Nevada Division of Mortgage Lending Issues Cease and Desist Order to Ocwen Financial Corp.


Contact

Teri Williams
Public Information Officer
702-486-0407
Las Vegas, NV - April 20, 2017

More than 20 State Mortgage Regulators, including the State of Nevada Division of Mortgage Lending (MLD), have issued simultaneous regulatory orders or charges to subsidiaries of Ocwen Financial Corporation to address violations of state and federal laws including the mishandling of consumer escrow accounts, unlicensed activity, and a deficient financial condition. 

Mortgage escrow accounts are utilized to pay taxes and insurance and hold borrower funds that the company is entrusted to appropriately disburse.  The majority of orders, including the order issued by the Nevada Division of Mortgage Lending, prohibit the acquisition of mortgage servicing rights and the origination of mortgage loans until the company is able to prove it can appropriately manage its existing mortgage escrow accounts and prevent harm to consumers. 

The Division’s order was issued as a result of the culmination of several years of multi-state examinations and monitoring that revealed the company has mismanaged consumer mortgage escrow accounts. Ocwen services the mortgages of approximately 17,234 borrowers in Nevada.

The Division joined in this action today to protect Nevada homeowners, and will continue to work in concert with both the Consumer Financial Protection Bureau and the Conference of State Bank Supervisors to make sure Ocwen is held accountable to borrowers. This is now a large federal and multi-state action, but the Division’s first obligation is to safeguard Nevada borrowers and provide as much information as we can as this process develops,” said Division of Mortgage Lending Commissioner Cathy Sheehy.

Consumers that have questions about this action or their servicing agreement should call Ocwen directly at 800-310-9229, and visit the Division’s website http://mld.nv.gov where a FAQ document has been posted to address common concerns.  Questions that are not addressed by the FAQ’s can be emailed to ocwenaction@mld.nv.gov for a response.

A copy of the full order can be found at: http://mld.nv.gov/Enforcement/2017/Actions

Consumer Financial Protection Bureau https://www.consumerfinance.gov/

About the Division of Mortgage Lending

The Division is authorized to enforce the statutes and regulations pertaining to Mortgage Bankers, Mortgage Brokers, Mortgage Agents, Escrow Agencies, Escrow Agents and Loan Modification Consultants, Foreclosure Consultants and other persons who provide similar services.  The mission of the Division of Mortgage Lending (MLD) is to promote professionalism, education and ethics in the mortgage lending, escrow, loan modification and foreclosure consultant industries through fair regulation and coordination with industry and consumer groups in addition to providing consumers with a fair and balanced complaint resolution process.

 

About CSBS

The Conference of State Bank Supervisors (CSBS) is the national organization of bank regulators from all 50 states, District of Columbia, and U.S. territories. State regulators supervise roughly three-quarters of all U.S. banks and a variety of non-depository financial services. CSBS, on behalf of state regulators, also operates the Nationwide Multistate Licensing System to license and register those engaged in mortgage, money transmission, consumer finance, and debt collection industries. 

 

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