Breaking News: Ocwen Caught Playing Games with Loan Modification Applications
To the surprise of no one who is involved with the process of applying for loan modification, Ocwen–one of the country’s largest loan servicers–has been accused of “backdating” letters to borrowers about loan modifications. This, in effect, would have caused many eligible borrowers from receiving the loss mitigation assistance that state and federal law requires for struggling homeowners.
I continue to be shocked by the level of incompetence and carelessness that lenders and servicers use in reviewing loan modification applications. Homeowners who apply for loan modifications should always, always, always keep copies of everything they submit to their servicer and use some form a mailing confirmation, such as certified mail. If a homeowner is not getting a favorable response to their application, they should consult an attorney right away.