Ocwen Bank – Realtors Outsourced to India?

Published: April 15, 2009

octo-real-estateI’ve had a few phone calls recently requesting information on an organization called Ocwen Bank. They have a couple listings in our local mls and when you call the 800# for info your call is answered in India. That in itself has raised questions as to whether the person giving out financial information from Punjab is a licensed Realtor qualified to give out that information. A second question has been raised about their ethics because when you go to their site to check on a property, they also provide a complete list of every offer that has been submitted on the property including gross and net sales prices. We are attempting to obtain answers on these and other Ocwen related questions as we speak.

Ocwen Federal Bank, or Ocwen Loan Servicing, is headquartered in West Palm Beach, FL. Licensed to practice in at least 12 states, Ocwen appears to be a legitimate financial services company specializing in servicing sub-prime mortgages with an impressive website. But a quick Google search might indicate otherwise.

Start with a site called Rip-off Reports.com and read through the voluminous allegations and complaints against this company. Seems Ocwen’s early claim to fame was landing a lucrative contract to manage and sell thousands of foreclosed properties for the VA back in 2003. By 2005 Ocwen had run up such a dismal performance record that  they were being fined millions by the VA and subsequently lost that contract when the Government Accountability Office (GAO) reported that the “VA has not been satisfied with Ocwen’s performance”.

That didn’t stop Fannie Mae from outsourcing a mortgage modification pilot program to them just last month in spite of their VA performance issues and numerous lawsuits filed nationwide against the company. The lead-in for these numerous class-action lawsuits all read about the same including one filed in California in 2003.


Ocwen Federal Bank Consumer Protection Class Action Lawsuit

Alameda, California – In a consumer protection lawsuit, Lieff Cabraser Heimann & Bernstein, LLP, with co-counsel, represents homeowners in California with loans serviced by Ocwen Federal Bank, FSB and Ocwen Financial Services, Inc. (“Ocwen”). The lawsuit, originally filed in Alameda County Superior Court in October 2003, alleges that Ocwen has engaged in a scheme of unfair, unlawful, and deceptive business practices in its “servicing” of residential mortgage loans in California.

Fraud Charges against Ocwen Federal Bank

Montgomery, Alabama Multiple trials are set in several Alabama counties this year, beginning in April, against Ocwen Loan Servicing LLC, formerly Ocwen Federal Bank FSB. Ocwen, headquartered in West Palm Beach, Florida, is the largest third-party mortgage service provider in the United States.


‘Ocwen Federal Bank has been sued for millions of dollars in a Connecticut federal court for racketeering, breach of contract, unfair debt collection practices, overcharging borrowers bogus service and late and escrow fees, harassment, and mail fraud. The lawsuit is Hanson v. Ocwen, a class-action complaint filed in the Federal District Court in Connecticut [Docket #3:02CV960]. The lawsuit seeks punitive damages in the amount of $1.5 BILLION

Ocwen Built On Fraudulent Base

Services loans for the former Aames Home Loan dba Aames Funding Corp. They used to be a bank, OCWEN FEDERAL, until they ran afoul of the OCC. Now they’re just one of the worst predatory loan servicers and lenders. Here’s a sampling of the litigation they’re currently facing:

Borrower Class Action Lawsuits:
Over 500 separate class action lawsuits have been combined into one jumbo class to be heard in the Northern District of Illinois. Former employees testifying about how OCWEN intentionally defrauds borrowers — it’s built in to their software which was designed by this IT guy who is blowing the whistle.

Ocwen Facing Litigation Wave

Ocwen Financial, one of the nation’s largest servicers of mortgages to consumers with low credit scores, may appeal a $1.8 million judgment in Texas as it strives to deal with hundreds of cases alleging fraud.

Plaintiff lawyers are currently seeking class action status for 57 federal cases being consolidated in Chicago and the West Palm Beach company says it is facing 331 lawsuits altogether. Ocwen (NYSE: OCN) previously wound down its savings and loan subsidiary after an enforcement action by the Office of Thrift Supervision.


fraudI have not personally had any dealings with Ocwen nor do I know anybody who has. However, the following letter was submitted to my fraud blog on ActiveRain which seems to reinforce every issue that is contained in the numerous class action suits pending against this outfit. It’s hard enough keeping track of the good guys and the bad guys these days – you kind of wish the Federal Government wouldn’t lend further credibility to someone who appears to be so far gone. Again, I don’t know whether Ocwen is legit or not, but if you’ve got this many people aligned against you in this many places for the same reasons, well maybe it really is a duck after all.

Click on the logo to find more fraud related articles and post your own war stories/advice/cautionary tales. If you or anyone you know has been victimized by Ocwen or any other mortgage modification firm, please contact your District Attorney, Attorney General or Google an Ocwen savvy attorney in your area.

Realtors – we’re part of the solution not part of the problem. Make it so.


Right now I am being screwed on a “cash for keys” deal by Ocwen Bank out of India somewhere and REO Property Preservation Specialist – they are 18 days late in showing up to the property and then hired some moron to determine if the house was in proper order – he had major attitude and we had to call the cops. So they changed the locks and refused to give us our check. We sent pictures to the bank, Ocwen – to show the house is in proper order and they are actually trying to nit pic and say we left personal property, like a microwave that is a built in….this is apparently a running scam as there are 20 people in AZ who have a class action lawsuit against a bank or several banks who are refusing to release checks for keys, based on their opinion ? How is that fare….look at what all those other people did, broken windows, stripped the house of appliances and here we are an honest couple who took care of the property and are getting screwed – yet again!

Our realtor committed fraud and was reported to the FBI, the house doesnt match county records so no one would refi and according to several investors, how the heck did it pass inspection originally – what a nightmare it has been! No one wants to help and now we are short on cash – yeah ! the hits just keep on coming. OH and the RPPS company took a personal stance to say that since I called him a jerk, he wasnt issuing the check and would send it back to the bank even though they told him to release it. Now the bank in India isnt responding. Does anyone have a way to blow this open and bring in other people who are getting screwed too? Its bad enough to lose your home, but then have to go through this – its just rediculous – where is Obama?

Last modified: November 13, 2019 at 4:48 pm | Originally published: April 15, 2009 at 12:26 pm
Printed: September 24, 2020