The existence and pervasiveness of these issues raise critical questions about Ocwen’s ability to perform its core function of servicing loans.” Notably, Ocwen has more than 2.8 million loans, to give a perspective on how small a percentage of Ocwen's portfolio this represents. Walter Investment (WAC) was down almost 6% and Nationstar Mortgage (NSM) was down a little more than 1% at p.m. Lawsky also alleges that Ocwen ignored internal voices that raised questions about the alleged practice.“Even worse, Ocwen did nothing to investigate or 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."We deeply regret the inconvenience to borrowers who received improperly dated letters as a result of errors in our correspondence systems," according to an Ocwen spokesperson, in a release to CNBC. In the case of the 283 borrowers in New York who received letters with incorrect dates, 281 are currently borrowers with us.We are continuing to review the rest of the cases." The person added that the company believes the backdating issue, identified to date, has been resolved and that the company will continue investigations in full cooperation with regulators.
18 or 19, 2010, demanding financial information, pay stubs, bank statements and tax forms in order to modify the terms of Smith’s mortgage, he told The Post.
Trading has since resumed and shares were down more than 20 percent.
Lawsky demanded in the letter that Ocwen must fix the record-keeping issues in its system immediately and that it must respond to all requests "promptly and accurately." If the Department decides that Ocwen's system and processes cannot be trusted, it will "take whatever action is necessary to ensure that borrowers are protected," Lawsky wrote.
Benjamin Lawsky’s New York Department of Financial Services sent a letter to Ocwen on Tuesday accusing it of backdating thousands of loan modification denial notices starting in 2012, likely causing “significant harm” to borrowers by depriving them of enough time to appeal.
The backdated letter scandal that has rocked Ocwen Financial is about to become an even bigger headache for the mortgage servicing giant.
“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.