[Ed. Note. This post was updated May 2017 with important new information for homeowners.]
As a thousands of people displaced by illegal foreclosure practices struggle this snowy winter, Bill Erbey is getting paid to resign. Talk about a kick in the pants for homeowners and Ocwen employees.
Ocwen, the nation’s largest non-bank residential mortgage servicer, has been in a great deal of trouble lately. Record fines. Allegations that it backdated notices to homeowners so that they could not exercise their rights to seek loan modifications and a myriad of other foreclosure abuses. The result has been a drastic drop in Ocwen’s stock value and that means layoffs.
We don’t think Ocwen’s employees are evil. Quite the contrary, it’s the company’s corporate culture and what we call it’s c-suite mafia. And who is the capo of the organization, Ocwen’s chairman, Bill Erbey.
As part of a deal with New York state regulators, Bill Erbey is stepping down as Ocwen’s chairman. We think that is a good thing for both homeowners and Ocwen employees. The one sad note is that Erbey’s departure is earning him hundreds of thousands of dollars.
For simply leaving, Erbey will reportedly receive $725,000 in severance pay, almost $500,000 in “relocation” benefits and lifetime health insurance.
Ask any homeowner losing their home if they are getting $475,000 in relocation benefits.
Ask any laid off Ocwen employee if they are getting lifetime health insurance or $725,000 in severance pay.
The jury is out on whether Ocwen will survive. With Bill Erbey gone, its chances are probably much better but there still many broken promises that need to be mended. We suspect there is a great deal of fraud as well.
Disgruntled current and former employers of Ocwen or its affiliates may qualify to earn substantial awards under the federal False Claims Act for original source (inside) information about fraud involving federally backed programs such as FHA, Fannie Mae and Freddie Mac insured loans.
We are investigating reports that Ocwen has been involved in several different types of fraud including misapplied payments from homeowners and overcharging for property safekeeping services. These charges are passed along to the loan guarantors and ultimately taxpayers.
A whistleblower with inside information can receive up to 30% of whatever the government collects from wrongdoers. Employees and even vendors or contractors may also be eligible for whistleblower anti-retaliation protections.
For more information, please give us a call. We have brought three, billion dollar whistleblower cases within the financial services industry to date. Obviously, not every case is that large but each case we bring is equally important.
Think you may wish to become a whistleblower? Contact attorney Brian Mahany at or by telephone at (414) 704-6731. All inquiries protected by the attorney – client privilege and kept in complete confidence.
May 2017 – Did you lose your home because of improper loan servicing or foreclosure practices? If you are a present or former Ocwen customer, you may qualify for compensation. Please visit our Ocwen compensation and investigations page.