Thursday, February 20, 2014

Mortgage Servicers, Underserving?

There's been a lot of news coverage in the last few months on the changing nature of the mortgage servicing industry, and consumer and regulatory difficulties with status quo. (See for example, here and here.) 

Among other things, late last year mortgage servicer Ocwen Financial (OCN) paid roughly $2.2bn to settle claims made against it by the Consumer Financial Protection Bureau (CFPB) that it, according to bureau director Richard Cordray, had "violated federal consumer financial laws at every stage of the mortgage servicing process." 

According to the NY Times, the $2.2bn settlement covers activities from 2009 to 2012 by Ocwen and two companies it recently acquired.

But what about "activities" since 2012?

We did some digging into the number of CFPB complaints being filed by borrowers against mortgage servicers in 2013.  Looking at only those complaints pertaining to (1)    loan servicing, payments, escrow account or (2)    loan modification, collection, foreclosure, we found an increase of over 20% from 2012 to 2013, broken down as follows:

No comments: