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ยป VISIT US ONLINE @ DSNEWS.COM 83 NEW YORK Ocwen Receives Industry Support Despite its legal troubles, Ocwen Financial Corp. continues to see support. Altisource Port- folio Solutions S.A. recently issued a press release regarding the news that Ocwen Fi- nancial Corp., based in Atlanta, is working on a possible transaction with New Residential Investment Corp, basedin New York. If the deal goes through, New Residential is to convert some of its existing rights to mortgage servicing rights (MSRs) to fully owned MSRs. is agreement would be a win-win for Altisource since it provides various fee-based services on an exclusive basis to Ocwen and has invested substantial resources into providing these services. Altisource is a services provider for the mortgage and real estate industries. e Altisource press release stated that it views the efforts between New Residential and Ocwen as a positive development that may help reduce uncertainty. Altisource's support may seem to go against the grain of what's played out in the headlines in recent months. In April, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Ocwen, alleging years of widespread errors, shortcuts, and more that caused borrowers money and/or their homes. e lawsuit also alleges that Ocwen illegally foreclosed on struggling borrowers, ignored consumer complaints, and sold off servicing rights loans without fully disclosing the mistakes it made in borrowers' records. In a prepared statement, Lauren Saunders, associate director of the National Consumer Law Center (NCLC), said it's important for regulators to keep financial providers accountable for how they conduct business. e NCLC sent out a press release highlighting the news that the Texas Department of Savings and Mortgages followed the CFPB's lawsuit with a cease-and- desist order against the entity's West Palm Beach, Fla. subsidiary Ocwen Loan Servicing, LLC, joining 24 other states. Ocwen was ordered to immediately cease acquiring or originating new residential mortgages or mortgage servicing rights until the company can prove that consumer funds are being collected appropriately, properly calculated, and disbursed accurately and timely. "People have no choice of the mortgage servicer that handles their loan, and yet the servicer's misconduct can cause families to lose their homes," Saunders said. "at is why vigilance by the CFPB and state regulators is so important to send a message to financial service providers that misconduct will not go unpunished." RBS Plans to Settle Litigation Royal Bank of Scotland (RBS) CEO Ross McEwan has stated that the bank is in talks to settle one of the two major U.S. investigations into allegations it mis-sold mortgage-backed securities. e bank had previously felt a reprieve in the case following the firing of acting Attorney General Sally Yates. As head of the U.S. Department of Justice, Yates was in charge of any potential settlement with the U.K.-based bank in connection to its sale of toxic mortgage-backed securities (MBS) leading up to the 2008 financial crisis. e bank, which has offices in New York and throughout the U.S., was one of 18 financial institutions sued by the Federal Housing Finance Agency (FHFA) in 2011 to recoup U.S. taxpayer costs following the government's $187.5 billion bailout of Fannie Mae and Freddie Mac in 2008. McEwen stated that the bank could settle a lawsuit by the Federal Housing Finance Agency (FHFA) apart from another investigation by the Department of Justice (DOJ). e DOJ investigation has been stalled due to the changes in the U.S. government since President Trump's election, Reuters reported. "ey are quite separate ... and we are in discussions with them and we are not in discussions with the DOJ other than them still seeking information," McEwan told reporters at bank's annual shareholder meeting in Edinburgh. RBS had previously settled for $85 million in regards to charges by the Commodity Futures Trading Commission that its traders tried to manipulate a critical benchmark in the interest rate swaps market for more than five years. RBS has set aside a total of $8.3 billion in litigation "provisions" to date. "Putting our legacy litigation issues behind us, including those relating to RMBS, remains a key part of our strategy," McEwan said previously. "It is our priority to seek the best outcome for our shareholders, customers, and employees." New York REDUCING TIMELINES THROUGH EXPERIENCE. Providing Default Real Estate Solutions Since 1988. Todd Yovino Broker/Owner Island Advantage Realty, LLC Serving Metro New York & Long Island Todd@iarny.com | 631-820-3400 www.islandadvantage.com