State of Connecticut Department of Banking

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IN THE MATTER OF:

OCWEN LOAN SERVICING, LLC
NMLS # 1852
("OLS")

OCWEN BUSINESS SOLUTIONS, INC.
NMLS # 1283393
("OBS")

       (collectively, "Respondents")
   
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CONSENT ORDER        

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534b, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”, Part VII of Chapter 669, Sections 36a-715 to 36a-719l, inclusive, of the Connecticut General Statutes, “Mortgage Servicing”, and Part XII of Chapter 669, Sections 36a-800 to 36a-814, inclusive, of the Connecticut General Statutes, “Consumer Collection Agencies”;

WHEREAS, OLS is a Delaware limited liability company that is currently licensed as a mortgage lender under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, with its main office located at 1661 Worthington Road, Suite 100, West Palm Beach, Florida (“Main Office”) and a branch office at 16675 Addison Road, Suite 100, Addison, Texas, NMLS #1027150 (“Texas Branch”).  OLS is currently exempt from licensure as a mortgage servicer in Connecticut when acting as a mortgage servicer from its Main Office and Texas Branch pursuant to Section 36a-718(b)(4) of the Connecticut General Statutes;

WHEREAS, OBS is a corporation with a business address at Two E-Com Center, Harbor Drive, Mall of Asia Complex, Pasay City, Philippines, that currently has pending applications for licensure to act as a mortgage servicer in Connecticut and to act as a consumer collection agency in Connecticut;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, has investigated and examined the activities of Respondents pursuant to Sections 36a-17, 36a-498f and 36a-719i of the Connecticut General Statutes to determine if they had violated, were violating or were about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, as a result of such investigation and examination, on April 20, 2017, the Commissioner issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Respondents, pursuant to Sections 36a-52(b), 36a-719j(b), 36a-804(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes (collectively, “Order and Notice”);

WHEREAS, in the Order and Notice, the Commissioner alleged that OLS:  (1) acted as a mortgage servicer from at least three locations that were neither licensed nor exempt from licensure, in violation of Section 36a-718 of the Connecticut General Statutes, (2) conducted business covered by Sections 36a-715 to 36a-719l, inclusive, without holding a valid license or assisted another person in the conduct of business without holding a valid license required under Title 36a, in violation of Section 36a-719h(17) of the Connecticut General Statutes, (3) knowingly misapplied or recklessly applied residential mortgage loan payments to the outstanding balance of a Connecticut borrower’s residential mortgage loan, in violation of Section 36a-719h(4) of the Connecticut General Statutes, (4) failed to accurately apply residential mortgage loan payments, in violation of a prior order of the Commissioner, (5) knowingly misapplied or recklessly applied payments to escrow accounts of a Connecticut borrower, in violation of Section 36a-719h(5) of the Connecticut General Statutes, (6) failed to disclose to Connecticut borrowers the schedule of the ranges and categories of costs and fees for its servicing-related activities, in violation of Section 36a-719e(2) of the Connecticut General Statutes, (7) failed to maintain sufficient records in connection with the servicing of residential mortgage loans in Connecticut, in violation of Section 36a-719d(b) of the Connecticut General Statutes, (8) failed to provide a short year escrow statement to a borrower, in violation of Section 36a-498e(7) of the Connecticut General Statutes, (9) failed to pay escrow disbursements to the appropriate taxing authorities and insurance companies in violation of Section 36a-716(a) of the Connecticut General Statutes, and (10) provided incorrect or incomplete information to a Connecticut borrower concerning the borrower’s pending foreclosure action, in violation of Section 36a-719h(2) of the Connecticut General Statutes;

WHEREAS, the Order and Notice also alleged that OBS acted as a consumer collection agency in this state without a license, in violation of Section 36a-801(a) of the Connecticut General Statutes;

WHEREAS, the Commissioner asserts that the allegations made in the Order and Notice constitute a basis to issue a cease and desist order against Respondents, individually, and to impose a civil penalty against Respondents, individually, not to exceed one hundred thousand dollars ($100,000) per violation;

WHEREAS, on April 20, 2017, the Order and Notice was mailed to OLS by certified mail, return receipt requested (Certified Mail No. 7012 3050 0000 6997 5950) and to its registered agent (Certified Mail No. 7012 3050 0000 6997 5967);

WHEREAS, on April 20, 2017, the Order and Notice was mailed to OBS by certified mail, return receipt requested (Certified Mail No. 7012 3050 0000 6997 5974) and to its registered agent (Certified Mail No. 7012 3050 0000 6997 5981);

WHEREAS, Respondents received the Order and Notice, and on April 28, 2017, the Department received an Appearance and Request for Hearing from Respondents’ counsel;

WHEREAS, a hearing concerning the allegations made in the Order and Notice against Respondents is currently scheduled for February 5 and 6, 2018;

WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;

WHEREAS, at all times relevant hereto, OLS was a wholly-owned subsidiary of Ocwen Mortgage Servicing, Inc. (“OMS”), which was a wholly-owned subsidiary of Ocwen Financial Corporation (“OFC”), and Ocwen Financial Solutions Private Limited (NMLS # 15877) (“OFSPL”) is an entity with a business address at Pritech Park, Block 12, Bellandur Village, Bangalore, India;

WHEREAS, OLS represents that all funds received from mortgagors to be held in escrow for the payment of taxes and insurance are maintained in segregated trust accounts at federally insured banks for the benefit of such mortgagors, in accordance with federal and state law and contractual provisions and guidelines of investors, government sponsored enterprises and government corporations;

WHEREAS, OLS represents that its current volume of complaints concerning Connecticut residential mortgage loans has decreased when compared to the volume of complaints in the first quarter of 2016;

WHEREAS, OFC, its subsidiaries and affiliates, including OLS, OBS, OMS and OFSPL (collectively, “Ocwen”) voluntarily agree to consent to the entry of the terms imposed below without admitting any liability, fault or wrongdoing and solely for the purpose of resolving this matter and obviating the need for further formal administrative proceedings concerning the allegations in the Order and Notice and set forth herein;

WHEREAS, the Commissioner and Ocwen desire to resolve the matters alleged in the Order and Notice and set forth herein;

WHEREAS, Ocwen agrees that the Order and Notice may be used in construing the terms of this Consent Order;

WHEREAS, upon execution of this Consent Order by the Commissioner, the requirements placed on OLS by the Temporary Order to Cease and Desist shall be deemed dismissed without prejudice;

WHEREAS, Ocwen specifically assures the Commissioner that it has implemented policies and procedures and enhanced quality control and quality assurance processes to reduce the risk that the alleged conduct set forth in the Order and Notice and set forth herein occurs in the future, although Ocwen does not admit that such conduct ever occurred;

WHEREAS, Ocwen acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on NMLS, as applicable;

WHEREAS, Respondents, through their execution of this Consent Order, voluntarily agree to waive their procedural rights concerning any aspect of this Consent Order, including an opportunity for a hearing as it pertains to the allegations in the Order and Notice and set forth herein, and voluntarily waive their right to seek judicial review or otherwise challenge or contest the validity of this Consent Order;

AND WHEREAS, OMS, OFC, and OFSPL, through their execution of this Consent Order, voluntarily agree to waive their procedural rights concerning any aspect of this Consent Order, including a right to a notice and an opportunity for a hearing as it pertains to the allegations set forth herein, and voluntarily waive their right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.


CONSENT TO ENTRY OF SANCTIONS

WHEREAS, OLS, OBS, OMS, OFC and OFSPL, through their execution of this Consent Order, consent to the Commissioner’s entry of a Consent Order imposing the following terms:

1.
Acquisition of Servicing Rights:  (a) Except as set forth in subparagraphs (b) and (d) below, OFC, its subsidiaries and affiliates, including OLS, OBS, OMS and OFSPL (collectively, “Ocwen”) shall not acquire any residential mortgage servicing rights (“MSRs”) until April 30, 2018, nor shall Ocwen board any new loans onto its REALServicing platform at any time.  The aforementioned restrictions do not apply to loans that are (i) already serviced on the REALServicing platform, including, but not limited to, those that are subsequently modified, refinanced or those that are subsequently converted to an arrangement whereby Ocwen acts as sub-servicer or (ii) required to be repurchased by Ocwen, including Homeward Residential, Inc.
(b) Ocwen may originate through broker, retail, or wholesale or acquire through correspondent lender relationships new residential mortgage loans, including, but not limited to, traditional mortgage loans, reverse mortgages and refinances, so long as they will not be boarded, even temporarily, to the REALServicing platform.  Any such loans must, instead, be boarded to an alternate servicing system or sub-serviced by a licensed and/or exempt, unaffiliated entity, although Ocwen may retain the associated MSRs.
(c) No later than the date of execution of this Consent Order by Ocwen, Ocwen shall develop a detailed Plan of Action and Milestones (“POAM”) for the transfer of all residential mortgage loans currently administered on the REALServicing platform to another servicing platform(s) that will enable Ocwen to comply with applicable mortgage servicing standards for its residential mortgage loan portfolios.  The POAM shall be acceptable to the Commissioner and shall include a timeline for accomplishing each milestone in the POAM in order to complete the transfer within a commercially reasonable time.  Upon issuance of this Consent Order by the Commissioner, Ocwen shall submit to the Commissioner quarterly updates on the POAM until the transfer of all residential mortgages loans from the REALServicing platform has been completed.  Ocwen shall complete such transfer no later than April 30, 2020 and agrees to pay a monetary penalty of Two Hundred Fifty Thousand Dollars ($250,000) as set forth in paragraph 15 for failure to meet such deadline.
(d) For the avoidance of doubt, in the event of a future transaction wherein Ocwen merges with or acquires an unaffiliated company or its assets, or an unaffiliated company merges with or acquires Ocwen or Ocwen’s assets, none of the subparagraphs of this paragraph 1 shall prohibit said transaction, including the related transfer of MSRs or mortgage loans between the companies, or limit the transfer of loans from the REALServicing platform onto the unaffiliated company’s alternate servicing system.  However, the prohibitions and restrictions concerning boarding new mortgage loans onto the REALServicing platform shall remain in full force and effect and apply to Ocwen’s successors and assigns.
2. Escrow Account Audit:  To demonstrate the adequacy of Ocwen’s current consumer escrow practices, to ensure consumer escrow accounts are accurate, and to identify any consumer harm, Ocwen shall engage an independent third-party (“Auditor”) to review all escrow transactions on the REALServicing platform through statistically significant representative samples of escrowed loans serviced by Ocwen between January 1, 2013 and June 30, 2017 (“Escrow Account Audit”).  The Auditor will identify the population and representative samples of loans to be reviewed by utilizing the methodology set forth in OFC’s Confidential Request for Proposal dated September 12, 2017 (“RFP”).  The Auditor’s testing methodology shall be consistent with the RFP and shall be set forth in a plan (“Audit Plan”) agreed to by Ocwen and the Auditor and not objected to by the Commissioner.  The Auditor may revise the Audit Plan to the extent revisions become necessary during its testing, provided it is consistent with the RFP and provided Ocwen agrees to the revision and the Commissioner does not object to the revision.  In accordance with the testing methodology set forth in the RFP, the Auditor shall identify any instances where Ocwen did not administer an escrow account for a sampled loan in compliance with laws governing escrow under the Real Estate Settlement Procedures Act, as implemented by Regulation X, the Truth in Lending Act, as implemented by Regulation Z, the Homeowners Protection Act and Connecticut mortgage servicing laws related to the administration of escrow set forth in Sections 36a-716 and 36a-719h of the Connecticut General Statutes, provided that any assumptions, definitions and conclusions made in such RFP to facilitate the Auditor’s review shall not be considered conclusions of law or determinations binding on this Department.
3.
Remediation Plan:  Ocwen shall require that the Auditor issue, simultaneously to the Commissioner and Ocwen, no later than thirty (30) days after completion of the Escrow Account Audit, unless an extension is agreed to by the Commissioner, a final report detailing any and all findings, including, but not limited to, any identified errors and consumer harm (which shall include the name of each harmed borrower, the state in which the borrower and collateral are located, the basis for the conclusion of consumer harm and the amount of any actual monetary harm identified) (“Escrow Report”).  If the Escrow Report identifies Errors previously remediated by Ocwen, regardless of whether they resulted in financial harm as defined in the RFP, the Auditor will confirm that the corrective actions were sufficient to:  (1) remediate the Error, and remediate any other similarly impacted borrowers, and (2) prevent the Error from recurring.  Ocwen will provide the Commissioner with documentation of any corrective actions to address any previously remediated Errors.  If the Auditor determines that Ocwen did not fully remediate the Errors and/or that Ocwen has not taken sufficient corrective action to prevent the Errors from recurring, within sixty (60) days of issuance of the Escrow Report, Ocwen shall submit a corrective action plan (including remediation if applicable) acceptable to the Commissioner.  If the Escrow Report identifies a non-remediated Error, within sixty (60) days of issuance of the Escrow Report, Ocwen shall submit a corrective action plan acceptable to the Commissioner that will remediate the Error, and remediate any other similarly impacted borrowers, including the provision of restitution to fully correct financial harm, and/or to prevent the Error from recurring.  Any corrective action plan required by this paragraph shall include specific deadlines for the deliverables specified in the plan.  The Commissioner must provide any objections to the corrective action plan within ten (10) days from the date Ocwen submits the plan to the Commissioner.  Ocwen shall implement any plan not objected to by the Commissioner and shall adhere to the deadlines set forth within the plan unless an extension is granted by the Commissioner.  All identified errors and problematic escrow practices that resulted in consumer harm shall be remediated by Ocwen at no cost to Connecticut borrowers, meaning that, in no instance shall Ocwen seek to recover monies from a Connecticut borrower relating to findings made by the Escrow Review Plan.  However, in the event that a prior refund of escrow funds to a Connecticut consumer resulted in a subsequent escrow shortfall, Ocwen shall be permitted to adjust the borrower’s monthly escrow payment to collect such funds in a manner that is compliant with federal and state law.
4. Additional Audits:  Upon implementation of any corrective action plan required pursuant to paragraph 3 above, for an error that was not previously remediated, Ocwen shall engage the Auditor to review an additional statistically valid sample of residential mortgage loans potentially impacted by each root cause of an error and/or consumer harm to confirm that the remediation efforts were successfully completed.  Ocwen shall continue its remediation efforts until the Auditor is able to confirm that Ocwen’s corrective action plan and remediation efforts have been sufficient.  Ocwen shall not board any residential mortgage loans with a known, unremediated error onto a new servicing system pursuant to the POAM.  Ocwen shall require that any additional reviews conducted by the Auditor pursuant to this paragraph be done expeditiously.
5.
Complaint Plan:  No later than sixty (60) days after the date this Consent Order is issued by the Commissioner, Ocwen shall submit to the Commissioner for review and determination of non-objection a comprehensive consumer complaint resolution plan (“Complaint Plan”) designed to ensure that Ocwen will properly document, timely investigate and remediate consumer complaints considered notices of error pursuant to 12 CFR 1024.35.  Ocwen shall revise the Complaint Plan if deemed necessary by the Commissioner.  If Ocwen does not receive any required revisions within thirty (30) days of its submission of the Complaint Plan to the Commissioner, Ocwen shall implement and adhere to the Complaint Plan.  The Complaint Plan shall include, at a minimum:
a. robust, board-approved policies and procedures to ensure that all consumer complaints are documented and timely investigated, any errors found as a result of a complaint are remediated, and errors found that may impact other accounts are escalated for further investigation and/or remediation;
b. a formal internal review process to ensure all complaints are processed in accordance with the policies and procedures adopted by the board under the Complaint Plan;
c. training on revised complaint procedures for all employees to be completed no later than one hundred eighty (180) days from the date of issuance of this Consent Order;
d. a program establishing annual, mandatory complaint resolution training for employees who may receive any form of complaint from a consumer or are otherwise involved in the complaint resolution process; and
e. detailed steps for addressing each action required by the Complaint Plan.
6. Escrow Account Disclosure Statement Review:  Ocwen shall engage an independent third party to review and report on the accuracy of Ocwen’s preparation of its Escrow Account Disclosure Statement.  Specifically, each month for a period of twelve (12) months following the date this Consent Order is issued by the Commissioner, an independent third party shall review five (5) of the most recent Escrow Account Disclosure Statements prepared by Ocwen for Connecticut borrowers utilizing the methodology set forth in Sections 2.1(b)(3) through (10), inclusive, and (12) of the RFP.  The independent third party shall provide a monthly report to the Commissioner on a periodic basis, not later than sixty (60) days from each month-end during the twelve (12) month review period.  The Auditor will begin testing Escrow Account Disclosure Statements that are sent in January, and the first report will be provided to the Commissioner no later than April 1, 2018 (sixty (60) days from January 31, 2018).  The final report will cover Escrow Account Disclosure statements that are sent in December 2018, and the final report will be provided to the Commissioner no later than March 1, 2019 (sixty (60) days from December 31, 2018).  As further described in paragraph 15, Ocwen agrees to pay the Department a penalty of Fifty Thousand Dollars ($50,000) if it fails to submit the final report on the Escrow Account Disclosure Statement Review by March 1, 2019.  In addition, for a period of twelve (12) months, on a monthly basis commencing on April 1, 2018, Ocwen shall provide a detailed reporting of each escrow account relating to loans secured by residential real property in Connecticut that includes each receipt and disbursement within the preceding month for borrowers in Connecticut.
7.
Financial Condition:  No later than thirty (30) days from the date this Consent Order is issued by the Commissioner, OFC shall submit a written plan demonstrating how it will remain a going concern for a period of one (1) year from the date this Consent Order is issued by the Commissioner (“Financial Condition Plan”).  The Financial Condition Plan, at a minimum, must take into account, in accordance with Generally Accepted Accounting Principles, all known and reasonably anticipated future liabilities including, but not limited to, costs of necessary audits and anticipated regulatory, law enforcement, or other litigation liabilities or costs exceeding one million dollars ($1,000,000) arising from any final orders/judgments or settlements and must also demonstrate how OFC will comply with all applicable liquidity and capital requirements.  An additional update shall be provided every six (6) months going forward for a period of three (3) years, unless the Commissioner releases OFC from this requirement earlier.  OFC shall notify the Commissioner if and when any event occurs that could materially impact OFC’s financial condition, including, but not limited to, any actual or anticipated liabilities or costs exceeding five million dollars ($5,000,000) or if OFC drops below or projects to drop below any applicable liquidity or capital requirement, within ten (10) business days of the occurrence of any such event(s).  OFC will further submit the following reporting for monitoring compliance with the Financial Condition Plan, with these reporting requirements to be in effect for the period of three (3) years and one (1) month from the date this Consent Order is issued by the Commissioner:
a. Monthly financial statements that track actual earnings compared to forecasted earnings during the same time period, to be submitted to the Commissioner for each month on or before the last day of the following month;
b. A monthly liquidity report that demonstrates daily liquidity tracking with forecasts on liquidity positions over thirty (30), sixty (60) and ninety (90) days, to be submitted to the Commissioner on or before the fifteenth (15th) day of each month;
c. A monthly report documenting compliance with internal policies and procedures governing limits on exposure to market risk, including, but not limited to, interest rate risk, to be submitted to the Commissioner for each month on or before the last day of the following month; and
d. A quarterly Going Concern Analysis, which shall include covenant and capital reporting that tracks any and all financial or regulatory covenants OFC is obligated to comply with and whether OFC remains in compliance with those covenants, to be submitted to the Commissioner forty-five (45) days after the end of each calendar quarter, with the exception of the last quarterly report for each calendar year, which shall be submitted ninety (90) days after the end of such quarter.
8. Cease and Desist Requirements:  No later than the date this Consent Order is executed by Ocwen, Ocwen shall not act as a mortgage servicer or consumer collection agency in Connecticut without a license, in violation of Sections 36a-718 and 36a-801(a) of the Connecticut General Statutes, respectively.  Ocwen agrees to pay a monetary penalty of One Hundred Thousand Dollars ($100,000) if it fails to comply with such requirement for any office location as further provided in paragraph 15.  In addition, OLS shall not violate Sections 36a-498e(7), 36a-716(a), 36a-719d(b), 36a-719h(2), 36a-719h(4), 36a-719h(5), 36a-719h(17) and 36a-719e(2) of the Connecticut General Statutes.
9. Loss Mitigation Outreach Event:  During 2018, Ocwen shall partner with one or more non-profit organizations to participate in one loss mitigation outreach event in Connecticut and shall partner with local housing counselors to implement a targeted loss mitigation mailing campaign designed to benefit at-risk Connecticut borrowers.  Ocwen agrees to pay a monetary penalty of Fifty Thousand Dollars ($50,000) as set forth in paragraph 15 for failure to comply with this paragraph.
10. Complaint Representative:  No later than the date of execution of this Consent Order by Ocwen, Ocwen shall identify:  (a) an employee with sufficient knowledge and expertise to work directly with the Department to address written complaints from Connecticut borrowers and/or any other complaints brought to Ocwen’s attention by the Department, and (b) a senior executive in its Compliance, Legal or Ombudsman Department to handle any matters requiring further escalation.
11. Quarterly Complaint Reporting:  Ocwen will provide a quarterly report to the Commissioner listing all new written borrower complaints received by Ocwen during the preceding calendar quarter and updates regarding the progress of processing previous complaints until those complaints have been resolved.  The report will also include a summary of the resolution for closed complaints, including any remediation provided to the consumer.  The first report is due on April 15, 2018, and fifteen (15) days after the end of each subsequent calendar quarter, with the last report due on January 15, 2020.
12. Escrow Hotline:  Ocwen will develop a dedicated escrow hotline where Connecticut consumers can direct escrow related inquiries.  This hotline will be staffed by United States-based personnel and will be available weekdays (excluding holidays) from 9:00 a.m. Eastern Standard Time to 5:00 p.m. Eastern Standard Time.  Ocwen shall implement the hotline in a manner so that it is operational not later than March 1, 2018 and maintain the hotline for a period extending three months following the date of transfer of all Connecticut residential mortgage loans from the REALServicing platform to Ocwen’s new servicing platform.  Ocwen will include the hotline telephone number on periodic monthly billing statements for all Connecticut borrowers during the period in which the hotline is required to be operational.
13. Notices:  All reporting information, whether provided by the independent third-party auditing firm or Ocwen, shall be directed to Carmine Costa, Director, Consumer Credit Division at carmine.costa@ct.gov, or at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800.  Any notice to Ocwen pursuant to the terms of this Consent Order shall be provided to Michael Hollerich, Chief Compliance Officer, Ocwen Financial Corporation, at michael.hollerich@ocwen.com, or at 16675 Addison Road, Addison, Texas 75001.
14. Consent Not Unreasonably Withheld:  Whenever an extension to a deadline is requested from the Commissioner pursuant to the terms or conditions of this Consent Order and Ocwen demonstrates that it has made its best efforts to comply with such deadline, consent to such extension shall not be unreasonably withheld or delayed.  No extension of a deadline will be granted for a reason which is known or reasonably foreseeable by Ocwen at the time of its execution of this Consent Order.
15.
Potential Monetary Penalties:  a.  Subject only to the opportunity of Ocwen to meet and confer with the Commissioner, Ocwen consents to the immediate entry and imposition of the following monetary sanctions:
i.
Ocwen shall pay Fifty Thousand Dollars ($50,000) to the Department in the event that Ocwen fails to:
A. Complete the loss mitigation outreach event, as further described in paragraph 9 above, by December 31, 2018; or
B. Submit the final report for the Escrow Account Disclosure Statement Review as further described in paragraph 6 above on or before March 1, 2019.
ii. Ocwen shall pay One Hundred Thousand Dollars ($100,000) to the Department in the event that Ocwen acts as a mortgage servicer or consumer collection agency in Connecticut without a license from any office location during the eighteen (18) month period commencing on thirty (30) days from the date of issuance of this Consent Order by the Commissioner; and
iii. Ocwen shall pay Two Hundred Fifty Thousand Dollars ($250,000) to the Department in the event that Ocwen fails to transfer all Connecticut residential mortgage loans from the REALServicing platform onto a new servicing platform by April 30, 2020, as further described in paragraph 1 above.  The failure of Ocwen and its new servicing platform vendor to provide to the Commissioner an affidavit of compliance with such deadline by May 7, 2020 shall constitute noncompliance with this provision.
b. The Department shall provide written notice to Ocwen of any such violation and the corresponding monetary sanction shall be remitted by wire transfer, cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut” no later than forty-five (45) days after the Department and Ocwen have conferred regarding the violation.  Ocwen, knowingly, willfully and voluntarily waives its right to an administrative notice and an opportunity for a hearing set forth in the Connecticut Uniform Administrative Procedure Act and any right to seek judicial review of such penalties.  Furthermore, such penalties shall be in addition to any other remedies that the Commissioner may seek for a violation by Ocwen of this Consent Order or any provision of the general statutes or any regulation within the jurisdiction of the Commissioner.


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The terms set forth above be and are hereby entered;
2. Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against OLS, OBS, OMS, OFC and OFSPL based upon the allegations set forth herein or the findings of the Escrow Account Audit conducted in accordance with paragraph 2 above; provided that the issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against OLS, OBS, OMS, OFC or OFSPL based upon intentional misconduct in violation of law uncovered as a result of the Escrow Account Audit or a violation of this Consent Order or the matters underlying its entry, including representations made in response to the Report of Examination issued by the Department with an examination end date of October 26, 2016, if the Commissioner determines, following an opportunity for Ocwen to meet and confer, that compliance with the terms herein is not being observed or if any representation made by OLS, OBS, OMS, OFC or OFSPL, and reflected herein is subsequently discovered to be untrue;
3. Subject to the foregoing, and so long as this Consent Order is promptly disclosed by OLS, OBS, OMS, OFC and OFSPL and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of OLS, OBS, OMS, OFC or OFSPL to apply for or obtain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, Part VII of Chapter 669, Sections 36a-715 et seq., of the Connecticut General Statutes, and Part XII of Chapter 669, Sections 36a-800 et seq., of the Connecticut General Statutes, provided all applicable legal requirements for any such license are satisfied;
4. This Consent Order shall be binding upon OLS, OBS, OMS, OFC and OFSPL and their successors and assigns; and
5. This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 31st day of January, 2018.               ______/s/__________
                                                       Jorge L. Perez
                                                       Banking Commissioner

I, Timothy M. Hayes, state on behalf of Ocwen Loan Servicing, LLC, that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Ocwen Loan Servicing, LLC; that Ocwen Loan Servicing, LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Ocwen Loan Servicing, LLC voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.

                                                 By: ________/s/___________
                                                       Name:  Timothy M. hayes
                                                       Title:  Executive Vice President
                                                       Ocwen Loan Servicing, LLC
                                                      

State of:  U.S. Virgin Islands

County of:  St. Croix

On this the 26th day of January, 2018, before me, Randall J. Belsvik, the undersigned officer, personally appeared Timothy M. Hayes who acknowledged himself/herself to be the Exec. VP of Ocwen Loan Servicing, LLC, a member managed/manager managed limited liability company, and that he/she as such EVP, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the limited liability company by himself/herself as EVP.


                                                     __________/s/___________
                                                     Notary Public  
                                                     Date Commission Expires:


I, Patricia Ann L. Guilatco, state on behalf of Ocwen Business Solutions, Inc., that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Ocwen Business Solutions, Inc.; that Ocwen Business Solutions, Inc., agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Ocwen Business Solutions, Inc., voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.

    By: ________/s/___________
         Name:  Patricia Ann L. Guilatco
         Title:  President
         Ocwen Business Solutions, Inc.


State of:  ________________________

County of:  Pasay City

On this the 26 day of January, 2018, before me, ____________________________, the undersigned officer, personally appeared Patricia Ann L. Guilatco who acknowledged himself/herself to be the President of Ocwen Business Solutions, Inc., a corporation, and that he/she as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as Patricia Ann L. Guilatco.

In witness whereof I hereunto set my hand.

 __________/s/___________
 Notary Public  
 Date Commission Expires:  December 31, 2018

I, Timothy M. Hayes, state on behalf of Ocwen Mortgage Servicing, Inc., that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Ocwen Mortgage Servicing, Inc.; that Ocwen Mortgage Servicing, Inc., agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Ocwen Mortgage Servicing, Inc., voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.


 By:  ______________________________________
 Name:  Timothy M. Hayes
 Title:  Executive Vice President
 Ocwen Mortgage Servicing, Inc.

State of:  U.S. Virgin Islands

County of:  St. Croix

On this the 26th day of January, 2018, before me, Randall J. Belsvik, the undersigned officer, personally appeared Timothy M. Hayes who acknowledged himself/herself to be the Exec. VP of Ocwen Mortgage Servicing, Inc., a corporation, and that he/she as such EVP, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as EVP.

In witness whereof I hereunto set my hand.

 ______________________________________
 Notary Public
 Date Commission Expires:

I, Ronald M. Faris, state on behalf of Ocwen Financial Corporation, that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Ocwen Financial Corporation; that Ocwen Financial Corporation agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Ocwen Financial Corporation voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.


 By:  ______________________________________
 Name:  Ronald M. Faris
 Title:  President and Chief Executive Officer
 Ocwen Financial Corporation

State of:  Florida

County of:  Palm Beach

On this the 25th day of January, 2018, before me, Linda J. Ludwig, the undersigned officer, personally appeared Ronald M. Faris who acknowledged himself to be the President & CEO of Ocwen Financial Corporation, a corporation, and that he as such President & CEO, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Ronald M. Faris.

In witness whereof I hereunto set my hand.

 __________________________________________
 Notary Public
 Date Commission Expires:  February 20, 2019

I, Timothy M. Hayes, state on behalf of Ocwen Financial Solutions Private Limited, that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Ocwen Financial Solutions Private Limited; that Ocwen Financial Solutions Private Limited agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Ocwen Financial Solutions Private Limited voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.


 By:  ______________________________________
 Name:  Timothy M. Hayes
 Title:  Director
 Ocwen Financial Solutions Private Limited

State of:  U.S. Virgin Islands

County of:  St. Croix

On this the 26th day of January, 2018, before me, Randall J. Belsvik, the undersigned officer, personally appeared Timothy M. Hayes who acknowledged himself/herself to be the Exec. VP of Ocwen Financial Solutions Private Limited, a corporation, and that he/she as such director, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as director.

In witness whereof I hereunto set my hand.

 __________________________________________
 Notary Public
 Date Commission Expires: 

Administrative Orders and Settlements