Why did Montana issue a temporary cease and desist order to Ocwen Loan Servicing?
Montana conducts regulatory examinations to ensure that companies like Ocwen are operating in a safe and sound manner. Part of that examination tests the company’s ability to accurately process mortgage loan payments. If a company does not process a borrower’s money appropriately things like taxes and insurance may not get paid on time. Montana issued an order to Ocwen because it alleges that Ocwen has failed to timely pay taxes and insurance for Montana borrowers and mismanaged borrower escrow accounts.
To view the Temporary Cease and Desist Order, click here.
To view the Montana news release, click here.
What is a mortgage servicer and how do I know who services my loan?
A mortgage servicer receives borrowers’ mortgage loan payments. It is responsible for timely paying the borrowers taxes and insurance, keeping an accurate record of borrower payments, and ensuring the proper amount is collected to pay the taxes and insurance as they come due. The servicer also pays the proper sum to the note holder (the entity that owns the mortgage). A servicer also handles loan defaults and foreclosures, and may offer loss mitigation programs to assist delinquent borrowers.
Do I need to do anything as a result of the regulatory action?
Not at this time. You should however always keep your documentation in a safe place, as your loan documents contain important information such as your loan number, the dates that you obtained the loan, and the address to which you mail your payments.
How will I know if my payments have not been handled correctly?
You receive a monthly statement from Ocwen, either electronically or in the mail. You also receive an annual escrow statement that reflects the timing and amounts that Ocwen paid your real estate taxes and insurance if you have chosen them to perform that function. These statements are excellent ways for you to determine that your payments are correctly managed. If you have reviewed these documents and believe that there is a problem, file a complaint with the Division.
What does it mean when Ocwen says they escrow for taxes, or escrow for insurance?
This simply means that Ocwen takes a portion of your monthly mortgage payment and sets it aside in an account, saving it for the time when your tax or insurance payment is due to be paid. Having your servicer escrow for your taxes and insurance is a way to ensure that you always have money in your account for these important payments.
If I get a delinquent tax notice, and Ocwen is escrowing for my taxes, does that mean there is something wrong?
It may. You should immediately call Ocwen to inquire as to why you received the delinquent notice, especially if Ocwen is escrowing for taxes on your loan, and file a complaint with the Division.
If I get a notice of expired home owners insurance and Ocwen is escrowing for insurance does that mean there is something wrong?
It may. You should immediately call Ocwen to inquire as to why you received the notice, especially if Ocwen is escrowing for insurance on your loan, and file a complaint with the Division.
Ocwen sent me a notice of force placed insurance, even though they escrow for my insurance payments. Does that mean there is something wrong?
It may. You should check your insurance policy to make sure it has not expired. If it has expired, the force placed insurance should cover your property. If it has not expired and you think the insurance was placed in error, you should call Ocwen and ask for an explanation, and file a complaint with the Division.
What should I do if I notice a problem or have a question on my loan?
You should call Ocwen and ask them to explain the issue. If they cannot explain the issue in a way that you can understand you should ask to speak with a different customer service representative. Take note of the person’s name that speaks to you, the time and date on which you spoke, and ask the customer service representative to make sure to note the conversation in your loan file. If you are not satisfied with the explanation, call the Division or file a complaint with the Division.
How will I know if anything changes as a result of this action?
If something changes that would impact your loan you will be notified by Ocwen through a letter and possibly email correspondence. If you would like more information on this action you may call Ocwen’s customer service to inquire. Don’t forget to note the date and time of your call, and the person you spoke to.
What should I do if no one will speak with me or I am not getting the answers I need?
Call the Division at 800-914-8423. If you think something is wrong with your account, you can register a complaint so that there is a record of what you are experiencing.