“These borrowers were given 30 days from the date of the denial letter to appeal that denial, but those 30 days had already elapsed by the time they received the backdated letter."In other cases, Ocwen’s systems show that borrowers facing foreclosure received letters with a date by which to cure their default and avoid foreclosure – and the cure date was months prior to receipt of the letter. Volatility was so high that trading was momentarily halted around p.m. In the wake of Lawsky's latest letter, each of the Ocwen-related stocks was also down as much as 10% for the day, as of p.m. The other leading nonbanks appeared to be suffering collateral damage from the NYDFS announcement.New York Department of Financial Services Superintendent Benjamin Lawsky alleges that Ocwen Financial (OCN) has been backdating potentially hundreds of thousands of letters to borrowers “likely causing them significant harm.” Ocwen has been in Lawsky’s crosshairs since February, when it put a .7 billion mortgage servicing rights deal between Ocwen and Wells Fargo (WFC) on an indefinite hold.
Any backdated award of CTR will be paid into your Council Tax account.
"We deeply regret the inconvenience to borrowers who received improperly dated letters as a result of errors in our correspondence systems," according to an Ocwen spokesperson, in a release to CNBC. In the case of the 283 borrowers in New York who received letters with incorrect dates, 281 are currently borrowers with us.
We are continuing to review the rest of the cases." The person added that the company believes the backdating issue, identified to date, has been resolved and that the company will continue investigations in full cooperation with regulators.
We are continuing to review the rest of the cases.” A full copy of the Lawsky letter can be read here.
“In many cases, borrowers received a letter denying a mortgage loan modification, and the letter was dated more than 30 days prior to the date that Ocwen mailed the letter,” Lawsky writes.