits.

33

Id. (internal citations omitted). 34

Ocwen Financial Corp., SEC Form 10-Q (Period Ending June 30, 2014), available at

http://www.housingwire.com/ext/resources/files/Editorial/Documents/SEC-ABEA-

6F4AAO-873860-14-16.pdf (last visited October 23, 2014).


(Page 168 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

16


52. Ocwen’s scheme works as follows: Ocwen directs Altisource to order and

coordinate default-related services, and, in turn, Altisource places orders for such services

with third-party vendors. The third-party vendors charge Altisource for the performance

of the default-related services, Altisource then marks up the price of the vendors’ services,

in numerous instances by 100% or more, before “charging” the services to Ocwen. In

turn, Ocwen bills the marked-up fees to homeowners.

53. Through this complex arrangement with Altisource, which is intended to

disguise the marked-up fees for default-related services, Ocwen effectively side-steps the

borrower protections in the mortgage contract.

54. The mortgage contract between a lender and a homeowner generally consists

of two documents: (i) the promissory note (the “Note”); and (ii) the mortgage/security

instrument/deed of trust (the “Deed of Trust”). The mortgage contacts serviced by Ocwen

are substantially similar because they conform to the standard Fannie Mae form contract.

The contract contains certain disclosures describing what is supposed to happen if

borrowers default on their loans.

55. The Deed of Trust discloses to homeowners that, in the event of default, the

loan servicer will:

pay for whatever is reasonable or appropriate to protect the note holder’s interest in the property and rights under the security instrument, including protecting and/or assessing the value of the property, and securing and/or repairing the property.

(emphasis added.)

56. The Deed of Trust further discloses that any such “amounts disbursed” by the

servicer to a third party shall become additional debt of the homeowner secured by the

Deed of Trust and shall bear interest at the Note rate from the date of “disbursement.”

(emphasis added.)

57. Additionally, the Note discloses to homeowners that with respect to

“Payment of the Note Holder’s Costs and Expenses,” if there is a default, the homeowner

will have to “pay back” costs and expenses incurred in enforcing the Note to the extent


(Page 169 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

17


not prohibited by applicable law.

58. Thus, the mortgage contract discloses to homeowners that the servicer will

pay for default-related services when reasonably necessary, and will be reimbursed or

“paid back” by the homeowner for amounts “disbursed.” Nowhere is it disclosed to

borrowers that the servicer may engage in self-dealing to mark up the actual cost of those

services to make a profit. Nevertheless, that is exactly what Ocwen does.

59. BPOs are a significant category of third party default-related services for

which, in furtherance of Ocwen’s unlawful enterprise, fees are assessed on homeowners’

loan accounts with substantial, undisclosed mark-ups, fraudulently generating revenue in

the loan servicing business.

60. As discussed above, by charging marked-up fees for BPOs, Ocwen violates

the disclosures made to borrowers. Furthermore, the wrongful nature of the marked-up

fees is demonstrated by the fact that Ocwen conceals the marked-up profits assessed on

homeowners’ loan accounts.

61. Although Ocwen assesses fees for BPOs on borrowers’ accounts in the range

of $100 to $109, as of December 2010, under Fannie Mae guidelines, the maximum

reimbursable rate for an exterior BPO was $80,35

and in practice, the actual cost was much

less. According to the National Association of BPO Professionals, the actual cost of a

BPO may be as little as $30.36

62. Ocwen indisputably is aware that the actual cost of a BPO is significantly

less than the marked-up fee it assesses to borrowers.

63. In fact, Ocwen has a significant amount of experience in the BPO

marketplace. Beginning in mid-2000, Ocwen Federal Bank FSB (“Ocwen Bank”), a

35

See Fannie Mae, Broker Price Opinion Providers and Pricing Structure, available at

https://efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/ntce121710a.pdf (last visited Feb.

1, 2012). 36

See National Association of BPO Professionals (NABPOP), Broker Price Opinion –

BPO Brief, available at http://www.nabpop.org/Advocacy-BPOBrief-2.php (last visited

Feb. 2, 2012).


(Page 170 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

18


former wholly-owned subsidiary of OFC, began “selling” marked-up BPOs to Wall Street

firms acquiring large pools of underperforming loans.

64. Ocwen Bank’s in-house BPO shop was the subject of the litigation styled

Cartel Asset Management v. Ocwen Financial Corp., Case No. 1:01-cv-01644-REB-CBS

(D. Colo.) (“Cartel”). In Cartel, Cartel Asset Management, Inc. (“CAM”), a large

national BPO vendor, sued OFC, Ocwen Technology XChange, Inc., and Ocwen Bank for

theft of CAM’s trade secret -- a confidential list of experienced, responsive and competent

realtors who produced high-quality BPOs.37

Ocwen Bank facilitated this theft by secretly

copying the names and contact information of realtors identified on BPOs that it

purchased from CAM, and then embedding the stolen information into its own incomplete

database of BPO providers.38

65. In 2004, a jury awarded CAM compensatory and punitive damages.39

While

the judgment was on appeal, OFC dissolved Ocwen Bank and transferred the database

containing the stolen names and contact information to OLS, who continued to use and

profit from CAM’s trade secret. OLS was added as a defendant in Cartel after the Tenth

Circuit remanded for a new trial on damages. In September 2010, a jury returned a

verdict in CAM’s favor for more than $13.7 million in compensatory and punitive

damages based on the theft of the trade secret.40

This jury verdict covered the period up

through August 10, 2009, the date when OFC transferred the BPO product line and the

database to its affiliated company Altisource. As with OLS before it, Altisource has

continued to use and generate profits from CAM’s trade secret.

66. Notably, in Cartel, William C. Erbey, OFC’s Executive Chairman, offered

the following testimony, under penalty of perjury, concerning Ocwen Bank’s BPO

37

See Cartel, Case No. 1:01-cv-01644-REB-CBS, Dkt. 438 at 1-4 (D. Colo. Sept. 18,

2007). 38

Id. at 13-17. 39

Id. at 17-18. 40

Id., Dkt. 825.


(Page 171 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

19


business:

[A]s of 2004, [Ocwen] Bank would pay an agent or broker approximately $45 to $50 to provide a BPO and then sell the BPO for a profit. A reviewed BPO would be sold for approximately $150 and an unreviewed BPO for approximately $70.

41

67. Despite knowing the actual cost of a BPO is approximately $50, Ocwen

routinely and repeatedly assesses borrowers BPO fees of $100 or more, representing a

100% mark-up, in clear violation of the mortgage contract.

68. Ocwen also assesses fees for services related to the examination of the title to

the property securing the loan, all of which are ordered through Altisource. These fees

typically appear as a “Title Search” fee, a “Title Report Fee,” or fees for “FC Thru Title

Searches” on homeowners’ monthly statements.

69. Upon information and belief, the title examination fees assessed by Ocwen

are significantly marked-up. For example, a title search fee typically ranges between

$150 and $450. Nevertheless, Ocwen routinely charges homeowners $829 for a “Title

Search.”

70. Using its enterprise -- comprised of affiliated companies, like Altisource, and

third party “property preservation” vendors -- and its automated mortgage loan

management system, Ocwen engaged in a scheme to fraudulently conceal and assess

unlawfully marked-up fees for default-related services on homeowners’ loan accounts,

cheating hundreds of thousands of borrowers out of hundreds of millions dollars.

Furthermore, to conceal its activities and mislead homeowners about the true nature of its

actions, Ocwen employed a corporate practice that omits the true nature of the fees that

are being assessed on homeowners’ loan accounts. These practices are common to all of

Ocwen’s files.

71. As a result of the practices of Ocwen’s unlawful enterprise, hundreds of

thousands of unsuspecting borrowers are cheated out of millions of dollars.

41

Id., Dkt. 438 at 25 (emphasis added).


(Page 172 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

20


Ocwen Misapplies Borrowers’ Payments

72. For subprime servicers such as Ocwen, late fees alone constitute a significant

fraction of its total income and profit. As a result, Ocwen has an incentive to push

homeowners into default and keep them there.

73. Ocwen accomplishes this objective by, inter alia, misapplying homeowners’

payments, and then cascading their loan accounts with illicit late fees.

74. These unlawful late fees have forced many homeowners into default, opening

the flood gates for additional late fees and significant charges for defaulted-related

services. Over time, these egregious late fees and fees for default-related services can

total up to thousands of dollars, making it nearly impossible for homeowners to become

current on their loan.

75. Ocwen’s method of misapplying payments in order to charge innocent

borrowers thousands of dollars in fees and charges is a widespread practice.

76. Under the terms of Paragraph 2, “Application of Payments or Proceeds,” of

the Deed of Trust in the Fannie Mae a standard form mortgage contract, there is a

hierarchy in which funds from customer payments are to be applied. Specifically, funds

are to be applied in the following order: (1) interest due under the promissory note; (2)

principal due under the promissory note; (3) amounts due for any “escrow items”; (4) late

charges; and (5) fees for default-related services and other amounts. Escrow items are

generally defined as taxes or assessments which may take priority over the lender’s

interest in the property and premiums for insurance a homeowner is required to have

under the terms of the mortgage contract.

77. One way Ocwen misapplies payments is to divert a portion of the interest and

principal payments made by homeowners who pay their own property taxes and maintain

proper insurance to “escrow accounts.”

78. An escrow account is an account set up and controlled by a lender on behalf

of a homeowner to pay these “escrow items.” As mentioned above, a homeowners’

monthly payment cannot be diverted to an escrow account until that payment covers, in


(Page 173 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

21


full, the borrowers interest and principal payment due in that given month.

79. Ocwen routinely violates the payment hierarchy contained in homeowners’

mortgage contracts and diverts customer payments away from principal and interest on

the loan.

80. As a result of this violation, homeowners who timely pay their own real

estate taxes and insurance premiums are denied the proper interest and principal credits

under the loan agreement. Ocwen instead diverts a portion of the funds (which end up not

being needed to pay escrow items) to an escrow account or flat out rejects the payment.

81. Ocwen’s failure to accept or properly credit homeowners’ payments to cover,

in full, their monthly interest and principal obligations forces homeowners into default.

Once in default, Ocwen then makes demands that these homeowners make significant

payments, which are riddled with unjust late and default-related service fees.

82. Additionally, when Ocwen forces homeowners who pay their own property

taxes and maintain their own insurance into default by misapplying their payments to an

escrow account, these homeowners are denied the ability to access the surplus in their

escrow account.

83. Under the terms of the loan agreement, Ocwen will refund homeowners their

surplus escrow funds only when their loan is paid in full.

84. Ocwen, in essence, is using the escrow account as one way to justify the late

and default-related fees it charges homeowners.

Homeowners Suffer Harm as a Result of Ocwen’s Practices

85. In addition to the direct monetary damages caused to homeowners, in the

form of the difference between the actual cost of the services provided and the marked-up

fees assessed on homeowners’ loan accounts, homeowners suffer other, less obvious

injuries as a result of the practices described herein.

86. The assessment of these marked-up fees can make it impossible for

homeowners to become current on their loan. Charges for such default-related services

can add hundreds or thousands of dollars to homeowners’ loans over time, driving them


(Page 174 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

22


further into default.

87. When homeowners get behind on their mortgage, and fees for these default-

related services are stacked on to the past-due principal and interest payments, Ocwen’s

practices make it increasingly difficult for homeowners to ever bring their loan current.

Even if homeowners pay the delinquent principal and interest payments, the late and

default-related service fees ensure that homeowners stay in default. Although the next

payment comes in on time, often through automatic payment deductions from

homeowners’ bank accounts, part of the payment is applied to the fees first, so there is not

enough to cover the entire monthly payment. This makes that payment late, creating a

cascade of more fees, and more arrears, that keeps homeowners in delinquency. By the

time homeowners are aware, Ocwen is threatening to foreclose unless a huge payment is

made, and the weight of these marked-up fees drops homeowners into a financial abyss.

88. Additionally, as a result of Ocwen’s practices, which force homeowners to

move deeper into default, homeowners are driven into foreclosure.

Plaintiff’s Claims Against Ocwen

89. Plaintiff Weiner is a resident of Amador County, California.

90. Plaintiff Weiner originated his loan with Mylor Financial on December 10,

2003, for $322,700 at 6.5000%. His monthly interest and principal payment was

$2,039.68.

91. Prior to late 2012 or early 2013, GMAC serviced Plaintiff Weiner’s

mortgage. However, on or around late 2012 or early 2013, Ocwen took over the servicing

of Plaintiff Weiner’s mortgage.

92. Ocwen misapplied Plaintiff Weiner’s principal and interest payment to an

escrow account established after GMAC paid Plaintiff Weiner’s property taxes in 2010.

93. Plaintiff Weiner fully reimbursed GMAC in early 2011 for the property taxes

it paid. He also paid a $400 escrow fee. Following this incident, Plaintiff Weiner had

telephone conversations with GMAC staff where he arranged that he would pay his own

property taxes going forward. Plaintiff Weiner promised to provide timely proof of said


(Page 175 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

23


payments.

94. Since making this arrangement, Plaintiff Weiner has paid in full all property

taxes associated with his property and has maintained the proper insurance required by his

mortgage contract. Plaintiff Weiner also has always provided Ocwen with timely notice

of his property tax payments.

95. Notwithstanding Plaintiff Weiner’s timely property tax and insurance

premium payments, Ocwen charges Plaintiff Weiner a fee of $600 per year for

maintaining an escrow account, and it has failed to properly apply his interest and

principal payments to his loan. Instead, Ocwen has diverted funds to his escrow account.

Although Ocwen has never once used it to pay property taxes or insurance, and Plaintiff

Weiner’s escrow account has a positive balance of more than $10,000. More recently,

Ocwen has flat out rejected Plaintiff Weiner’s interest and principal payments on the basis

that they are not sufficient to satisfy the defaulted amount on the loan, i.e., interest and

principal plus escrow fees.

96. By diverting a portion of Plaintiff Weiner’s interest and principal payments

to an escrow account, Ocwen has failed to properly credit Plaintiff Weiner’s account.

97. Ocwen’s failure to properly credit Plaintiff Weiner’s interest and principal

payments has burdened his account with unscrupulous fees and has forced his loan into

default.

98. Plaintiff Weiner not only has been denied the right to have his payments

applied correctly to his loan account, but he has also been unable to claim interest

deductions on his federal and state tax returns, refinance his loan, has been subjected to

harassing telephone calls, and has been under the constant fear of imminent foreclosure.

99. Because Ocwen has forced his loan into default, Plaintiff Weiner has been

denied access to the surplus in his escrow account.

100. Ocwen also continually assessed marked-up fees for default-related services

on the mortgage account of Plaintiff Weiner, thereby subjecting him to an invalid debt.

101. Ocwen assessed BPO fees of $109 and $100 on the mortgage account of


(Page 176 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

24


Plaintiff Weiner on September 4, 2013 and February 27, 2014, respectively.

102. Ocwen also charged Plaintiff Weiner a series of title report, title search, and

other default-related service fees that are either not legally due under the mortgage

contract and applicable law, or that are in excess of amounts legally due.

103. Ocwen assessed a “Title Search” fee in the amount of $829 on the mortgage

account of Plaintiff Weiner on June 9, 2014.

104. Ocwen alone maintains a complete accounting of all fees assessed and paid,

and the details of each and every fee assessed and paid cannot be alleged with complete

precision without access to Ocwen’s records. Nevertheless, Plaintiff Weiner is informed

and believes, and on that basis alleges, that he paid some or all of the unlawful fees

assessed on his account.

STATUTE OF LIMITATIONS

105. Any applicable statutes of limitations have been tolled by Ocwen’s knowing

and active concealment, denial, and misleading actions, as alleged herein. Plaintiff and

members of the Class, as defined below, were kept ignorant of critical information

required for the prosecution of their claims, without any fault or lack of diligence on their

part. Plaintiff and members of the Class could not reasonably have discovered the true

nature of the Ocwen’s scheme.

106. Ocwen is under a continuous duty to disclose to Plaintiff and members of the

classes the true character, quality, and nature of the default-related service fees they assess

on borrowers’ accounts. Ocwen knowingly, affirmatively, and actively concealed, and

continues to conceal, the true character, quality, and nature of its assessment of marked-up

fees on homeowners’ loan accounts. Plaintiff and members of the Class reasonably relied

upon Ocwen’s knowing, affirmative, and active concealment. Based on the foregoing,

Ocwen is estopped from relying on any statutes of limitation as a defense in this action.

107. The causes of action alleged herein did or will only accrue upon discovery of

the true nature of the charges assessed against borrowers’ accounts, as a result of Ocwen’s

continuing fraudulent concealment of material facts. Plaintiff and members of the Class


(Page 177 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

25


did not discover, and could not have discovered, through the exercise of reasonable

diligence, the true nature of the unlawful fees assessed against their accounts.

108. Legal scholars have explained that, as a result of these deceptive practices, it

is impossible for borrowers to determine that they are victims of these violations, because

“without a true itemization that identifies the nature of each fee, parties cannot verify that

a mortgage claim is correctly calculated . . . the servicer could be overreaching and

charging fees that are not permitted by law or by the terms of the contract. . . . By

obscuring the information needed to determine the alleged basis for the charges, servicers

thwart effective review of mortgage claims. The system can only function as intended if

complete and appropriate disclosures are made.”42

109. Additionally, judges examining similar conduct have found that, “[a]t the

heart of the problem is [the loan servicer’s] failure to disclose to its borrowers/debtors, the

trustee, or the Court, the nature or amount of fees and charges assessed . . . [l]ack of

disclosure facilitates the injury. Naive borrowers/debtors, trustees and creditors rightly

assume that [the loan servicer] is complying with the plain meaning of its notes,

mortgages, court orders and confirmed plans. Why would anyone assume otherwise? . . .

How are they to challenge a practice or demand correction of an error they do not know

exists.”43

CLASS ACTION ALLEGATIONS

110. Plaintiff brings this action, on behalf of himself and all others similarly

situated, as a class action under Rule 23 of the Federal Rules of Civil Procedure.

111. The classes Plaintiff seeks to represent (collectively, the “Class”) are defined

as follows:

42

See Katherine Porter, Misbehavior and Mistake in Bankruptcy Mortgage Claims, 87

Tex. L. Rev. 121, 155 (2008). 43

See In re: Jones, 418 B.R. 687, 699 (E.D. La. 2009).


(Page 178 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

26


All residents of the United States of America who had a loan

serviced by Ocwen, continuing through the date of final

disposition of this action (the “Class”).

All residents of the State of California who had a loan serviced

by Ocwen, continuing through the date of final disposition of

this action (the “California Subclass”).

112. Plaintiff reserves the right to amend the Class definitions if discovery and

further investigation reveals that the Class should be expanded or otherwise modified.

113. Plaintiff reserves the right to establish sub-classes as appropriate.

114. This action is brought and properly may be maintained as a class action

under the provisions of Federal Rules of Civil Procedure 23(a)(1)-(4) and 23(b)(1), (b)(2)

or (b)(3), and satisfies the requirements thereof. As used herein, the term “Class

Members” shall mean and refer to the members of the Class.

115. Numerosity: While the exact number of members of the Class is unknown to

Plaintiff at this time and can only be determined by appropriate discovery, membership in

the Class is ascertainable based upon the records maintained by Ocwen. At this time,

Plaintiff is informed and believe that the Class includes hundreds of thousands of

members. Therefore, the Class is sufficiently numerous that joinder of all members of the

Class in a single action is impracticable under Federal Rule of Civil Procedure Rule

23(a)(1), and the resolution of their claims through the procedure of a class action will be

of benefit to the parties and the Court.

116. Ascertainablity: Names and addresses of members of the Class are available

from Ocwen. Notice can be provided to the members of the Class through direct mailing,

publication, or otherwise using techniques and a form of notice similar to those

customarily used in consumer class actions arising under California state law and federal

law.

117. Typicality: Plaintiff’s claims are typical of the claims of the other members

of the Class which they seek to represent under Federal Rule of Civil Procedure 23(a)(3)

because each Plaintiff and each member of the Class has been subjected to the same


(Page 179 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

27


deceptive and improper practices and has been damaged in the same manner thereby.

118. Adequacy: Plaintiff will fairly and adequately represent and protect the

interests of the Class as required by Federal Rule of Civil Procedure Rule 23(a)(4).

Plaintiff is an adequate representative of the Class, because he has no interests which are

adverse to the interests of the members of the Class. Plaintiff is committed to the

vigorous prosecution of this action and, to that end, Plaintiff has retained counsel who are

competent and experienced in handling class action litigation on behalf of consumers.

119. Superiority: A class action is superior to all other available methods of the

fair and efficient adjudication of the claims asserted in this action under Federal Rule of

Civil Procedure 23(b)(3) because:

(a) the expense and burden of individual litigation make it economically

unfeasible for members of the Class to seek to redress their claims

other than through the procedure of a class action;

(b) if separate actions were brought by individual members of the Class,

the resulting duplicity of lawsuits would cause members to seek to

redress their claims other than through the procedure of a class action;

and

(c) absent a class action, Ocwen likely would retain the benefits of their

wrongdoing, and there would be a failure of justice.

120. Common questions of law and fact exist as to the members of the Class, as

required by Federal Rule of Civil Procedure 23(a)(2), and predominate over any questions

which affect individual members of the Class within the meaning of Federal Rule of Civil

Procedure 23(b)(3).

121. The common questions of fact include, but are not limited to, the following:

(a) Whether Ocwen engaged in unlawful, unfair, misleading, or deceptive

business acts or practices in violation of California Business &

Professions Code sections 17200 et seq.;


(Page 180 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

28


(b) Whether Ocwen’s practice of charging marked-up fees to borrowers,

as alleged herein, is illegal;

(c) Whether Ocwen’s practice of misapplying borrowers’ payments, as

alleged herein, is illegal;

(d) Whether Ocwen was a member of, or participant in, the conspiracy

alleged herein;

(e) Whether Ocwen engaged in a pattern or practice of racketeering, as

alleged herein;

(f) Whether documents and statements provided to Plaintiff and members

of the Class concealed material facts;

(g) Whether Plaintiff and members of the class sustained damages, and if

so, the appropriate measure of damages; and

(h) Whether Plaintiff and members of the Class are entitled to an award of

reasonable attorneys’ fees, pre-judgment interest, and costs of this suit.

122. In the alternative, this action is certifiable under the provisions of Federal

Rule of Civil Procedure 23(b)(1) and/or 23(b)(2) because:

(a) The prosecution of separate actions by individual members of the

Class would create a risk of inconsistent or varying adjudications with

respect to individual members of the Class which would establish

incompatible standards of conduct for Ocwen;

(b) The prosecution of separate actions by individual members of the

Class would create a risk of adjudications as to them which would, as a

practical matter, be dispositive of the interests of the other members of

the Class not parties to the adjudications, or substantially impair or

impede their ability to protect their interests; and

(c) Ocwen has acted or refused to act on grounds generally applicable to

the Class, thereby making appropriate final injunctive relief or

corresponding declaratory relief with respect to the Class as a whole


(Page 181 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

29


and necessitating that any such relief be extended to members of the

Class on a mandatory, class-wide basis.

123. Plaintiff is not aware of any difficulty which will be encountered in the

management of this litigation which should preclude its maintenance as a class action

FIRST CAUSE OF ACTION

BROUGHT ON BEHALF OF THE CALIFORNIA SUBCLASS

Violation of California’s Unfair Competition Law (California Business & Professions Code §§ 17200 et seq.)

124. Plaintiff incorporates by reference in this cause of action each and every

allegation of the preceding paragraphs, with the same force and effect as though fully set

forth herein.

125. Plaintiff Weiner brings this cause of action on behalf of himself and the

members of the California Subclass.

126. California Business and Professions Code section 17200 prohibits “any

unlawful, unfair or fraudulent business act or practice.” For the reasons described above,

Ocwen has engaged in unfair, or fraudulent business acts or practices in violation of

California Business and Professions Code sections 17200 et seq.

127. In the course and conduct of their loan servicing and collection, Ocwen

knowingly, affirmatively, and actively concealed the true character, quality, and nature of

their assessment of marked-up default-related service fees against borrowers’ accounts.

Relying on Ocwen, Plaintiff Weiner, and members of the California Subclass believe they

are obligated to pay the amounts specified in Ocwen’s communications.

128. In truth and in fact, borrowers are not obligated to pay the amounts that have

been specified in Ocwen’s communications concerning default-related services, including

BPOs and title searches. Ocwen disguises the fact that the amounts they represent as

being owed have been marked-up beyond the actual cost of the services, violating the

disclosures in the mortgage contract. Contrary to Ocwen’s communications, they are not

legally authorized to assess and collect these marked-up fees.

129. Ocwen’s knowing, affirmative, and active concealment, as set forth herein,


(Page 182 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

30


constitutes an “unlawful” practice because it violates Title 18 United States Code sections

1341, 1343, and 1962, as well as California Civil Code sections 1572, 1573, 1709, 1710,

and 1711, California’s Rosenthal Fair Debt Collection Practices Act, and the common

law.

130. Ocwen’s practice of misapplying borrowers payment, thereby breaching

borrowers’ mortgage contracts, also constitutes an “unlawful” practice in violation of

California Business and Professions Code sections 17200 et seq.

131. Ocwen’s knowing, affirmative, and active concealment, as set forth herein,

also constitute “unfair” business acts and practices within the meaning of California

Business and Professions Code sections 17200 et seq., in that Ocwen’s conduct was

injurious to consumers, offended public policy, and was unethical and unscrupulous.

Plaintiff Weiner also asserts a violation of public policy by concealing material facts from

consumers. Ocwen’s violation of California’s consumer protection and unfair

competition laws in California resulted in harm to consumers.

132. There were reasonable alternatives available to Ocwen to further their

legitimate business interests, other than the conduct described herein.

133. California Business and Professions Code section 17200 also prohibits any

“fraudulent business act or practice.” Ocwen’s concealment of material facts, as set forth

above, was false, misleading, or likely to deceive the public within the meaning of

California Business and Professions Code section 17200. Ocwen’s concealment was

made with knowledge of its effect, and was done to induce Plaintiff Weiner and members

of the California Subclass to pay the marked-up default related service fees.

134. Plaintiff Weiner and members of the California Subclass relied on their

reasonable expectation that Ocwen would comply with the disclosures set forth in the

mortgage agreement, Notes, and Deeds of Trust, and as a result, Plaintiff Weiner and

members of the California Subclass relied on Ocwen’s disclosures about the fees on their

statements, reasonably believing the default-related service fees to be valid charges that

were not marked-up. Indeed, to lull borrowers into a sense of trust and dissuade them


(Page 183 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

31


from challenging Ocwen’s unlawful fee assessment, Ocwen concealed their scheme from

borrowers by telling them, in statements and other documents, that such fees are in

accordance with the terms of their mortgage. Had the true nature of the fees been

disclosed to Plaintiff Weiner and the members of the California Subclass, they would

have been aware of the mark-ups and Plaintiff Weiner and the members of the California

Subclass would have disputed the charges and not paid them.

135. Plaintiff Weiner and the members of the California Subclass have been

injured in fact and suffered a loss of money or property as a result of Ocwen’s fraudulent,

unlawful, and unfair business practices. Plaintiff Weiner and the members of the

California Subclass would not have paid Ocwen’s unlawful fees or they would have

challenged the assessment of such fees on their accounts had it not been for Ocwen’s

concealment of material facts.

136. Ocwen has thus engaged in unlawful, unfair, and fraudulent business acts

entitling Plaintiff Weiner and the members of the California Subclass to judgment and

equitable relief against Ocwen, as set forth in the Prayer for Relief.

137. Additionally, under Business and Professions Code section 17203, Plaintiff

Weiner and members of the California Subclass seek an order requiring Ocwen to

immediately cease such acts of unlawful, unfair, and fraudulent business practices, and

requiring Ocwen to correct its actions.

SECOND CAUSE OF ACTION

Violations of the Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. § 1962(c))



forth herein.

139. Plaintiff brings this cause of action on behalf of himself and the members of

the Class.


(Page 184 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

32


THE ENTERPRISE

140. Defendants OFC and OLS are “persons” within the meaning of Title 18

United States Code section 1961(3).

141. At all relevant times, in violation of Title 18 United States Code section

1962(c), Ocwen, including their directors, employees, and agents, along with Altisource

and Ocwen’s property preservation vendors conducted the affairs of an associated-in-fact

enterprise, as that term is defined in Title 18 United States Code section 1961(4) (the

“Ocwen Enterprise”). The affairs of the Ocwen Enterprise affected interstate commerce

through a pattern of racketeering activity.

142. The Ocwen Enterprise is an ongoing, continuing group or unit of persons and

entities associated together for the common purpose of limiting costs and maximizing

profits by fraudulently concealing assessments for unlawfully marked-up fees for default-

related services on homeowners’ loan accounts.

143. While the members of the Ocwen Enterprise participate in and are part of the

enterprise, they also have an existence separate and distinct from the enterprise. The

Ocwen Enterprise has a systematic linkage because there are contractual relationships,

agreements, financial ties, and coordination of activities between Ocwen, Altisource, and

the vendors that perform the default-related services.

144. Operating the Ocwen Enterprise according to policies and procedures

developed and established by its executives, Ocwen controls and directs the affairs of the

Ocwen Enterprise and uses the other members of the Ocwen Enterprise as

instrumentalities to carry out Ocwen’s fraudulent scheme.

145. These policies and procedures established by Ocwen’s executives include:

funneling default-related services through its affiliated company, Altisource, to disguise

unlawful mark-ups of services provided by third parties; providing statements that conceal

the true nature of the marked-up default related service fees; using mortgage loan

management software designed to assess undisclosed marked-up fees on borrowers

accounts; and failing to provide borrowers with accurate documentation to support


(Page 185 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

33


assessments of fees for BPOs.

146. By developing and implementing policies and procedures leading to the

repeated, and unlawful, assessment of marked-up fees for default-related services, Ocwen

engaged in the conduct of the Ocwen Enterprise distinct from Ocwen’s own affairs as a

loan servicer.

THE PREDICATE ACTS

147. The Ocwen Enterprise’s systematic scheme to fraudulently conceal

unlawfully marked-up third party fees on the mortgage accounts of homeowners who

have mortgage loans administered by Ocwen, as described above, was facilitated by the

use of the United States Mail and wire. The Ocwen Enterprise’s scheme constitutes

“racketeering activity” within the meaning of Title 18 United States Code section 1961(1),

as acts of mail and wire fraud, under Title 18 United States Code sections 1341 and 1343.

148. In violation of Title 18 United States Code sections 1341 and 1343, the

Ocwen Enterprise utilized the mail and wire in furtherance of their scheme to defraud

borrowers whose loans are serviced by Ocwen by obtaining money from borrowers using

false or fraudulent pretenses.

149. Through the mail and wire, the Ocwen Enterprise provided mortgage

invoices, loan statements, payoff demands, or proofs of claims to homeowners,

affirmatively demanding that homeowners pay marked-up fees for default-related

services. Defendants also accepted payments and engaged in other correspondence in

furtherance of their scheme through the mail and wire.

150. The Ocwen Enterprise fraudulently and unlawfully assessed marked-up

default-related service fees in violation of the disclosures made in homeowners’ mortgage

agreements.

151. Furthermore, to lull homeowners into a sense of trust and dissuade them from

challenging Ocwen’s unlawful fee assessment, Ocwen concealed their scheme from


accordance with the terms of their mortgage.


(Page 186 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

34


152. The mortgage invoices, loan statements, or proofs of claims provided to

borrowers disguised the fact that the default-related service fees assessed on homeowners’

accounts were marked-up. By disguising the true nature of amounts purportedly owed in

communications to borrowers, the Ocwen Enterprise made false statements using the

Internet, telephone, facsimile, United States mail, and other interstate commercial carriers.

153. This fraudulent concealment was material to Plaintiff and the members of the

Class. Had the Ocwen Enterprise disclosed the true nature of the fees for default-related

services, Plaintiff would have been aware of the mark-up, and would have challenged

Ocwen’s unlawful fee assessments or would not have paid them.

154. Each of these acts constituted an act of mail fraud for purposes of Title 18

United States Code section 1341.

155. Additionally, using the Internet, telephone, and facsimile transmissions to

fraudulently communicate false information about these fees to borrowers, to pursue and

achieve their fraudulent scheme, the Ocwen Enterprise engaged in repeated acts of wire

fraud in violation of Title 18 United States Code section 1343.

156. The Ocwen Enterprise’s knowledge that its activities were fraudulent and

unlawful is evidenced by, among other things, the fact that they concealed the marked-up

nature of the default-related service fees in their communications to borrowers.

157. The predicate acts specified above constitute a “pattern of racketeering

activity” within the meaning of Title 18 United States Code section 1961(5) in which the

Ocwen Enterprise have engaged under Title 18 United States Code section 1962(c).

158. All of the predicate acts of racketeering activity described herein are part of

the nexus of the affairs and functions of the Ocwen Enterprise racketeering enterprise.

The racketeering acts committed by the Ocwen Enterprise employed a similar method,

were related, with a similar purpose, and they involved similar participants, with a similar

impact on the members of the Class. Because this case is brought on behalf of a class of

similarly situated borrowers and there are numerous acts of mail and wire fraud that were

used to carry out the scheme, it would be impracticable for Plaintiff to plead all of the


(Page 187 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

35


details of the scheme with particularity. Plaintiff cannot plead the precise dates of all of

the Ocwen Enterprise’s uses of the mail and wire because this information cannot be

alleged without access to the Ocwen Enterprise’s records.

159. The pattern of racketeering activity is currently ongoing and open-ended, and

threatens to continue indefinitely unless this Court enjoins the racketeering activity.

160. Numerous schemes have been completed involving repeated unlawful

conduct that by its nature, projects into the future with a threat of repetition.

161. As a direct and proximate result of these violations of Title 18 United States

Code sections 1962(c) and (d), Plaintiff and members of the class have suffered

substantial damages. Members of the Ocwen Enterprise are liable to Plaintiff and

members of the Class for treble damages, together with all costs of this action, plus

reasonable attorney’s fees, as provided under Title 18 United States Code section 1964(c).

THIRD CAUSE OF ACTION

Violation of the Racketeer Influenced and Corrupt Organizations Act, Conspiracy to Violate Title 18 United States Code section 1962(c)

(18 U.S.C. § 1962(d))



forth herein.


the Nationwide Class.

164. As set forth above, in violation of Title 18 United States Code section

1962(d), Defendants conspired to violate the provisions of Title 18 United States Code

section 1962(c).

165. As set forth above, Ocwen, having directed and controlled the affairs of the

the Ocwen Enterprise, was aware of the nature and scope of the enterprise’s unlawful

scheme, and they agreed to participate in it.

166. As a direct and proximate result, Plaintiff and the members of the Class have

been injured in their business or property by the predicate acts which make up the Ocwen


(Page 188 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

36


Enterprise’s patterns of racketeering activity in that marked-up fees for default-related

services were assessed on their mortgage accounts.

FOURTH CAUSE OF ACTION

BROUGHT ON BEHALF OF THE CALIFORNIA SUBCLASS

Violations of the Rosenthal Fair Debt Collection Practices Act

(California Civil Code §§ 1788, et seq.)



forth herein.

168. Defendants are “debt collectors” within the meaning of California Civil Code

section 1788.2(c), because Defendants sent mortgage bills to Plaintiff and members of the

California Subclass, Plaintiff and members of the California Subclass made their

mortgage payments to Defendants, Defendants accepted those payments, and Defendants

made demands for payment, including the payment of marked-up fees for default-related

services, by sending letters, making telephone calls, and other attempts to collect

mortgage payments and fees.

169. The marked-up fees for default-related services purportedly owed by Plaintiff

and members of the California Subclass are a “debt” within the meaning of California

Civil Code section 1788.2(d), because they are “money, property or their equivalent

which [are] due or owing or alleged to be due or owing from a natural person to another

person.”

170. As alleged herein, and as set forth in detail above, Defendants have

committed violations of the Rosenthal Fair Debt Collection Practices Act, California Civil

Code section 1788, et seq. (“RFDCPA”), which incorporates by reference, and requires

compliance with, the provisions of the federal Fair Debt Collection Practices Act

(“FDCPA), 15 U.S.C. § 1692

171. The FDCPA and, therefore, the RFDCPA, prohibits a debt collector from

using “any false, deceptive, or misleading representation or means in connection with the


(Page 189 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

37


collection of any debt.” 15 U.S.C. § 1692e

172. Defendants knowingly, affirmatively, and actively concealed and suppressed

material facts, namely the fact that Defendants assessed borrowers’ accounts for marked-

up default-related services. Contrary to Ocwen’s communications, they are not legally

authorized to assess and collect these marked-up fees.

173. Pursuant to California Civil Code sections 1788.17 and 1788.30, Plaintiff and

members of the California Subclass are entitled to recover actual damages sustained as a

result of Defendants’ violations of the RFDCPA. Such damages include, without

limitation, monetary losses and damages. Additionally, because Defendants’ violations of

the RFDCPA were committed willingly and knowingly, Plaintiff and members of the

California Subclass are entitled to recover penalties of up to $1,000 per violation as

provided for in the RFDCPA.

174. Pursuant to California Civil Code sections 1788.17 and 1788.30, Plaintiff and

the California Subclass are entitled to recover all attorneys’ fees, costs, and expenses

incurred in the bringing of this action.

FIFTH CAUSE OF ACTION

Unjust Enrichment



forth herein.


the Class.

177. By their wrongful acts and omissions of material facts, Ocwen was unjustly

enriched at the expense of Plaintiff and members of the Class.

178. The mortgage contract with borrowers like Plaintiff and the members of the

Class discloses that Ocwen will pay for default-related services when necessary, and they

will be reimbursed by the homeowner. Nowhere in the mortgage contract is it disclosed

that Ocwen may mark-up the actual cost of those services to make a profit.


(Page 190 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

38


179. Nevertheless, Ocwen marks-up the prices charged by vendors, often by 100%

or more, and then, assesses borrowers’ accounts for the higher, marked-up fee so that

Ocwen can earn a profit.

180. Furthermore, to lull homeowners into a sense of trust and dissuade them from

challenging Ocwen’s unlawful fee assessment, Ocwen further conceals their scheme from


accordance with the terms of their mortgage.

181. Thus, Plaintiff and members of the Class were unjustly deprived.

182. It would be inequitable and unconscionable for Ocwen to retain the profit,

benefit and other compensation they obtained from their fraudulent, deceptive, and

misleading conduct alleged herein.

183. Plaintiff and members of the Class seek restitution from Ocwen, and seek an

order of this Court disgorging all profits, benefits, and other compensation obtained by

Ocwen from their wrongful conduct.

SIXTH CAUSE OF ACTION

Fraud



forth herein.



186. Plaintiff reasonably expected that Ocwen would comply with the disclosures

set forth in the mortgage agreement, Notes, Deeds of Trust, and as a result, Plaintiff relied

on Ocwen’s disclosures about the fees on their statements, reasonably believing the

default-related service fees to be valid charges that were not marked-up.

187. To lull homeowners into a sense of trust and dissuade them from challenging

Ocwen’s unlawful fee assessment, Ocwen concealed their scheme from borrowers by

telling them, in statements and other documents, that such fees are in accordance with the


(Page 191 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

39


terms of their mortgage.

188. Had the true nature of the fees been disclosed to Plaintiff and members of the

Class, they would have been aware of the mark-up, and Plaintiff would have disputed the

charges and not paid them.

189. As a result of Ocwen’s fraudulent concealment, Plaintiff and members of the

Class have been injured in fact and suffered a loss of money or property. Plaintiff and

members of the Nationwide Class would have challenged the assessment of such fees on

their accounts had it not been for Ocwen’s concealment of material facts.

190. Ocwen concealed material facts, as discussed above, with knowledge of the

effect of concealing of these material facts. Ocwen knew that by misleading consumers,

they would generate higher profits.

191. Plaintiff and members of the Nationwide Class justifiably relied upon

Ocwen’s knowing, affirmative, and active concealment. By concealing material

information about their scheme to assess marked-up default-related service fees on

borrowers’ accounts, Ocwen intended to induce Plaintiff and members of the Nationwide

Class into believing that they owed Ocwen money that it was not actually entitled to.

192. Ocwen acted with malice, oppression, or fraud.

193. As a direct and proximate result of Ocwen’s omissions and active

concealment of material facts, Plaintiff and each member of the Nationwide Class has

been damaged in an amount according to proof at trial.

SIXTH CAUSE OF ACTION

Breach of Contract



forth herein.



196. Ocwen assumed the obligations of Plaintiff’s mortgage agreement, and the


(Page 192 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

40


mortgage agreement of all Class members, when it took over the servicing of their loans.

197. Plaintiff satisfied his obligations under the mortgage agreement by making

timely payments of principal and interest.

198. Ocwen is in breach of contract by misapplying payments submitted by

Plaintiff and members of the Class, placing such payments in suspense accounts without

authorization by the mortgage agreements, and assessing late fees not authorized under

the mortgage agreement.

199. Ocwen knew or should have known that misapplying timely payments was

and continues to be a material breach of homeowners’ mortgage agreements.

200. Ocwen is in further breach of contract by treating Plaintiff and members of

the Class as if they were in default due to the misapplied payments, when, in fact, Plaintiff

and members of the Class are not delinquent under the mortgage agreement.

201. As a proximate result of Ocwen’s breaches, Plaintiff and members of the

Class have suffered compensatory damages in an amount to be proven at trial.

PRAYER FOR RELIEF

Plaintiff, and on behalf of himself and the Class of all others similarly situated,

requests that the Court to enter judgment against Ocwen, as follows:

1. Certifying the Class, as requested herein, certifying Plaintiff as the

representative of the Class, and appointing Plaintiff’s counsel as counsel for the Class;

2. Ordering that Ocwen is financially responsible for notifying all members of

the Class of the alleged fraudulent concealment discussed herein;

3. Awarding Plaintiff and the members of the Class compensatory damages in

an amount according to proof at trial;

4. Awarding restitution and disgorgement of Ocwen’s revenues or profits to

Plaintiff and members of the Class;

5. Awarding Plaintiff and the members of the Class treble damages in an

amount according to proof at trial;

6. Awarding declaratory and injunctive relief as permitted by law or equity,


(Page 193 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

41


including: enjoining Ocwen from continuing the unlawful practices as set forth herein,

and directing Ocwen to identify, with Court supervision, victims of its conduct and pay

them restitution and disgorgement of all monies acquired by Ocwen by means of any act

or practice declared by this Court to be wrongful;

7. Ordering Ocwen to engage in corrective advertising;

8. Awarding interest on the monies wrongfully obtained from the date of

collection through the date of entry of judgment in this action;

9. Awarding attorneys’ fees, expenses, and recoverable costs reasonably

incurred in connection with the commencement and prosecution of this action; and

10. For such other and further relief as the Court deems just and proper.

Dated: November 5, 2014 BARON & BUDD, P.C.

By: /s/ Mark Pifko Mark Pifko Daniel Alberstone (SBN 105275)

Roland Tellis (SBN 186269)

Mark Pifko (SBN 228412)

Michael Isaac Miller (SBN 266459)

BARON & BUDD, P.C.

15910 Ventura Boulevard, Suite 1600

Encino, California 91436

Telephone: (818) 839-2333 Facsimile: (818) 986-9698

Philip F. Cossich, Jr. (to be admitted pro hac vice)

David A. Parsiola (to be admitted pro hac vice)

COSSICH, SUMICH, PARSIOLA & TAYLOR, L.L.C.

8397 Highway 23, Suite 100

Belle Chasse, Louisiana 70037

Telephone: (504) 394-9000

Facsimile: (504) 394-9110

Attorneys for Plaintiff DAVID WEINER, individually, and on

behalf of other members of the public

similarly situated


(Page 194 of Total)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

27

28

42


DEMAND FOR JURY TRIAL

Plaintiff hereby demands a trial of his claims by jury to the extent authorized by

law.

Dated: November 5, 2014 BARON & BUDD, P.C.

By: /s/ Mark Pifko Mark Pifko Daniel Alberstone (SBN 105275)

Roland Tellis (SBN 186269)

Mark Pifko (SBN 228412)

Michael Isaac Miller (SBN 266459)

BARON & BUDD, P.C.

15910 Ventura Boulevard, Suite 1600

Encino, California 91436

Telephone: (818) 839-2333 Facsimile: (818) 986-9698

Philip F. Cossich, Jr. (to be admitted pro hac vice)

David A. Parsiola (to be admitted pro hac vice)

COSSICH, SUMICH, PARSIOLA & TAYLOR, L.L.C.

8397 Highway 23, Suite 100

Belle Chasse, Louisiana 70037

Telephone: (504) 394-9000

Facsimile: (504) 394-9110

Attorneys for Plaintiff DAVID WEINER, individually, and on

behalf of other members of the public

similarly situated


(Page 195 of Total)