Roughly 17 months after a group of mortgage bond investors filed a lawsuit accusing Ocwen Financial of violating its duties as a mortgage servicer by failing to properly collect payments on $82 billion of home loans and engaging in “imprudent and improper servicing practices,” an independent investigation initiated by Wells Fargo, the deals’ master servicer, found no evidence of wrongdoing, reports HousingWire staffer Ben Lane.
Gibbs & Bruns, the law firm that represented the investors, sent a letter to Ocwen in January 2015 stating that a “lengthy investigation and analysis” by “independent, highly qualified experts” determined that “Ocwen has failed to perform, in material respects, its contractual obligations as servicer and/or master servicer.”
Ocwen denied the allegations immediately, calling the charges “baseless” and “groundless.”
According to information released Wednesday morning by Ocwen, Duff & Phelps, a global corporate valuation and financial advisory firm, conducted a 12-month review of Ocwen’s servicing operations, accounting, loan modifications, borrower compliance, and operations and governing practices, which included analysis of thousands of servicing files, data points, invoices, and a comprehensive review of the company’s systems and records.
According to Ocwen, the Duff & Phelps investigation found the following:
- No evidence that Ocwen failed to account for principal and interest payments to the master serviced trusts
- No evidence that Ocwen charged the Master Serviced Trusts for any undisclosed or “mysterious” expenses
- No evidence that Ocwen made negative net present value modifications in order to maximize servicing fees and prematurely recoup advances
- No evidence that Ocwen engaged in modifications in order to prematurely recover advances at the time of modification