Lawsky continues press on non-bank servicers


The latest issue for the crusader from the NY Dept. of Financial Services is a Reuters report on Ocwen Financial (OCN -2.5%) - along with banks like PNC Financial, and Bank of America (BAC) - routinely demand homeowners promise to say bad things about them publicly in exchange for mortgage modifications.

"Deeply troubling and offensive," Lawsky tells Reuters, promising an investigation.

A PNC spokesperson: "These clauses are part of the consideration we receive for agreeing to settle the case. This helps to ensure that the discussion is not re-opened in public after the case has been settled."

"When [we] take a closer look at some of these non-bank servicers, we find corners being cut, to the disadvantage of homeowners," said Lawsky in a speech yesterday, in which he makes clear his serious issues with the business models of companies like Ocwen (and affiliates like ASPS), Nationstar Mortgage (NSM -0.7%), and Walter Investment (WAC -2.4%).

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Comments (8)
  • salvatort
    , contributor
    Comments (411) | Send Message
     
    So Ocwen demands that homeowners say bad things about it? Probably the person who wrote that (not the Reuters article, that's correct) lacks common sense, or wants SA readers to promise to say bad things about him in order to read his articles/news.
    21 May 2014, 02:43 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4384) | Send Message
     
    Every day seems to adduce additional evidence of the arrogance of Bank of America Management and their suppressive, customer-hostile culture. Customer alienation ultimately impacts profitability negatively. …funfun..
    21 May 2014, 04:18 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (677) | Send Message
     
    Then why has BAC stock tripled since 2008?
    21 May 2014, 07:55 PM Reply Like
  • nels2727
    , contributor
    Comments (14) | Send Message
     
    What is "deeply troubling" is that Lawsky whose salary is taxpayer funded (including the considerable taxes paid by the companies he is attacking) feels his charge is to defend deadbeat homeowners as opposed to the investors these people are seeking to bilk out the money they are owed.
    21 May 2014, 06:25 PM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    @nels2727 Try digging a little deeper for the truth before you take things at face value. RESEARCH! A small percentage of foreclosures are legit, the rest are systematically forced into foreclosure by the mortgage servicers, who are in fact, Collection Agencies the banks sold mortgage servicing rights to because they were getting sued up the wazoo for intentionally messing with peoples' mortgage accounts in order to precipitate illegal foreclosures. They passed on their thieving ways to the mortgage servicers such as Green Tree Servicing and Everhome (read consumer affairs reports!) because they are not under the same guidelines as the banks (genius!).

     

    I recall several years ago banks were bailed out by...TAXPAYERS! Why shouldn't the struggling homeowner, who is in this position due to the economic meltdown, a la' BANKSTERS receive the same? You're an idiot. Because sadly the eventual outcome of all these illegal foreclosures by banks are going to fall on the taxpayer.
    13 Jun 2014, 12:24 AM Reply Like
  • GTV999
    , contributor
    Comments (21) | Send Message
     
    @nels2727 Try digging a little deeper before taking things at face value. The fact is, a small percentage of foreclosures are legit. The rest are "manufactured" by the banks through software designed to systematically precipitate foreclosures by means of erroneous fees, account miscalculations, forced in-house H/O insurance when there is already one in place, the list goes on.
    The banks were being sued up the wazoo for their dirty deeds, thus they sold huge portfolios bundled as "securities" to mortgage servicers (Green Tree and Everhome, to list a few (check out their consumer affairs reports) who are actually licensed collection agencies that are not under the same guidelines and laws and the banks. And through the media, these same banks put it out there that these "deadbeats" as you put it, "bought more house than they can afford." So, who would give a crap about some deadbeats who wouldn't pay their mortgage? (genius!)

     

    I recall several years ago that the banks were bailed out by the TAXPAYERS, So why shouldn't the struggling homeowner, who is in this position due the the economic meltdown, a la' banksters, be offered the same?

     

    You are an idiot. Because sadly the eventual cost of all these illegal foreclosures are going to fall on the taxpayer.
    13 Jun 2014, 02:31 AM Reply Like
  • jdjack
    , contributor
    Comments (4) | Send Message
     
    Surely the " disadvantaged homeowners" (victims) would never have cut any corners?
    21 May 2014, 06:27 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4384) | Send Message
     
    The message is clear to would-be customers and borrowers from Bilk of America:

     

    Under certain circumstances, you may lose your basic American right to speak freely and openly about your maltreatment from this corrupt financial colossus!

     

    …funfun..
    21 May 2014, 07:56 PM Reply Like
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