New York’s top bank regulator asked Nationstar Mortgage LLC for information about “explosive growth” in its mortgage-servicing business, citing hundreds of consumer complaints about the company’s practices.
New York’s top bank regulator asked Ocwen Financial Corp. for information about potential conflicts of interest between the firm and its vendors as it seeks to buy $39 billion of home loans from Wells Fargo & Co. Ocwen shares tumbled 7 percent.
Ocwen Financial Corp., the mortgage servicer whose planned purchase of contracts from Wells Fargo & Co. was halted last week by New York regulators, is seeking to raise about $136 million by selling notes tied to fees from managing a pool of government-backed loans.
Regulators should slow or stop the rapid growth of nonbank mortgage servicers to protect homeowners and ensure the firms can handle the increased business, according to New York’s top financial regulator.
Nationstar Mortgage Holdings Inc., the mortgage-servicer majority owned by Fortress Investment Group LLC, agreed to settle a lawsuit in New York in which it was accused of auctioning loans without notifying investors.