By the Division of Banks

  • At 12pm, April 20, 2017,   the Division of Banks (Division) issued a Findings of Fact and Temporary Order to Cease and Desist and Order to Show Cause and Notice of Right to a Hearing (Order) to Ocwen Loan Servicing, LLC (Ocwen or Licensee).  Ocwen, licensed in Massachusetts as a loan servicer/debt collector and mortgage lender, is headquartered in West Palm Beach, Florida.
  • This Order is the culmination of several years of examinations and monitoring of Ocwen.  Ocwen has been subject to various regulatory actions including a 2014 Consent Order and Judgment as well as the 2012 National Mortgage Settlement. 
  • Massachusetts took this action in conjunction with similar actions taken today in over 20 other states to address unresolved issues related to the Licensee’s overall operations and management of the company.  The multistate examinations and monitoring coordinated through the Multistate Mortgage Committee (MMC) has revealed serious violations of consumer protection statutes and regulations and significant concerns with Ocwen’s ability to remain a going concern.
  • Of paramount concern is the company’s deteriorating financial condition, in which the company has lost nearly $1 billion since 2014, and will not be profitable by its own estimations for at least two years.  The company has not developed or implemented an effective plan to curb these losses.
  • The examinations and monitoring noted the company has shown ineffective management of consumer escrow accounts and their internal servicing systems.
  • The Order requires Ocwen to develop and implement a plan to transfer its loan servicing activities for Massachusetts consumer mortgage loans to a Division-approved licensed loan servicer(s).  The Order also requires Ocwen to either fund or place mortgage loan applications in process with other lenders at no loss to applicants, and to cease accepting new applications.
  • As of this date, Ocwen services approximately 34,472 loans in Massachusetts, representing 3.5% of Ocwen’s portfolio.
  • The Division will be closely monitoring Ocwen’s compliance with the Order.  During this time, consumers with mortgage loans serviced by Ocwen should continue to submit loan payments to Ocwen in normal course in accordance with their loan terms.  Ocwen will continue to service these loans until an orderly transfer of the servicing is completed in accordance with the Order. Any current mortgage loan applications should continue to be processed.
  • The Division has arranged for additional staffing in its Consumer Assistance Unit and staff is fully prepared to provide assistance and information on this matter to Massachusetts consumers.
  • Massachusetts consumers should contact the Division at (617) 956-1501should they have any questions.


  • This action will not affect any other financial institutions, loan servicers, mortgage brokers or mortgage lenders.
  • All other financial institutions remain financially sound.