Ocwen Says Critics Seek More Foreclosures, Fewer Modifications

March 23, 2015, 10:57 a.m. EDT 1 Min Read

Ocwen Financial Corp. said investors in mortgage-backed securities who criticized its servicing policies are trying to force more foreclosures.

BlackRock Inc. and Pacific Investment Management Co. are among holders of 119 residential mortgage-backed securities trusts that have accused Atlanta-based Ocwen of "imprudent and improper servicing practices."

The allegations are an effort "to try and impose changes to standard servicing practices, with the goal of forcing more home foreclosures and fewer loan modifications," Ocwen said March 23 in a statement.

MORE FROM AMERICAN BANKER

M&A

Columbia struggled after Umpqua merger. Is the math starting to work?

The combination of two Pacific Northwest banks was supposed to create a regional powerhouse, but rising deposit costs have stung. CEO Clint Stein says he's "laser-focused" on making Columbia a top performer again.

By Polo Rocha

May 3
Diversity and equality

Small banks 'feel like hostages' to their core systems: OCC's Hsu

A set of panels discussing minority depository institutions and digitization found that cost is a significant challenge to minority depository institutions, especially in the core processing space.

By Miriam Cross

May 3
Community banking

Regulators issue guidance to community banks on third-party risks

The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency issued a 30-page guidebook on managing affiliate risks. The report builds on formal guidance issued last year.

By Kyle Campbell

May 3
Artificial intelligence

NIST launches initiatives to enhance AI safety and security

The efforts, which respond to President Biden's October executive order on AI, aim to improve synthetic content detection and improve the trustworthiness of AI models.

By Carter Pape

May 3
Payments

Block CEO Dorsey touts stronger Q1, previews crypto plans

Tighter merchant connections between Square and Cash App helped Block produce stronger-than-expected results during the first quarter, while Jack Dorsey said the firm will launch its first remittance product later this year leveraging decentralized finance.

By Kate Fitzgerald

May 3
M&A

FirstSun to switch regulators due to delays tied to HomeStreet deal

In talks with OCC officials, "it became obvious that we would not gain near-term approval given their recent experience with multifamily and CRE positions," FirstSun CEO Neal Arnold says. The companies announced other revisions to their deal, too.

By John Reosti

May 3