Homeowners Have a Friend in Chris Wyatt, Ocwen Loan Servicing Better Beware

Posted on Jan 02, 2015 By Carla M. Handy

Attorney Carla M. HandyIn December, 2013, Ocwen Loan Servicing and two associated mortgage servicers, Litton Loan and Homeward Residential, entered into a consent settlement with the Federal Consumer Financial Protection Bureau and 49 state attorneys general and the District of Columbia.  The purpose for this settlement was to correct mortgage servicing shenanigans carried out by Ocwen and the others which included robo-signing documents necessary in the foreclosure process and pursuing foreclosure without verification of the facts that homeowners were, in fact, behind in payments. The settlement included $125 million in direct payments to homeowners who were wrongly foreclosed against and also included reducing the principal owed for homeowners with current loans.  It seems a $125 million dollar penalty for bad behavior was not enough to convince Ocwen Loan Servicing of the error of its ways.  The latest revelation of Ocwen’s complete disregard for mortgage servicing rules has revealed the company is sending out backdated denials of loan modifications to homeowners and, even more disturbing, possibly backdated Notices of Default which trigger the foreclosure process. As reported in the Palm Beach Post, news of this most recent unscrupulous activity on the part of Ocwen began filtering out in the fall of 2014.

Enter the white knight, aka Chris Wyatt.  Chris Wyatt was previously employed in the mortgage service industry and, one would imagine, has been privy to the inner workings of the mortgage servicing companies for a number of years.  Mr. Wyatt now works as an advocate for homeowners in danger of losing their homes.  In 2014, when Mr. Wyatt began hearing of further purported fraudulent activity on the part of Ocwen in the backdating of loan modification denials and Notice of Default letters, he contacted representatives of the Federal Consumer Financial Protection Bureau AND the Superintendent of the State of New York’s Department of Financial Services with his concerns.  Superintendent Benjamin Lawsky wasted no time in bringing this fraudulent activity on the part of Ocwen to the attention of the media.  In short order, the CEO of Ocwen Loan Servicing issued an apology to Ocwen’s customers.  There is every indication that Ocwen will be on the hook for further financial settlements to be paid out to the homeowners it may have wronged with this unscrupulous activity.  And Chris Wyatt is not giving up.  In December, 2014, Mr. Wyatt posted a letter to Ocwen online which accuses the mortgage servicer of continuing to engage in backdating conduct.

If you have experienced problems with our mortgage lender or servicer or are considering a filing for bankruptcy relief and wish to consult with a qualified bankruptcy attorney about your options, please contact one of our locations nearest you in Alabama, Mississippi or Tennessee for a free, confidential consultation.