On the heels of regulatory enforcement against Ocwen (NYSE: OCN) by the state of New York in late 2014, the company has now come to the attention of the state of California, which is seeking to suspend the company’s license.
California’s Department of Business Oversight says Ocwen has failed to provide documentation showing compliance with state homeowner protection laws, according to an L.A. Times report.
Specifically, “California’s action accuses Ocwen of defying requests for information by the California Department of Business Oversight, which licenses nonbank mortgage lenders and providers of collection and foreclosure services,” the L.A. Times writes.
Without that license, the mortgage servicer, and owner of top-10 reverse mortgage lender Liberty Home Equity Solutions, would be forced to sell its mortgage servicing rights for California, a state spokesman said.
According to the report, the state’s accusations date back to a routine examination beginning in January 2013, with examiners later telling Ocwen it did not supply enough information to determine its compliance with California’s Homeowners Bill of Rights. The state then detailed its complaints in an accusation issued in October. California is the state where Ocwen does the most business among all states.
The California actions come on the heels of a $150 million settlement the company has agreed to with New York’s banking regulator, and the resignation of the company’s chief executive, William Erby.
Ocwen said it is cooperating with California on the matter.
“We are cooperating fully with the Department of Business Oversight,” said Ron Faris, President and CEO of Ocwen, in a statement. “Since this notification, we have dedicated substantial resources towards satisfying the DBO’s requests. 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. We expect our ongoing cooperation will result in a satisfactory outcome for all parties.”
Written by Elizabeth Ecker