Q&A: Why are they allowed to be in business? Ocwen Mortgage has a Jumbo Class Action Lawsuits pending from 1999,?
Question by Annie N: Why are they allowed to be in business? Ocwen Mortgage has a Jumbo Class Action Lawsuits pending from 1999,?
Why is Ocwen continuing to be allowed to lend mortgages to USA Citizens, when they have over 500 class action lawsuits filed and all were rolled into a jumbo class action lawsuit? We didn’t sign with Ocwen, but were sold to them before we signed the mortgage papers. “U.S. Federal Government Lawsuit(s): According to OCWEN’s SEC filing, they are being sued by the U.S. in the amount of $ 700 million +. Suits arose after one of their subsidiaries filed for bankruptcy protection in the District of Delaware Bankruptcy Court for that amount – $ 700 million in debt. Here’s the part the Feds and the investors are upset about: This subsidiary transferred ASSETS to OCWEN just before filing on their liabilities. That’s called a fraudulent conveyance. According to the SEC and OCWEN’s own report, their net worth is $ 325 million–oops not enough to satisfy the Feds and investors.” Why is the Federal Government Allowing them to ripoff US Citizens?
Answer by Perdendosi
Well, remember a lawsuit isn’t proof of anything — it’s just an accusation.
And the people they’re “ripping off” aren’t their customers, it’s their shareholders. So borrowers aren’t being screwed.
If there’s truth to the allegations, then the SEC / DOJ will bring their own action (a la Worldcomm and Enron). But they can’t exactly shut down the businesses.
What do you think? Answer below!