I’ve had a few phone calls recently requesting information on an organization called Ocwen Bank. They have a couple listings in our local mls and when you call the 800# for info your call is answered in India. That in itself has raised questions as to whether the person giving out financial information from Punjab is a licensed Realtor qualified to give out that information. A second question has been raised about their ethics because when you go to their site to check on a property, they also provide a complete list of every offer that has been submitted on the property including gross and net sales prices. We are attempting to obtain answers on these and other Ocwen related questions as we speak.

Ocwen Federal Bank, or Ocwen Loan Servicing, is headquartered in West Palm Beach, FL. Licensed to practice in at least 12 states, Ocwen appears to be a legitimate financial services company specializing in servicing sub-prime mortgages with an impressive website. But a quick Google search might indicate otherwise.

Start with a site called Rip-off Reports.com and read through the voluminous allegations and complaints against this company. Seems Ocwen’s early claim to fame was landing a lucrative contract to manage and sell thousands of foreclosed properties for the VA back in 2003. By 2005 Ocwen had run up such a dismal performance record that  they were being fined millions by the VA and subsequently lost that contract when the Government Accountability Office (GAO) reported that the “VA has not been satisfied with Ocwen’s performance”.

That didn’t stop Fannie Mae from outsourcing a mortgage modification pilot program to them just last month in spite of their VA performance issues and numerous lawsuits filed nationwide against the company. The lead-in for these numerous class-action lawsuits all read about the same including one filed in California in 2003.

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Ocwen Federal Bank Consumer Protection Class Action Lawsuit

Alameda, California – In a consumer protection lawsuit, Lieff Cabraser Heimann & Bernstein, LLP, with co-counsel, represents homeowners in California with loans serviced by Ocwen Federal Bank, FSB and Ocwen Financial Services, Inc. (“Ocwen”). The lawsuit, originally filed in Alameda County Superior Court in October 2003, alleges that Ocwen has engaged in a scheme of unfair, unlawful, and deceptive business practices in its “servicing” of residential mortgage loans in California.

Fraud Charges against Ocwen Federal Bank