A federal monitor is investigating whether Ocwen Financial Corp. (OCN) is treating borrowers fairly after a whistleblower said the company may have improperly influenced which mortgages were picked for a compliance review.
Joseph Smith, who is overseeing a 2012 settlement with five lenders over flawed foreclosures, said he hired an outside accountant to review Ocwen’s loan servicing after becoming convinced the company’s self-reporting was unreliable. Workers picking loans for review weren’t independent from management as required by the court, he said in a report released today.
“I’m not saying everybody there did wrong,” Smith said in a telephone interview. “The best you could say about it was it was sloppy. It could be more.”
Smith's findings are the latest trouble for Ocwen, which has seen its stock plunge 60 percent this year amid heightened regulatory scrutiny and last month canceled an acquisition to expand its business. Benjamin Lawsky, head of New York’s Department of...