The past five years have not been kind to Ocwen Financial Corporation and its subsidiaries, including Ocwen Loan Servicing. In 2013, 49 state attorney generals sued it and others for abusive mortgage servicing practices. That suit ended in a Consent Judgment whereby Ocwen agreed to pay $2 billion. In 2014, an investigation of Ocwen by the New York Department of Financial Services resulted in the resignation of Ocwen's CEO and the payment of $150 million in restitution. Earlier this year, the Consumer Financial Protection Bureau, a federal government agency, sued Ocwen, accusing it of, among other things, "often (inputting) inaccurate and incomplete information' into its electronic records. This suit leads one to wonder how long Ocwen can withstand the onslaught of lawsuits.


This latest accusation regarding Ocwen's inaccurate record keeping has huge implications for Brandi. Several years ago, she was sent a notice by Ocwen declaring that she was in default in her mortgage, and owed $9,000 immediately. The problem was that Brandi was not anywhere close to being $9000 behind in her payments, and may well have not been behind at all. Unfortunately, Ocwen refused to listen to her protestations, and refused to correct its records. Instead, it caused foreclosure to be filed against her twice, later having each case dismissed.


 Now, Brandi is gearing up for her own suit, putting Ocwen on the defensive. Federal law requires that mortgage services provide homeowners with accurate information at all times. It also provides that once the homeowner has provided notice of the mistake, the servicer must act promptly to correct it. In Brandi's case, not only did Ocwen refuse to admit a mistake, it failed to explain why no mistake was made, if in fact that is its position. Either way, it appears Ocwen has violated her rights. And that violation could have onerous consequences for Ocwen.