ocwen loan servicing llc, massachusetts, assurance

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CIVIL ACTION COVER

SHEET

TRIAL C

OURT or MASSAC

I

IUSCTIS

SUPEHIOR COURT

DEPARTMENT

COUNTY: SUflfOLl{

Oc,ven Loan Servicing, LLC

PL.AiNTIFF{S)

Commonwealth ofMassaclrnsetts

DEIFENOANT(S)

ATTORNEY, FIRM NAMt, ADDRESS AND TELEPHONE

Olenn Kaplan, AAG, Office of he Attorney General

1 Ashburton Place, l 8U1 Floor,

Boston lVIA 021 OS

617-963-2453

BBO# 567308

Pl?.cc

ao

x iu one bo. only:

[ X

I

J.

FOL

Origin11l

Complaint

f

I 2.

F02 Removal

fo

Sup.Ct.

C..231.s.104

I 4. F04 DisMct Court Appeal c.231, s. 97 &104 (After trial ) (X)

I

5. F05 Reactiv:i(ed aftet· rescri.pt;relief from

judgment/

Order (Mnss.R.Civ.P.

60) · (X)

un~~

M

J 3. FOJ

Rotransti 1·

to Sup.Ct.

C.231

. .<;. l02C. (X)

L ] G Eto

Sumnrnry Process Appeal (X)

l '

l>E

OF

ACi'[QN

ANll TRACK UESlGNA'flON (See ,·everse side)

CODE NO, TYPE OF ACTION (specify) Tlv\CK

IS THIS

4

JURY CASE?

E99 Misc Other (specify) X track

A.,surance

ofDiscontinmmce,

pursuant

to

G.L. c, 93A

§5

Yes/No

No

The

following

is a full, itemized

and

detailed

statement of

the facts

on

·which

plaintiff

relies to

determine

mon~y

damages. For

this

form, disregard double

or

treble damage

claims; i ldicate

single datmig€s only.

A.

B

C.

D.

E.

F .

(Attach

ndditiom1I

Documented medical

expenses to dutc:

1. Total hospital e:;;L)eo cs

2. Tofal

Dottor

expenses

3. Total chiropractic expenses

4-. Total physical therapy expenses

5

Total

other

expenses {describe)

TORT CLAIM£

hcets as nccessut-y)

Documented lost walf~S and compeo ·ation

to

date

Oocumentctl property damage to dntc

Reasoa~biy ant.iclpalc.d future medical

and

hospital expenses

R~ason~1bly anticipated Jost wages

Other documented items

of

damnges (describe)

Subtotal

$

s ·

- - ·- ---- ----

$,

s·

---

----

$

.--- -

$

.-~-~~-~

G.

Brief

description

of

plaintiffs

injury,

in

duding nature and

extent

of

in.Jury (describe)

$

_____

_ _

Totai S

L\

CONTRACT CLAIMS

(Attach

additional

sheets as necessal-y)

Provide a deta,iled

description

of claun(s):

TOTAL

NIA

·$ ..............

PLEASE IDENTIFY,BY ASE NUMBER, N, ME A,;,'\/J) COUJlt-i'Y, ANY RELATED ACTION

PENLUNG

lNlHE Ul.'ERIOR

COURT

DEPART 'l-fENT

I hereby certify

lhatl

han complird with the requirements of Rule 5 of 1he Supre me Jud icial Com't niform Rule l on Dis1rntcRQsolutiun (SJC

Ru le 1:18) J"cquiriug that I provide my clients with information about court.co

nn

clccl ili

putc

rt$Olution scrvi n ~nd ilisi:us t•,ith thcoi rh

1lll va n W;_ CS and disad,•:mtagcs of the v111i

ou

me1fth."

Sign11luruofAt1orncynfRecord ~-;<.. .:,'

Date:

JI.me

12,2014

A. O.S.C.

3-20

07



COMMONWEALTH OF l\.1ASSACHUSETTS

SUFfOLK, ss.

SUPERlOR

COURT

DEl?ARTivJENT OF 'fHE 'llUAL

COUR'r

14-1899 e ~

CIVJL ACTION

NO.

In

rn.

Ocwen Loan Servicing LLC

ASSURANCE OFDJ:SCONTINU.AN 'E .JUI-

,

:f

1

f

URSUANT TO G.L.

CIMPTER

93A

r.,:N · 1

1

rr

1L11r' ·· 1.11'-'IL

N

j r.·1.,i-j~.2l

,k

,J:r·I I r.v I

•.,

I·

I INTRODUCTIO -

,1t<: Myir

.1

T1t>

,l'F:_ _

1.

I>urslliil1t

to provisions of

the

Mas::mclm<,;e1.ts

011stu11er ·

1

rotei;tiou Ac' ,

G. L.

c. 9 A, § 6

the Commonweal-th

of Massa.ch.usctts

(the

'CC0mmonwealth")

by and through Attorney General

Maitha Coakley,

conduc1ed a11

invest.igation of tl1e fore

lotmry of Lno1tgages Ot.l Massaclrnsells

properties serviced

by Ocv{en

oan Servicing LLC ("Ocwen") a:nd,

in particular,

of

he

assignments executed

by

Ocwen

with

respect to

such propert

ies

and

of

lh

e

not ices

of

defou

It

provid d byor on bo:lbalf of Ocwcn to Massachusetts homeowners. Additionally, the

Corumonwealll1 co.ntluc ted 1:1n invesiigati u of unlawful foreclosures i·1.itiated or adva.11c~d by

Litton

Loan Servicing Limit

i:.:d

Partnership

("Litton··) where

the

foreclosing

entities we.re not the

transferee:-, asi::ignees, m,dJ t J,oldei:s

ofi

he rn.ortgage at il1e lime

of

the publication of lhe fo st

notice of snle pursuaut to

GL.

c. 244, 14 (hereinafter " be investigations;). At all l'elevaut

fanes,

Ocwen

is

1he

su

.ccesso

-in-inte.rest

to

Litton.

2.

In.

resolntio:u of

U1ese

i.ssue-

s,

and taking

into

tonsidetation

Oowen.'s

acsistan.ce and

cooperation,

I.he

Office

of

the Attorney General (the "AGO") agrees to accept this Assurance of

Page 1

of9



I isco11lim.mnce ( A

OD

) on the ienns a

ml

conditions co ntained herein.

Th

e

AG

O ond OcweL1

voluntarily

e

nter int{ thls AOD.

II.

STATEMENT

Oll

LLEG TIONS

3. This

AOD

is

made

without

any

trial or adjudication or finding

of any

issue

of

fact t law,

and

is

i10t

a

final otder of

any court. Ocwen enters into

this AOD

for settle1n~nt purposes

only

and neither

admits nor denies

the AGO's

allegations.

4.

Prior

to foreclosing on Ocwen~serviced tn;ortgages on Massachusetts homes, Ocwen

executes

assignments

of

mortgages

on

bel1alf

of

the

assignors and/or their nomi11ees.

As

a

result

of he investigations, the Attorney General alleges thaJ certain assignments of mortgage exec1,1ted

by Ocwen

and

filed in the Massachusetts Registry of Deeds were not properly executed, fo

violation ofM

. G. L c. 93A, section 2.

5.

Prior

to foreclosing

on

Ocwen-serviced mortgages

on

Massachusetts

homes, Ocwen

provides notice

to

the homeowners

of

default, which includes a stated period during which the

homeowners

are

permitted

to

cure

the

default.

As

a

result

of

th~ investigations,

the

Attorney

Genetal alleges

that

ce1:tafo notices of defau lt 1nailed

by

Oc\ven t reside11ts .of the

Conuuonwealth

of n s.saclrnsetts

di

rl not fo y

comply v;; Jth

appli

cahl e

statutes

rmd tegl1 la

tians

conceming the opportunity provided to the

borrower

to cure the default, in. violation

of

M. G.

L.

c. 93A, section :2

,

6, As a result of he inve Stigations, the ttorney General alleges

that

Littoh initiated or

advanced foreclosures

tesulting

in

completed

foreclosure

sales where

th(}

fdteclosing

-entity

was.

not

the

a<,signee;

transferee, and/or holder of

the mortgage at

the tithe

of

th~ publfoation.of the

first

notice of

sale pursuant to G.L. c. 244, §

4

( Unlawful Foreclosure i).

Tlus co~1d,uctres:ulted

Page f



in void foreclos

ur

es where title to the uufawfu

y foreel.osed

upon

real property v,ras rendered

neither m

ar

ketable, nor insu

rab

le.

Ill. TERMS

OF

THE

AGREEMENT

7.

The AGO agrees that

it will

not

file

this agreement until such time as the

United

States

Distri ct Court for the District ofWashingtOll, D.C. has approved entry

of

a Consent Judgment

resolvi.rtg claims by

the

Cort:unonwealth and munerous other states and federal agencies (the

National Settlement ). For purposes of clarity, the Consent Judgment is anticipated to be filed

on

December 19, 2013. Should

the

Consent Judgn1ent not be filed

by

January 15, 2013, the

AGO

may in

its

discretion rescind this AOD.

8.

At a date

to be

agreed upon

\Vi th the

AGO

but in

no circumstances later

than

five business

days after the filing of this AOD, Ocwen shall pay a total of$3,700,000,

of

which $3,000,000

shall be paid

to

an independent trust ( Fund ) for purposes

of

making payments as set

fo1th

in

this AOD. This payment shall be separate

and

apart from, and not altered by, any amount l)aid

y

Ocwen in

the

National Settlement.

The Fund

shall be overseen

y

an independent trustee

( Tiustee')) to be mutual ly agreed

upon by

the

AGO

and Ocwen (neither party shall

1U1reasonably ,:,,ithhold con.seJ1t

wi1hin three business days

of

the filing

ofthis AOD. f

he

AGO

and Ocwen are unable to agree on

the

identity

of

the Trustee, the AGO shall choose the

Trustee in its sole discretion. The Trustee shall deposit the

Fund

into interest

bearing

accounts;at

the

direction

of

the

AGO

such that all

of

the funds

are

folly guaranteed

y

the Federal Deposit

Insurance Corporation

or the United States Department

of

the

Treasury.

The

Trustee

will

make

investments of

and disbursements from

the

Fund only with the consent

of

the

AGO and

may vary

from the investment criteria of this paragraph only with the consent

of

the AGO. The Trustee

shall

distribute the monies as directed y the

AGO

for co11Sumer relief to homeowners who were

Page of 9



foreclosed on

y

Ocwen or received notices

of

default

from

Ocwen, and, pursuant

to ]\ LG L

c.

12 §4A, for implementation of this AOD and related purposes at the sole discretion CJf and in a

manner

prescribed by,

the

AGO.

9.

\Vhcn it makes payments to homeowners the Trustee shall include a cover Jetter

accompanying

such payment.

Such

cover letters shall be drafted

by Ocwen

and

provided to the

AGO

.in

advance for the AGO's

approvals.

The final ·wording

of

such

cover

letter shall be

approved y the

AGO before

stich

cover letter is delivered and

the

accompanying

payment

is

made

. 10. Tvm years after the date of this AOD, the Trustee shall cancel any remaining uncashed

or

returned

checks for payments

sent

to homeowners, and

pay

the

sum of

cancelled checks

a.nd

ny

and all

interest generated

on the Fund to

the

AGO. Between

the date

( Receipt

Date )

that the

Trustee

pays

the sum of

the

cancelled checks and interest generated

on

the

Fund

( Residual .

Funds ) to

the

AGO

and

three years

from

ei1lry of the AOD, the

AGO

shall

hold

the Residual

l?W1ds

in

an

interest bearing account.

Between the

Receipt Date and three yeru·s from entry

of the

AOD, at the AGO's

discretion,

the

AGO

shall

release

available funds

to

the appi:opriate

ho1neowners.

If

any

of he

Residual Funds, including any interest generated

on

the Residllal

Pm1ds, paid pursuant to

this

paragraph remain

in

the

AGO's possession

as

of

three years from

entry

of

this A.OD Ocwen agrees

that the

AGO

shall retain said

funds as

a grunt from Ocwen

l lder M.G·.L.

c.12, §

4A to pay any uncornpensuleu

implementation

costs

of

the

AGO under this

AOD and

for investigation and

mediation of related financial

services issues. OC\ven

agre~s that

the AGO may,

in

its

sole

discretion, transfer

any p01tion

of his grant to the general fund of he

Commonwealth.

Page

4 of9



11. In com1ection with the Commonwealth's Uhl awful Foreclosure claims; the remaining

700,000 shall

be

paid to the Conuncmwealth

of

Mru;sachusetts, ptu-suant

to M G L c.

12

§

4A,

to be distributed

by

the Attorney General, at her sole discretion for investigation, mediation, arrd

enforcement ofrelated consurner issues or as a grant

to

the general fund

of

the Commonwealth.

IV

COOPERATION

12. Ocwen shall fully cooperate with the AGO in: its implenier1tatio11 of this AOD. Ocwen

agrees to respond to reasonable requests frorn the Attorney General for

fofom1ation

or

documentation related to

the

implementation of this AOD.

V SERVlCER STANDARDS

13.

In

addition to

any standards

established by the National

Settlement,

Ocwen agrees to

comply with the

follo·wing

standards

related to

Massachusetts mortgages serviced

by

Ocwen:

(1) Foreclosure documents Assigrun.ents and

other

documents

filed

in connection

with foreclosure proceedings in Massachusetts wjll be signed by the Ocwen employee

whose name apJ:5ears on the document and; if notarized, will be sl gned in front of he

Notary Public whose name appears on the document, all such signatlu·es

to

be affixed

priol'

to

the initiation of any

foreclosui:e proceeding;

(2) No/ice

ofdefim t.

All notices

of. llcfauH JJI OViclt:.Ll

by

lr 11

behalf of Ocwen

\\rilJ

coru1)ly

wilh

the

P.rovl ions

of

G.

L

c.

244,

secti

35A.

VI

RESOLUTION OF

CLAIMS AS TO

LITTON LOAN

SERVICING Lll\fiTED PART NERSIDP

14

With respect to loans serviced

by Litton

where an Unlawful

Foreclosui>e occun-ed,

to

be

identified by the Attorney General, Ocwen ,vill undertake an-investigation as to the status of

Page

df9



those loans antl determine whether it curren1ly bns or has ever llacl servicing rights as

tu

those

loans. For l

ofill.S

which Ocwcn cuucntly bas or pi:cviously had

servicing

rights

(U1e ~ldenl.ified

Loans,,), Ocwen will undertake best e(101is 1.o determine whether corrective act i

on

hos been

completed, curing any title defocts ~esu l

ti.ng

frm :n (he Unlawful Forec osur<:.

15. For Identified Loans as

to

which no con·ective ac io11bas been taken, or col1'cctivc aclio.n

lrns not been completed., Ocwen

will

uudertf.lkc bes1 efforts to correct the

Unlawful ForeclosLlre

and eusure 1hal

lht:

chain

of

itle

to.

the affected

real

propeity is

rnarkciaule

aml

irumrable.

Such.

con:cctivc action muy incluJe, t Li::rnul

1:imite<l.

to,

outaining

a release

deed fron1 the

prcvi0\.18

mmtgagor, junior lien

holders or any intc

·csicd

party; ascertaining whether proper title bas

been

or may be conveyed

by

completi(m

of

a f01:eclosure by entry; completing a reforeclosuro Ott the

ptoperty; facilitating authoriz..1.tion from the cuneni no te bolder to allow the assignee of the

erroneously forcelosed mortgage the abHity to reforeclose on the mortgage.

l 6. For Identified Loans where in1'urnnc

e

coverogo

exists to c

Tect the

Un I awfu.1

Foreclosure, Ocweu may call upon lbe iJ1surer to assist in any correcti

ve

action.

17.

Jn

the

eveutfuat MassacJrnsetts

enacts legislation

th ::it

provide.,; a statutory means

for

foreclosi:ug parties to cure

pr

iol invafol or uuJawfol

.COrec1osu

res, Lhen Otwen sh.all

be

pemultcd

to

use the

cuTc

mechanism provided by the statu

te.

18. Ocwen will jmmediately undertake c01T0ctivc action and use it-: bestef

fo1 t'3

to complete

the corrective action in a timely mrumer. 00wen agrees

to

prov ide qµarterly J'epo.rts to

1he

Attorney Oeneral 011 tbc·status

of

the corrective action with respect to lhe Identified l~oans.

V

. RELEASE AND MISCELLANEOUS PROVISIONS

19

. 111e A

GO

will no

l

proceed \viih

oi: institute

a

civil

action or proceeding. based upon

M.G.L,

c. 93A or any other statute or reg

ulatio

. , or common law, against Ocwen,

its

patent

Page 6

of



corporations,

affiliates,

subsidiaries and

subdivi.~ions, officers, employees

or

shareholders,

as

well as any of its successors, assigns, and/or pmchasers

of

all

or

substantially all of its assets, for

Ocwen s

conduct p1ior to the

entTy of

this

AOD

rela

.ted to the execution or

recordation of

assignment of

mortgage

or tl1e

sending

or

failure

to

send

of ally

required notices 1 )ertaining

to

foreclosure. Provided, however, that nonvithstanding the terms of his release

and of

any other

provision

of this A.OD this re~ease shall not apply to, or preclude any action brought by the

Attorn.ey General

to

enforce Oc,ven s obligations contained in

thisJ\OD

and shall

not

apply to;

Obligations

of

Homeward Residential Holdings, Inc. pursuant to the Settlement

Agreement entered

into

between American

Home

Mortgage Servicing,

Inc.

< 1nd the

Comn:i.onwealth

ofMassachnsetts w.ith an

effective date

ofNovernber

G

2011.

Further,

in the event ilmt

Ocwen

voluntarily transfers the servicing

of the

Identified Loans, the

obligations set

forth

in

Section

VI

of

this AOD

shall be assumed

by any

tnmsfercc or

successor-

in-interest.

n

the event of an irivoluntary transfer of servicing, Ocwcn agrees to use its

best

efforts

i)

to

complete

conective

action to cure

any

title defects resulting from

the

Unlawful

Foreclosure

prior

to

the

transfer of

servidng

or (ii) to request the transfer

of

servicing for

the

Identified Loan

be delayed so as to

allow

Ocwen to complete

the

corrective action described

in

Section VI.

20. All of the documents produced

by Ocwen in

response to

the

i nvestigation ancl/or

at

the

request of the AUorney

General

or the

Attorney

Gc11craFs

staff

are exempt from

disdosu:te

pursuant

to G.

L.

c. 93A, section 6 (6).

f

he Attorney General is required

by

any

court

order or

government

agency to produce

any such

document >, the Attorney General shall

promptly

notify-

Ocwen

of the

ordered

disclosure at

least

thirty 3 0) days prior to th0 disclosure,

or

if he

order

Page 7 of



L:equires

disclosure in less thnn 30 days, ns soon as

1)racticahlc

prior to ihc ordered

di..sclosure,

so

bat

Ocweumake

::;eek jw.Iicial intcrvcnli0n.

21. The AOD ( .Ons1itu(cs the entire agreement between the AGO and Ocwen and sup~rsedes

any prio1 communicalion, 1.mdetstru1ding., or agreements, whether writ1en or oral, co.nceming tb~

subject mailer

of

the AOD. Thi~: AOD can be modified or

:i1. ippleu1entcLI

only by a

written

docwnent sig:ne-ll by ,ill

parties,

exc;ept.

thattime dendlines in

paragraph 8of

this

A.OD ma)r

be

extended or

modified,

as

<let<:.mnined y lhc

AGO in

i1 s soJe

discretion.

Amendments

or

sup_p

emruHs rn~y

be ex.ecute<l

in

sepfttalc

cmmterpn.rrs,

witb sig11atmcs con.v~yed

y

mail m· hy

fausimile, electronic mail, or oilier clectronia. means.

22. ·nus OD may be signed inmnJUpJe

cotmterpmts,

ea(;b

or

which

wi

ll be con side.red an

orlgina.1 and

al]

of which, when

considered

together, will

constitn

l:e

a whol

e. This AOD will 1;,c

effective upon

ex_ecut

iop by aJl parties bere;to

.

23: Ocwen

and 1he AGO

represent

ru1d

watra.nt

thnt

th

ey hnvcihe full

legal power,

ca~acity,

and authority to bin.d the

parties

fol.

whicb,

they are

executing lhis AOD.

24. This AOD and itsprovisions will be effective on the date that

it

is filed

in

the Superior

Comi for

811ffoJk

County.

25. Dy i:;igning

bclow,

OC wen ;;tgrees

lo

comply with

all

of

the

terms

of

this

AOD

.

Any

violation

of

this AOD may be pursued h a civil aotiou or proceeding under G.L. c. 93A. hcreaUer

commenee-ll by lh~

AGO.

Page 8

of



Office

of

the

A~orney

General for

M assachusctts

./ /

By: _ d:.. .__ Pr

Glenn

Iup

lau (BAO 567308)

AsslsiantAllo iney

Gerieral

One As

11bu

rt0n Place

Boston, MA 021

OS

617

-

727-22.

00

Ocwen Financial Corporation 1md

Ocwen L<R_n

Servi<1iqg

LLC

·].

rt):

Irv

l L

13

..

L_:__\.

v \i° '- r-

) .

i \

\

Name: Timatl,yM. Hayes

Bx.eculn1c

Vicc-Prcsic1ent and General

C

ou

nsel

2002 S wn.mit Bl rd F l 6

Atlau la GA 30319-15 O

Pagc

of

ocwen loan servicing llc, massachusetts, assurance

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