Federal Trade Commission | FORECLOSURE FRAUD | by DinSFLA

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WSJ | Ocwen Financial Discloses FTC Probe

WSJ | Ocwen Financial Discloses FTC Probe


MARCH 3, 2011, 5:09 P.M. ET

By RUTH SIMON

Ocwen Financial Corp. said it is under investigation by the Federal Trade Commission, which has asked the mortgage-servicing company for information about its employee training, debt-collection practices, loan modifications and foreclosure procedures.

The Atlanta company, one of the largest home-loan servicers in the U.S., received a formal legal request from the FTC for documents in late November, Paul Koches, executive vice president and general counsel at Ocwen, said in an interview. Ocwen is “fully cooperating” and is “not accused anywhere of any wrongdoing,” he added.

“We are taking it as informational and are providing the [requested] information,” Mr. Koches said. In a securities filing Monday, Ocwen said it had received a “civil investigative demand” from the federal agency.

Continue reading … Wall Street Jounal

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Assignee Liability in the Secondary Mortgage Market

Assignee Liability in the Secondary Mortgage Market


“Rather, the ASF’s concern is the ad hoc body of federal and state law that currently subjects innocent secondary market assignees to liability.”

Interesting point:

Shifting the burden for predatory practices from cheated subprime borrowers to passive investors and other subprime borrowers simply shifts the burden of predatory practices among innocent parties

Irony!

The primary market actors directly responsible for harmful predatory practices already are subject to extensive, if sometimes ineffective, government regulation.
Position Paper
of the
American Securitization Forum
June 2007
snip…………………………………………
It is important to remember that, although the holder-in-due-course doctrine constitutes an important protection for innocent assignees, it does not afford an absolute protection to all assignees. In order to benefit from holder-in-due-course status, an assignee must take the loan in good faith and cannot have actual or implied knowledge of a variety of loan defects, including that the loan was originated through fraudulent means. Courts will also deny holder-in-due-course status to an assignee that has such a close connection with the originator that the originator effectively is an agent of the assignee35 or where knowledge of the originator’s wrongdoing can be imputed to the assignee on some other basis, such as joint-venture or aiding-and-abetting theories.36 In addition, assignees that engage in wrongful conduct themselves in connection with mortgage loans are subject to potentially serious liability under a variety of federal and state legislation.37

The ASF does not contest the scope of liability under these laws for secondary market assignees that are culpable. Rather, the ASF’s concern is the ad hoc body of federal and state law that currently subjects innocent secondary market assignees to liability. This body of law lacks coherence and is often internally inconsistent, in part because the perception that assignees must be held responsible for the sins of loan originators becomes more politically salient during periods of turmoil in the housing market. At such times, there is a tendency for lawmakers to turn to the secondary market as the deep pockets available to compensate for the failure of regulatory authorities to effectively oversee and punish those loan originators that engage in illegal conduct.

[scribd id=31537423 key=key-uf1x4o961w4b16kg012 mode=list]

Posted in concealment, conspiracy, foreclosure, foreclosure fraud, forensic loan audit, hoepa, securitization, tilaComments (0)


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