Many people all over the world have asked why U.S. government regulators did not stop predatory and subprime problems before the mess developed into a worldwide crisis. Allow us to demonstrate how a recent debacle at Walter Reed and an uproar over the V.A. and veteran’s health care was no accident. Clearly the federal government has no clue, regardless of what Senate Banking Committee Chairman Chris Dodd thinks.
My case in point is Ocwen and the Department of Veteran’s Affairs:
Pay attention to the dates. This will probably make you mad, or at least remind you of the famous hurricane Katrina statement “… a heck of a job Brownie.”
January 2006 — Plaintiff lawyers are currently seeking class action status for 57 federal cases being consolidated in Chicago and the West Palm Beach company says it is facing 331 lawsuits altogether.
March 5, 2005 — Guzman vs. Ocwen Federal Bank — $3,000,000 Jury Award Against Ocwen
Why: The evidence included making up numbers for payoffs with the numbers dreamed up so high that they insured a foreclosure posture instead of payoff, forgery (YES FORGERY) of forbearance agreements, and testimony from two employees saying that the business of Ocwen is to create foreclosures by any means. The second suit involved a deceased individual and her estate in San Antonio which was settled out of court 15 minutes after Guzman (same Guzman as the Corpus Christi case) was voir dired (sic) before the court but before his testimony was restated before the jury.
April 2004 — Ocwen Federal Bank, which was based in Fort Lee, N.J., signed a written agreement with the U.S. Office of Thrift Supervision, agreeing to improve its compliance with the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. Shortly thereafter Ocwen disposed of their Federal Bank instead.
Now Look: March 14, 2006 — The U.S. Department of Veterans Affairs (VA) has selected a subsidiary of Ocwen Financial Corporation to provide servicing of the commercial loans related to the construction and redevelopment of multifamily transitional housing for homeless veterans.
And August 28, 2003 � From the Department of Veterans Affairs website: WASHINGTON � Following a two-year effort to compare private-sector offers with its in-house operations, the Department of Veterans Affairs (VA) will contract out the management of foreclosed properties it acquires under its home loan program to Ocwen Federal Saving Bank of West Palm Beach, Fla. Reference: http://www1.va.gov/opa/pressrel/pressrelease.cfm?id=652
You can decide if this is V.A. problem, a federal government problem, or if the entire system is broken. I retired from the Marine Corps after 25 years, and have no respect nor any use for the Department of Veterans Affairs.
My friend Nancy retired from the Army after 20 years of service. Less than one month after retiring the V.A. put her in the system and tossed her back out, claiming she missed appointments we knew nothing about, thus everything was her fault – not theirs. Did the V.A. take the time to study Ocwen? We report – you decide.