Ocwen has fixed many of its compliance problems, but a report by the monitor for the National Mortgage Settlement has tagged the company for two new failures
Ocwen Financial has fixed many of its compliance problems – but the servicer has just been slapped with two new compliance failures, according to a HousingWire report.
The news comes from Joseph Smith, the monitor of the National Mortgage Settlement. In his previous oversight report, Smith stated that Ocwen had failed to be back in compliance with one of the settlement metrics that it had failed in the second half of 2014. Because of that failure, Ocwen had to place 17,300 loans that might have been affected by the failure on foreclosure hold, HousingWire reported.
Ocwen has resolved those issues, and the foreclosure hold was lifted in July after the company mailed corrected loan modification denial notices and allowed borrowers time to appeal, according to HousingWire. But a new oversight report found that the servicer had failed two tests in the fourth quarter of 2015 related to force-placed insurance.
One of the metrics Ocwen failed “test whether Ocwen is timely in its communications to borrowers regarding a lapse in homeowner’s insurance coverage an notifies the borrower that force-placed insurance may be obtained if evidence of the borrower’s own insurance is not submitted,” Smith’s report stated. The other relates to the timeliness of force-placed insurance policy termination and the refund of premiums.
Ocwen said that it is in the process of amending its procedures to correct the problems, HousingWire reported.
“We were disappointed in these failures and we have worked with the Monitor to put in place approved corrective action plans on both metrics,” Ocwen said. “We expect future reports to reflect our progress on resolving these concerns.”
The news comes from Joseph Smith, the monitor of the National Mortgage Settlement. In his previous oversight report, Smith stated that Ocwen had failed to be back in compliance with one of the settlement metrics that it had failed in the second half of 2014. Because of that failure, Ocwen had to place 17,300 loans that might have been affected by the failure on foreclosure hold, HousingWire reported.
Ocwen has resolved those issues, and the foreclosure hold was lifted in July after the company mailed corrected loan modification denial notices and allowed borrowers time to appeal, according to HousingWire. But a new oversight report found that the servicer had failed two tests in the fourth quarter of 2015 related to force-placed insurance.
One of the metrics Ocwen failed “test whether Ocwen is timely in its communications to borrowers regarding a lapse in homeowner’s insurance coverage an notifies the borrower that force-placed insurance may be obtained if evidence of the borrower’s own insurance is not submitted,” Smith’s report stated. The other relates to the timeliness of force-placed insurance policy termination and the refund of premiums.
Ocwen said that it is in the process of amending its procedures to correct the problems, HousingWire reported.
“We were disappointed in these failures and we have worked with the Monitor to put in place approved corrective action plans on both metrics,” Ocwen said. “We expect future reports to reflect our progress on resolving these concerns.”
