Ocwen Financial Corp.'s loan servicing subsidiary has reached a settlement with the Washington State Department of Financial Institutions' consumer services division over the servicer's practice of using unlicensed offshore companies.
As part of the agreement, Ocwen agreed to a $900,000 fine and to service residential mortgages in Washington only through licensed entities, according to a Thursday news release. Ocwen neither admitted nor denied wrongdoing in agreeing to the settlement.
The Washington State Department of Financial Institutions alleges that Ocwen Loan Servicing conducted servicing activities on loans in Washington through two unlicensed overseas affiliates, Ocwen Financial Solutions Private Ltd. in India and Ocwen Business Solutions in the Philippines. The activities date back to August 2010.
The consent order notes that Ocwen submitted an incomplete application in May 2010 to conduct business through the Indian affiliate, meaning that no consumer loan license was provided. A separate September 2015 application to perform business through the Philippines affiliate was filed, but the regulator notified Ocwen that it would not license foreign entities.
"We are pleased to have reached a settlement with the Washington State Department of Financial Institutions. This settlement resolves questions regarding which activities are permissible under the Washington Consumer Loan Act," the company said.
"Ocwen continues to invest significantly in its risk and compliance infrastructure and remains committed to a culture of compliance with all regulatory requirements."