Ocwen agrees to stop slapping borrowers with gag orders

Embattled loan servicer says practice was rare

New York /
Jun.June 03, 2014 06:10 PM

Ocwen Financial will no longer seek gag orders when settling legal disputes with borrowers.

The about-face is part of an agreement with the New York Department of Financial Services, which has recently scrutinized the embattled mortgage servicer. Ocwen will also stop enforcing existing non-disparagement clauses in agreements it has already struck with borrowers, HousingWire reports.

John Britti, chief investment officer at Ocwen, said the use of gag orders was limited in mortgage modifications in which borrowers took legal action. “Our agreement with the DFS deals with the highly unusual situation where there is a legal settlement agreement with a borrower, representing a fraction of one percent of our portfolio,” Britti said in a statement.

In April, Benjamin Lawsky, the regulatory agency’s superintendent, sought information from Ocwen regarding its relationship with Hubza, a foreclosure auction website. The purpose was to investigate fees charged to Ocwen that appeared to be above and beyond those charged to Hubza’s other customers. Those fees are passed on to investors and borrowers, said Lawsky.

Earlier in the year, Lawsky blocked Ocwen from acquiring $39 billion in mortgage servicing rights from Wells Fargo, citing uncertainty over the firm’s ability to handle more loan volume. [HousingWire] — Tom DiChristopher


Related Articles

arrow_forward_ios
Signature Bank CEO Joseph DePaolo (Getty, Google Maps, iStock)
Signs of success, trouble for property lender Signature Bank
Signs of success, trouble for property lender Signature Bank
G&M Realty's David Wolkoff (Getty, 5Pointz LIC)
Wolkoff’s $300M for 5Pointz tops outer-borough loan list
Wolkoff’s $300M for 5Pointz tops outer-borough loan list
TRD Tips: How to manage when you’re a landlord late on the loan
TRD Tips: How to manage when you’re a landlord late on the loan
TRD Tips: How to manage when you’re a landlord late on the loan
Adam America's Omri Sachs and Dvir Cohen with 2503-2509 Broadway (Google Maps; Adam America)
Adam America secures $63M in financing for Upper West Side project
Adam America secures $63M in financing for Upper West Side project
Macerich’s Queens Center Mall (Photo via Macerich)
Macerich’s Queens Center Mall emerges from special servicing
Macerich’s Queens Center Mall emerges from special servicing
Charles Kushner and 229 West 43rd Street (Getty, Google Maps)
Kushner Companies no longer delinquent on Times Square loans
Kushner Companies no longer delinquent on Times Square loans
The Burnsville Center Mall in Minnesota and CBL Properties founder Charles B Lebovitz (Photos via Facebook; CBL Properties)
Mall-pocalypse now: Minnesota mall loan sells for huge discount
Mall-pocalypse now: Minnesota mall loan sells for huge discount
161 Maiden Lane and Fortis CEO Jonathan Landau (Google Maps; Fortis)
Construction loan tied to “leaning” Seaport condo up for sale
Construction loan tied to “leaning” Seaport condo up for sale
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...