As Ocwen continues to be allowed to trade and grow exponentially, despite its anti-compliance history, Ocwen all but drops it’s brand name and will operate as PHH Mortgage for non-bank mortgage servicing and Liberty Home Equity Solutions for Reverse Mortgages. As Ocwen Completes integration, they have transferred one million loans to Black Knight LoanSphere.
Ocwen Financial announced (June 2019) that it has hit two milestones enabling the company to officially service loans through its two primary brands: PHH Mortgage for forward servicing and lending, and Liberty Home Equity Solutions for reverse lending and servicing.
Ocwen said it completed the final phase of transferring approximately one million loans from REALServicing to Black Knight LoanSphere, a move it announced it was making back in 2017 after a lawsuit with the Consumer Financial Protection Bureau revealed a host of issues – and quoted Ocwen’s head of servicing describing REALServicing as “ridiculous” and a “train wreck.”
Now, it seems that disaster is finally behind the mortgage giant as it completes the final phases of integration following its $360 million acquisition of PHH.
Ocwen said it plans to evaluate branding alternatives now that the two companies have officially merged.
“The successful completion of the loan transfers and legal entity consolidation are the most important milestones in the PHH integration,” Ocwen President and CEO Glen Messina said. “Completion of these critical activities serves as a catalyst for continued growth and process improvement, and enables our planned cost re-engineering for the balance of 2019 and 2020.”
“The conversion to MSP consolidates all loans onto a single, industry-leading servicing platform and enables us to drive future enhancements for our customers, investors and employees,” Messina added. “Overall, I am pleased with our progress to date on delivering on our objectives to strengthen and position the company for a return to profitability.”
Meanwhile in Other News while CFPB fills its own pockets rather than serving consumers, another quiet settlement is concluded under the tutelage of Kathy Kraninger, namely the matter of Servis One, Inc., d/b/a BSI Financial Services
The Consumer Financial Protection Bureau (Bureau) today announced a settlement with BSI Financial Services (BSI), a mortgage servicer headquartered in Irving, Texas. BSI Financial Services is the operating name for Servis One, Inc.
The Bureau found that BSI violated the Consumer Financial Protection Act of 2010, the Real Estate Settlement Procedures Act, or the Truth in Lending Act by:
- Handling mortgage servicing transfers with incomplete or inaccurate loss mitigation information. This resulted in failures to recognize transferred mortgage loans with pending loss mitigation applications, in-process loan modifications, and permanent loan modifications;
- Handling mortgage servicing transfers with incomplete or inaccurate escrow information resulting in untimely escrow disbursements;
- Inadequately overseeing service providers, resulting in untimely escrow disbursements to pay borrowers’ property taxes and homeowner’s insurance premiums;
- Failing to promptly enter interest rate adjustment loan data for adjustable rate mortgage (ARM) loans into its servicing system, resulting in BSI sending monthly statements to consumers that sought to collect inaccurate principal and interest payments; and
- Maintaining an inadequate document management system that prevented BSI’s personnel or consumers from readily obtaining accurate information about mortgage loans.
Under the terms of the consent order, BSI must, among other provisions, pay a civil money penalty of $200,000 and pay restitution estimated to be at least $36,500.
It must also establish and maintain a comprehensive data integrity program to ensure the accuracy, integrity, and completeness of the data for loans that it services, and implement an information technology plan to ensure BSI’s systems comply with federal consumer financial laws.